THE Department of Finance (DOF) has questioned the absence of American investors in the Duterte administration’s flagship infrastructure project to develop the Clark Freeport Zone, a former United States military air base, into the country’s next big metropolis.
In a meeting with United States Assistant Secretary of State Manisha Singh, the finance chief said the absence of American investors in the bidding for the New Clark City development project could indicate that American investors “have no interest” in taking part in the Philippines’s economic emergence that is anchored on its massive “Build, Build, Build” (BBB) program.
Dominguez pointed out that he had also asked the same question before members of the US-Asean Business Council and the American Chamber of Commerce in the Philippines in his separate meetings with them earlier this year.
He said that the Philippine government, which is funding the transformation of the former US military base into New Clark City, had announced the public bidding for the project before the international community, but no American companies took part in the bidding process.
“Last time I spoke with the US-Asean Business Council and the US Chamber here, I asked them one question. Why did they not bid for the project in Clark? The refurbishment of the Clark airbase is done with our own funds. The project is around $250 million. We bid this out around this time last year,” Dominguez told Singh during the meeting.
The finance chief quickly added that the Philippines welcomes US companies in the country, as their investments would prove beneficial to the country’s fast-growing economy.
According to the DOF, some American companies have submitted bids, but only for the design component of the New Clark City project.
“Maybe they don’t have an interest here,” he added.
Singh, who handles the State Department’s economic and business affairs, said she will speak with leaders of US infrastructure companies to tell them about the immense investment opportunities in the BBB program of the Duterte administration.
“We would like to participate, we would like to engage,” Singh said, noting that there might have been some “disconnect” that needs to be corrected to ensure that US companies are aware of the opportunities in the Philippines.
He informed Singh that the New Clark City would be complemented with the development of the Clark International Airport, which will include a new passenger terminal and possibly a second runway. This new metropolis will have a new backup government center, world-class sports facilities and industrial estates.
During the meeting, Singh also discussed with Dominguez US President Donald J. Trump’s new Indo-Pacific Strategy, which aims to enhance US private-sector participation in this region that includes Japan, India, the member-states of the Association of Southeast Asian Nations and Australia, among other countries.
Singh said that the US program also involves improving digital connectivity and cybersecurity in the region, promoting sustainable infrastructure development, and strengthening energy security and access.
In response, Dominguez said that the Indo-Pacific Strategy, in relation to the Philippines, is a “timely” effort given that bilateral trade between the Philippines and US has been expanding at a slow pace.
He also welcomed Singh’s statements on the progress of negotiations for a US-Philippines free-trade agreement, with a new meeting set soon between the trade officials of the two countries.
The New Clark City is a 9,450-hectare project in Tarlac City being developed by the Bases Conversion and Development Authority (BCDA) together with its private partners.
It is one of the BCDA’s projects under the BBB infrastructure program, which consists of 75 flagship infrastructure projects.
Part of the New Clark City is the 200-hectare National Government Administrative Center, which will house backup offices of various agencies to ensure continuous business operations and services in case of disaster or national calamities. Its Phase 1A involving 40 hectares will also feature the construction of world-class sports facilities to be used for the Southeast Asian Games in November 2019.
The DOF earlier reported that the New Clark City project features three main structures, namely, the P1.78-billion Clark Green City Government Center, P850-million Clark Commercial Center and the P3.33-billion Clark Mixed-Income Housing.