Uploaded last 18 Nov 2015

08 Fall

C l a r k F r e e p o r t Z o n e , P h i l i p p i n e s

CLARK DEVELOPMENT CORPORATION

2015 Mid-Year Report

CLARK DEVELOPMENT CORPORATION 2015 Mid-Year Report

Page 2 of 32

Scope of the Report

Page

1. Executive Summary 3

2. Financial Performance 4

3. Administrative Performance 6

4. Business Development Highlights 10

5. Business Enhancement Highlights 15

6. Tourism Highlights. 16

7. Infrastructure Improvements 19

8. Initiatives to Address Climate Change 22

9. Information Technology 23

10. Recovery of Lands / Revival of Projects 24

11. Improving Security 25

12. Legal Highlights 27

13. Corporate Social Responsibility (CSR) Projects. 29


Page 3 of 32

Executive Summary Coming from truly remarkable achievement statistics that Clark Freeport has produced over the years 2013 and 2014, prospects for this year were expectedly high, if not higher. Did the Corporation meet these expectations? Well, to keep it short but modesty aside: We didn’t even need to wait for the end of the year. Actual employment is at a record high of 80,977 coming from the already impressive 75,538 of 2014 coming from 781 locators. US$ 239 Million worth of committed investments secured so far; also more than to cover for the US$ 25 Million annual target. Exports were recorded at 2.45 billion US dollars. Net income for the first half of 2015 is already at PhP 333 million, 70% higher compared to budget and 21% higher vs. same period last year coming from increases in revenues and savings on personal services expenses. Estimated Net income by the end of the year is PhP 600 million from PhP 554 million in 2014. Yet, while we are grateful for what we have achieved this semester, foresight tells us to gear towards surpassing what we have attained. CDC is taking bold steps and solid measures to keep Clark buzzed with economic activities. We are confronted with a challenging job immediately ahead of us as the country gears for ASEAN and APEC-led opportunities this November. No matter how tough, we shall make things easier and better because we are focused and determined. We shall maintain excellent public service and work in unity, soaring high with synergy, with confidence and trust. Clark Freeport Zone, as in the past, shall always emerge triumphant to serve its role as the investment center and catalyst of economic progress in Central Luzon and in the entire country.


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Financial Performance Total Rent Income for the first half of 2015 is PhP 506 million and is 10% higher compared to same period last year. This is attributed to the Minimum Guaranteed Lease (MGL) as a result of the full recognition of leases after the grace period, lease escalations, and incremental revenue shares. Business income for the period is PhP 191 million, or 12% higher compared to same period last year coming mainly from CDC Resort, Holiday Inn, & Mimosa Casino. Permits and Other fees is PhP 72 million, which is 32 % higher than the same period last year, coming from TFD Processing fees (Export/Import permits, Bring In/Out permits), Marketing and Regulatory fees, CEDC Guarantee fee, throughput and terminal fees from Coastal Petroleum. Net income for the 1st half of 2015 is PhP 333 million or 70% higher compared to budget and 21% higher vs. same period last year coming from increase in Revenues and Savings on Personal Services expenses. Projected Net income by the end of the year is PhP 600 million or an 8% improvement from the CY 2014 actual of PhP 554 million.


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Remittance to the National Government

This year, CDC remitted an unprecedented record of PhP 400 million cash dividends to the National Government covering a single year remittance.


Page 6 of 32

Administrative Performance

Rationalizing the manpower complement of CDC from 764 employees as of 2012 December 31 to 641 employees as of 2015 August 31. The rationalization has resulted to a reduction of Personnel Services cost of 5% for salaries and wages and 8% for allowances and other benefits. Reaffirmed the commitment to uphold integrity and combat anti-corruption under the “Daang Matuwid” through the Panunumpa ng Kawani ng Gobyerno during monthly flag raising ceremony. Continuous implementation of the “No Gifts Policy” and “Manual of Corporate Governance” approved by the Governance Commission for GOCCs (GCG). The compliance of CDC to Good Governance, Transparency Seal and Citizen’s Charter requirements also laid the basis for the Performance Based Bonus to officers and employees and Performance Based Incentives for the Board of Directors. Provided human resources support to address the manpower requirements of the First Asia Pacific Economic Cooperation Senior Officials’ Meeting and Related Meetings (APEC SOM1) held in Clark from January 26, 2015 to February 10, 2015 through: a. Deployment of 29 Liaison Officers (LOs)

from CDC and CDC-SPRO trained in: Foreign Protocol and Image

Enhancement Training Image Enhancement Training Tour Guiding Seminar

b. Organized and trained 139 student volunteers from various colleges and universities in Pampanga and Tarlac. The following logistical support were also extended by CDC:

Training venues for student volunteers training on foreign protocol, image enhancement and customer service

Shuttle service to and from the Clark Main Gate and Mabalacat Gate

3 sets of APEC uniforms per student APEC duty considered as On-The-Job Training with corresponding certificates Dedicating shuttle services to and from Tarlac City and accommodations for Tarlac State

University students

CDC and SPRO Liaison Officers (LOs)

APEC Student Volunteers


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CDC has also assigned eleven (11) LOs during the APEC SOM2 in Boracay from May 8 – 16, 2015 and committed to the APEC National Organizing Council the deployment of nineteen (19) LOs for the APEC Economy Leader’s Meeting on November 2 – 21, 2015.

Continuous implementation of the medical, group life insurance and retirement benefits granted to CDC employees. CDC has adopted and maintained the benefits based on the principle of non-diminution of benefits and good faith and exercise of due diligence in its grant. The retirement program for CDC employees has been fully funded allocating the amount of PhP 336 Million. The constant implementation of the following rationalization measures in health care has resulted to PhP 5 million savings for the period:

1. Strict implementation of the inclusions and exclusions of the Self-Administered Health Plan. 2. Budgeting of all medical requests and procedures.

CDC top management has conducted the 2015 Strategic Planning Conference last July 09 – 11, 2015 at the Green Canyon Resort, Sacobia Area, Clark Special Economic Zone. Members of the Management Committee and heads from strategic departments participated in the 3-day strategic planning session. A review of the 1st half of 2015 performance were presented and reviewed. Projects on the pipeline as well as those scheduled for implementation for the 2nd half were also presented and discussed. Finally, the performance targets and budget for 2016 were presented, discussed, validated and scrutinized for finalization by the participants. One highlight of the conference is the wearing of the themed t-shirts “Isang Puso, One Direction” signifying commonality, always on time, walk in one direction, synchronization, oneness and unity of the management team. A challenge to the TEAM to be ONE.

CDC Strategic Planning Conference with participants wearing the Themed T-Shirts “ISANG PUSO, ONE DIRECTION” which signifies Oneness and Unity of the

Management Team


Page 8 of 32

Continuing review of the CDC organizational structure through the following:

a. Emphasized the importance of the security and engineering mandates of CDC by creating the Security Services Group and Engineering Services Group from the former Operations Group.

b. Strengthened accountability of movable properties through the integration of all CDC warehouses under the Assets and Equipment Management Department.

c. Integrated the Construction and Utilities Permits Department (CUPD) with the Engineering Services Group to have one direction in the implementation of engineering projects.

d. Reorganized the Trade Facilitation Department to improve the delivery of public service and implementation of rules and regulation regarding the movement of non-taxable goods within and outside Clark.

e. Aligned media / corporate communications with Management directions by creating the Communications Department under the Office of the CDC President and Chief Executive Officer.

Audit issues related to prolonged detail assignment were resolved through the following personnel actions:

a. Promotion of 76 employees b. Reassignment of 44 employees c. Recall of detail of 8 employees

The exercise of Management prerogatives and authority to hire, dismiss, approve, re-organize and make appropriate salary formulations and adjustments matters through promotions and corrective measures to address detail assignments were strengthened by superseding the Selections and Promotions Committee (SPC). CDC has also partnered with the Center for Labor Education, Advocacy Research and Development, Inc. for the development of the Competency-Based Human Resources Management and Development Manual which will be completed in December 2015. The automation of the Human Resources Information Systems will also be undertaken with the project awarded to Forward Solutions after compliance with procurement requirements.


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Consistent advocacy to transform workplace ethics and culture through the implementation of the following policy measures:

a. Customer service with a smile. b. Punctuality of the Management Team by reporting for work before 8:00 a.m. and leaving

the office after 5:00 p.m. c. “Bawal humingi o tumanggap ng suhol o regalo.” d. “Ang tsismoso ay pang kalaboso, ang intriguero ay pang impyerno.” e. “Hindi pwede ang pwede na” f. “If you don’t have anything good to say, just keep quiet.” g. Acapela singing of the Philippine National Anthem and sharing of employees on culture and

values in the workplace during monthly flagraising ceremony. h. Conduct of meetings before and/or after office hours to maximize performance of

government services. i. Mentoring responsibility and sharing of common information for effective resolution of

corporate issues Centralized Warehouse Management

a. Conducted and completed the following:

inventory and turnover of residual construction materials from various stockroom formerly under the custody of ECMD;

initial inventory for the newly turned-over moveable assets; routine monthly and weekly inventory;

b. Transferred the inspection and acceptance of supplies/material deliveries and subsequent

issuance of the office supplies, printable requirements, office equipment peripherals, vehicle parts, medical supplies and equipment, etc. at the former Jacinto Bldg.;

c. Facilitated the transfer/donations of supplies/moveable properties to various government

agencies such as the 7th ID Philippine Army, Mabalacat City Colleges, City College of Angeles, and the Municipalities of Bamban, Capas, Porac, and other LGUs and schools;

d. Endorsed two (2) lots of scrap materials to the Disposal Committee for bidding. The lots

cleared for disposal have a combined value of PhP 4.06 million based on the Commission on Audit (COA).


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Business Development Highlights

Locators per year

Actual Employment per year


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Business Development Highlights Projects Signed:

The following are the Breakthrough Projects for the Semester Nanox Philippines Inc.’s Expansion

Project (6 Has) with committed investment of US$ 760 million

Widus International Leisure Inc.’s Expansion Project (3.2 Has) with committed investment of PhP 4 billion

PLDT Clark Telecom, Inc.’s establishment of a Data Center Facilities infusing additional investment of PhP 1.3 billion

Donggwang Clark Corporation’s additional project activity infusing additional investment commitment of PhP 3.4 billion

Another economic indicator that measures the trust and confidence as well as the level of satisfaction of investors is the number of expansion projects being undertaken.

For the Clark Freeport Zone, the increasing number of expansion projects as illustrated by the four companies above as well as similar expansion projects with Eagle Sky Gaming and Phoenix Semiconductor are testament to the good governance and quality of service made by CDC employees in addition to the Freeport’s strategic location, quality of workers, live-work-play environment, safety and security and incentives that make each

locator happy.

Type of Lease

Committed Investment in US $ Million

Committed Employment

2015 1st Half

2014 2013 2015 1st

Half 2014 2013

Direct Leases 209.27 188.67 58.10 737 75,672 10,722

Subleases, and Memorandums of Agreement

26.97 88.48 66.85 4,883 8,638 8,357

Total 236.25 277.15 124.95 5,620 84,310 19,079


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Visa Monitoring Audit CDC and the Bureau of Immigration (BI) with respect to the inter-agency monitoring, which the JMO provides, have conducted random audit visits to the following locators. The objective is to ensure that:

No foreign nationals are working without the appropriate visas/permits and, That existing holders of Special Clark Working Visas are physically present to prove that

they are not engaged in gainful employment other than the employer or purpose, which the visa/permit was issued for.

Locator Active Expats Audited Expats

FS Phil Corp 36 30

Jisen Tourism 98 30

Eaglesky 19 16

BSD Service Corp 39 30

Next Games Outsourcing Inc. 755 479

TOTALS* 947 585

*Note on difference: Foreign nationals are out of the country, on field work, or undergoing separation process Locator-employer however has been given opportunity to present the subject foreign

nationals after the 1st visit of CDC Updated status to be reported in the next half of 2015

In addition to the inter-agency coordination/visits, the personal appearances of foreign nationals are required by CDC and BI when applying for the first time and every year thereafter for the entire duration of their engagement with their locator-employer.


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Massachusetts Institute of Technology (USA)

January 19, 2015

Singaporean Ambassador to the Philippines

and Singaporean Businessmen (Singapore)

May 8, 2015

Inbound Investment Missions CDC, through outbound missions to promote Clark together with the rest of the Investment Promotions Agencies (IPAs) under the Philippine Investment Promotions Plan (PIPP), has been aggressively receiving several inbound investment missions by prospective investors from several countries, interested in locating in Clark, as follows:

Country Number of Delegates

USA 11

China 7

Japan 5

Korea 15

Singapore 7

Taiwan 6

Others 81


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Jobs Fairs A. The event is held twice a year (April and

November) in cooperation with CILA, CHRC, DOLE, PESO, TESDA and CFZ locators to promote job opportunities available inside the zone.

B. The 1st CFZ Jobs Fair for CY2015 was held last April 24 at the Robinsons Place Balibago, Angeles City wherein forty six (46) CFZ companies participated in this recruiting activity.

C. Summary Report on the 1st Jobs Fair:

Particulars Statistics

April 2015 Last year

Total No. of Participating CFZ Locators 46 51

Total No. of Job Vacancies 4,788 3,978

Total Applications Received by Companies 3,572 2,399

D. Summary of applicants hired on the spot:

Name of Companies Type of Industry Hired on the Spot

April 2015 Last year

Sutherland BPO: Call Center 13 32

Fontana Development Tourism 88 0

Evertrust Business Solution Service-Manpower 4 34

Iqor BPO: Call Center 4 19

Leadhustler BPO: Call Center 3 0

Ausphil Solution BPO: Call Center 29 15

Service Resources Inc. Office Space 62 0

Foton Industrial: NEC 3 0

TOTAL: 206 101


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Business Enhancement Highlights Exports per year, as of June 30, 2015 (US$ Billion)

1. Different permits issuing departments (Construction and Utilities Permits Department,

Environmental Permits Department, Health and Sanitation Department, Trade Facilitation Department) initiated several measures to address the issue such as: a. Streamlining of procedures and processes to determine the minimum steps required

without sacrificing compliance to statutory and regulatory laws.

b. Consolidation of various permits being issued by several departments related to for Bring-In and Bring-Out. With the Trade Facilitation Department as the lead in the consolidation and implementation.

c. Manualization of processes related to permit issuances to enhance the information dissemination to locators. The Trade Facilitation Department spearheaded the initiatives by coming up of their manual for implementation by July 2015.

d. Review and enhancements of the signatories of all permits being issued (RACCI chart matrix).

e. Internal systems improvement through automation of processes and procedures.

f. Introduced the conduct of the Joint Inspection and Monitoring Team composed of the different permitting departments.


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Tourism Highlights

APEC Senior Officials’ Meeting In July of 2014, Clark was chosen as the site of the First Asia-Pacific Economic Cooperation (APEC) Senior Officials’ Meeting and Related Meetings (SOM1) held from January 26, 2015 to February 10, 2015 by the APEC 2015 National Organizing Committee (APEC-NOC).

Preparations for the APEC SOM1 meetings required complete cooperation from local government units and our locators, specifically, from the convention and billeting facilities in Clark. Being a project of the Republic of the Philippines and with much prodding from CDC, the locators were more than eager to accommodate the requirements of the APEC-NOC for additional hotel rooms and convention facilities for the 1,700 delegates.

Fontana Hot Spring Leisure Parks, Holiday Inn, Widus Hotel, Mimosa Golf & Country Club, Oxford Hotel and the Philippine Air Force stepped up to the challenge, making the necessary preparations within a short period of less than 5 months with support from CDC in the importation of construction materials needed for the Fontana and Holiday Inn renovations.


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Clark also received overwhelming support from local government units, headed by Pampanga Governor Lilia G. Pineda and Angeles City Mayor Eduardo S. Pamintuan, thru the hosting of dinner and provision of additional security personnel for the convention venues.

Clark Museum and 4D Theater In 2015, the Clark Museum underwent major renovation to become the first state-of-the-art interactive museum in Pampanga. It brings the museum experience to the next level with its state of the art 4D Theater and a host of interactive and educational displays.

The Museum houses 4 different

galleries which feature the geology, geography, history of Clark and its surrounding communities, the Kapampangan culture, and the Clark Freeport.

The museum features a

multitude of interactive exhibits,

“Made in Clark” products display,

Kapampangan Crafts, a Souvenir

shop, historical relics, and others.

Next to the museum, CDC has constructed a 4D Theater showing the past, present, and future of Clark where guests can experience every tremor, sight, sound and smell that was experienced by the residents of Pampanga and Tarlac during the 1991 Mt. Pinatubo eruption;

Tourism Secretary Ramon R. Jimenez Jr. graces

the opening of the Clark Museum


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19th Philippine International Hot Air Balloon Fiesta

Clark’s signature event was successfully conducted in 2015. The Philippine International Hot Air Balloon Fiesta is the biggest international sports aviation activity in Asia and a major tourism event in the country today. In the past 19 years, it provided valuable contribution to tourism, businesses and job creation within Clark and the surrounding communities. It draws support and cooperation from government agencies, private companies, corporate sponsors, Philippine and foreign media, LGUs and the general public. Around 95,000 pax attended this year’s hot air event. The event also generated significant

media mileage and business opportunities to commercial establishments within Clark and vicinity. 34 colorful hot air balloons from 14 countries filled the skies of Clark on February 12-15, 2015 for the 19th Philippine International Hot Air Balloon Festival. Special-shaped balloons featured Old MacDonald’s Farm, Maximus the Beagle Dog, Burnie the Little Devil, Upside Down Balloon, Miss Daisy, Old Lady & the Shoe, Little Girl and Little Boy, Pink Elephant, Octopus, and Vincent Van Gogh.


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Infrastructure and Engineering Improvements

1. Design and Construction of New

Rotunda along Mac Arthur Highway, Bayanihan Park

2. Constructed the Drainage Re-alignment at the GCAC Area

3. Extension of R. Magsaysay Rd Phase

4. Constructed the following projects: a. Concrete Canal from Panday

Pira Avenue to Dolores Creek (Lower Dolores Sub-System Section 1)

b. Improvement of Lakandula Creek

5. Implemented the following projects: a. Repainting Works:

Exterior Re-Painting of: o 21 Housing Units along

Ninoy Aquino Avenue o Bldg. 2129 o Clark Museum o Health Office o Barn houses o PSD Building o Housing Units along

Samat St. o CDC Guesthouses and

White House o Chapel II

Repainting of o 858 Street lighting Poles

along Major Thoroughfares; o Waiting Sheds; o SCTEx Underpass along Gil Puyat, M.A. Roxas and Friendship Gate o Steel Billboards

b. Cleanliness Campaign

c. Integrated Warehousing

Bayanihan Park Rotunda

Repainting of Barn houses

Repainting of Street lighting Poles along Major Thoroughfares


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d. Building and Parks Improvements

Construction of New Comfort

Room at Parade Grounds and Improvement of Jogging Path;

Renovation of Clark Museum;

Construction of New 4D Theater;

Renovation of Bldg. 2098 (Integrated Operations Command Center) Phase 1

Installation of Garbage Bins at Bicentennial Park, Children’s Park and Parade Ground;

Construction of Metal Shed and Re-Painting of Playground Equipment

Rehabilitation of Playground Equipment

e. Area Lightings Improvements

Supply and Installation of

Area Lightings at Clark Parade Grounds

Replacement of 23 Units Damaged Streetlight Poles

Comfort Rooms at the Parade Grounds

Parade Grounds Jogging Path

4D Theater


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f. Demolition of Blighted Items Old Main Gate Structure Structures in front of Oxford Hotel Old Mimosa Mart Former Duty Free Clothing Bldg.

g. Other Improvements Repair of Concrete Side Walk Installation of Locator’s Board Installation of New Street Names along Major Intersections

6. Installation of New Traffic Lights for the

following locations: a) C.M. Recto/M.L. Quezon Intersection b) C.M. Recto/J. Calvo Intersection; c) M.L. Quezon/Gil Puyat Intersection; d) M.A. Roxas/M.L. Quezon Intersection

7. Completed Projects

a) Renovation of Bldg. 2098 (CDC Command Center) b) Repair of Streetlights at Clark North c) Drainage Re-alignment at GCAC/Durban Area d) Exterior Re-Painting of 21 Housing Units along Ninoy Aquino Avenue e) Construction of Rotunda at Bayanihan Park (Approach to Main Gate) f) Improvement of Lakandula Creek

8. On Going Projects

a) Rehabilitation of Access Road at Lily Hill b) Supply and Installation of Streetlights along Lily Hill Access Road

9. Projects under Bidding stage

a) Proposed Site Development Works at the Back of Clark Museum b) Service Road for the Proposed Commercial Strip along M.A. Roxas Highway c) Supply and Installation of Streetlights for Commercial Strip along M.A. Roxas Highway d) Construction of Slope Protection at Upper Dolores Creek e) Improvement of Kalayaan Road f) Supply and Installation of Streetlights for Access Road leading to T-43 g) Construction of Access Road leading to T-43 h) Replacement of 340 Units High Pressure Sodium (HPS) Streetlights to Light Emitting

Diode (LED) Streetlights i) Site Development Works for the Truck Scale Staging Area at IE-5 j) Rehabilitation/Installation of Fire Alarm System (Bldg. 2093, 2127 & 2098)

10. Basket of Initiatives on Power. As a continuing efforts to reduce the cost of power, CDC

spearheaded the creation of a basket of initiatives on power to include; Retail Electricity Supplier (RES) thru BCDA, Power Supply Agreement (PSA) with a generating plant, Construction of a transmission line w/in Clark, Putting up a Coal-powered power plant, other renewable energy sources (solar, waste to energy, biofuel, hydro energy)


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Initiatives to Address Climate Change

1. Manualization of the Green Architecture Building (Green Building Code for CFZ). The objective of which is “To provide a framework of minimum standards that will improve resource management efficiency and minimize the negative impact of buildings to health and to the environment.” Efforts on this includes provisions and initiatives on roof solar power system, rain catchment and utilization system, decorative blocks/pavers for surface run-off reduction, and other projects that will minimize the impact of climate change. Coverage includes the following:

Energy Efficiency Water Efficiency Material

Sustainability Site Suitability

Solid Waste Management Indoor Environment Quality

2. Hazard Mapping. On-going efforts for the formulation of CFZ hazard mapping (earthquakes, typhoons, and landslides, including structural).

3. Regular monitoring of land movements (erosions)

including tree care management, drainage and hydrants. Regular monitoring and maintenance of trees is being done as well as the monitoring of land movements (erosions) due to the continuous land development of new and expanding locators of CFZ.

4. Approval to house the Philippine Disaster Relief Foundation (PDRF) Headquarters. Approval to provide the Philippine Disaster Relief Foundation (PDRF) facilities (buildings and facilities) as office/headquarters of the foundation.

5. Tree Planting Activities and Seed Dispersal Program. Through the efforts of the

environmental and CSR departments, continuous programs and projects related to tree planting activities (CDC, locators, environmental groups) as well as seed dispersal programs as part of the CSR projects are being done among the contiguous area of Clark as beneficiaries.

6. Regulate Carbon Footprints.

Strict implementation of the Anti-Smoke Belching Law CFZ Integrated Transport System which focuses on the

use of electric vehicles as a mode of public transportation within Clark.

7. Support to Power Projects using Renewable Energy Sources. As part of the Basket of Initiatives on Power, full support is given to power projects using renewable energy sources which addresses the power requirements of the Freeport with almost zero carbon footprints such as Solar energy, Waste - to - energy, Bio - fuels, and Hydro energy.

Hybrid E-Road Train launching in Clark with Sec. Mario Montejo of DOST

Roof Solar Power System in Clark YTPI Rain Water Recovery Tank

Decorative Blocks/Pavers


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Information Technology The Information Technology office performs a vital role in supporting CDC’s overall goals and priorities. As part of our continuing efforts to provide better service for Clark’s internal and external clients, the Information Technology office has actively pursued the implementation of the following projects:

1. CDC Project Monitoring System

The system was developed by the OAVP-IT using the PHP scripting language, which makes access to the program easier for its users as the system is web-based and will not need installation. The Project Monitoring System aids its users in monitoring of projects and contracts. The system notifies its users thru email when a project or contract is about to expire.

2. Collection and Billing System

The system was created in order to automate, and ultimately, reduce processing time for Collection and Billing. The system has many features, including an Official Receipt Generator, Debit and Credit Memo Generators, an Interest and Penalties module, a detailed account ledger, and a report generator.

3. Clark Website Revision

Nowadays, company websites are not only informational, but are also being used as communication, marketing and promotional tools. With this goal in mind, the Clark website has been revised and is being regularly updated by the OAVP-IT in coordination with the Communications Department and is now more attractive, dynamic and informational.

4. Resource Management System

The system was developed for the AEMD, in order to automate the processes related to Clark’s Special Resources management – petroleum, river/quarrying, Bayanihan Park stalls and the warehouse.

For the second half of 2015, the office will focus on the full implementation of the Clark CCTV system, which includes the installation of cameras on all Main Entry/Exit Points, Major Thoroughfares, Other Security Concern Areas; and the adoption of the Archives and Records Management Information System or ARMIS, is a free-of-charge document management, tracking, archiving and disposal system for government agencies which allows inter-agency and intra-agency routing and tracking of documents through its default workflows and uploading of electronic documents for filing and retrieval.


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Recovery of Lands

1. Recovered lands from Non Performing Locators:

2. Recovered lands from Informal Settlers:

To enhance the estate preservation and recovery program of lands within Clark, efforts were done to established and rationalized land recovery proceedings. This is to ensure proper procedures are being followed; from the settler’s monitoring and data basing of listings, regular monitoring and constant dialogues with informal settlers to guarantee that only those that are really affected will be compensated, area determination and validation, and up to the determination of crops and facilities subject for compensation. A composite team was also formed to cover all aspects of the program (area, crops, facilities, security, survey, technical, financial, and audit).

SCHEDULE AREA RECOVERED IN

HECTARES

1ST QUARTER(Enfinity Solar Project) 24.358

2ND QUARTER (Area along Panday Pira Ave.) 0.500

TOTAL 24.858

Total land recovered from Non Performing Locators and Informal Settlers for the First Half of the year totaled to 33.308 hectares.

LOCATOR BUSINESS ACTIVITY AREA

(in Has)

Hollywood Park Development Corp.

Retirement Estate Project 3.32

Golden Cane Furniture Manufacturing Corp.

Manufacturing related activities 3.80

Q1 Total 7.12

The Red Crab Food Group, Inc.

Seafood and Steaks Restaurant 0.08

Preferred & Proven Therapies Inc.

Medical treatments for dengue and malaria.

1.25

Q2 Total 1.33

S1 Total 8.45


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Improving Security 1. Inclusion of Tax Payments for the past three (3) years from the Security Providers: The

P/CEO gave specific instructions that all Security Agencies who wish to join the bidding process for CDC PSD must show proof that they are paying their taxes at least for the past three (3) years.

2. No extension of contracts for Security Agencies: The P/CEO started giving directives that

there should be no extension of contracts for all Security Agencies. In lieu of this, the bidding process should be done ahead and/or within the schedule as provided by law.

3. Inclusion of additional Patrol Vehicles, and Equipment in the Terms of Reference (TOR) of Security Services: On top of what was already included in the basic TOR of CDC PSD Security Services, additional Patrol Vehicles and equipment such as Speed Gun, Alcohol Breath Analyzer, and Night Vision Goggles were also included to be able to provide efficient security services to the public.

4. CCTV Command Center: The putting up and completion of the CCTV Command Center wherein all areas and gates within CFZ and those establishments that were used during the APEC SOM1 at CFZ were all covered and being monitored was of great help to secure all APEC delegates, guests, and visitors of CFZ.

Integrated Command Center

Additional PSD Patrol Vehicles


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5. Individual Issued Equipment for APEC SOM1 at CFZ: PSD personnel were able to procure and have Individual Issued Equipment including new uniforms, paraphernalia, etc. to be used in the performance of their duties during the APEC SOM1 event at CFZ.

6. Traffic Deputization: To solve the issue on lack of personnel authorized to implement the Traffic Rules and Regulations inside CFZ/CSEZ, the P/CEO approved the recommendation to deputize CDC Contracted Security Guards in issuing Traffic Citation Tickets to violators provided the said Guards were properly trained and given seminar by organic personnel of CDC PSD Traffic Management Section.

7. Transfer of Personnel with relatives within the Department within the 4th degree of

consanguinity: PSD personnel who have relatives within the Department were transferred to other Department of CDC to comply with the regulations or law on nepotism.

8. As part of the implementation of an integrated system of monitoring and regulating the

Carbon Footprints in the Clark Freeport Zone, the Public Safety Department has intensified their program in the implementation of the Anti-Smoke Belching Law. This includes strict monitoring of smoke belching vehicles and apprehension of violators.

Traffic Deputization of Security Guards


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Legal Highlights 1. Filing of appropriate cases against the concerned personalities to establish Good Governance

and Accountability: a. Disbarment case against the former CDC General Counsel, which is now submitted for

the decision of the Integrated Bar of the Philippines, Board of Governors, and

b. Administrative cases against the former Assistant Manager of the Land Preservation and Development Office for unauthorized selling/leasing of CDC properties, and Managers of the CDC-SPRO for unpaid villa charges, sexual harassment, neglect of duty and tardiness, among others.

2. Strict enforcement of the provisions of the Lease Agreement were observed for the collection of arrears/Casino Revenue Shares from delinquent locators: a. Stoppage/closure of business,

b. Suspension of privileges/incentives, and

c. Termination of the Lease Agreement in case of default/non-payment of lease

rentals/non-compliances and other gross violations of the terms and conditions.

3. CDC showed firmness in the prosecution of offenders and law violators, regardless of the amount involved, to establish accountability and to protect government properties/interests:

a. In an incident that took place at the Sacobia area, CDC’s police power within the

CSEZ/CFZ was legally sustained by the Office of the Provincial Prosecutor which ordered the filing of criminal cases against the concerned Aetas who maliciously destroyed CDC’s service vehicle during the demolition of an illegal structure. The criminal case of Malicious Mischief filed against the offenders, is now pending in Court;

b. Criminal cases of Estafa were filed against the former Payroll Officer of CDC-SPRO for payroll padding amounting to PhP5,232,051.40. The Court issued an Order for the issuance of a Warrant of Arrest against the offender;

c. CDC further won over the various Illegal Dismissal cases filed by some of the legally

dismissed employees.


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4. Administrative follow-up and concerted efforts were exerted towards the early resolution and settlement of issues/cases at no cost to CDC.

5. Collaborative and efficient handling of cases by CDC in-house and external counsels addressed and/or obliterated the legal hurdles on the long-awaited privatization of the Mimosa Leisure Estate.

6. Proactively issued a Cease and Desist order to the proponents of a Waste Recovery Facility

being undertaken at the Sacobia River for being violative of CDC’s rights as the implementing arm of the BCDA and the administrator and development authority for the CSEZ and the manager of the Ancestral Domain pursuant to the Joint Management Agreement.

7. Continues and concerted provision of legal support and services.

8. Refund by the contractor to the CDC, the amount of PhP11,876,640.21 representing the 15%

advance payment of the total contract price for the construction of the Spine Road, CSEZ, as decreed by the Arbitral Court which led to the cancellation of the Notice of Disallowance issued by the Commission on Audit on the said amount.

9. Reduction of processing time through the following initiatives;

a. Review and continues enhancement of Accountable Forms;

b. Continuing effort to improve and enhance the CDC Pro-forma Lease Agreement.


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Corporate Social Responsibility (CSR)

CDC believes that a corporation that genuinely cares for people will naturally gain the support of its surrounding communities. Accordingly, CDC’s CSR programs are targeted at less fortunate members of our society. CSR Programs are consciously undertaken bearing in mind CDC’s responsibility to women under the Gender and Development (GAD) Program, our obligation to physically challenged individuals under the Magna Carta for Persons with Disabilities and our commitment to Aetas under the Indigenous People’s Rights Act.

CSR PROJECT BENEFICIARIES

LIVELIHOOD 1. Pangkabuhayan Kart 6 PWDs

2. Skills Training and Employment Program for Under privileged Persons (STEP-UP) at City College of Angeles (CCA) and Mabalacat City College (MCC)

50 Completers

3. “Training and Employment Program on Wig Making 252 Completers

4. CDC conducted its 3rd Jobs Fair for People with Disabilities (PWDs) and Indigenous People (IPs).

223 Registrants

AGRI-PROJECT

1)“Prutas at Gulay sa Likod Bahay” - Seedling dispersal for backyard Organic Fruit and Vegetable Production for select Farmer beneficiaries in the surrounding communities of Clark (Municipality of Bamban and Capas); and 2)“Tanim sa Kinabukasan” - Selling of Assorted Vegetable Seedlings by at least one (1) Aeta Group

53 Farmers

Total Beneficiaries 584

Wig Making Training Program Seed Dispersal Project

Various Job Fairs for IPs, PWDs


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CDC-TESDA MOA – on 25 March 2015 a landmark agreement was signed formally establishing of a Technical-Vocational Education and Training (TVET) Institution inside the Clark Freeport Zone that will serve to bridge the disconnect between properly matching locator needs with qualified skills.

In March and April of 2015 EAD implemented the CDC Academic Excellence Awards Program that recognized and honored students who have achieved high academic goals through hard work and dedication to learning. In its pilot run, the project targeted the top graduating student from each of the public and private schools in the five (5) contiguous areas of the Clark Freeport/Special Economic Zones. A total of 37 graduates received the award giving Ten Thousand pesos (P 10,000.00) each for Bachelor’s Degree and Five Thousand (P5,000.00) each for Vocational and Technical Graduates. The ultimate goal is to match locators’ employment needs with the appropriate supply of skilled manpower to attain its employment target of generating and filling-up 100,000 jobs by 2016.

CDC donated various used properties with a total worth of about PhP 11.2 M including street lights (head only), books, Chemistry Laboratory, Physics Laboratory and other used properties primarily to Local Government Units, Public Schools and State Colleges & universities surrounding the Clark Freeport and Special Economic Zones.


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Clark Youth Entrepreneurship - Livelihood program designed to empower the youth entrepreneurs in the communities surrounding Clark. Through this program CDC intends to provide parallel development and to promote inclusive growth within its surrounding communities. Expansion of the Specialized Training and Employment Program for Underprivileged Persons (STEP-UP) Program - Short-term courses specialized / customized training tailor-fitted to the specific needs of a particular locator client Revival of the Metro Clark Advisory Council (MCAC) and Renewal of the MCAC Coordinators / Liaison Officers - Ensure proper consultation and advice from surrounding communities through the MCAC in order to solicit support for CDC’s vision, mission goals and thrusts through strong linkages and relationships with the contiguous local government units, government agencies and communities. CDC won the International Golden Globe Tiger Award for its Corporate Social Responsibility (CSR) undertaking. Awarded in Kuala Lumpur, Malaysia on March 2015 under the organization award category on Social Innovation, CDC bagged the Best Social Enterprise for CDC’s CSR innovative projects. As mentioned by CDC president and chief executive officer Atty. Arthur P. Tugade “The moment you humanize your profit-generating efforts is when your Corporate Social Responsibility (CSR) starts”.


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