MANILA, June 18 The Philippines plans to auction
off by the end of the next quarter rights to the development of
a 1,300-hectare (3,212-acre) lot in a former U.S. base now being
converted into a new city and special economic zone, a
government official said on Wednesday.
The planned 9,500-hectare (23,475-acre) Clark Green City in
the Clark Special Economic Zone, north of the capital, Manila,
will be the Southeast Asian nation's first city to be built from
the ground up outside the sprawling capital region of nearly 12
The area up for auction could bring in 3.9 billion pesos
($88.9 million) for state coffers, Reuters calculations based on
2013 prices show, although the government says it is revising
land values upward.
Clark Green City is estimated to generate 1.57 trillion
pesos ($35.8 billion) worth of economic activity annually and
create nearly a million new jobs when development is complete,
government studies show.
Terms for tenders of the planned city's first phase are
being readied and could be out as early as August, Arnel Paciano
Casanova, president and chief executive of state-run Bases
Conversion and Development Authority (BCDA), told Reuters.
"Investor interest is high," Casanova told Reuters, but he
refused to identify interested companies due to non-disclosure
pacts. Both foreign and local investors may bid.
Clark Green City is intended to ease congestion in Manila,
Casanova told a news briefing, forming the urban core of the
central region of main island Luzon and dictating the
development of its surroundings.
Auction proceeds will go to the state, designated mainly for
the modernisation of the Philippines' armed forces. A law on
specialised economic zones allows for the contracts to be
awarded through competitive bidding or joint ventures.
The 1,300-hectare plot is split into five lots under
separate contracts. These involve a 50-year development term and
lease, with a possible extension of 25 years for each.
The government is updating the land value of the areas up
for tender, but it was worth 300 pesos ($6.84) per square metre
in 2013, BCDA business development manager Arrey Perez told
Reuters. He expects the price to spike after the city's
masterplan was approved by President Benigno Aquino last month.
Market reaction in the first phase of the auction is likely
to dictate the size, pace and value of tenders for succeeding
The development of utilities, waste management facilities,
telecoms and transport systems, as well as a food terminal
project in the planned city could be auctioned under a
public-private partnership scheme starting next year, Casanova
told the briefing.
($1=43.8600 Philippine Pesos)
(Reporting by Siegfrid Alegado; Editing by Clarence Fernandez)