Forgive my ignorance, but what’s with CDC?

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    THE CLARK Development Corp. (CDC) and the Philippine Economic Zone Authority (Peza) have signed a memorandum of agreement (MOA) for the administration of tax incentives in the Clark Special Economic Zone (CSEZ).

    So announced a CDC press release, going further into the details of CDC President-CEO Benigno Ricafort saying that “with the signing of the MOA, the CDC becomes the ‘administrative governing authority’ of the CSEZ and assumes the following tasks:

    * Identify and develop areas, and enter into lease agreements with locators in the CSEZ;

    * Provide Peza with an approved comprehensive land use and zoning plan of the CSEZ;

    * Provide the necessary utility requirements in the CSEZ, inclusive of the following: power, water, telecommunications, wastewater treatment facilities, etc.;

    * Screen and endorse to Peza applications of locators in the CSEZ wanting to avail of Peza incentives;

    * Endorse to Peza all applications for building permits, fire and safety permits, sanitary permits and environment permits of enterprises in the CSEZ; and

    * Resolve issues/claims on property ownership before registration as developer/operator entitled to incentives.”

    Forgive my ignorance, I need to be enlightened.

    If the CDC became the “administrative governing authority” of the CSEZ only now with the signing of the MOA with the Peza, what was CDC to the CSEZ before?

    Did not the CDC – pre-MOA – already:

    “*Identify and develop areas, and enter into lease agreements with locators in the CSEZ;

    “*Provide the necessary utility requirements in the CSEZ, inclusive of the following: power, water, telecommunications, wastewater treatment facilities, etc.;

    “* Resolve issues/claims on property ownership before registration as developer/operator entitled to incentives.”

    So what’s with CDC’s “assuming” these same tasks now?

    With CDC’s assuming the following tasks:

    “* Provide Peza with an approved comprehensive land use and zoning plan of the CSEZ; 

    “* Screen and endorse to Peza applications of locators in the CSEZ wanting to avail of Peza incentives;

    “* Endorse to Peza all applications for building permits, fire and safety permits, sanitary permits and environment permits of enterprises in the CSEZ”…

    …Is CDC not ceding its autonomy, if not subjugating its authority, to Peza?

    Especially so as Peza per the MOA assumes the following responsibilities: 

    “* Register CDC as a CSEZ developer-operator with entitlement to incentives to the extent that it shall develop for PEZA locators;

    * Register qualified CSEZ locator upon the latter’s submission of and Peza’s evaluation and approval of complete documentary requirements;

    * Issue permits to operate or certificates of registration, as the case may be, to qualified enterprises in the CSEZ;

    * Issue building, fire, safety, and sanitary permits to enterprises in the CSEZ and collect the corresponding fees;

    * Conduct preliminary review and endorse to DENR-EMB CSEWZ locators’ application for ECC;

    * Administer incentives granted to investors within the CSEZ…”

    All along I have looked up to the CSEZ as an “independent republic” governed by the CDC with all the autonomy and authority befitting that independent status.

    Now, I am confused. It seems to me that the CDC has reduced the CSEZ to being nothing but a vassal state, and itself as mere encargado  or palsonero,  to Peza.

    Again, forgive my ignorance. I need some enlightenment.  


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