The state-run Clark Development Corp. is drawing up new guidelines on land leasing for Clark Freeport Zone and Clark Special Economic Zone, citing the need to widen private-sector participation in the redevelopment of the former US military base.
The property is now generating huge interest among the country’s largest developers.
In a statement Monday, the CDC said the new guidelines would define the maximum size of land that investors could lease in this growth hub in Pampanga and Tarlac while ensuring transparency in awarding property deals.
“The guidelines that we will introduce will determine how much land each investor can lease for development purposes. Our primary objective is to open up Clark to more investment opportunities, both foreign and local. More importantly, the guidelines will ensure more transparency in dealings with government, and provide a level playing field in business, which is a trademark of the Aquino administration,” CDC president Felipe Antonio Remollo said in a statement.
Remollo said that CDC had been leasing property to prospective private investors for the past 18 years.
In evaluating and improving on its current leasing procedures, the CDC vowed to ensure that the redevelopment program for Clark would contribute to economic recovery and growth, apart from easing poverty incidence in the country.
“The size of land to be leased per investor will be determined by the CDC in conjunction with BCDA (Bases Conversion and Development Authority), the DoF [Department of Finance] and subject to the approval of Malacañang, based on standard criteria such as minimum investment commitment, performance track record and proposed economic activity. We will lease only as much land as the investor is capable of developing within a reasonable period of time,” said Remollo.
The CDC is a subsidiary of the state-owned BCDA, which is in charge of developing former military property into economic centers and investment locations.
Remollo said the maximum land size for lease may be increased for justifiable reasons, such as when the investment is a priority, or a preferred productive endeavor, or is necessary for public service.
“The CDC may also increase the maximum size of land for lease in special cases, such as when by reason of the magnitude of the investment or the nature of the proposed economic activity, a bigger tract of land may be necessary for the viability of the investment,” said Remollo.
“It is timely because of the growing interest of both foreign and local investors to locate in Clark,” Remollo said.
According to the CDC chief, land leases in Clark are expected to attract businesses and industries that may generate immediate employment and livelihood opportunities, particularly for Central Luzon.
It was earlier reported that the country’s biggest property developers were keen on investing in large-scale projects in Clark. The SM, Ayala and Gokongwei groups are looking at vast property projects.
The CDC earlier awarded to Megaworld Corp. a contract to develop a 550-hectare parcel of land in Clark.