Defining the Powers and Functions of the Subic Clark Alliance for Development Council

April 10, 2008

EXECUTIVE ORDER NO. 504-A

DEFINING THE POWERS AND FUNCTIONS OF THE SUBIC CLARK ALLIANCE FOR DEVELOPMENT COUNCIL (SCAD COUNCIL), AMENDING EXECUTIVE ORDER NO. 504 (S. 2006), AND FOR OTHER PURPOSES

WHEREAS, The Subic Bay Metropolitan Authority (SBMA) was created by law as the authority over the Subic Bay Freeport Zone (SBFZ), and the Clark Development Corporation (CDC) was created as an operating and implementing arm of the Bases Conversion and Development Authority (BCDA) over the Clark Special Economic Zone (CSEZ); ACcHIa

WHEREAS, on 21 June 2001, the BCDA, SBMA, CDC and the Department of Trade and Industry (DTI) entered into a Memorandum of Understanding (MOU) creating the Subic-Clark Alliance Development (SCAD) Task Force, their policy-making body in their integrated development program with the SSEZ and CSEZ and the corridor between them, to be known as the Subic-Clark Alliance Development Program;

WHEREAS, on 30 June 2004, the President declared as one of the ten-point legacy agenda of the Arroyo administration that the Subic-Clark corridor shall be the most competitive international service and logistics center in the region; DACIHc

WHEREAS, Executive Order No. 365 (S. 2004) created the Office of the Presidential Adviser on Subic-Clark Area Development and defined its functions;

WHEREAS, Executive Order No. 478 (S. 2005) placed the BCDA and its subsidiaries and attached agencies under the policy supervision of the Department of Trade and Industry, amending Executive Order No. 365 (S. 2004);

WHEREAS, Executive Order No. 504 (s. 2006) created the Subic-Clark Area Development Council, repealing Executive Order Nos. 365 (S. 2004) and 478 (S. 2005);

WHEREAS, Administrative Order No. 150 (s. 2006) renamed the Subic-Clark Area Development Council to Subic-Clark Alliance for Development Council;

WHEREAS, Executive Order No. 516 reverted the supervision of BCDA from the Department of Trade and Industry to the Office of the President, amending Executive Order 504 Section 5 (S. 2005);

WHEREAS, Executive Order No. 561, series 2007, authorized the formation of the Super Regions and mandated the creation of, among others, the Luzon Urban Beltway composed of most of Central Luzon, National Capital Region (NCR), Calabarzon, Mindoro, and Marinduque;

WHEREAS, there is a need to strengthen and enhance the powers and capabilities of the SCAD Council as the single body with a full-time head to rationalize resources and harmonize strategies that will ensure an integrated and coordinated approach to the development of the SCAD corridor as a world-class mega-logistics hub and a global gateway to the Asia Pacific Region; ISEHTa

WHEREAS, there is a need to clearly define and state the powers and functions of the SCAD Council and the Office of the Chairman in order to effectively deal directly with the concerned agencies under its supervision, namely: Bases Conversion and Development Authority (BCDA), Subic Bay Metropolitan Authority (SBMA), Clark Development Corporation (CDC) and Clark International Airport Corporation (CIAC);

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law and the Constitution, do hereby order:

SECTION 1. Powers and Functions of the SCAD Council. — The SCAD Council shall perform the following functions:

a. Formulate policies and programs to develop Subic, Clark, and the corridor in between them as globally competitive Mega Logistics Hub;

b. Review, identify and recommend priority infrastructure projects for implementation; caIETS

c. Formulate common investment promotions activities;

d. Harmonize in the SBFZ and CFZ such programs, policies, rules and regulations affecting investments, incentives, customs, immigration, leasing, privatization, and other matters necessarily related thereto;

e. Perform such other functions as may be authorized.

SECTION 2. Composition. — The SCAD Council shall be composed of the following:

a. Chairman, to be appointed by the President, with Cabinet rank, and who shall be a member of the National Economic and Development Authority (NEDA);

b. Secretary of Trade and Industry — Vice Chairman;

c. Chairman, BCDA — Member;

d. Chairman, SBMA — Member;

e. Chairman, CDC — Member;

f. Chairman, CIAC — Member;

g. President, BCDA — Member;

h. Administrator, SBMA — Member;

i. President, CDC — Member;

j. President, CIAC — Member;

SECTION 3. Powers and Functions of the SCAD Council Chairman. — The SCAD Chairman shall be a full-time head of the Council to rationalize resources and harmonize strategies that will ensure an integrated and coordinated approach to the development of the Subic-Clark corridor and achieve its objectives. The office of the SCAD Council Chairman shall have the following duties and functions: ScTIAH

a. To act as the Chief Executive Officer of the SCAD Council;

b. To obtain the participation of strategic partners, domestic or foreign, from the public or private sector, to spur the growth and development of Central Luzon;

c. To obtain the required participation, support and assistance of all relevant government agencies and entities as well as concerned local government units in the formulation of the development as well as the implementation of the key components of the said program;

d. To represent the Office of the President in dealings with offices, agencies and instrumentalities of the Government and with persons and entities, public or private, domestic or foreign, insofar as contributory to the development of Subic, Clark and the corridor in between them as a globally competitive international service and logistics center; and

e. To exercise such other powers, functions and duties as may be directed by the President insofar as the development of the Subic-Clark hub is concerned.

SECTION 4. Policy Oversight. — The Office of the President, through the SCAD Council Chairman, with Cabinet rank, shall exercise policy oversight over the Bases Conversion and Development Authority (BCDA), Subic Bay Metropolitan Authority (SBMA), Clark Development Corporation (CDC), Clark International Airport Corporation (CIAC) in so far as the development of Clark, Subic and the Corridor between them into a major logistics hub in concerned.

SECTION 5. SCAD Council Staff. — The SCAD Council Chairman shall have staff support to carry out his functions.

SECTION 6. Role of Local Government Units, Departments, Bureaus, Offices, Agencies, and Instrumentalities. — All heads of Local Government Units within the coverage of SCAD Corridor, departments, bureaus, offices, agencies, and instrumentalities of the government are hereby directed to give full support to the SCAD Council to expedite the implementation of the various programs and projects towards the attainment of the SCAD vision. aHDTAI

SECTION 7. Funding. — The 3 agencies (SBMA, BCDA, and CDC) shall allocate from their respective yearly budgets an amount approved by the Department of Budget and Management for the SCADC Budget as their contributions. This fund shall be released every first week of January of the year to which it corresponds.

SCAD Council shall have the authority to generate its own revenues or funds and to disburse its own funds in accordance with government accounting rules and procedures.

SECTION 8. Repealing Clause. — All other executive issuances, orders, rules and regulations or parts thereof inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 9. Effectivity. — This Executive Order shall take effect immediately. SDHTEC

DONE in the City of Manila, this 10th day of April in the year of Our Lord, Two Thousand and Eight.