HISTORY OF CLARK - The Clark Freeport Zone in Angeles City , Pampanga, Central Luzon is one of the more well-known among the Philippine Freeport Zones. Formerly known as the Clark Special Economic Zone, It covers a massive 28,000 hectares of property which used to be used by the United States Air Force back in the days when the United States maintained a significant military presence in the Philippines . At the time, it was known as Clark Air Base – the biggest air force facility of the US outside that country.

CLARK TODAY - Today, Clark is being promoted as a major hub for the Asian operations of various medium-sized and large companies. The Clark Development Corp. (CDC) is responsible for managing and operating part of the Clark Freeport Zone spanning 2,200 hectares (out of its total territory of 4,400 hectares.) The other 2,200 hectares (which encompasses the Diosdado Macapagal International Airport ) falls under the jurisdiction of CDC’s subsidiary Clark International Airport Corporation.

INVESTMENTS DELUGE CLARK - Around 389 foreign and domestic investors have relocated to and funneled around US$24.33 billion worth of investments into the Clark Freeport Zone since the CDC was formed in 1993. Investors operating within the zone undertook US$1 billion in exports in 2006 alone. Clark Freeport Zone currently employs more than 47,000 residents of Bulacan, Tarlac and Pampanga, serving as a vital economic engine for the surrounding population.

TAX AND DUTY INCENTIVES - The economic viability of the Clark Freeport Zone stands to improve further after President Gloria Macapagal Arroyo signed Executive Order 619 on April 16, 2007 . E.O. 619 will provide tax and duty incentives to duly-registered businesses that will relocate to “special economic zones” which will be carved out of the existing Clark Freeport Zone territory. These tax and duty incentives are the same as those previously available to investors under Republic Act 7916. Clark Development Corporation marketing manager Raffy Galvez disclosed that companies that opt to relocate within the Freeport Zone are granted “generous” tax breaks by the Philippine government. Corporate income tax for such companies is only equivalent to 5% of their gross income; usually, this tax amounts to a whopping 32%. Also, capital equipment and raw materials can be imported duty free. The Clark Freeport Zone itself will soon be renamed Clark Freeport Philippines , after President GMA approves Senate Bill 2260.

TAX AMNESTY FOR DELINQUENTS - Existing investors in the Clark Freeport Zone who have yet to pay their back taxes will benefit from the impending signing into law of Senate Bill 2259 which grants tax amnesty to those delinquent foreign investors.

100% FOREIGN EQUITY IN ENTERPRISES - Foreign investors (of any nationality) are now permitted to maintain 100% foreign equity in all areas of investment which they will set up in the Philippines – provided such companies are neither financial institutions nor are indicated in the Foreign Investment Negative List. This developed after the foreign investments law was liberalized. Furthermore, foreigners are now permitted to lease privately-owned lands from their Filipino owners for a maximum of 75 years. This boils down to an initial lease period of 50 years, with a possible extension of 25 more years.

BETTER THAN CHINA - Texas Instruments senior vice president Kevin Ritchie revealed that his company bypassed other competitive Asian countries such as Thailand , Viet Nam and China since the Philippines was able to offer quality labor and incentives. Semiconductor and Electronics Industries in the Philippines executive director Ernie Santiago pointed out that the choice of the Clark Freeport Zone of the Philippines proved that the overseas operations of American companies like Texas Instruments need not automatically be relocated to the usually-default choice which is China . Santiago said the Philippines has the skilled workers and has the capacity to offer the right incentives to draw in companies of this type. What the Philippines needs to work on is its ability to promote the advantages of operating in the Philippines to foreign investors, stated Santiago . This, in the light of the growing appeal of the Philippines because of its efforts to ensure nationwide financial stability.

NEW MEGAHIGHWAY IN CENTRAL LUZON - The Bases Conversion and Development Authority (BCDA) has started to focus on the construction of a key transportation pipeline named the Subic-Clark-Tarlac Expressway (also known as the SCTex). This superhighway is expected to directly connect the economic, industrial and tourism zones which can be found in Central Luzon: the Subic Bay Freeport Zone, the Clark Special Economic Zone, the Central Techno Park (found in Tarlac), and the Bataan Technology Park. Upon completion, this major road is expected to help cities and provinces that it passes through to become important participants in the government’s Global Gateways Development Program that aims to transform the Philippines into a globally competitive country. As a result, the Central Luzon region is projected to become even more economically important than Metro Manila, the nation’s capital.

FIRST-CLASS INTERNATIONAL AIRPORT – The vast expanse of space available in the Clark Freeport Zone proved to be a boon towards the development of a world-class airport. The Diosdado Macapagal International Airport (DMIA) occupies 2500 hectares, with two parallel runways each spanning 3.2 kilometers (that can easily be extended to 4 kilometers, if necessary.) This makes this international airport one of the largest in Asia . Large and wide-bodied aircraft can be effortlessly accommodated by the facility. Though the DMIA presently handles only cargo operations, it is projected to eventually become the main international gateway for every commercial aviation service in the Philippines – this is expected to further boost economic activities in the Freeport Zone.

LEISURE AND RECREATIONAL ACTIVITIES - Those who wish to simply enjoy their leisure time within the Zone may opt to patronize any of the 11 duty free shops inside its boundaries. Clark is also home to various bars and fine-dining restaurants, as well as the Mimosa Fontana Resort and Country Clubs which is known for its world-class golf courses. Visitors can choose to stay at either the Holiday Inn Clark, Mimosa, Montevista or Fontana Villas, the new Hotel Stotsenberg, Oxford Hotel or the affordable Clark Hostel – all located within the Zone. For those who are feeling more adventurous, they can select which particular activity raises their adrenaline levels the most - sky-diving, off-road driving, and an aerial visit to nearby dormant volcano Mt. Pinatubo are popular choices for those daring enough to venture outside the Zone.

Aside from the 188-hectare Mimosa Leisure Estate, which is fast taking shape as a premier hub for future leisure and recreational activities, the Zone also showcases Fontana's water theme park and the first Casino in Clark (the Mimosa Regency), found near the Holiday Inn. Holiday Inn Resort Clark Field general manager Michael Weiss noted that tourists will find that the nearby location of the airport will allow them to take advantage of the area’s leisure and recreational facilities easily.

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U.P. SETS UP SHOP IN CLARK - For the children of Clark Freeport Zone residents, employees, and corporate leaders, the good news is that the University of the Philippines – Pampanga (or U.P. Pampanga) has broken ground on a new site which is located within the bounds of Clark Freeport Zone. This site (which will house the permanent facilities of the U.P. Pampanga Extension program) will be found within the demarcations of a planned “ University Town ” that will occupy 3.28 hectares. The Philippine Congress had earlier earmarked PhP50 million for the project which is expected to help U.P. create a high-tech window to global education. In return, the youth in the Central Luzon region will get a chance to enjoy U.P.’s excellent brand of education.

RELOCATE TO BERTHAPHIL BUSINESS PARK - For investors who are not sure where to relocate their operations within the Clark Special Economic Zone, they may want to look into the Berthaphil Business Park which is the site of 3 key Berthaphil facilities: Berthaphil I – Industrial Park, Berthaphil II – Office Park, and The Center @ Clark which is the ICT Campus of Berthaphil. Berthaphil, which began operations in 1993, has been able to successfully provide office, warehouse and office space – and even customized Information Technology facilities - to 25 companies from different countries to date. Rolls Royce Helicopter Engines of the UK , H3 Electronics of Germany, Easton Garment of Taiwan, Meisei Electronics of Japan , and EPIXTAR of the US are just some of the satisfied clients currently housed in Berthaphil facilities. Berthaphil has joined forces with the COMFAC Global Group to provide a lend-lease program to corporate clients that will help amortize the cost of build-out throughout the lifetime of the lease. The two partners also offer dedicated facilities management so that corporate clients can avail of dependable inexpensive utilities, advanced backup and disaster recovery systems, and an excellent security system.

CLARK AS OUTSOURCING CENTER - The Department of Trade and Industry, and the Commission on Information and Communications Technology, said that the Freeport Zone can be considered as a viable outsourcing hub by investors. The factors that contribute to its ability to do so are its location, the availability of skilled and trainable labor, and access to investment areas that feature ample amenities.

CLARK SCORES HIGH IN ICT FIELD - Two Philippine government agencies – the Department of Trade and Industry, and the Commission on Information and Communications Technology – recently gave high marks to Clark Freeport Zone as far as its capacity to host information and communication technology activities is concerned. The Freeport Zone scored 9.23 out of 10 since it meets majority of the vital requisites demanded by information and communication technology locators. Such requisites are the existence of incentives, vendor support, telecommunication facilities, real estate, power and transport infrastructure, and support from local government units and the community. Other important points that helped the Freeport Zone earn such a high score are its quality of life and the presence of relevant manpower needed by the industry to function.

TEXAS INSTRUMENTS VENTURES INTO CLARK - The most recent (and perhaps most exciting) business development in the Clark Freeport Zone is the May 2007 announcement by Texas Instruments that it will open a new plant within the Zone valued at $1 billion. The move by this major US-based computer chip manufacturer is believed to be the largest investment of its kind in the Philippines to date – showing, according to American Chamber of Commerce executive director Robert Sears, that the Philippines has the capacity to compete with other top business facilities in the world if its leaders set their minds to it. Sears stressed that Texas Instruments is planning to stay in the Philippines for the long-term because it is comfortable with the country’s business climate.

The new Texas Instruments facility will occupy a total of eight hectares (or 19.7 acres) and will house the company’s assembly plant and test operations. Construction on the facility is expected to start in July 2007 or August 2007, with completion targeted at the end of 2008. When the Clark facility is finished, Texas Instruments is projected to generate at least 7 billion dollars in total exports from its Philippine operations – double the 3.5 billion dollars in exports that it produced in 2006 from its Baguio City facility alone.

Clark Development Corporation has also opted to devote around 30 hectares (or 74 acres) in the Freeport Zone to accommodate the presence of the support industries and suppliers of the company – numbering about 500 on the whole – who will also be based in the Zone.

SAMSUNG GROUP COMMITS TO $2 BILLION INVESTMENT - In March 2008, several media outlets in the Philippines reported that a company belonging to the Samsung Group of companies has committed to invest $2 billion for a new facility in the Clark Freeport Zone. The reports state that this facility will immediately require 36MW of power by November or 2008.

Clark Development Corp. has requested for the Philippines National Economic Development Authority (NEDA)'s approval for Phase 3 of the Clark 230kV Transmission Project to meet power requirements of these huge corporate projects. NEDA has approved Phase 1 and Phase 2 of the power project and has allocated approximately $72 million for its accomplishment. Philippines President Gloria Arroyo signed a executive order in September of 2007 for phase 3 of the power upgrade, contingent upon NEDA’s approval.

These huge multi-billion dollar investments by giant multinational conglomerates and the commitment of the Philippines government to develop critical power infrastructure, signals the entry of Clark into a new era of growth and development toward a economic growth rate of unprecedented magnitude.