MANILA, Philippines–At least 11 local and foreign investors are keen on developing portions of the 9,450-hectare Clark Green City in Pampanga, which is being touted to become the “international business hub of the Southeast Asian Region,” the Bases Conversion Development Authority (BCDA) said on Thursday.
In an interview with reporters, BCDA president and CEO Arnel Paciano D. Casanova said that of those interested, at least four were foreign investors, which could negotiate directly with the agency for the areas being offered under the first phase of the project. He was, however, quick to add that although negotiations were allowed to pave the way for the entry of foreign investors, agreements would still require the approval of President Aquino.
The first phase of the Clark Green City project, which will see the development of the first 1,300 hectares of the property covered, is expected to generate some P59 billion worth of investments from international and local private sector proponents. The 1,300-hectare property will be divided into several lots or packages.
Casanova declined to identify the interested parties but major property developers such as Ayala Land Inc. and Megaworld Corp. have earlier expressed intention to look at the prospects offered by the Clark Green City.
AL AHLI Holding Group (AAHG), a highly diversified conglomerate based in the United Arab Emirates, is also interested in the tourism and entertainment projects in the special economic zone.
According to Casanova, AAHG is hoping to seal its first contract for the Clark Green City within the first quarter this year.
Among the companies that the BCDA wants to attract for the project are local and foreign real estate developers, industrial park builders, township builders, and institutional developers.
“We’re looking more on the economic value of the projects. The BCDA being a state enterprise, has the mandate to be an economic catalyst, and if there’s a development that would put the Philippines in a more competitive position in the region, then we will pursue that venture,” Casanova said.
The BCDA chief noted that the agency pre ferred to forge joint ventures with private sector proponents to be more transparent. At the same time, the risk will be shared between the government and the private sector.
“We did a lot of transactions such as sales and leases and the most successful was the Bonifacio Global City, which was developed through a joint venture. When the private sector partner shares the risk, the probability of success is usually higher. This will also allow the government to have a say in the running of the company,” he further said.