Putting back Clark main gate to former site may bankrupt AC

• Source: http://punto.com.ph/News/Article/23510/Volume-9-No-27/Headlines/Putting-back-Clark-main-gate-to-former-site-may-bankrupt-AC
• Sunday, September 20, 2015 8:02 pm

By Ashley Manabat

ANGELES CITY – The Pinoy Gumising Ka Movement (PGKM) warned on Monday that the city government may go bankrupt if the Clark Development Corp. (CDC) pushes through with the construction of the main gate of the Clark Freeport back to its original site in front of SM City Clark.

The PGKM said the CDC is pulling back the main gate of the freeport to its original site allegedly in order to accommodate the Capilion Corp. Pte. Ltd. project located diametrically opposite SM.

PGKM Chair Ruperto Cruz made the warning in the light of the CDC statement that the Capilion project is classified as a Clark locator enjoyingthe full benefits of tax free importation and other tax privileges.

Cruz noted that SM is considered outside of the freeport by virtue of the provisions of RA 9400, an amendment to RA 7227 otherwise known as the Bases Conversion Development Act, and does not enjoy taxfree importation and other tax privileges enjoyed by Clark locators.

“What if SM will now demand the same taxfree privileges as that of its front door neighbor which is Capilion?” asked Cruz.

“In this scenario, if SM is allowed the same tax-free privileges as that of Capilion, the city government will lose a huge chunk of its revenues and will go bankrupt,” Cruz reasoned.

He observed that in 2005, the city government revenues amounted to only P600 million.

But with SM coming in starting 2006, the city has breached the P1 billion mark and now has P1.3 billion revenues.

“It does not take a rocket scientist to figure out the difference,” Cruz said.

The CDC said “Capilion is the first locator to pay advance lease equivalent to 60 months minimum guaranteed lease (MGL or fixed rent) which exceeded the CDC-Board approved leasing standard on advanced lease payment which is six months.”

The CDC also said “the construction of a new main gate structure at the Clark freeport is set for implementation to make the freeport more distinct, vibrant and attractive to tourists and residents.”

Alveen Tabag, CDC vice president for engineering services, said “the new main gate structure is scheduled for construction after completion of engineering designs and compliance to requirements on infrastructure projects.”

The government has allotted P10 million for the project.

The CDC official also clarified that “the existing gate near the Clark cemetery is called a control gate and is intended for access control and security purposes. It is not a replacement of the main gate.”

The CDC said “the old main gate became dilapidated and was torn down few months ago to give way to a new structure. The Main Gate serves as a basis in the establishment of boundary of Clark Freeport Zone under Republic Act 9400.”