State-owned Bases Conversion and Development Authority (BCDA) and residential and office builder Filinvest Land Inc. (FLI) have sealed a landmark deal to implement the first phase of development of what is expected to be the Philippines’ first smart, green, and disaster-resilient urban district—the Clark Green City (CGC).
Closed in a signing ceremony at the BCDA Corporate Center in Bonifacio Global City in Taguig on Friday, the contract covers a 288-hectare parcel of land of the CGC, a master-planned district measuring a total of 9,450 hectares.
To rise within the Clark Special Economic Zone in Tarlac, CGC could be a back-up government center for Metro Manila, said BCDA President and Chief Executive Officer Arnel Casanova.
At full development, CGC, BCDA estimated, could house 1.12 million residents, 800,000 workers, and could contribute about P1.57 trillion a year to the national economy, or roughly four percent of the county’s Gross Domestic Product (GDP).
Casanova said BCDA would have a 55-percent share in the joint-venture firm to be formed with Filinvest.
Filinvest will hold 45 percent of the joint venture, which will last for 50 years, renewable for another 50 years.
“With the signing of the joint venture agreement, BCDA generated P160-million for Filinvest’s right to become BCDA’s partner for the development of the new urban core for innovation, commerce, trade and industry in the country,” Casanova said. “Together with Filinvest Land, Inc., we will be building a new global city within the Clark Special Economic Zone that will pump-prime the economy and provide job opportunities to the people of Central Luzon and benefit the Filipino nation.”
In a separate statement, FLI President and CEO Josephine Gotianun-Yap said development plans for the 288-hectare lot would be mapped out within the next nine months, while actual development would start within the next two years.
Based on the terms of the joint venture, the Filinvest parcel will have two distinct components: an industrial zone and a mixed-use development with residential, office, commercial, and institutional components.
“As the pioneer developer involved in Clark Green City, we are excited to be a catalyst of growth in such a visionary endeavor,” Gotianun-Yap said. “At the same time, this is also a prime opportunity for us to expand our geographic footprint in Northern Luzon.”
She said the joint venture with BCDA would allow Filinvest to apply its expertise in large-scale, mixed-use township developments.
Filinvest Land, Inc. currently has over 100 projects in 39 cities and municipalities nationwide.
The firm also has two major central business district developments—the 244-hectare Filinvest City in Alabang, Muntinlupa and the 70-hectare City di Mare at the South Road Properties in Cebu City, both in joint ventures with the government.
Meanwhile, BCDA Chairperson Geotina-Garcia noted that the signing “marks the first step of BCDA’s biggest contribution to sustainable urban development in the country.”
“Now is the ripe and opportune time for the government to build a city that will not only absorb the growth of the population, but more importantly, sustain the momentum of the sterling economic performance that the country is now experiencing,” she said. “BCDA is sharing its vision for Clark Green City with Filinvest—a vision of providing the future generation an accessible, liveable and sustainable community—one which is inclusive and will benefit not just the people of the Central Luzon region, but also the rest of the Filipino nation.”
“What we are doing now is that we are not only building a city but we are creating a legacy which we will leave to the future generations of Filipinos,” she added.