Untitled - Philippines Bases Conversion and Development Authority

C O N T E N T S2 Message of the President of the Republic of the Philippines3 Message of the Chairman4 Message of the President and Chief Executive Officer6 Delivering the Country’s Flagship Projects10 Boosting Market Potentials in the Countryside24 Forging Partnerships with Local Communities25 Enhancing Organizational Capabilities to Meet Global Challenges26 Financial Report30 Board of Directors32 Management Directory20 Opening New Business Districts in the Metro

Message of Her ExcellencyGloria Macapagal-ArroyoPresident, Republic of the PhilippinesB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6The Bases Conversion and Development Authority (BCDA) is definitely in the forefront of effortsto speed up the country’s economic growth.Notably, the BCDA continues to transform former Metro Manila military camps—Fort Bonifacioand Villamor Air Base—into revenue-rich, high-end business, commercial and residentialcenters. Revenues generated from these projects are earmarked for the modernization of theArmed Forces of the Philippines.Also noteworthy is the fact that the former US military facilities in Clark, John Hay and WallaceAir Station (now Poro Point) are being transformed into special economic zones and free portsthat serve as magnets for investors who put up factories, commercial centers and offices, which,in turn, create jobs for our countrymen.The BCDA’s latest mega-project, the 93.77-kilometer Subic-Clark-Tarlac Expressway (SCTEx), isexpected to further stimulate trade and commerce, not only in Central and Northern Luzon, butin the entire country. When completed at the end of 2007, the country’s longest expressway—with a project cost of P21 billion—will link two free ports, Clark and Subic, transforming the areaas Asia’s most modern logistics hub.This project will pave the way for the convergence of air, land and sea transport creating a portalwhere investors can conduct trade and commerce with ease and comfort.The BCDA deserves to be commended for being the country’s premier force for economicdevelopment. Its performance in 2006 again affirms its corporate capability to deliver on itspromise and to translate such remarkable performance for the greater good of the country.More power and Mabuhay kayong lahat!H.E. GLORIA MACAPAGAL-ARROYO

Message of the ChairmanThe 14 th year of the Bases Conversion and Development Authoritywas one of the most critical years in the history of BCDA. Despiteoverwhelming challenges, the BCDA remained steadfast in itscommitment to deliver projects that will position the country asa world-class investment haven.Primary among its commitments is the 93.77-kilometer Subic-Clark-Tarlac Expressway (SCTEx), a flagship project of HerExcellency President Gloria Macapagal-Arroyo, which will soonlink the international gateways of the Subic Bay Freeport, theDiosdado Macapagal International Airport in Clark and adjacentindustrial zones and transform the area into a first-class service andlogistics hub that will serve the entire Southeast Asian region.In 2007, the BCDA expects to complete the SCTEx and fulfillthe promise of providing modern transport infrastructure that willopen Central Luzon to economic opportunities and create a newlandscape in the development of the country. The SCTEx willbecome a foundation of progress that will multiply investmentand economic opportunities, accelerate economic growth andultimately benefit the Filipino people.Another vital infrastructure facility is the 32.2-kilometerNorthRail mass transit system, which is being implementedby the North Luzon Railways Corporation (NLRC). Theconstruction of the Caloocan to Malolos segment of theNorthRail commenced in October of 2006. During the sameperiod, the Investment Coordinating Council (ICC) of theNational Economic Development Authority (NEDA) grantedapproval for the commencement of negotiations between NLRCand its Chinese counterparts for the extension of the NorthRailline from Malolos to Clark.The NorthRail mass transit system will contribute to the effortsto decongest Metro Manila and broaden accessibility of variouslocal markets to prospective clients—further acceleratingeconomic advancement of the country.During the last semester of 2006, the BCDA also activelycampaigned for the passage of Senate Bills 2259 (Tax AmnestyBill) and 2260 (Tax Incentive Bill) in response to an earlierSupreme Court ruling which nullified the tax incentives in theJohn Hay Special Economic Zone and Clark Special EconomicZone. The passage of these legislative measures, coupled withthe declaration by the Philippine Economic Zone Authority(PEZA) of BCDA-administered zones as Special EconomicZones, effectively restored investor confidence, and reinforcedthe BCDA’s commitment to its development partners tocontinue to provide an environment conducive to the growthand expansion of business.This year has truly been challenging for the BCDA, but itcontinued to face these challenges undaunted, upholding itsreputation for good governance while fulfilling its mandateunder RA 7227.In 2006, the BCDA continued to persevere in its developmentefforts focused on the sole objective of serving the Filipinonation and its people. In the years to come, I trust that BCDAshall continue to thrive and contribute to national developmentguided by its core values of corporate excellence, stewardshipand committed public service.FILADELFO S. ROJAS, JR.Chairman(September 2004 - November 2006)B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

Message of the Presidentand Chief Executive OfficerThe year 2006 is easily one of the most challenging in the 14-year history of the Bases Conversionand Development Authority (BCDA). In the same vein, the year also afforded us the opportunityto show the world that the BCDA is ready to face up to the most difficult challenges, that it canrise to the occasion and triumph—through its steadfast, focused and principled commitment toserve the public interest above all else.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6The year had barely started when the BCDA began its tireless crusade in pursuit of the restorationof tax privileges of locators in the various special economic zones under the Authority whichwas earlier nullified by the Supreme Court. We had to go on overdrive to find a remedy, whatwith the foreign chambers of commerce threatening to pull out all their investments if theprivileges are not restored immediately.The efforts of the BCDA and its subsidiaries—Clark Development Corporation (CDC), PoroPoint Management Corporation (PPMC), John Hay Management Corporation (JHMC), andBataan Technology Park, Inc. (BTPI)—thankfully convinced investors that the government issincere in ensuring stability in policy and not changing the rules of the game in midstream. Forthis, not one significant locator moved out of the special economic zones. Remedial legislationswere introduced in Congress, and it was only a matter of time before a permanent solution wasput in place.The year also saw the full blast construction of the Subic-Clark-Tarlac Expressway or SCTEx, thecountry’s longest tollroad system once completed. Again, the BCDA’s resolve was put to the testwhen various factors necessitated the activation of contingencies to minimize work slippage.Timely management intervention and closer supervision put the SCTEx back on track.These daunting tasks, not to mention a few minor distractions, were hurdled by the BCDA withplenty to spare. The year saw the Authority realize a cash inflow of Php6.1 billion for 2006,which is 12.9 percent higher than 2005’s Php5.4 billion. The robust cash inflows enabled theBCDA to increase expenditures to P5.7 billion from P4.3 billion the year before.To accelerate trade and tourism initiatives in Northern and Central Luzon, the BCDA sought toupgrade potential major gateways in the region. Preparations are underway for the Php530 millionupgrade of the San Fernando Airport that will enable it to accommodate large aircrafts such asBoeing 373 and Airbus 320. The airport will provide vital infrastructure support for business

and tourism activities in the Poro Point Special Economic and Freeport Zone. Further, theBCDA has committed Php250 million for the construction of an interchange that will fast-trackthe rise of a Regional Central Business District (CBD) inside the Clark Special Economic Zone—similar to the Bonifacio Global City model. BCDA, in partnership with the Clark InternationalAirport Corporation, has pursued the Regional CBD in anticipation of the future demand forspace master-planned for commercial and residential facilities outside Metro Manila. TheBCDA hopes to transform the Metro Luzon super region into the most economically dynamicarea in the country—making the Subic-Clark growth corridor as the best international serviceand logistics hub in the Asia Pacific.Revenues generated from successful joint venture agreements under the BCDA’s Asset DispositionProgram amounted to Php728.5 million. True to its commitment to the government’s militarymodernization program, the BCDA remitted an additional Php131 million to the AFP, bringingits total remittance since 1994 to Php16.3 billion. Of this amount, Php9.4 billion has beenspent by the BCDA for the replication of military facilities.Clearly, the year’s gains, painstakingly won against formidable odds, are concrete proof of theBCDA’s maturity and resolve to deal with a variety of pressures and situations. The Authorityhas displayed flexibility and resilience—qualities that are needed if it is to continue its crucialrole of being a catalyst for nation-building and sustained economic development, particularlyin the former base lands.Throughout its endeavors, the BCDA remains in full synchrony with the national governmentin the achievement of President Gloria Macapagal-Arroyo’s economic agenda of creating newemployment and investment opportunities in the country.It is to the credit of the men and women of the BCDA that the Authority has not merely overcome,but has triumphed in the face of the challenges of 2006. Carry on.GEN NARCISO L ABAYA (RET)President and Chief Executive OfficerB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6The Bases Conversion and Development Authority (BCDA) has pursued with vigorthe construction of key road and rail network facilities that will decongest MetroManila and more importantly, devolve economic opportunities and raise investorconfidence that will result to the accelerated development of both North and CentralLuzon region. BCDA has aligned its initiatives with the national development goalsof the Arroyo Administration which include the opening of new centers of growthin Subic and Clark, and the generation of employment and business opportunities,and the construction of modern transport infrastructure. BCDA continued to valueits partnership with national line agencies, local government units, the privatesector and local communities—leading to the expansion of the support base for itsdevelopment projects frontlined by the Subic-Clark-Tarlac Expressway. The firmresolve of the BCDA leadership to complete projects on time manifests the reliabilityof BCDA in assuring that it delivers infrastructure that would yield optimum benefitsfor the Filipino people.

The Subic-Clark-Tarlac ExpresswayThe construction of the Subic-Clark-TarlacExpressway (SCTEx), flagship project ofthe Bases Conversion and DevelopmentAuthority (BCDA), gained momentum in2006, reaching above halfway in actualaccomplishment and generating morethan 3,400 jobs during the period ofconstruction. Upon completion, the 93.77four-lane divided expressway will assurethe economic boom of Central Luzon as itconnects three major economic zones—theSubic Freeport Zone in Bataan, the ClarkSpecial Economic Zone in Pampanga, andthe Central Techno Park in Tarlac. Thesezones consisting of 100,000 hectaresof commercial, industrial and tourismdevelopments are projected to pave theway for the emergence of an internationalservice and logistics hub in Luzon. Oncecompleted, the SCTEx will not only reducetravel time from Clark to Subic to 30minutes and from Clark to Tarlac to 20minutes, but will also lower the cost oftransporting goods and services throughoutthe country.To assure the timely completion of theSCTEx, BCDA has urged the SCTExcontractors—Kajima-Obayashi-JFEEngineering-Mitsubishi Heavy IndustriesCo. Ltd. (KOJM) Joint Venture for theSubic to Clark section, and the Hazama-Taisei-Nippon Steel (HTN) Joint Venturefor the Clark to Tarlac section—toemploy additional workers and use moreequipment.The onslaught of super typhoons whichswept the country and submerged areasalong the SCTEx alignment promptedthe SCTEx Project Management Office toembark on a disaster preparedness andmitigation program that aimed to minimizedamage to property and life especially inthe communities affected by the SCTEx.Right-of-Way (ROW) issues involvingclaims of project-affected people wereimmediately settled, resulting to a moresolid support from local communities livingalong the project site. Livelihood trainingswere conducted to enable the local residentsto participate in the expected economicopportunities once the mega highway iscompleted.The year also highlighted preparationsfor the bidding of the 10-year Operationand Maintenance (O&M) contract of theSCTEx. Several reputable companies haveshown keen interest in providing theservice which includes toll collection,traffic management, roadway maintenance,greening and landscaping.The SCTEx, designed to serve as thebackbone of development and progress inthe heart of Central Luzon, is envisioned totransform the area into a super region thatwould attract investors worldwide.Known as the country’s longest tollroad, the SCTEx was funded through aPhp20.9 billion loan from the Japan Bankfor International Cooperation (JBIC). Forits part, BCDA raised Php4 billion to fundcontingencies, administrative and ROW costsin the implementation of the highway.Information dissemination efforts at thenational and community levels wereintensified to increase public awareness andappreciation of the benefits of the SCTEx tothe regional and national economy.The SCTEx is a crucial part of the nationalgovernment’s plan to build an efficienttransport infrastructure that promisesaccessibility and convenience to all sectorsof society. The SCTEx is also envisionedto transform regions into vital gateways thatwill hasten the growth and progress of thePhilippine economy.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

NorthRail ProjectB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6Construction of Section I, Phase I (Caloocanto Malolos segment) of the NorthRail Projectbegan in October following the successfulrelocation of almost 20,000 project-affectedfamilies occupying the site of the PhilippineNational Railways (PNR). The launch waswitnessed by the Honorable Vice PresidentNoli de Castro, Ambassador Li Jinjun ofChina, House Speaker Jose de Venecia,China National Machinery IndustryCorporation (SINOMACH) Chairman RenHongbin, and local government officials.Site preparatory works, which includedremoval of the old PNR rail tracks fromMeycauayan to Malolos, Bulacan, werefast-tracked to enable its contractor,SINOMACH (formerly CNMEG), tocomplete all ground survey works, aswell as soil and geotechnical investigationnecessary for the preparation of the Project’sdetailed engineering design.On March 1, 2006, SINOMACH submittedthe Preliminary Design for Section I, PhaseI of the Project for review and approval.Fourteen kilometers of construction fencingwas also installed along the alignmentfrom Valenzuela City to the towns ofMeycauayan, Marilao and Malolos inBulacan signaling full implementation ofthe Project’s construction phase.Partnerships with the PNR, National FoodAuthority (NFA) and the National HousingAuthority (NHA) were forged in June tofacilitate smooth implementation of theProject. The signing of a Memorandum ofAgreement (MOA) with the PNR assuredthe availability of a location for a depot inCaloocan. Another MOA enabled NLRCto tap NFA’s property in Valenzuela asa temporary site to house facilities of theprime contractor. This resulted to theconstruction of four buildings that willserve as living quarters and offices fortechnical personnel of the Project. Anotheragreement forged with the NHA guaranteedprioritization of qualified workers fromthe displaced families for the Project’smanpower requirements.Implemented by the North Luzon RailwaysCorporation (NLRC), the 32.2-kilometerNorthRail Project aims to provide efficienttransport service between Metro Manila,and Central and Northern Luzon, thus easingthe traffic problems of the metropolis. It isexpected to accelerate development in theregion by interconnecting and improvingaccess to major transportation facilities inthe Manila–Clark-Subic economic triangle.The approval of the Feasibility Study ofthe Project, showing the viability of theconstruction of Section 2 (Malolos to Clarksegment) of the NorthRail together withSection 1, was also granted in Octoberby the National Economic DevelopmentAuthority-Investment Coordinating Council(NEDA-ICC) and confirmed by the NEDABoard. This set in motion discussions withthe SINOMACH for the design, supply andconstruction of Section 2. The Departmentof Finance, on the other hand, begannegotiations with the China Export-ImportBank to secure funding for the section.Also nearing completion is the TopographicSurvey of Section 2 which enabled theNHA to finalize its data on affectedfamilies occupying the ROW in Section 2.Relocation was expected to be finalized bythe first quarter of 2007. Construction ofSection 2 is scheduled in April 2007.The completion of the NorthRail is seenas an attraction for international investors.With efficient transport services in place,greater economic opportunities for Filipinosare expected to follow suit.The SCADC(Subic-Clark Alliancefor DevelopmentCouncil)The Subic-Clark Alliance for DevelopmentCouncil (SCADC), formerly known asSubic-Clark Area Development (SCAD),was reconstituted from the former Officeof the Adviser on SCAD through ExecutiveOrder 504 issued in February 2006.The SCADC is mandated to developthe Subic–Clark Corridor into a single,contiguous and geographical economicgrowth area, linking the Subic seaportwith the Clark airport, and likewise,connecting the country to keygrowth areas in Asia and the Pacific.Vice President Noli de Castro,Speaker Jose de Venecia, Jr.,Chinese Ambassador Li Jinjun,Northrail President Jose Cortes, Jr,Sec. Rene Diaz, and CNMEG ChairmanRen Hongbin during the launch of theNorthRail Project in October.Installation of giant steel girders of the55-meter high Gumain bridge, thehighest bridge of the SCTEx.After setting up its offices at the ClarkDevelopment Corporation (CDC)Headquarters in March 2006, SCADCChairman, Secretary Edgardo D. Pamintuan,started benchmarking operations of keylogistic hubs in the United States, Singaporeand Thailand as probable models forworld-class logistics hub within the Subic-Clark Corridor. It also conducted a seriesof consultations with local businesssectors involved in logistics operations,embarked on data-gathering activitiesand coordinated with internationalagencies and other entities that can

The trumpet-type Dinalupihan interchangeassist in the development of a masterplan and a business plan for the Corridor.In partnership with CDC, SCADC lobbiedintensively with Congress for the grantof Freeport status to the Clark SpecialEconomic Zone, as well as the restorationof tax incentives and the exemption fromreal property tax of its locators.Clark-Tarlac segment(Package 2)43.27 kmLa PazInterchangeSan MiguelInterchangeCapasEND OF PROJECTCLARK - TARLAC EXPRESSWAYSTA 31+200.0 (OLD ALIGNMENT)The year also saw SCADC focusing on themonitoring and support of the developmentefforts for the major infrastructurecomponents of the Subic-Clark LogisticsHub, namely, the Subic-Clark-TarlacExpressway (SCTEx), the NorthRail, theDiosdado Macapagal International Airport(DMIA), and the Subic Port DevelopmentProjects.Overall, 2006 was a fruitful year for SCADCafter Her Excellency President GloriaMacapagal-Arroyo expanded its mandate,assigning the SCADC Chairman as the“Development Champion” of the LuzonUrban Beltway Super Region. SCADC nowoversees and spearheads the developmentof identified priority infrastructure projectsin the biggest of the super regions, coveringa large portion of the Central Luzonprovinces, the whole National CapitalRegion, including CALABARZON (Cavite,Laguna, Batangas, Rizal and Quezon) andthe provinces of Mindoro and Marinduque.Tipo JunctionOlongapo CitySubicClark NorthInterchangeClark LogisticsInterchangePoracDinalupihanBEGINNING OF PROJECTSUBIC - CLARK EXPRESSWAYSTA 0+000.0BambanFloridablancaDinalupihanInterchangeMabalacatAngelesMagalangSpur/NLEInterchangeSubic-Clark segment(Package 1)50.5 kmConcepcionInterchangeB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

10B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

11In support to government’s efforts to speed up development in the countryside and create“super regions”, the BCDA beefed up its efforts to accelerate the development of BCDAadministeredspecial economic zones—the Morong Special Economic Zone (MSEZ), theClark Special Economic Zone (CSEZ), the Poro Point Special Economic and Freeport Zone(PPSEFZ), and the John Hay Special Economic Zone (JHSEZ)—and strengthen their potentialas economic havens for investors and the Filipino workers.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

12Clark SpecialEconomic ZoneEmploymentB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6The Clark Special Economic Zonecontinues to make waves as one of thepremier economic growth centers inthe Central Luzon region. The zone’sstrategic location makes it ideal for variousinvestment opportunities from aviationrelatedenterprises to tourism infrastructuredevelopment. It persisted to thrive as aninvestment haven inspite of a temporarysetback due to a Supreme Court (SC) rulingnullifying the grant of tax incentives tolocators located inside the special economiczone. This was realized through the effortsof the Clark Development Corporation(CDC), the estate manager of the CSEZ.As an interim solution to counter thedownside effects of the said SC ruling,President Gloria Macapagal-Arroyo issuedProclamation No. 1035 designating theClark Special Economic Zone as a PEZA(Philippine Economic Zone Authority)Special Economic Zone. The move wastaken apart from the intense and focusedlobbying for the passage of legislations thatwill address the deficiencies of RepublicAct 7227 and restore the tax incentives andduty free privileges previously accorded tothe zone’s locators.On the whole, CDC posted significantdevelopments as indicated in the overallperformance of the corporation for theyear—more jobs generated, increasedexport earnings, more approvedprojects, and reduced power rates.For six consecutive years, CDC realizeda positive growth rate in actual year-endemployment. Employment inside the zonesoared as it registered a total of 47,481workers employed in 2006, representinga 28.7 percent growth compared to the2005 figure of 36,883. The increase inworkforce is attributed to the entry oflarge locators—SM Clark which employedsome 4,750 employees, Sutherland GlobalServices with 666 employees and IntelliRiskManagement Corporation (IRMC), whichhired some 200 call center personnel—andthe expansion of operations of businessesinside the zone.Net ExportsTotal exports for 2006 exceeded $1.16billion, an impressive 12.7 percent increasefrom the $1.02 billion export value in2005. This is credited to the strong exportperformance of the industrial sector whichaccounts for 99 percent ($1.14 billion) ofthe total export of the zone. Among thetop 10 export performers of the year wereNanox Philippines (US$728,171,120),Yokohama Tire Phils. (US$118,745,810),L&T International Group (US$77,166,270),Smart Shirts (Phils.), US$39,939,205, SMKElectronics (US$20,811,673), PeninsulaFashion (US$20,718,962), L&K Industries(US$19,560,274), Crismina Garments(US$19,120,439), Bright Glory Apparel(US$17,071,486), and Golden StoneGarments (US$11,991,424).

Approved ProjectsAlthough the issue of tax incentives andother duty-free privileges for Clark locatorsstill await final legislative solution, thenumber of approved projects in 2006 stillexceeded that of 2005. A total of 101 newand expansion projects were approved in2006. This is 11 percent higher than the91 projects signed in 2005. These newlyapproved projects committed to infusePhp5.1 billion investments and generatearound 5,155 jobs on the first year and anadditional 1,865 on the fifth year.Among the notable investments for theyear are the opening of the 99,000-squaremeter, two-level SM Clark on May 12; theentry of the multinational business processoutsourcing (BPO) Sutherland GlobalServices in December which providessupport to a global client base, 70 percent ofwhich are included in the Fortune 500 list;and the opening of IntelliRisk ManagementCorporation (IRMC) in August, which isexpected to employ some 600 workers. Incollaboration with Cisco System, the IRMCwill be one of the first and largest all digital,VOIP developments in the market place.Other Developments• UPS Clark Intra-Asian HubUS-based United Parcel Service(UPS) implemented its $1.4 millionexpansion program officially makingUPS Clark its Intra-Asian Hub. Todate, UPS-Clark has 48 weekly flightsto and from Hong Kong, Cologne,Dubai, Taipei, Kansai, Cebu, Narita,Kuala Lumpur, Penang, Beijing,Shanghai, Singapore, Shenzhen,Incheon and Mumbai.• Cebu PacificCebu Pacific commenced its dailyCebu-Clark Airbus 319 flight onNovember 12. By mid-2007, ittargets to have additional flights toCebu and Davao.• Financial/Operation Viability ofDMIAThe CDC granted provisionalapproval to the petition filed bythe Clark International AirportCorporation for an increase inthe terminal fee collected frominternational passengers departingDMIA from Php350 to Php500.Revenues generated will be used toimprove airport facilities and servicesfor the convenience of passengers.• SCTEx Access RoadThe design of the Subic-Clark-TarlacExpressway now includes an accessroad to the CSEZ. The transit access(ingress-egress) will be constructedat the Industrial Estate 5 near Clark’smain gate. The access road is alsoexpected to improve traffic situationin Angeles City and Mabalacat,Pampanga.• Permanent Site for the Universityof the PhilippinesThe CDC approved a 3.28-hectareland as the permanent site of UPClark. UP will offer undergraduateand graduate courses on globalcompetitiveness to complement themanpower needs of locators insidethe zone. As lease payment, UP willprovide research, consultancy andtraining services to CDC.• One-Stop Processing Center(OSPC)To assist Overseas FilipinoWorkers (OFWs) in obtainingpermits and other documents, theCDC opened the OSPC whichhouses satellite offices of thePhilippine Overseas EmploymentAdministration, Overseas WorkersWelfare Administration, PhilHealth,Philippine Tourism Authority,National Bureau of Investigationand Technical Education for SkillsDevelopment Agency.• Reduction of Power RatesThe CDC continued to workclosely with the Energy RegulatoryCommission (ERC), NationalTransmission Corporation (TransCo)and other agencies to further bringdown power rates to about Php5.27kilowatt per hour. This is largely dueto the ERC approval of the TransCodiscount for the Clark power rateeffective December 15.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 613

B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 614John Hay SpecialEconomic ZoneThe John Hay Management Corporation(JHMC), estate manager of the John HaySpecial Economic Zone (JHSEZ), successfullytransformed the erstwhile military camp intoa premier tourist destination in NorthernLuzon, in keeping with its mandate oftransforming the JHSEZ into an internationaleco-tourism destination.JHMC proved its resilience as it intensifieddevelopment efforts despite the setbacksbrought about by the Supreme Court’s reversalof tax incentives and duty-free privilegesaccorded to the locators in the zone.A major accomplishment for the year isthe issuance of Proclamation No. 1191which assigns the 301.86-hectare zoneunder PEZA renaming it—John Hay SpecialTourism Economic Zone (JHSTEZ). This ispursuant to Republic Act No. 7916 or the“Special Economic Zone Act of 1995” asamended by Republic Act No. 8748. ThePEZA issued a Certificate of Registration toJHMC as Operator/Developer of the JHSTEZon December 22.In anticipation of the passage of theamendatory bills, existing ImplementingRules and Regulations (IRR) for the JHSTEZwere amended and forwarded to the Officeof the Government Corporate Counsel(OGCC) for final review.Further, JHMC vigorously lobbied forthe passage of bills that will counterthe effects of the nullification of taxincentives in the zone. On December 21,the Senate approved on third readingSenate Bill 2259, which provides for aone-time tax amnesty on certain tax andduty liabilities incurred by enterprisesoperating within Special Economic andFreeport Zones, and Senate Bill 2260, thatprovides tax incentives to export-orientedenterprises operating in the said zones.Locator RelationsResponding to the needs of locators, theJHMC established a One-Stop-Action-Center (OSAC) that will assure conveniencein transactions and ensure quick processingof permits and other documents. TheCenter houses the Social Security System,Department of Labor and Employment,Bureau of Internal Revenue, Department ofHealth, PhilHealth, and Pag-Ibig.To complement the OSAC, JHMC alsoestablished the Office of Building and CivilWorks (OBCW) for permit requests relativeto infrastructure and civil works projectsinside the JHSTEZ.In 2006, JHMC generated a total ofPhp450,793.72 from the processing of1,568 permits.A total of 3,461 delivery vehicles and 891various items were also inspected and releasedfrom the Customs Clearance Area (CCA).Business DevelopmentRealizing the need for more revenuegeneratingopportunities, JHMC revised itsfive-year Business Plan to incorporate thelease of the JHMC Building, Warehouseand Compound, Area 1, Area 2 and Lot15 inside Camp John Hay. The revisedPlan also integrates a new strategy togain additional revenues through theenhancement and operation of the HistoricalCore and the disposition of Camp 6.

15Two reputable business organizations havesignified keen interest in the projects.The InterContinental Hotels Grouphas offered to lease the JHMC OfficeBuilding, Warehouse and Compoundfor the establishment of worldwidecustomer support center, and depositedPhp100,000.00 earnest money for theproperty.On the other hand, the Yupangco Group iseyeing operation of the John Hay HistoricalCore on a profit-sharing basis with JHMC.The project, dubbed as the “Hay FlowerGarden” would entail the establishment ofeco-tourism projects such as a flower andseed shop, outdoor shows and exhibits area,a garden workshop and a salad restaurant,among others. To captivate nature-lovers,Yupangco also proposed a showcase ofmulti-themed gardens such as the Zen,Bamboo, Labyrinth, and Fruit Garden.Another noteworthy accomplishment is thelease of the 6.5-hectare Lot 15 along LoakanRoad to PEZA to accommodate expansionprojects of PEZA locators. JHMC and PEZAhave conducted joint inspection and datagatheringactivities for the proposed fencingof the area.Environmental ManagementAs steward of the historical forestreservation, it has been the main thrust ofJHMC to preserve the forest cover insideCamp John Hay. Various initiatives arebeing undertaken to ensure that the Camp’sforest reserve is protected.Among these are: a) policy formulationregarding Environmental Managementand Monitoring which contains provisionson—Guidelines on the Use of NaturalResources, Pollution Control and WasteDisposal, and Environmental PermitRequirements; b) updating of the barangaycensus and structure survey of theNational Housing Authority to get baselineinformation concerning requests for houserepairs within the Camp and to serve asreference for the segregation of barangays;c) inclusion of 130 hectares of the forestreserve under the National IntegratedProtected Areas System; d) enforcement ofPresidential Decree No. 705 or the RevisedForestry Code of the Philippines to curbillegal activities and to seek deputation ofJHMC personnel from the Department ofEnvironment and Natural Resources (DENR);and, e) revival of “Adopt-A-Tree” programwhich resulted to the adoption of 16 treesby individual and corporate sponsors.JHMC also improved its capability toprotect the reservation against forest firesas well as soil erosion. A total of 42,135square meters of fire lines were installedthroughout the Camp as a joint undertakingwith Brgy. Happy Hallow. JHMC maintainsthat all fire hydrants among other equipmentare operationally ready. Further, staff workfor the construction of check dams at theEcosystems Research and DevelopmentService (ERDS) compound was completed.Security MeasuresAdditional security measures have beenexecuted to achieve a unified security andsafety plan for the entire Camp. This willensure responsiveness to the needs of zoneenterprises and residents and preservationof JHMC’s assets and business initiatives.Such measures include the following:formulation of Standard OperatingProcedures for Emergencies and Disasters;reorganization of the Security Division toimprove management abilities of safetyunits; inspection of JHMC structuresto ensure compliance with fire safetystandards; deputation of JHMC personnelto enhance their knowledge on traffic rulesand regulations, and help enforce thesein the Camp; and, conduct of DisasterManagement and Emergency PreparednessSeminar Workshop among securitypersonnel to improve their skills in searchand rescue operations, communicationflow, collapse structure and basic first aid.Community RelationsAs a responsible corporate citizen, JHMCcontinued to foster good relations with theadjoining barangays and the community ofBaguio City through various civic-orientedactivities, including the awarding of lotsfor the beneficiaries of the 15.9-hectareScout Barrio Project and finalization ofguidelines for installment payments forthe lots; segregation of barangays CountryClub Village, Greenwater, Sta. Scholastica,Hillside, Upper Dagsian, and LowerDagsian in coordination with the DENR;forest protection awareness campaign andskills inventory of 12 barangays to determinethe training needs of residents and matchthem with manpower requirements of theJHSTEZ enterprises; active membership inthe Baguio Flower Festival Foundation, Inc.and participation in the Panagbenga; eventsmanagement and hosting of Panagbenga@Camp John Hay, in cooperation with theCamp John Hay Development Corporation,the 13th John Hay Annual Art Contest tohighlight the centennial celebration ofBaguio City, and the camp-wide Christmasparty to foster camaraderie and teamworkamong the different enterprises.Other DevelopmentsThe JHMC also complied with CityConditionality No. 8 of City Resolution No.362, series of 1994, which requires that85 percent of the workforce in the zoneare BLIST residents (Baguio, La Trinidad,Itogon, Sablan and Tuba). As of year-end,93 percent of the 1,220 employees are fromthe BLIST area.Another major breakthrough is theformulation and implementation of anInformation Systems Strategic Plan (ISSP)in compliance with the directive from theNational Computer Center (NCC). The planwas forwarded to the NCC for review andapproval. To date, the ISSP is being revisedto incorporate comments of the NCC andthe BCDA Internal Audit Office.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 616Poro Point SpecialEconomic andFreeport ZoneAfter transforming the former Wallace AirStation into another growth area in NorthernLuzon, the Poro Point ManagementCorporation (PPMC), estate manager of PoroPoint Special Economic and Freeport Zone(PPSEFZ), shifted to high gear its marketingdrive to position the zone as an alternativesite for business and tourism.The PPSEFZ is envisioned as an industrialestate with tourism facilities. The presenceof an airport and an international seaportmakes it ideal for commerce, distributioncenter and export-oriented activities. Thus,all efforts are geared towards maximizingthe zone’s potentials.The year marked the development andimplementation of projects that will bolsterthe productivity of PPSEFZ. For instance,construction of the tourism complexwent full blast and the upgrading of theSan Fernando airport to comply with theInternational Civil Aviation Organization(ICAO) standards is also in full swing.PEZA AccreditationPerhaps one of the biggest stumblingblocks that have affected the performanceof the PPSEFZ is the SC nullification ofthe incentives and duty-free privilegesof locators in special economic zonescreated under Republic Act 7227. In orderto address the problem, PPMC activelylobbied for the passage of legislations thatwill restore the granting of tax privileges tobusinesses operating inside the zone.Parallel to its lobbying efforts, PPMCworked on the accreditation of the zone asa special economic and freeport zone underPEZA. This development was achievedthrough Proclamation No. 1184 issued onDecember 7.Airport DevelopmentThe government is currently positioningthe San Fernando Airport in Poro Point as aglobal gateway in the north. Currently, theairport is classified as a secondary airportserving as an alternate to the Loakan Airportin Baguio City.Preparations for the upgrade of the airportfacilities are underway to expand its capacityto accommodate large aircraft such asBoeing 737 and Airbus 300, and to ensureits compliance with Air TransportationOffice (ATO) safety requirements.Toward this end, the PPMC engaged theservices of leading engineering firm SchemaKonsult Inc. on August 31 to prepare thedetailed engineering design of the SanFernando airport. As of end-December,Schema was able to accomplish more than70 percent of work requirements necessaryfor the airport’s expansion program.

17On September 24, Argealis Constructionstarted putting up the 1,558-meter perimeterfence for the western portion of the SanFernando Airport runway strip.PPMC continues to work vigorously toachieve compliance with the safety auditrequirements of the ATO. To date, PPMChas satisfied 23 of the 40 requirements forATO clearance resulting to an increase inairport traffic for the year.In 2006, the San Fernando airport hosted atotal of 1,276 aircraft and 2,510 passengertraffics. Commercial airliner Asian Spiritresumed its twice a week Manila-La Union-Manila flights as of May 12 and its thricea-weekManila-La Union-Manila flightsbeginning November 15.Following are some of the ATO requirementssuccessfully complied with by the PPMC:a) provided adequate aerodrome markingsand obstacle lightings; b) compliedwith the requirements for aqueous filmforming foam and dry chemical powder;c) furnished training records of crash, fireand rescue (CFR) personnel and providedbasic aviation training to airport securitypersonnel; d) minimized airport accesspoints; e) illuminated the grounds at bothsides of the airport gate/manned the gates24 hours; f) supplied radio communicationsfor use in patrolling the airport; g) providedthe emergency frequency 121.5 MHZ;g) rehabilitated the wind speed indicatorand pressure gauge; h) provided adequatenumber of intercoms between the airporttower and the CFR; i) provided disabledaircraft removal capacity; and, j) observedcoordination between AeronauticalInformation Services and airportauthorities.Business DevelopmentA major accomplishment for the year wasthe opening of Thunderbird Pilipinas Hotelsand Resorts, Inc. on April 28 followingthe issuance of its registration certificateon April 7. The entry of Thunderbird hasboosted airport and seaport trade and trafficinside the complex.Another major locator which will soonstart operations inside the ecozone is theWallace Fuel Storage, Inc.Employing a more aggressive marketingstrategy for its asset disposition efforts,PPMC has generated more than Php61.73million in revenues.Project DevelopmentPPMC continued to implement developmentprojects that are envisioned to make thezone an ideal haven for foreign and localinvestments.Among the newest infrastructure facilitiesin the zone is the 1.9-kilometer roadnetwork inside Phase I of the Poro PointTourism, Recreational and CommercialComplex. Already 50 percent complete,this road will provide convenience andgreater mobility to visitors of the high-endresidential complex, which features anamphitheater/central park, a boardwalkand viewing deck, a cultural and civiccenter, business and entertainment centers,as well as world-class condominium/hotelaccommodations.Community DevelopmentApart from efforts to transform the PPSEFZinto a destination of choice for tourism,recreation, commercial and light industrialpurposes, the PPMC also took socialdevelopment initiatives aimed at improvingthe quality of life of the people affected byits development programs.Through the PPMC Labor Center,employment rate among San Fernandoresidents has increased with 872 peoplejoining the workforce as of end-December.The Center gathers the profile of skilledapplicants in a database and matches thesewith the job requirements inside the zone.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

18B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6Turnover of BTPI Chairmanship andPresidency to Mr. Antonio Habana in May.Leading the rites is BCDA Executive VicePresident Isaac Puno III.BataanTechnology ParkSince its transformation from a refugeeprocessing camp in the ‘80s, the BataanTechnology Park (BTP)—the main zoneof the Morong Special Economic Zone(MSEZ)—is slowly evolving into a beehiveof economic activities in Central Luzon.Its location and accessibility make it idealfor businesses looking for alternativeinvestment sites.Management of the BTP was reverted tothe BCDA from the Subic Bay MetropolitanAuthority in April 2006. Since then, theBCDA, through the Bataan TechnologyPark, Inc. (BTPI), estate manager of BTP,started instituting measures to make thepark another investment and tourism havenin the country.The development of BTP is crucial as itwill complete the landscape of progressof the entire region complementingthe developments in other specialeconomic zones such as the SubicBay Freeport Zone, the CSEZ, andthe Central Technopark in Tarlac.The BTP is currently being planned asa tourism, leisure and retirement park.Toward this end, BCDA has startedmarketing the Park as an ideal locationfor the establishment of retirement andnursing villages for foreign and localretirees—complete with leisure, sports andinstitutional facilities for education, hospitaland commercial areas.Tourism DevelopmentMore than 4,000 visitors were recorded tohave visited the BTP for accommodation,eco-tourism treks and organized tours.Private companies have conducted ocularinspections of the Park which is emergingas a popular venue for teambuildingactivities, workshops, seminars andplanning sessions.Since the BTP is being developed as aprime tourist destination in Bataan, theBTPI properly maintained and preservedits 11 symbolic monuments and shrinesconstructed by the former Indo-Chineserefugees. The boat which was used by theVietnamese refugees was transferred fromthe Freedom Park to the BTPI museum toensure its protection from wear and tear.The BTPI also continues to invite donations

19of artifacts and memorabilia for display inits museum. Plans have been developed topreserve the legacy of the former PhilippineRefugee Processing Center since this is themain attraction inside the BTP.To ensure proper management of the Park,the BTPI endeavored to be a member ofthe Greater Subic Tourism Bureau whicheducates its members on the latest trendin the tourism industry and guides them inupgrading tourism facilities and services.Business DevelopmentTo date, a total of five locators are operatinginside the 365-hectare Bataan TechnologyPark. These are the Bataan Center forInnovative Science and Technology, Inc.(BCISTI), Department of Public Works andHighways (temporary stockyard for thePresident’s Bridge Program), Hokei SubicCorporation, Barnston Herbs International,and Cosmos Biotech Co. Ltd.In mid-2006, China’s Minister of CommerceBo Xilai and Assistant Commerce MinisterChen Jian and their delegation visitedthe Park to consider the possibility ofdeveloping the entire BTP for agriculturalinvestments and light industries.Social DevelopmentTo strengthen community relations, BTPIhas extended the following services tothe populace of Morong: a) constructionof recreational and sports facilities for thecommunity; b) participation in socio-civicprojects and awareness campaigns incoordination with the Morong municipalgovernment; c) employment of Morongresidents as stipulated in a resolution of theSanggunian Bayan of Morong; d) providingsupport for the activities of the MorongNational High School, Department ofSocial Welfare and Development and theProvincial Agriculture Office of Bataan.Negotiations with the Philippine RetirementAuthority have commenced to promote theBTP as an alternative investment site forretirement and nursing homes of foreignretirees.Human Resource DevelopmentThe BTPI consists of a lean and meanworkforce to effectively and efficientlycarry out its day-to-day tasks and achieveits plans and programs for the Park. Keypersonnel are enjoined to attend seminarsand training activities sponsored by localgovernment units and line agencies toprovide them with the necessary knowledgeand skills specifically on tourism and hotelmanagement.A Code of Conduct was also drafted andimplemented to guide the actions of theemployees, particularly in dealing withclients and visitors.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

20B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6BCDA, with its private business development partners, laid the groundwork for theemergence of new business districts in the metropolis through its Asset DispositionProgram (ADP). Disposition proceeds for the year amounted to Php713 million—majority of which came from successful joint venture projects forged with real estateleaders Ayala Land, Inc. (ALI) and Megaworld Corporation.

21Asset DispositionProgramFort BonifacioBonifacio Global CityThe BCDA has envisioned a globallycompetitive business district to rise atthe Bonifacio Global City—a premieredevelopment jointly managed by theBCDA and the Fort Bonifacio DevelopmentCorporation (FBDC), which is controlled bythe powerhouse consortium of ALI and theCampos Group.To pursue this, the strategic alliance amongFBDC, the BCDA, the ALI-Campos Group,and the City of Taguig, mapped out a newmaster development plan that will positionFort Bonifacio as one of Metro Manila’smost promising financial centers.The new master plan highlights thepredominance of office spaces, andcovers four critical areas: a) the roadnetwork and grid layout allowing efficienttraffic management; b) a well-managedtransit loop with dedicated bus lanes forcommuters; c) pedestrian walkways thatlink buildings to parking areas; and, d)other transport systems. Launched inMay, the Plan is expected to promote anatmosphere of innovation, creativity andwork-life balance among businessmen andprofessionals in the 240-hectare BonifacioGlobal City.Aligned with this, BCDA is pursuing its goalof yielding 1.6 million square meters ofoffice, residential and retail spaces in FortBonifacio over the next three years.At the same time, BCDA-owned lotsformerly privatized in partnership with ALIgenerated recurring revenues representingthe biggest share in the year’s earnings.The lease agreement for Lot C which isthe present site of the 9.7-hectare Market!Market! mega-retail center generatedsome Php158 million for BCDA. Market!Market!, considered the first of its kind inthe country, allows traditional and nontraditionalretailers and wholesalers to cometogether in an indoor-outdoor mall setting.Planning and preparations for Phase 1C, anexpansion of the five-level mall, also beganduring the year assuring bargain-huntersa more thrilling shopping experience.On the other hand, the disposition of the11.66-hectare Lot B, showcasing the highendresidential complex known as Serendra,has assured pre-selling revenues amountingto Php120 million. Serendra featuresclusters of low- to mid-rise condominiumbuildings, and devotes about 65 percentof its 12-hectare land to spacious gardens.Projected disposition proceeds for the 15-year Joint Development Agreement withALI and Community Innovations, Inc.(CII) amounted to Php11 billion. To date,remittances to BCDA from the Serendraproject has reached Php914.63 millionsince 2003.ALI launched in October 2006 aninnovative retail center called, “Shops atSerendra”—a 6,400-square meter diningand retail hub that seeks to promotea fusion of cultures highlighting food,specialty retail and services in a two-levelindoor-outdoor environment. It is locatedat One and Two Serendra and is adjacent toMarket! Market! Shopping Center. BCDAis expected to generate some Php10 millionin lease revenues in its first year or at leastPhp250 million over the next 25 years.In addition, the lease of the InstitutionalArea resulted to combined revenues ofPhp41 million, with the International Schoolholding majority share at Php25 million.Other lessees are the British School, ManilaJapanese School, Every Nation LeadershipInstitute and Summit School.Altogether, these developments manifest astrong real estate growth at the BonifacioGlobal City, which showcases the effectivepartnership between government and theprivate sector, and the sustained investorconfidence in the Arroyo government.Bonifacio Global City EnvironsMcKinley Hill Village (formerly the 25-hectareLawton Parkway), BCDA’s joint ventureproject with Megaworld, assured dispositionproceeds amounting to Php108 million.McKinley Hill, is a first-class subdivisionwhich offers prime residential lots at thecenter of cosmopolitan conveniences. Itis connected to Makati’s business districtthrough the Upper McKinley Road, andis accessible via South Superhighwayand C-5 Road. As of end-2006, revenuesgenerated from McKinley Hill Villagetotaled Php1.16 billion.On the other hand, disposition of the 9.1-hectare Self-Reliance and DevelopmentProgram (SRDP) Complex to Megaworld, theB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

22B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6country’s largest residential condominiumdeveloper, yielded the second biggestrevenues for the year through their annualinstallment totalling Php124 million.The area would soon be developed as acommercial component of the McKinleyHill development.BCDA continues to develop and marketHeritage Park, a 68.9-hectare multi-usememorial and public park complex at FortBonifacio. To lengthen the Park’s list ofclients, BCDA accredited F.S. Dulalia Realty,Inc., First Mandaluyong Property Network,Inc., Garden of Memories MemorialPark and Chapel, Wesar Properties, Inc.,Rosehills Memorial Management, Inc. andsome individuals as brokers for HeritagePark Investments Certificates (HPICs) in the55,000 square meter Area 2. The sale ofHPICs yielded Php35 million.President Gloria Macapagal-Arroyo inauguratesthe Philippine Air Force (PAF) Airmen’s DormitoryBuilding. With the President are BCDA Presidentand CEO Narciso Abaya, AFP Chief-of-StaffLt. General Generoso Senga and PAFCommanding General Lt. General Jose Reyes.Moreover, BCDA coordinated with RosehillsMemorial Management (Philippines), Inc.,an affiliate of the US-based Rose Hills-California, for the redesign of the 12-PlotEstates, 5-Plot Walled Estates, 3-Plot WalledEstates, 4-Plot Family Garden Lots, and the2-Plot Family Garden Lots. In the nextthree years, net sales are expected to reachPhp750 million. The Heritage Park Projectis jointly managed by Rosehills Philippinesand the Heritage Park ManagementCorporation. It remains to be among the lastlarge-scale green open space developmentsin Metro Manila.Villamor Air BaseConstruction works for the first phase ofthe 25-hectare Newport City are in fullswing at the Villamor Air Base in PasayCity. Dubbed as Metro Manila’s first andonly paradise resort residences scheduledto open in 2008, this Megaworld projectwill not only feature residential buildings,but will also host the posh Marriott Hotel,and several commercial and recreationalfacilities, including a convention center,a sports complex, and an aviationrelatedbusiness park. These are expectedto complement the new internationalpassenger terminal of the Ninoy AquinoInternational Airport (NAIA). Remittancesfrom the sale component of BCDA’s jointventure totaled Php94 million in 2006,bringing the proceeds from the NewportCity project to Php365.67 million.Through this joint venture agreement (JVA),BCDA completed the replication andrelocation of Philippine Air Force (PAF)structures and support facilities worthPhp294 million. In November, six facilitiesthat can house a thousand PAF personnelwere turned over to the Department ofNational Defense. The cost of replication isestimated at Php889 million to be advancedby Megaworld. Over the past 15 years, theBCDA has replicated some Php9.4-billionworth of military structures mostly locatedin Fort Bonifacio.Future Disposition PlansJUSMAG & the NOVAI AreaConsidered as some of BCDA’s milestoneachievements for the year are the recoveryof the 35.5-hectare JUSMAG area and thereversal of a previous court decision on theownership of the 47.5-hectare Navy Villagein Fort Bonifacio.In November, the Supreme Court reversedthe decision by the Court of Appeals (CA),which earlier ruled in favor of the SouthsideHomeowners Association’s claim as ownersof the JUSMAG area. The property is worthat least Php50 thousand per square meter, ifdeveloped, for a total of Php17 billion. Theprime property, strategically located at theback of posh subdivisions South Forbes andDasmariñas Village, is ideal for mixed-usedevelopment with low to medium density,high-end residential units. Top real estatedevelopers have already expressed theirinterest in developing the said property.In another case, the CA has declared nulland void an earlier Regional Trial Courtdecision which favored the ownership claimof the Navy Officers Village Association,Inc. (NOVAI) over the area where theNavy Village is located. Developmentswithin these two areas, however, can onlycommence following their formal transferfrom the Armed Forces of the Philippines(AFP) to BCDA. However, the BCDAwould first replicate facilities to be affectedby future developments, as part of itscommitment to the AFP.

Altogether, these developments assurethe substantial inflow of future dispositionproceeds of Phase 3 of the Asset DispositionProgram (ADP-3).Campus GatewayEfforts for the disposition of BCDA’sremaining assets were launched in 2006.The 2,632 square meter-Campus Gatewayis strategically located at the entrance of theInstitutional Area and is along 32nd Street,one of the main avenues of the BonfacioGlobal City. Proposed use for the propertyare retail, commercial or institutionaldevelopments. BCDA expected to earnPhp100 million from the lease of theproperty over a 25-year term, based on aprice of Php45,000 per square meter.North BonifacioThe disposition of the 15-hectare NorthBonifacio lots was rescheduled from June2006 to 2007. This will give way to BCDA’sjoint venture planning with MetropolitanBank and Trust Co, (Metrobank), who ownsan adjacent 10.5-hectare area. The masterplan was undertaken with the assistanceof Hongkong-based Hellmuth, Obata andKassabaum (HOK) International Ltd. andfurther added value to the North Bonifacioproperty with the better configuration ofthe lot parcels and the more efficient roadnetworks as drawn in the plan. Majorproperty developers have expressed keeninterest on the said property.Expanded Big Delta LotsAnother prime property lined up fordisposition under ADP-3 is the 1.2-hectareExpanded Big Delta Lots (formerly theGovernment Center for Investments). It islocated right at the gate of the City Centeralong 5th Avenue. The property is expectedto earn Php1.8 billion over time, based on afloor price of Php150,000 per square meter.Disposition of the property is deferred tothe middle of 2007.Other Metro CampsSeveral developers have also signifiedtheir interest in a joint development of the5-hectare Camps Melchor and Atienza andthe 6,000 square meter Philippine NavyHeadquarters in Fort Abad. These assetsassure the BCDA of significant additionalrevenues when converted into centers ofeconomic opportunities.The priming of BCDA’s remaining assetsfor disposition, coupled with keeninvestor interest in BCDA properties,strongly projects BCDA as a reliablebusiness development partner. Continuedinvestor confidence in BCDA translatesto significant development projects thatwill help propel the country’s economy.Infrastructure DevelopmentTo complement the new master plan andre-launching of the Bonifacio Global City,BCDA provided the necessary infrastructurefacilities that will enhance access to theCity and position it as the most innovativebusiness center in the country.Sampaguita Bridge ProjectUpon the completion of the Php254.4-million Sampaguita Bridge and RampsProjects, several activities were undertakenin preparation for the turnover of the saidfacilities to appropriate authorities. Amongthese are the following: a) finalization ofdocumentary requirements for the 50-meter Sampaguita Bridge resulting to theissuance of the Certificate of Completionand preliminary acceptance of the projectby the Department of Public Works andHighways (DPWH) in November 2006;and, b) implementation of corrections tothe West Ramp by the Manila DevelopmentCorporation (MDC), in compliance withBCDA’s evaluation. The project is locatednear the south side of Market! Market! andis a major access point for vehicles boundfor the BGC and C-5 Road.On 26 October, BCDA turned over severalprojects in the Bonifacio Global City tothe Bonifacio Estates Services Corporation(BESC), following the completion of suchactivities as installation of permanentpower supply for the streetlights of the WestRamp Project, and in Serendra and Market!Market!; relocation of the transformer padas requested by the government of TaguigCity, and repainting of lampposts along26th Street McKinley Parkway.These projects are expected to increase thecapacity of the bridge in anticipation ofheavier traffic, and provide illumination andsafety to motorists and pedestrians betweenthe BGC and the West of C-5 Road.McKinley Hill Village10th & 11th Avenue, North BonifacioBidding and award for the ConstructionManagement Services (CMS) for theConstruction of 10th & 11th Avenues in theBonifacio Global City were concluded inMarch. Consultancy services for the Php4.4-million project were awarded to Proconsult.With the consultant on board, BCDA willbe able to implement the project withthe necessary expertise and managementcapabilities required for the constructionworks. Relative to this, the Php52.8-million construction of both avenues atthe Bonifacio Triangle in Bonifacio GlobalCity commenced in September. It entailssite formation; construction of roads anddrainage, curbs and gutters; installation ofsidewalk and irrigation pipeworks, 34.5-KVunderground power distribution system;supply and installation of streetlights, water,sewer and telecommunications systems,including softscape and hardscape. Theseare in fulfillment of BCDA’s commitmentsto FBDC, and will jump-start developmentin the North Bonifacio area, therebyincreasing land values in the area.Through the years, BCDA’s AssetDisposition Program has assured thecountry of the sound conversion of formermilitary baselands in Metro Manila intovibrant world-class business centers. Todate, BCDA has already disposed anddeveloped 493 hectares out of 640 hectaresin Fort Bonifacio, and 263 hectares in theVillamor Air Base in Pasay City. In the nextfive years, BCDA expects to successfullydispose or start disposition of at least109 hectares of prime land which willgenerate more revenues needed to pumpprime BCDA’s development initiatives asmandated in RA 7227.A view of C-5 Roadfrom Sampaguita West Ramp 2B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 623

24Forging Partnershipswith Local CommunitiesBCDA acknowledges its role as an engine of empowerment for people affectedby its various projects. It has pursued its corporate social responsibility (CSR)program with much vigor in order to respond to the various needs of localcommunities.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6Advocacy and CommunityDialoguesTo enhance awareness and support for theconstruction of the 93.7-kilometer Subic-Clark-Tarlac Expressway (SCTEx), theBCDA embarked on communication andadvocacy campaigns as well as dialoguesamong local government units (LGUs) andbusiness leaders in Central Luzon. Thisendeavor was crucial in generating supportfrom the grassroots. The BCDA also closelycoordinated with the Pampanga Chamberof Commerce and Industry (PamCham)and the Advocacy for the Development ofCentral Luzon (ADCL) in generating masssupport for the SCTEx.Disaster Preparedness andRescue OperationsHeavy rains brought by Typhoon Glendaled to the overflowing of the Pentor-DaangBago River and damaged a 200-meterportion of the dike in Pentor, Dinalupihanin Bataan causing massive flooding in manyparts of Central Luzon.In response to this, the BCDA created aDisaster Preparedness Group dubbed “TaskForce: Bantay SCTEx”, composed of theBCDA, the Armed Forces of the Philippines(AFP) and SCTEx contractors. The groupwas created to provide support in searchand rescue operations in disaster andcalamity areas undertaken in coordinationwith the various LGUs, PAGASA, DPWH,Regional Disaster Coordinating Counciland the Municipal Disaster CoordinatingCouncil.Task Force: Bantay SCTEx assisted the localgovernment of Dinalupihan in the distributionof relief goods to affected residents andin the rescue and evacuation operations.Aside from donating some 100 cavans ofrice to the victims, BCDA, in cooperationwith the SCTEx Package I contractor,Obayashi Corporation, donated to themunicipality 14 truckloads of sand for sandbaggingoperations along the shoulder ofthe Sta. Isabel road and the breached dikein Pentor. It also cleared a portion of theOlongapo-Gapan Highway blocked by alandslide.Assistance to LocalGovernmentsTo provide greater accessibility to Bataanand help spur the accelerated developmentof the province, BCDA embarked on thewidening of the Gapan-San Fernando-Olongapo Road. For this purpose, BCDAreceived clearance from PENRO/CENROfor the cutting of trees affected by the roadwidening,and facilitated the initial releaseof Php27 million to the DPWH in Octoberand December. The Php30-million projectstarted on April 25.Strengthening PGMA’s NationalShelter ProgramBCDA turned over 24 hectares of landto the Housing and Urban DevelopmentCoordinating Council (HUDCC) in supportof the National Shelter Program thatprovides socialized and affordable housingto deserving and qualified families.The committed property, located at theBonifacio Housing and InformationTechnology (BHIT) Park Area, is in additionto the properties that the BCDA is obligatedto turn over under Executive Order No. 70.Under EO 70, the BCDA is mandated todeclare portions of its property in FortBonifacio and its environs as socializedhousing sites, and provide for thedisposition of said lands to qualifiedbeneficiaries. The lands include LupangKatuparan (48 hectares), Centennial VillageArea (13.08 hectares), and 35 hectares of theBHIT Park Area. An Executive Committeeto implement EO 70 was created withthe HUDCC as chair. To immediatelyimplement the donation, the BCDA alreadydrafted and submitted to the Office of thePresident the necessary amendments to theissuance.The BCDA also allocated housing units tofamilies affected by its other developmentsin Fort Bonifacio. The housing projectsconsisted of the Northside Strip HousingProject (formerly Fort Bonifacio SummitHousing Project), Diego Silang, Pabahay2000, Kalayaan, Villamor Airbase, andScout Barrio in Baguio.Social Empowerment ProgramsAs a follow through to its housing projects,the BCDA continued to address thesocial needs and concerns of the familybeneficiaries in the various housing sites.These included leadership and skillstraining workshops such as AngatBuhay, meant to uplift the quality oflife of affected communities; AngatKamulatan, designed to enlighten theconsciousness of its stakeholders; andAngat Pagtutugunan whereby BCDA andthe partner communities affirm reciprocityand pro-active participation through theestablishment of priority values to fosterstronger and dynamic partnerships.Medical/Dental MissionsBCDA, in partnership with the respectivemunicipal and provincial governmentsof Porac and San Fernando, Pampanga,conducted two separate medical anddental missions that benefited over 1,000indigent patients. The BCDA also launched“Operation Tule” in Floridablanca, Pampangawhere 143 boys got free circumcision.

BCDA, as an engine for growth, is aware that it cannot cope with thechallenges of an ever-changing environment unless it reinvents itself. Thus,BCDA is always in a development mode, consistently taking steps towardsstrengthening its organizational capabilities.Development of PersonnelKnowledge, Skills andOrientationIn 2006, BCDA updated its analysis of theorganization’s capability requirements.Managers and executives were requestedto provide inputs to a training plan that willprovide an effective roadmap for elevatingthe knowledge and creativity level ofits people. This effort not only served tomotivate BCDA employees to further enrichtheir intellectual capabilities, but alsoredirected current systems and practicestowards an innovative and proactiveorganizational culture.To cite a few, an in-depth study of the newPhilippine Procurement Law enabled theorganization to fully adopt procurementplanning—it also occasioned the revisionof procurement signing authorities andthe full institutionalization of electronicposting as the signal for beginning theprocurement process. The seminaron the New Government AccountingSystem brought positive changes to somefinancial processes, as it also rationalizedthe reporting and recording of assets andinventories. The Balanced Scorecard forExecutives brought in a new perspective inevaluating institutional performance.There were other human resourcedevelopment efforts which furtherstrengthened internal capability:Orientation to Risk Management, Updateson Information Technology, Seminar onMarket Research, Real Estate InvestmentsPatterns, and a course on the Appraisal andDisposal of Government Properties, andother short programs.Compliance With theGovernment Energy ProgramThe year saw BCDA’s more activeresponse to President Arroyo’s call forenergy conservation. After coordinatingwith the Department of Energy (DOE) onother parameters of the program, BCDAdeveloped a set of policies geared at furtherreducing energy consumption. Among thenew measures adopted was a 10 percentreduction of airconditioning systems inthe corporate office. In August 2006, aftera thorough audit of BCDA records andpractices on energy use, the DOE gaveBCDA a rating of 97 percent for successfulcompliance with the program. BCDAcontinues to pursue with undiminishedenthusiasm the various strategies it adoptedfor conserving energy.Property ManagementTo effectively manage BCDA properties inSubic, Poro Point, Baguio and Clark, apartfrom those in the corporate headquartersand satellite offices in two areas within theBonifacio Global City, BCDA’s PropertyDivision embarked on innovative measuresto strengthen in-house capabilities of BCDAand its subsidiaries on aspects of propertymanagement. Successfully completed in2006 were the preparation and actualdisposal of properties at the former SacobiaDevelopment Authority which werepreviously transferred to BCDA; the transferof Geographic Information System hardwareand software to BCDA subsidiaries; thedocumentation for insurance coverage ofadditional properties in Subic, John Hayand Clark; the preparation and submissionof property delivery reports as prescribedby the Commission on Audit; and thedocumentation of property donations toother government offices in need of usedmoveable assets.Records ManagementThe year also saw the expansion of thecoverage of BCDA’s Records ManagementSystem. The additional work entailed areview of the nature and extent of recordson the SCTEx Project and necessitated thefrequent monitoring of records handlingand storage at the project site in Clark, aswell as the updating of the BCDA database.Among other activities were the protectionof vital records; replication of the electronicdocument-tracking system at the projectsite; and, hiring of additional manpower inthe Records Management Division (RMD).Overall, 1,500 additional documents wereturned-over to the RMD.By year-end, preparations for a fullyelectronic Integrated Records ManagementSystem have been finalized.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 625

Financial ReportBalance Sheet(In million pesos)2002 2003 2004 2005 2006B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 626ASSETSCY 2006:Current AssetsCash and Cash Equivalent 1,144 1,701 1,579 2,571 2,785Receivables 4,834 1,898 1,740 830 400Inventories 874 814 745 877 763Prepayments 7 328Other Current Assets 122 117 116 111 12Total Current Assets 6,973 4,530 4,180 4,396 4,288Investments 28,243 28,099 26,968 24,379 24,454Other investments 2,859 2,823Long-term Receivables 2,404 3,073Property and Equipment 43,469 44,357 45,477 45,016 49,485Other Non-Current Assets 98 3,136 2,671 9 2TOTAL ASSETS 78,783 80,123 79,295 79,062 84,126LIABILITIES AND CAPITALCurrent LiabilitiesAccounts Payables 1,486 1,716 1,996 758 524Bonds Payables 1,200 1,200Inter-agency payables 1,896 1,917Intra-agency payables 218 231Trust Liabilities 1,692 1,906 1,560Total Current Liabilities 3,178 3,622 3,556 4,072 3,872Non-Current LiabilitiesLoans Payable 1,200 1,496 1,851 4,083 6,678Deferred Credits 1,148 2,134 2,042 2,375 3,628Other Long-term Liabilities 179 160Total Liabilities 5,526 7,252 7,448 10,710 14,338CapitalEquity from the National Government 68,542 68,660 69,959 66,766 66,966Contingent Capital 1 1 1Donated Capital 1 1 1 1 1Retained Earnings 4,712 4,209 1,886 1,584 2,821Total Capital 73,257 72,871 71,847 68,352 69,788TOTAL LIABILITIES AND CAPITAL 78,783 80,123 79,295 79,062 84,126Financial ConditionThe total assets of BCDA increased byP5.064 billion, from P79.062 billionin 2005 to P84.126 billion this year, orequivalent to a 6% escalation in termsof percentage change. Such incrementis attributed largely to the capitalizedconstruction cost of the Subic-Clark-TarlacExpressway (SCTEx) Project. In addition,prepayments, particularly input tax andcreditable withholding tax, increasedconsiderably from a mere P7 million in2005 to P328 million.Total liabilities grew by P3.628 billion, fromP10.71 billion to P14.34 billion, due to theincrease in loans payable ensuing frombigger loan drawdown from the Japan Bankfor International Cooperation, as part of theloan extended to BCDA for the fundingof the SCTEx Project. Likewise, deferredcredits increased due to the tax subsidyissued by the Department of Finance for thetax portions on contractors’ billings for theSCTEx. The tax subsidy which amountedto P1.232 million is recognized as deferredincome and will be amortized over a periodof 20 years, the standard useful life of theasset. Amortization will commence uponcompletion of the project.Total Capital climbed to P69.788 billionfrom P68.352 billion in 2005. This resultedfrom the 78% increase in retained earningsequivalent to P1.236 billion, as well as theP200 million increase in equity from theNational Government. Retained earningsincreased due to the substantial net incomegenerated this year.* It should be noted that the financial statements for the year 2006 were prepared using the New Government AccountingSystem (NGAS) Revised Chart of Accounts prescribed by the Commission on Audit (COA). This change also warranteda restatement of the 2005 financial Statements.

27Statement of Income and Retained Earnings(In million pesos)2002 2003 2004 2005 2006REVENUESJoint Venture Income (19) 52 74 445 606Seaport/Airport Income 50 45 46 46 32Lease Income 243 374 247 226Miscellaneous Income 80 13 10 6TOTAL REVENUES 111 340 507 748 870EXPENDITURESPersonal Services 87 104 107 108 105Maintenance & Other Operating Expenses 359 269 1,069 846 841TOTAL EXPENDITURES 446 373 1,177 954 946Net Income (Loss) from Operations (335) (33) (670) (206) (76)Other Income (Expenses)Gain on Foreign Exchange - 759Equity in net income of subsidiaries/affiliates (1,130) (253)Interest Income 129 68 160 183 163Dividend Income 384 180Interest Expense (147) - -Loss on disposal of properties (143) (125) (4)Financing and Administrative Charges (5) (195) (123) (253) (235)Total Other Income (Expenses) (1,153) (380) (106) 190 862Net Income Before Tax (1,488 ) (413 ) (775 ) (15 ) 786Provision for Income Tax (2 ) (7 ) (10 ) (15 ) (17 )NET INCOME (1,490 ) (420 ) (785 ) (30 ) 768CY 2006:Retained Earnings, Beginning 6,205 4,712 4,208 1,886 1,584Correction of Fundamental Errors (2) (85) (1,538) (271) 474Dividend Remittance to BTR (6)Retained Earnings, End 4,712 4,208 1,886 1,584 2,821Results of OperationsBCDA generated total revenues of P870million, which is 16% higher than thatof the previous year’s revenues of P748million. Joint venture income whichcomprised 70% of total revenues, postedthe biggest increase of P161 million, fromP445 million in 2005 to P606 millionthis year. This increment is due to theannual revenue shares from Serendra andMcKinley Hill projects, which are bothfocused on residential development. LeaseIncome, on the other hand, which make up26% of total revenues, totaled P226 millionshowing a decrease of P21 million fromP247 million generated in 2005.Operating expenses, which amounted toP946 million, is about 1% lower than lastyear’s P954 million. Personal Servicestotaled P105 million registering a 2%decrease from that of P108 million in 2005.Maintenance and Other Operating Expenses(MOOE) likewise dropped from P846 millionin 2005 to P841 million in 2006. Among theMOOE, significant variations are posted inadvertising and promotion expenses whichdecreased to P58 million from P120 millionin 2005; and in depreciation expense whichfell to P182 million from last year’s P218million caused by the revision/shortening inuseful life of the assets in accordance withCOA issuances. It is also worthy to note thatexpenses on donations and subsidies rose byP54 million from P211 million last year toP265 million due to increased donations ofBCDA for infrastructures projects in variousmunicipalities in Central Luzon, as well ascontributions to the AFP modernization.To summarize, with P870 million inrecorded revenues as against P946 millionoperating expenses, BCDA registered a netloss from operations of P76 million thisyear. This is 63% better than the P206million net loss from operations in 2005.BCDA, however, recorded P768 millionnet income after tax after considering otherincome and expenses, the biggest chunk ofwhich is contributed by the gain on foreignexchange. This gain resulted from thedifference in exchange rate at the time ofrecording the JBIC loan drawdowns for civilworks and detailed engineering design ofthe Subic-Clark-Tarlac Expressway Project,and the re-measurement of these foreigncurrency transactions at each balance sheetdate using the closing rate.B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

Statement of Cash FlowsFor the Year Ended December 31, 2006(With Comparative Figures for the Year Ended December 31, 2005)2006 2005CASH FLOWS FROM OPERATING ACTIVITIESNet cash from operating activities 699,896,199 757,015,818CASH FLOWS FROM INVESTING ACTIVITIESNet cash used in investing activities (3,382,956,049) (3,592,333,667)CASH FLOWS FROM FINANCING ACTIVITIESNet cash from financing activities 3,166,713,176 3,082,456,583NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 483,653,326 247,138,734CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 531,119,014 283,980,280B A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6CASH AND CASH EQUIVALENTS AT END OF YEAR 1,014,772,340 531,119,014CY 2006: Cash FlowsNet cash from operating activities of remittance of contribution to the AFP Net cash from financing activities totaledBCDA amounted to P699 million. The modernization, and estate management P3.166 billion, contributed primarily bylargest cash receipts came from thevarious lessees which amounted to P256million, and from the McKinley Hillproject amounting to P214 million. Thisis followed by proceeds from collectionof receivables, sale of PPTI condominiumunits, Asset Disposition Program, and fromthe Serendra project. On the other hand,expenses.From investing activities, cash inflowscome from short-term investments, anddividends from FBDC, BMHI and BESC.Outflows, on the other hand, were for theSCTEx-related acquisition of property andequipment and other payments for variousthe loan drawdown from JBIC.Consequently, the net increase in cash andcash equivalents at yearend totaled P483million which is 96% higher than thatof last year’s P247 million. The endingcash balance for 2006 of P1.015 billion isalmost twice that of the ending balance ofthe biggest shares of cash usage were for infrastructure projects. Net cash used/ P531 million in 2005.payments made to suppliers/creditors, outflows amounted to P3.383 billion.28

29Asset Disposition ReportBCDA is one of the key corporations of the national governmentwhich generates revenues to fund development projects of the Arroyoadministration. It is building the Subic-Clark-Tarlac Expressway,a modern four-lane toll way that will provide vital infrastructuresupport to the country and accelerate the creation of new economicopportunities for Filipinos.Breakdown of Disposition by ModeFor the period 1994-2006TOTAL-Php37.544 billionMandated to transform former US military bases into alternativecivilian use, BCDA has remained as a strong pillar of the country inthe modernization of the Armed Forces of the Philippines.Php30.360 billionFort Bonifacio(Sale in FBDC Area)81%11%Php4.167 billionLease and Joint VentureDisposition Proceeds fromBCDA’s Asset Disposition ProgramSince 1994, BCDA has generated a total of Php37.544 billion fromthe disposition of Metro Manila camps. Of this amount, 81 percentor Php30.360 billion was derived from the sale of a large portion ofthe Bonifacio Global City (BGC) to the Fort Bonifacio DevelopmentCorporation (FBDC).Distribution of Disposition ProceedsAnnual proceeds from the disposition of Metro baselands are remittedto the Bureau of Treasury (BoT) and utilized by government agenciesas mandated in the BCDA charter. For the period of 1994 to 2006,the AFP has received 43 percent of BCDA’s disposition proceeds.Of the Php16.307 billion AFP share, Php6.811 billion has beenremitted for the AFP modernization program while Php9.496 billionfor the replication of military facilities affected by the government’sdevelopment projects.Likewise,Proceeds from lease and joint venturesrepresented 11 percent or equivalent to Php4.167 billion. Revenuesfrom sale and securitization of properties represented five percent(Php1.780 billion) and three percent (Php1.237 billion), respectively.In 2006, the total disposition proceeds amounted to Php713.874million. The biggest source of proceeds for the year came from leaseand joint ventures agreements made with real estate leaders AyalaLand, Inc. and Megaworld Corporation, which yielded Php459.877million or 64 percent. The sale of former baselands, on the otherhand, generated Php218.161 million or 31 percent. The balance ofPhp35.837 million this year came from the securitization or publicsale of Heritage Park Investment Certificates.BCDA’s share of P5.712 billion was used to fund theconversion of former military baselands and the construction of majorinfrastructure projects that include the Subic-Clark-Tarlac ExpresswayProject. The rest of the disposition proceeds went to the following:site development and relocation projects of Php6.294 billion share;other beneficiary agencies of Php5.908 billion; taxes and fees ofPhp2.295 billion; replication of non-military structures of Php619million and share of contiguous municipalities of Php409 million.AFP SharePhp16.307 billionAFP Mod’n Program Php6.811BMilitary Replication Php9.496BBreakdown of Disposition by ModeFor the period January-December 2006Php459.877 millionLease and Joint VentureTOTAL-Php713.874 million64%Php218.161 millionSales Proceeds31%5%Breakdown of Disposition ProceedsFor the period 1994-2006BCDA SharePhp5.712 billionTOTAL-Php 37.544 billion43%15%3%17%5%Php35.837 millionSecuritizationSite Development andRelocation ExpensesPhp 6.294 billion6%2%Php1.780 billionSales Proceeds(FB and Other Camps)Php1.237 billionSecuritizationTaxes and FeesPhp2.295 billion1% Share of ContiguousMunicipalitiesPhp0.409 billion15% Share of OtherBeneficiary AgenciesPhp5.908 billionNon-Military ReplicationPhp0.619 billionB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

30Aloysius R. Santos Chairman (November 2006 to present), Rafael Julian V. Azanza DirectorAlvin P. Capino Director, James G. Lorenzana Director, Renato C. Valencia DirectorIsaac S. Puno III Executive Vice President, Director & Corporate SecretaryAri-ben C. Sebastian Director (May 2001 to April 2006), Gerard R. Seno DirectorGen Narcisco L Abaya (Ret) President and CEOB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

31B o a r d o f D i r e c t o r sB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 6

Directory of Subsidiaries and AffiliatesSubsidiariesBCDA Management & Holdings, Inc.2/F Bonifacio Technology Center31st Street, Crescent Park WestBonifacio Global City, TaguigTel No. (632) 816-1348ALOYSIUS R. SANTOSChairmanISAAC S. PUNO IIIPresidentClark Development CorporationBldg. 2122, E. Quirino StreetClark Special Economic ZoneClark Field, PampangaTel No. (045) 599-9000RIZALINO S. NAVARROChairmanLIBERATO P. LAUSPresidentClark International Airport CorporationClark Special Economic ZoneClark Field, PampangaTel No. (045) 599-2044VICTOR JOSE I. LUCIANOPresidentJohn Hay Management CorporationJohn Hay Special Economic ZoneP.O. Box 1088, Baguio CityTel. No. (074) 444-5823 to 24ATTY. LYSSA PAGANO-CALDEVice President and COOPoro Point Management CorporationPennsylvania Avenue, Poro PointSan Fernando City, La UnionTel No. (072) 242-4016FELIX S. RACADIOPresidentNorth Luzon Railways CorporationJusmag Area, Fort Bonifacio, TaguigTel No. (632) 894-4184Tel/Fax No. (632) 894-4188JOSE L. CORTESChairman & PresidentAffiliatesFort Bonifacio Development Corporation2/F Bonifacio Technology Center31st Street, Crescent Park WestBonifacio Global City, TaguigTel Nos. (632) 757-6117; 818-3601JOSELITO D. CAMPOS, JR.ChairmanJAIME I. AYALAPresident & CEOSubic Bay Metropolitan AuthorityBldg. 233, Barryman RoadSubic Bay Freeport ZoneTel. Nos. (047) 252-4283; 252-4214FELICIANO G. SALONGAChairmanARMAND C. ARREZAAdministratorSubic Clark Area Development CouncilEDGARDO D. PAMINTUANPresidential AdviserTel No. (045) 599-7418Management DirectoryB A S E S C O N V E R S I O N A N D D E V E L O P M E N T A U T H O R I T Y I A N N U A L R E P O R T 2 0 0 632OFFICE OF THE CHAIRMANALOYSIUS R. SANTOSChairmanTel No. (632) 816-0935Tel/Fax No. (632) 816-0936Internal Audit Services OfficeMA. LINA P. OCAMPOInternal AuditorTel No. (632) 816-0938OFFICE OF THE PRESIDENTGEN NARCISO L ABAYA (RET)President & CEOPATRICK ROEHL C. FRANCISCOHead Executive AssistantTel No. (632) 816-0916Tel/Fax No. (632) 816-0917Public Affairs OfficeLEILANI BARLONGAY-MACASAETDepartment ManagerTel No. (632) 816-0948Tel/Fax No. (632) 816-0947Information Technology Systems,Procedures and Control DepartmentMA. ESPERANZA M. ESPINOChief Information OfficerTel No. (632) 816-1108;Tel/Fax No. (632) 816-0978Subsidiaries, Affiliates, & ProjectsMonitoring DepartmentATTY. REGINA SALVE R. LAPUZOfficer-In-ChargeTel No. (632) 816-1071Tel/Fax No. (632) 816-1083JOEL V. BERINGUELADepartment ManagerTel No. (632) 816-4690Tel/Fax No. (632) 816-1083OFFICE OF THE EXECUTIVE VICEPRESIDENTISAAC S. PUNO IIIExecutive Vice PresidentTel/Fax No. (632) 816-0964Legal Services DepartmentATTY. ARNEL PACIANO D. CASANOVAGeneral CounselTel/Fax No. (632) 816-1092CORPORATE PLANNING &BUSINESS DEVELOPMENT GROUPAILEEN ANUNCIACION R. ZOSAVice PresidentTel No. (632) 816-1015Tel/Fax No. (632) 816-1016Business Development DepartmentBARBARA L. ANDALProject ManagerTel No. (632) 816-1043Land & Assets Development DepartmentDEAN J. SANTIAGOProject ManagerTel No. (632) 816-1013Corporate Planning Services DepartmentEDUARDO G. POLICARPIO, JR.Department ManagerTel No. (632) 816-0987FINANCE GROUPVICTOR V. ZABLANVice President & Chief Finance OfficerTel No. (632) 816-1052Tel/Fax No. (632) 816-1063Budget & Monitoring DepartmentHEDDA Y. RULONADepartment ManagerTel/Fax No. (632) 816-1067Financial Management Services DepartmentERLEDA S. SAN JUANDepartment ManagerTel No. (632) 816-0993Treasury & Investments DepartmentNORMA S. PABUSTANDepartment ManagerTel No. (632) 816-1076OPERATIONS GROUPANTONIO REX S. CHANVice PresidentTel No. (632) 816-1086Tel/Fax No. (632) 816-1087Contracts Management DepartmentATTY. REGINA SALVE R. LAPUZProject ManagerTel No. (632) 816-1071Infrastructure Development DepartmentALEX T. SOLOMONProject ManagerTel No. (632) 816-1070Housing & Relocation DepartmentROLANDO C. MANALOProject ManagerTel No. (632) 816-1089Security ServicesBGEN. ROBERT C. GERVACIO (RET)Project ManagerTel No. (632) 816-1008CORPORATE SERVICES GROUPNIEVELENA V. ROSETEVice PresidentTel No. (632) 816-1003Tel/Fax No. (632) 816-1004Administrative ServicesELEANOR L. ATIENZADepartment ManagerTel/Fax No. (632) 816-1030Human Resources Development &ManagementRIZALITO L. FABULAOfficer-In-ChargeTel No. (632) 816-1029SUBIC-CLARK-TARLAC EXPRESSWAYPROJECT MANAGEMENT OFFICEANTONIO REX S. CHANProgram DirectorTel No. (632) 816-1086Tel/Fax No. (632) 816-1087MGEN TRIFONIO P SALAZAR (RET)Program Manager for Administrative SupportTel/Fax No. (045) 599-7210MGEN EDUARDO J LENA (RET)Program Manager for Engineering andConstructionTel/Fax No. (045) 599-7212BGEN ROBERT C GERVACIO (RET)Program Manager for Operational SupportTel/Fax No. (045) 599-6054COMMISSION ON AUDITMA. SYLVA Z. ISIDERIOCorporate AuditorTel No. (632) 816-1344Tel/Fax No. (632) 816-1345

AcknowledgmentsAyala Land, Inc.CyberCity Teleservices, Inc.Market! Market!Oxford HotelMR. CESAR JOSE JESENASenior Division ManagerMR. GEORGE SORIOSenior Vice PresidentMS. CHARMAINE BAUZONGeneral ManagerMR. DAVID SANCHEZPresidentBataan Technology Park, Inc.MR. ALEX REYESAdministrative DirectorMS. PINKY ASUZANOMarketing ManagerMS. JOAN CAMAYAPublic Relations OfficerMR. ANTONIO HABANAChairmanCOMMO AMADO SANGLAYAdministratorClark Development CorporationMR. ANGELO LOPEZ, JR.Manager for Public RelationsMR. LAURO ORTILEManager for Corporate Planning& Information SystemsMR. AHMED MENDOZAAssistant Managerfor Corporate PlanningMR. RAUL AMORESCreative and Production OfficerClark International Airport CorporationMR. VICTOR JOSE LUCIANOPresidentCommunity Innovations, Inc.MS. IRIS JOSEFProject Development ManagerMR. ANTON SANCHEZProject Development ManagerMS. ZENETH QUIAZONPublic Relations& Communications SpecialistFort Bonifacio Development CorporationMR. ANICETO BISNARHead for Commercial OperationsMS. CATHY SINGHBusiness Development ManagerHotel StotsenbergMS. KIT TRAJANODirector for Public Relations& Marketing PromotionsIntelliRisk Management CorporationMR. SUMIT MALHOTRASenior Vice President for OperationsMS. ROMA PAMINTUANFacility and Administration ManagerJohn Hay Management CorporationATTY. LYSSA PAGANO-CALDEVice-President & COOMR. CHRIS GUZMANExecutive SecretaryMegaworld CorporationMR. ANTONIO TANSenior Vice President for OperationsMR. ROBERT EDWIN LIMVice Presidentfor Business DevelopmentENGR. ROMY TRIBIANASenior Engineering Managerfor Operations for Newport CityENGR. GEOFREY LISINGSenior Engineering Managerfor McKinley HillMimosa Golf and Country ClubMR. NOLI REYESGeneral ManagerNanox Philippines, Inc.MR. MINORU AONOPresidentMS. CLARITA LUBOManager for Human ResourcesNorth Luzon Railways CorporationMR. JOSE L. CORTES, JR.PresidentMR. DENNIS JUGUETAVice PresidentPoro Point Management CorporationATTY. FELIX RACADIOPresidentATTY. ANTHONY MANGUIATVice-President & COOENGR. VIRGILIO SALAYOGConstruction & MaintenanceDivision ManagerMS. JOSEFA CATHERINE BADDAConcurrent Manager for Corporate Planning& Business Development/Manager for Zone OperationsMS. CHRISTINA RODRIGOCorporate Planning& Business Development OfficerMS. MA. EUFELIZ MADAYAGInformation Technology OfficerSmart Shirt Philippines, Inc.MR. DAVID HEATHGeneral ManagerMS. MA. LYNNE TOCLEAdministrative ManagerSM City ClarkMS. RHEYBIE NIPASAssistant Mall ManagerMS. MICHELLE CATAPPublic Relations OfficerOffice of the PresidentHON. MA. LOURDES VARONAAssistant SecretaryHead, Correspondence OfficeSubic Bay Metropolitan AuthorityMS. ARMINDA BELLEZA LLAMASPublic Relations ManagerBEAT THE ODDSB - Balanced budgetE - Education for allA - Automated electionsT - Transport and digital infrastructure toconnect the countryT - Terminate the MILF and NPA conflictsH - Heal the wounds of EDSAE - Electricity and water for all barangaysO - Opportunities for 10 million jobsD - Decongest Metro ManilaDS -Develop Subic and ClarkPUBLICATIONS TEAMThis 2006 Annual Report is a project of the Public AffairsDepartment composed of Leilani Barlongay-Macasaet,Roy Victor R. Rosales, Maricar Gay S. Savella,Maricel F. Bigal, Irah F. David and Garry A. Cativo.Concept, Design and Photography by: Mode Matrix Manila, Inc.

B C D A C o r p o r a t e C e n t e r2/F, Bonifacio Technology Center31st Street, Crescent Park WestBonifacio Global City, Taguig CityPhilippinesTel. No. : (632) 816-6666Fax No. : (632) 816-0996E-mail : bcda@bcda.gov.phWebsite : www.bcda.gov.ph