Reclassifying the Clark Industrial Estate 5 as an International Center of Commerce, Industry, Leisure and Recreation, and Amending EO No. 716, Series of 2008, for this Purpose

June 4, 2019

EXECUTIVE ORDER NO. 81

RECLASSIFYING THE CLARK INDUSTRIAL ESTATE 5 AS AN INTERNATIONAL CENTER OF COMMERCE, INDUSTRY, LEISURE AND RECREATION, AND AMENDING EXECUTIVE ORDER NO. 716, SERIES OF 2008, FOR THIS PURPOSE

WHEREAS, Republic Act No. 7227, otherwise known as the "Bases Conversion and Development Act of 1992," declares it a policy of the Government to accelerate the sound and beneficial conversion into alternative productive uses of the Clark and Subic military reservations, and to enhance the benefits to be derived from these areas in order to promote the economic and social development of Central Luzon in particular and the country in general;

WHEREAS, Executive Order (EO) No. 716 (s. 2008) declared the Clark Industrial Estate 5 (IE5) as a logistics center and mandated, among others, that the Clark International Airport Corporation (CIAC) shall only engage in aviation, aviation-related services and aviation-related logistics activities;

WHEREAS, EO No. 14 (s. 2017) reiterated that the CIAC shall only engage in civil aviation, aviation-related services and aviation-related logistics activities within the Clark Civil Aviation Complex and the Clark IE5 areas, and directed that for all other business activities, prior approval of the Department of Transportation (DOTr) and Bases Conversion and Development Authority (BCDA) should be secured;

WHEREAS,the Clark Special Economic Zone (CSEZ) and Clark Freeport Zone (CFZ),including the IE5, has attracted international attention and interest as the Asia-Pacific Region's emerging premiere hub for aviation and international logistics, as well as an international center for commerce, industry, leisure and recreation;

WHEREAS,the expansion of the permitted activities allowed in the IE5 and the reclassification thereof as an international center for commerce, industry, leisure and recreation, are vital to the development of the entire Clark area as a globally competitive international commercial center in the Asia-Pacific Region; and

WHEREAS,Section 17, Article VII of the Constitution provides that the President shall have control of all the executive departments, bureaus and offices, and shall ensure that the laws are faithfully executed;

NOW, THEREFORE, I, RODRIGO ROA DUTERTE,President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

SECTION 1. Reclassification of the Clark Industrial Estate 5.— The IE5 area, measuring approximately 290 hectares, is hereby reclassified as an international center for commerce, aviation, logistics, industry, leisure, and recreation, without prejudice to any rights and interests under existing contracts, leases and business arrangements covering areas within the IE5, which have been lawfully entered into by the CIAC, prior to the effectivity of this Order.

SECTION 2. Authority of the CIAC.— The CIAC is hereby authorized to enter into lease agreements and similar business arrangements covering the IE5 for a broad range of commercial, industrial, leisure and recreation-related activities.

For all other business activities, prior approval of the DOTr and BCDA shall be secured.

SECTION 3. Separability Clause.— If any provision of this Order is declared invalid or unconstitutional, the remaining provisions not affected thereby shall continue to be in full force and effect.

SECTION 4. Repealing Clause.— All orders, rules and regulations, or other issuances inconsistent with this Order are hereby repealed or modified accordingly.

SECTION 5. Effectivity.— This Order shall take effect immediately.

DONE in the City of Manila, this 4th day of June, in the year of Our Lord, Two Thousand and Nineteen.

 

Published in the Official Gazette, Vol. 115, No. 24, p. 5821 on June 17, 2019.