The Subic Clark Alliance for Development

and the SCAD Corridor

A Presentation to the SPECIAL COMMITTEE ON BASES CONVERSION

ByLinda B. Pamintuan

Executive Director, SCAD

5 February 2014Congress of the PhilippinesHouse of Representatives

Outline

1. Agreements and Issuances Creating and Defining Subic-Clark Alliance for Development Council

2. Composition of the SCAD Council3. Vision/Mission4. Projects from 2006-20105. Projects from 2011-present6. Current Role of SCAD7. Gaps and Challenges

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Agreements and Issuances Creating and Defining SCADC

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Memorandum of Understanding between Department of Trade and Industry (DTI), Bases Conversion and Development Authority (BCDA), Subic Bay Metropolitan Authority (SBMA) and Clark Development Corporation (CDC) creating SCAD Program.

EO 365 was issued defining the functions of the President Adviser for the Subic-Clark Area Development.

EO 504 created the Subic-Clark Alliance for Development Council (SCADC).

EO 504-A defined the powers and functions of SCADC amending EO 504.

19 June 2001

27 September 2004

1 February 2006

10 April 2008

The SCAD Council

1. Chairman - concurrent Chairman of the Bases Conversion and Development Authority

2. Vice Chairman - concurrent Chairman of Clark Development Corporation

3. Chairman and Administrator of the Subic Bay Metropolitan Authority

4. Alternate Chairman of the Clark International Airport Corporation – concurrent Secretary of the Department of Transportation and Communications

5. President of Bases Conversion and Development Authority6. President of Clark Development Corporation7. President of Clark International Airport Corporation8. President of North Luzon Railways Corporation

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Vision

A world-class Mega Logistics Hub that provides seamless delivery of goods, services, people and

information to and from the production, manufacturing and trading centers of the country, which will serve the

Asia-Pacific Supply Chain.

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Mission

To enable the integrated and sustainable development of the Subic-Clark-Tarlac Corridor as the Philippines' main

gateway, bringing in investments and generating employment, thus improving the quality of life in the

Corridor and its environs, in line with the principles of good governance, accountability and transparency, and public-

private partnerships set by the national leadership.

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Projects

• Benchmarking missions to other logistics hubs• Consultations with logistics industry players• Coordination with international agencies and firms

that could provide grants in the development of a master plan and a business plan for the Subic-Clark Corridor.

• Lobbying for the granting of Freeport Status to Clark Special Economic Zone

• Development options for the DMIA Gateway Project• Registration of SCAD Corporation with SEC

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2006

Activities

• Monitored the development of:– SCTEX– New Subic Container Ports 1 and 2

• Resolved issues and concernswww.scadcouncil.com

2006

Projects

Harmonization of Policies and Procedures for Subic and Clark

Major Successes in:• Immigration • Customs • Quarantine• Business Registration

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2007-2010

Projects – 2007 -2010

• Customs– Implemented the electronic Transit Admission Permit

(e-TAPS) in December 2008– Bureau of Custom’s (BOC) approval of importer/

exporter on-line accreditation by mere CDC/SBMA endorsement

– Migration of BOC’ import permitting system to electronic to mobile (e2M) system

– Electronic Export Declaration System (EEDS). – Agreement for Clark and Subic to pilot study the

electronic Certificate of Origin (eCO)

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Harmonization of Policies and Procedures

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BEFORE PRESENT Procedures/Steps 6 1

Signatures 6 0

Time Average 96 hours/4 days 2 minutes

Form/s to be presented to Bureau of Customs (BOC) upon arrival of cargo

4 1 (for Direct Discharge Subic/Clark)2 (for Discharge Manila)

Cost of delivery of documents to SBMA/CDC and Port of Discharge

Php175/set of documents Php55 for VASP charges

Underguarding (BOC to accompany cargo to Clark/Subic)

Php1,500/containerChoice between underguarding and General Transportation Surety Bond

(GTSB)

Electronic Transit and Admission Permit System (ETAPS)

Projects – 2007-2010

• Immigration– Implementation of new Subic-Clark Immigration

System in October 2009– Establishment of One-Stop-Shop (Immigration

Center) in Clark and Subic, October 2009.

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Harmonization of Policies and Procedures

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Subic-Clark Immigration System

BEFORE PRESENT

Documentary Requirements

Average 12 Average 4

Processing Time Average 7 2 days(Endorsement: 8 hours;

Issuance: 8 hours)

Cost Average US$ 150 Average US$ 75

Processing Office 4 Offices(Freeport, DOLE, BI Region

III, BI Central)

1 Office(One-Stop Shop)

I-Card Issuance Central Office (Manual Processing)

One Stop Shop (AutomatedProcessing)

Projects – 2007-2010

Harmonized Business Registration System in Subic and Clark

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Harmonization of Policies and Procedures

Projects

• SCAD Mega Logistics Forum Series• Inbound and Outbound Trade Missions• Benchmarking Missions• Advocacy for the Open Skies Policy for Clark• Communications program to inform the public about

SCAD, Logistics and the Corridor

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2007-2010

Projects

One of the objectives of SCAD then was to develop a Master Plan for the SCAD Corridor (Tarlac, Pampanga, Bataan and Zambales).

Terms of Reference- completed.

But because of the lack of funds, the SCAD Council decided on developing it by phase.

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2007-2010

Projects

• Subic-Clark Conceptual Land Use Plan (SCOLUP)• Metro Clark Area (MCA) Framework Plan• Metro Subic Area (MSA) Framework Plan

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2007-2010

Projects – 2007 -2010

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Subic-Clark Conceptual Land Use Plan (SCOLUP)

Tarlac - Land HubClark - Air HubSubic - Sea Hub

Projects

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Metro Clark Area (MCA) and Metro Subic Area (MSA) Framework Plans

Metro Clark Area (MCA) Framework Plan

Metro Subic Area (MSA) Framework Plan

UncertaintyLack of Funding

SCAD Council directive:

Concentrate on harmonization and coordination functions

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Since 2011…

Projects- 2011-present

• Trade Facilitation - Customs, Immigration and Quarantine » Electronic Cross-Border Information Exchange

• Tourism Development» Subic-Clark Tourism Roadmap» Tourism Road Infrastructure Projects under the DOT-DPWH

Convergence Program» Tourism Packages

• Harmonization of the Business Start-up and Registration System for the BCDA Group, AFAB and SBMA• Marketing of the Port of Subic Bay • Investment Promotions

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Focus is on the following projects:

Projects – 2011 - Present

eZ-Biz – The Harmonized Business Start Up and Registration Systems in the BCDA Group, SBMA and AFAB

– eZ-Biz has 7 steps with an estimated 20 working days or less.

– It will have common: • Processing Duration• Final Documents• Registration Fees• Documentary Requirements

– 40-80% Improvement in processing duration (days)

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New Business Start Up and Registration ProcessStep Activity Duration

1

Submission of Letter of Intent (LOI)a/ and other required documents

1 day

by the Investor to the IPA:a.Application Forma/, with Feasibility Study/Business Plan

(if and as required)b.Project Brief/Company Profile (Resume of Principal Officers)c.Notarized undertaking and anti-graft certificatea/ d.Board Resolution of Duly Authorized Representativee.SEC Registration and Articles of Incorporation

f.Proof of Financial Capability/Assets - Bank Certification of Credit Line or Deposits, Paid Up Capital, Assets

g.Audited Financial Statements for last 3 years of operation, if applicableh.Proposed/Existing Site Development Plan/Location Map -if and as required

2

Evaluation (of Investor and Proposed Business) by the IPA

5 daysa.Review by Individual Evaluation Committee Members (all concerned

departments) - Background check, etc.

b.Evaluation Committee Meeting (Presentation/Approval of the Proposal)

3 Preparation of Evaluation Report by the appropriate IPA Department/Unit 1 day

4Finalize Lease Agreement 1 day

Final Review by Investor

5Board Deliberation and Approval (including securing of initials)

10 days *Materials : Draft Contract, Evaluation Report

6

Notification of Project's Approval by IPA to the Investor

1 day Proponent prepares to submit all other necessary documents

required before signing of Lease Agreement and processing of Certificate of Registration and Tax Exemption

7Signing of Contract (Lease Agreement) between IPA and Investor

1 day Processing and Issuance of Signed Certificate of Registration and

tax Exemption (CRTE)20 WORKING DAYS

Current Role of SCAD

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Gaps and Challenges

• Funding• Uncertainty/Instability• No security of tenure for the staff

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Thank You!

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