Broad powers for SBMA, CDC eyed

A BILL empowering the Subic Bay Metropolitan Authority (SBMA) and Clark Development Corp. (CDC) to develop special economic zones in Luzon has been filed in the Senate.

According to Sen. Richard Gordon, author of the bill, legislative proposal was aimed at promoting investment and creating more business opportunities in the areas surrounding the Subic and Clark.

A law providing such power to SBMA and CDC was also necessary so that the country could maximize and implement the potentials of the major pieces of infrastructure in Luzon the airports in Subic and Clark the seaports in Subic and Manila.

Under Senate Bill No. 1840, SBMA and CDC shall have the authority to develop other special economic zones in Luzon, and to manage and operate them. To fulfill such a function, two agencies shall also be given the power to borrow funds from local and international institutions, or to raise money through bond issues or issuance of other securities.

“The State must be aggressive ion taking advantage of the strategic infrastructure in Subic, Clark and Manila as international transportation hubs.” Gordon said in the explanatory note of his bill.

“The development of special economic zones in the municipalities nearby, bordering the highway and railway and connected to the airports and seaports in Subic, Clark and Manila must be encouraged as this will bring jobs to the people… and a promote a rising standard of living and an improved quality of life for all,” he added.

The Senator, who was former chair of the SBMA, said the development of more economic zones would decentralize economic development and thus decongest the overcrowded key cities in Luzon, particularly those in Metro Manila.

The bill, aside from granting authority to the SBMA and CDC to develop ecozones, also seeks to provide other powers to the two organizations. These include, among others, setting of minimum wage and imposition of strike moratorium in businesses to be located in ecozones, to enter into joints ventures or other investment activities to raise funds, and to establish subsidiaries.

The bill also seeks to empower the two agencies with authority and grant various incentives to businesses that will locate in the economic zones.

The bill is perceived to be in response to the ongoing row between the Bases Conversion Development Authority, which oversees CDC, and Camp John Hay Development Corp.

Michelle V. Remo