GREEN. INTELLIGENT. GLOBAL

Presentation to the PHILIPPINE INVESTMENT CONFERENCE Tokyo, Japan

Arnel Paciano D. Casanova President & CEO Bases Conversion and Development Authority

June 2015 LEGEND: 4-HR FLIGHT ROUTE THE : 6-HR FLIGHT ROUTE 4-HR FLIGHT RADIUS STRATEGICALLY LOCATED AT THE CROSSROADS 6-HR FLIGHT RADIUS OF INTERNATIONAL SHIPPING AND AIRLINES. Vietnam Timor Leste Thailand Taiwan Sri Lanka South Korea Solomon Islands Singapore Saipan Papua New Guinea Palau Pakistan North Korea Nepal Nauru Myanmar Mongolia Micronesia Maldives Malaysia Laos Japan Indonesia India Hongkong Guam Australia China Cambodia Brunei Bhutan Bangladesh

Image Credit: Palafox Associates Hours of Travel 0 2 4 6 8 LEGEND: LESS THAN 10 DAYS TRAVEL THE PHILIPPINES: MORE THAN 10 DAYS TRAVEL LESS THAN 10 DAYS TRAVEL STRATEGICALLY LOCATED AT THE CROSSROADS MORE THAN 10 DAYS TRAVEL OF INTERNATIONAL SHIPPING AND AIRLINES. Travel Port Country Time Tokyo Japan 10 d Yokohama Japan 10 d Kobe Japan 10 d Hong Hong Kong 2 d Kong Shanghai PRC 3 d Tianjin PRC 10 d Shenzhen PRC 2 d Singapore Singapore 10 d Incheon S. Korea 9 d Kaohsiung Taiwan 2 d Ho Chi Minh Vietnam 3 d Penang Malaysia 13 d Jakarta Indonesia 12 d P. New Alotau 15 d Guinea

Image Credit: Palafox Associates Galle Sri Lanka 19 d Mandates of BCDA (RA 7227)

Accelerate the conversion of former US military bases in Clark and Subic and their extensions into alternative productive uses.

Raise funds through the sale of Metro Camps to finance the conversion of former US military bases.

Enhance the benefits of conversion to promote the socio-economic development of Central , in particular, and the country, in general. Corporate Powers of BCDA

To construct, own, lease, operate and maintain public utilities as well as infrastructure facilities.

To acquire, own, hold, administer, and lease real and personal properties, including agricultural lands, property lands, property rights and interests and encumber, lease, mortgage, sell, alienate or otherwise dispose of the same at fair market value it may deem appropriate.

To exercise the right of eminent domain and other special powers.

THE BCDA GROUP

6 BCDA Diversified Portfolio

Prime Real Estate 41,500 Has.

Asset Value USD 10 Billion

1 Tollway

2 Seaports Public-Private Partnerships 3 Airports

Major Real Estate Developments

Preferential tax rates

Fiscal & Non-Fiscal Zero VAT Incentives Exemptions on Real Property Tax Public-Private Partnerships Bonifacio Global City

The BEST MASTER PLANNED urban center in the country

LAND AREA 240 HAS. CITY, METRO LOCATION MANILA FORT BONIFACIO JV PARTNER DEVELOPMENT CORPORATION TOTAL GFA 12.1 M DEVELOPMENT PHP 250 B INVESTMENT

MAP McKinley Hill, Newport City and Public-Private Partnerships McKinley West Clark’s Thriving Business Center

 Special Economic and Freeport Zone QUICK STATS (31,400 hectares) (2014)  Special Economic Zone 1M TOURISTS (27,000 hectares)

ACTUAL  Freeport Zone $277M INVESTMENT (4,400 hectares)

 Airport Area 740 LOCATORS

(2,300 has)

 Industrial Area EMPLOYEES

(2,100 has) 84,310

$ 4.61BEXPORTS

Special Economic Zones Clark Freeport & SEZ

MAIN ZONE 4,400 HAS. SUB-ZONE 27,000 HAS. LOCATION & CLARK DEVELOPMENT CORPORATION (FREEPORT); CLARK ADMINISTRATOR INTERNATIONAL AIRPORT CORPORATION (AIRPORT) NO. OF LOCATORS 740 Special Economic Zones Tech Park

LAND AREA 365 HAS. MORONG, LOCATION BATAAN ATMANDA LOCATOR ECOPARK Special Economic Zones Poro Point Freeport Zone

LAND AREA 236 HAS. CITY OF SAN LOCATION FERNANDO, PORO POINT ADMINISTRATOR MANAGEMENT CORPORATION DEVELOPMENT PHP 250 B INVESTMENT Special Economic Zones Camp John Hay SEZ

LAND AREA 625 HAS. LOCATION CITY JOHN HAY ADMINISTRATOR MAANGEMENT CORPORATION NO. OF 110 LOCATORS Infrastructure Development Subic-Clark-Tarlac Expressway

Japan International Cooperation Agency (JICA) Funded

PROJECT COST USD 600 M.

ANNUAL REVENUE PHP 1.2 B

Japanese Contractors: - Kajima-Obayashi-JFE Engineering-Mitsubishi Heavy Industries Inc. - Hazama-Taisei-Nippon Steel Joint Venture CLARK GREEN CITY – City in a Farm

16 Clark Green City The Agricultural Heartland Clark GreenBaguio City City The New Ph Metropolis

Alaminos City Rosario City Economic Drivers and Trends

Urdaneta City o Growing Population / Urbanization San Carlos City San Jose City o Located in a thriving center and ease of TPLEX MNR doing business in Clark CLEX o Booming Business Process Outsourcing CLARK GREEN CITY City (BPO) Industry Tarlac City Concepcion - RD. Capas o Clark Airport, Seaport and Road Iba City Infrastructure Development

Mabalacat o Secured Business Regime Angeles City San Fernando City SCTEX o Residential Requirements NLEX City o Need for Smart and Green City to City sustain momentum in economic growth

Balanga City METRO MANILA 18 Clark Green City Conceptual Master Plan The 9,450-hectare Clark Green City aims to create a destination where nature, lifestyle, business, education and industry converge into a global city, based on principles of sustainability, that aim to protect and enhance the delicate balance between nature and built environment.

INTERWEAVING GREEN ASSETS TO CREATE A HOLISTIC, VIBRANT, AND SUSTAINABLE DEVELOPMENT. Clark Green City Geohazard: Flooding (Clark Green City and Metro Manila)

43m 146m Clark Green City Metro Manila 9m 2m 2m MANILA BGC PATEROS 56m

20

EAST VALLEY FAULT

Metro Manila Metro

Active Active Fault Lines (Clark Green City and Metro Manila)

Clark Green CityGreen Clark Clark Green City What Makes CGC Green & Smart? Key Performance Indicators

RESOURCE LEADERSHIP & DIVERSITY & ECONOMIC ACCESSIBILITY IDENTITIY RESILIENCE MANAGEMENT GOVERNANCE DENSITY VIBRANCY Reduced Stimulate Good Public Compact Assess Climate Air Quality Automobile Collaboration Sustainable Spaces Development Threat Dependence Growth Alternative Mixed-Use Heritage & Improve Avoid Traps & Biodiversity Modes of Management Neighborhood Culture Quality of Life Vulnerabilities Transportation Centers Prepare for Long-Term Water Universal Public Health Mixed-Income Develop Local Planning Adaptability & Conservation Design & Service Communities Skills Short-Term Hazards Energy Neighborhood Local Food Efficiency Schools Production

Materials Clark Green City Residential & Employment Projections

Population Projection, Clark Green City, Based on Different Capture Rate, 2020F to 2050F

1,679,800

Recommended more than 1.2 M @1.1 mil new + 1,277,000 233K population existing/resettled 929,600

Capture 5% Rate 10% Scenarios 15% 419,950 20% 288,400 319,250 232,400 72,100

2020 2030 2040 2050

Employment Projection, Clark Green City, Based on Different Capture Rate, 2020F to 2050F

1,288,400

Recommended more than @1 mil 801,200 800,000 jobs Capture 5% Rate 10% Scenarios 15% 427,000 20% 322,100 # Workers 200,300 139,400 106,750 34,850

2020 2030 2040 2050 Clark Green City Conceptual Master Plan

1. Public Realm Mall 2. Commercial Center 26 3. Central Park

4. Expo 20 5. Retail/Interchange 19

6. Sports Hub 18 21 8 7. Institutional Block 16 15 10 8. Memorial Shrine Park 12

14 14 9. Residential District Commercial Center 11 9 10. Civic/Government Center 13 7 5 6 7 11. Civic Plaza 17 18 3

12. Civic Corridor 14 4

24 13. CBD Iconic Towers 2 14. Financial Center 1 15. Institutional Zone/Research Center 25 21 16. Retail Plaza 17. Light Industrial and R&D Office Zone 28 18. Worker Housing 24 19. Industrial Park 20. Administration Building

21. Mid-Rise Residential Aprtments 22 22. Hill Side Residential Apartments 23. Hill Side Residential and Eco-Tourist Resort 24. Campus

25. Urban Farming Landbanks 27 26. Future Industrial Land 23 27. Mountain Trail 28. Tunnel Clark Green City Conceptual Master Plan

Land Use Distribution*

106 233 553 100 Kalangitan Road 54

FUTURE 403 CONNECTION TO SCTEX 266 91 315 San Nicolas Road 501 318

314

Landfill

Water Feature CAPAS RD Road ROW - Transport Hub

Sports & Recreation - Open Space

Industrial CALRK Light Industrial Institutional Residential

*excludes 5,567-ha. Timber Area Clark Green City Conceptual Master Plan

INDUSTRIAL MANUFACTURING ZONE • strategically located with access to Clark International Airport, Subic Freeport, and to the region AGRI-INNOVATION HUB

• will enable economic growth, Kalangitan Road diversification, trade relations and FUTURE CONNECTION technological innovations. TO SCTEX

San Nicolas Road

Industrial Park CAPAS RD

-

CAPAS RD

-

BAMBAN

-

BAMBAN

-

CALRK CALRK

Manufacturing Sector

Agricultural Sector

Food Terminal Farm Clark Green City Conceptual Master Plan COMMERCIAL • lively urban core FINANCIAL DISTRICT • scenic urban landscape with iconic structures • large central park at the center COMMERCIAL CENTER • mixed-use components Kalangitan Road • to create a distinct skyline and identity for CGC FUTURE CONNECTION TO SCTEX

San Nicolas Road

CAPAS RD -

Mixed Use Zone CAPAS RD

-

BAMBAN

- BAMBAN

Commercial Core -

CALRK CALRK

Commercial Areas

Expo Clark Green City Conceptual Master Plan

MIXED-INCOME RESIDENTIAL CONDOMINIUMS HOUSING • mix of typologies set within an active and varied community • accessible to a wide range of income groups • pedestrian-friendly & live-work-play Kalangitan Road LUXURY VILLAS environment FUTURE CONNECTION TO SCTEX Affordable Housing

San Nicolas Road

CAPAS RD

-

CAPAS RD

-

BAMBAN

-

BAMBAN

-

CALRK CALRK

Residential Areas Clark Green City Conceptual Master Plan INSTITUTIONAL HEALTHCARE CENTER • public realm facilities interconnected CIVIC CENTER with open space connectors MIT RESEARCH • includes educational, religious, sports, CENTER

and medical facilities as well as SPORTS CENTER government offices NEW UP Kalangitan Road • new University of the Philippines (UP) CAMPUS FUTURE CONNECTION Campus focused on research and TO SCTEX internationalization

University Campus Government Center

San Nicolas Road

CAPAS RD

- CAPAS RD

Stadium Civic Plaza -

BAMBAN

-

BAMBAN

-

CALRK CALRK

Institutional Areas CGC Infrastructure Projects: ACCESS ROADS Primary Access Roads • Joint project by BCDA & DPWH • Total Length: 24 km • Row: 20 m (initial) CLARK 1 • Total Cost: Php 1 Billion GREEN CITY

FUTURE CONNECTION 1. MacArthur-CGC Road TO SCTEX Lanes: 2 (initial) 2 Length: 9 km Budget: 50 M (2015) Notice to Proceed issued to Status: Contractor by DPWH (April

20, 2015 – Day 01)

CAPAS RD -

2. Clark-Bamban-Capas Road

BAMBAN - Lanes: 2 (initial) CALRK CLARK Length: 15 km INT’L Budget: 150 M (2015) AIRPORT CLARK Topographic Survey for Status: approval by DPWH & BCDA FREEPORT ZONE CGC Infrastructure Projects: ACCESS ROADS CGC Infrastructure Projects: TRANSPORTATION

Clark Rail Transit System CGC • extension of the North- South Commuter

Railway to CFZ Main kms

Zone and CGC

• JV between BCDA & CLARK RAIL

kms Rail Operator TRANSIT SYSTEM (CRTS) • Bidding for Operator-

Approx.88 MALOLOS Partner to commence

125.9 125.9 within 2Q 2015

kms NORTH-SOUTH COMMUTER RAIL

37.9 37.9 (NSCR) PHASE 1 METRO MANILA PROPOSED ALIGNMENT CGC Infrastructure Projects: TRANSPORTATION Clark Rail Transit System

SAFE, EFFICIENT, COMFORTABLE, MODERN

TRANSIT-ORIENTED DEVELOPMENT GREENFIELD (TOD) AT STATIONS ALIGNMENT CGC Infrastructure Projects: TRANSPORTATION Clark Transit Bus END System

• Clark Transit Bus System is a proposed Bus Rapid Transit (BRT) System connecting Metro Manila to Clark Freeport Zone and CGC • Study being conducted by UP NCTS • Includes study for internal systems for Clark

START

Proposed Alignment METRO MANILA CGC Infrastructure Projects: UTILITIES

POWER Integrated Utility Tunnel

• Special underground TELECOM construction to house all major utility lines • Allows for unobstructed views of the city • Significantly reduce costs and disruptions due to recurrent UTILITY TUNNEL excavation works WATER • Better access to utility lines for maintenance works/repair • Provides added protection to utility GAS lines CGC Infrastructure Projects: UTILITIES

City-wide public services operated by Integrated Operation Center (IOC) make new city to be more convenient with not only efficiency but also financial benefit. Integrated Intelligent Building System Energy In-Building Communication Operations Center Mgmt Service Network Smart Office and Business Solutions Operation Service for Integrated Operation Center Smart Signal public benefit Transportation Control Service Traffic • Public services categorized Facility Underground Facility Information Identification Mgmt Service Parking in Transportation, Safe & Water-pipe Monitoring Information Security, Environment Streetlight Monitoring Illegal Parking • Pursuit social benefit Detection for public Environment Service Operation Service for RFID Ticketing Environment business Info Weather Info • Utility services for citizen and business : Facility CCTV Camera control mgmt, Smart Card etc.. Real-time video Crime Analysis Prevention • Public-Private Partnership Monitoring & Decision Service model Making Opportunities with BCDA Land Development BCDA is looking for Joint Venture Partners for:

Mixed-Use Development

Industrial Estates

Innovation District BUSINESS MODEL LEASE

PRIVATE SECTOR BCDA PARTNER

TERMS LEASE PERIOD • 50 years, renewable for another 25 years • 25 years, renewable for another 25 years FIXED LEASE 5% of the Fair Market Value of the Property VARIABLE LEASE Percentage of Gross Revenues from operations (e.g., commercial, rental) OTHER TERMS • Advance Lease Payment – first 3 years • Incentives Offered • Performance Commitments • 100% Foreign-Owned Company is Allowed

BUSINESS MODEL EQUITY JOINT VENTURE FRAMEWORK

EQUITY JOINT VENTURE CORPORATION (JVC)

Develops, Manages, and Leases the JV area to the locators BCDA 50 + 50 years Corporate Life PRIVATE SECTOR PARTNER (minority share) (majority share)

• Deliver physical possession of the Undertake the legal, financial, administrative, property technical and other processes for the • Deliver development and leasehold rights incorporation of the JVC • Provide major access roads and utilities Opportunities with BCDA Development of Utilities Long-term partnership with BCDA to build and operate utilities.

1. Power • Generation (renewable energy) • Distribution • Back-Up/Storage • Energy Management System 2. Water • Supply • Wastewater Treatment 3. District Cooling System 4. Telecommunication & Information Systems 5. Solid Waste Management 6. (Natural) Gas Supply & Distribution

Opportunities with BCDA Target Locators

• Electronics Manufacturing • Renewable Energy Systems • Information and Communication Technology/Business Process Outsourcing (ICT/BPO) • Nano-Electronics • Light Manufacturing • Biotechnology and Pharmaceuticals • Agro-Industries • Schools/Universities • Creative Industries/Animation • Research Centers • Medical Facilities • Government Offices • Housing Developers • Tourism Development • Others Clark Green City Tax and Fiscal Incentives

• 5% Special Gross Income Earned • Exemption from all Local and National Taxes • Tax and Duty Free Importation of Equipment and Raw Materials • Exemptions from Real Property Tax • Free Movement of Finished Goods within the Freeport • Special Visas for Investors Clark Green City Committed Projects

Food Terminal

TO SUBIC VIA FUTURE SCTEX CONNECTION

GK Farm University

Affordable Housing

Botanical Garden

DIRECT LINK TO CLARK INTERNATIONAL CGC Access Roads Innovation Center AIRPORT PRIORITY DEVELOPMENT PLAN 2014-2016

2014 2015 2016 ACTIVITIES 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q CONSTRUCTION OF PRIMARY ACCESS ROADS REAL ESTATE DISPOSITION (PHASE 1)

MASTERPLANNING OF THE NEW UP CAMPUS AT CGC

CONDUCT OF FEASIBILITY STUDY FOR FOOD PROCESSING TERMINAL CONDUCT OF FEASIBILITY STUDIES FOR UTILITIES PROCUREMENT OF UTILITY PARTNERS DETAILED MASTER PLANNING BY REAL ESTATE PARTNER Up to 2019 (Phase 1) SITE DEVELOPMENT Thank You

45 Thank You!

bcda.gov.ph The BCDA Group @TheBCDAGroup