Nothing moves at Clark; 'Pinoy Big Brother' revives Centennial Expo

The incentives impasse at the Clark Special Economic Zone in Angeles, Pampanga has virtually stopped the flow of new investments in the area but the former US military air base still has a lot of business opportunities to offer. Executives of Clark Development Corp. (CDC) are aware that the zone sits on a sprawling property over an area that will ultimately host the country’s future premier airport and serve as new mecca for tourists.

Clark’s main economic zone consists of the 2,200-hectare international aviation facility, 335 hectares of tourism area 266 hectares of industrial lots and 81 hectares of residential complex. The sub-zone, meanwhile, occupies 28,000 hectares that are being transformed into an agro-industrial area with a housing site that will support the main zone. The sub-zone will be the site of an entertainment center, facilities for light industries, a water dam and a large-scale arboretum and nursery.

Clark, in addition, hosts the controversial Philippine National Centennial Exposition (Centennial Expo). The expo, which served as centerpiece for the commemoration of the country’s 100th anniversary of independence on June 12, 1998, has become almost a white elephant after former President Joseph Estrada discontinued the exhibits in the facility. Its 35,000-seat capacity amphitheater occasionally serves as venue for concerts and ecumenical services.

‘Pinoy Big Brother’

The Centennial Expo, however, will soon resurface into the consciousness of the Filipino masses. CDC has clinched a deal with ABS-CBN Broadcasting Corp. to host the grand final of “Pinoy Big Brother” on Dec. 10. The popular reality show will telecast its final show on Centennial Expo and pick the winning contestant, the one who will manage to survive for over a hundred days locked up in a house without making contact with the outside world. CDC edged Araneta Coliseum, which almost bagged the deal.

But Pinoy Big Brother is a one-shot deal and unless more concerted efforts are made, the Centennial Expo will become one huge relic that can only be appreciated a hundred years from now. A source noted that CDC could negotiate with investors to lease the facility and easily earn billions from it.

The grapevine, meanwhile, said potential projects at the Clark Special Economic Zone are quickly shot down because of the management style of CDC board chairman Rizalino “Roy” Navarro. The former chief of the Department of Trade and Industry has made it a point that no project will be implemented in Clark unless the board unanimously approves it. The CDC board, as it turns out, can not pass one major project because at least one board member always poses an objection to it. A simple majority decision is not enough for the board to carry out one single project.

The grapevine said the Centennial Expo, for one, could be transformed into a regular showcase of Filipino art and culture and made part of the itinerary of the scores of Korean and Japanese tourists directly flocking to Subic and Clark. Plans were also afoot to transfer the Manila zoo to Clark but typical bureaucracy in the CDC board led by Navarro and president Antonio Ng put the project in limbo.

Incentives lack

The incentives stalemate at Clark is more worrisome to foreign investors than the impact of soaring oil prices on their businesses. A recent consultation between the DTI and foreign and local investors revealed that the issue of the scrapping of tax incentives for Clark locators was their top business concern.

The Supreme Court issued a 32-page unanimous decision nullifying Section 5 of Executive Order 80, as well as Section 4 of the Bases Conversion Development Authority Board Resolution 93-05-032, which had allowed CDC to grant the same tax and duty-free privileges available at the Subic Bay Freeport.

The high court ruling means that the 627 locators at Clark could no longer enjoy fiscal incentives such as income tax holidays and duty-free importation of raw materials.

E-mail: rayenano@yahoo.com or business@manilastandardonly.com