SCTEX: A Promise Delivered

SCTEX: A Promise Delivered

Annual Report

C o n t e n t s01 MessageofthePresidentoftheRepublicofthePhilippines

02 MessageoftheChairman

04 MessageofthePresidentandChiefExecutiveOfficer

06 TheSubic-Clark-TarlacExpressway:TheBackboneofaNewEconomicCorridor

16 RisingAboveChallengesintheEcozones

24 MaximizingYieldsThroughPrudentAssetManagement

30 BeyondDevelopment:ANurturingandHelpingHand

32 FinancialReport

36 BoardofDirectors

38 ManagementDirectory

39 DirectoryofSubsidiariesandAffiliates

C o v e r S t o r y

2008 is the banner year of the Subic-Clark-Tarlac

Expressway (SCTEX). The 94-kilometer toll road’s

completion and eventual opening for full commercial

operations allow for a faster, convenient and more

efficient transport of people, goods and services to and

from Central and Northern Luzon–thereby boosting

business, trade and employment opportunities in the

region. The BCDA, which spearheaded construction

of the SCTEX, envisioned the country’s newest tollway

as the launch pad for Central Luzon’s unprecedented

economic take-off anchored on the development of a

logistics and commercial hub in the Asia-Pacific rim.

Cover photo by Mr. Hideyuki Takeda, KOJM Program Manager

MessageofHerExcellencyGloriaMacapagal-ArroyoPresident,RepublicofthePhilippines

IwarmlycongratulatethemenandwomenoftheBasesConversionandDevelopmentAuthorityforyourremarkableachievementsin2008,whicharehighlightedinyourAnnualReportwiththetheme,`̀SCTEX:APromiseDelivered.”

Indeed,itisheartwarmingtonotethattheBCDAhascompletedontimetheadministration’sflagshipSubic-Clark-TarlacExpressway,aconcreteembodimentofourcommitmenttospeeduptheeconomicdevelopmentofCentralLuzonandimprovethequalityoflifeandwell-beingofthepeopleintheregionandnearbyenvirons.

TheBCDAalsodeservesourhighestcommendationforitssteadyanddedicatedpursuittofurtherdeveloptheformerUSmilitarybasessothattheyieldsandbenefitsthatwecanderivefromthemwillbeusednotonlyforthemodernizationoftheArmedForcesofthePhilippinesbutalsoforthewelfareoftheentireFilipinopeople.

IwishtheBCDAallthebestthisyearandintheyearstocome.Mabuhay!

GLORIAMACAPAGAL-ARROYO

B C D A A n n u a l R e p o r t 0 8�

Message of the Chairman

TheBasesConversionandDevelopmentAuthority,onceagain,turnsanotherleafwithanotherfulfillingyearthatis2008.IamwonttodescribethisyearfortheagencyastheyearwhentheorganizationhasclearlymetamorphosedfromitsconversiontaskstothemoresophisticatedfieldofdevelopmentinwhichtheBCDAisprovingitselfamajorrevelation. Whilethisannualreportfocusesonourbiggestflagshipprojecttodate,thelandmarkSubic-Clark-TarlacExpressway,thereareamyriadotherdevelopmentsthatareequallynoteworthyanddeservingofprominentmention.

Theseincludeourassetdispositionprogramfortheso-calledExpandedBigDeltaLotsattheBonifacioGlobalCity,themajorupgradingoftheSanFernandoAirportatthePoroPointSpecialEconomicZone,thedevelopmentexpansionintheClarkSpecialEconomicZone,therenewedinvestmentvigorinCampJohnHay,tonameafew.

Theexpressway’senvisionedroleasacatalystfortheeconomicdevelopmentofCentralLuzonandnearbyenvironshasshownconcreteresultsduringitsinitialmonthsofoperations,andthemenandwomenoftheBCDArightfullydeservecreditfordeliveringthisimportantproject.

B C D A A n n u a l R e p o r t 0 8 �

Individually,thesedevelopmentsdon’tseemtobeextraordinarilyspecial.Butwhenoneconsidersthatalltheseeventstranspiredwithinacalendaryear,undertheaegisofasinglegovernmentagencythatisonly16yearsinexistence,thereisgoodreasonforustopauseandponderdeeper.

TheBCDAisagovernmentagencythatcannowbebenchmarkedwiththebestintheprivatesectorintermsofdeliveringbig-ticketprojectsontime.

Yes,wehaveundertakenthesewide-ranging,encompassingtasks,throughsheerdedication,discipline,andahugedoseofconfidenceinthecapabilityandcompetenceofthemenandwomenintheorganization.

What,Ibelieve,weachievedin2008goesbeyondtheusualnumbersandstatistics,whichonewouldfindinampleservingsinthisreport.BeyondthenumbersisthefactthattheBCDAhasdeliveredcrucialresultsduringacriticaljunctureinthenation’shistory,whentheworldisreelingfromadebilitatingfinancialturmoil.

Wecouldhavefaltered,andaddedtothenation’sburdenofsoaringunemploymentandeconomicdisplacement.Wecouldhavegivencriticsamplecanonfoddertosnipeandmagnifyourfailures,andthusweakenthefoundationsofastrongrepublicthatwearepainstakinglytryingtocobbletogether.

Instead,wezealouslyguardedwhatwehaveslowlybuiltthroughouttheyears,andensuredthatwecontinuetocontributetothearduoustaskofnation-building,sothatbytheendoftheyear,weareagainabletorealizefruitfulconcreteresultswithwhichfuturegenerationscouldcontinuetobuildon.

WhattheBCDAachievedin2008istoenhancethevalueofitspastaccomplishments,tocontinueprovidingemployment,tocontinuecreatingbusiness

opportunities,tosustainmodestcontributionstotheAFPModernizationProgram,andtoputinplacethecriticalinfrastructureforthefurtherdevelopmentnotonlyofBCDA’surbanholdingsbutitscountrysideassetsaswell.

But,makenomistakeaboutit:Significanthurdlesremainaheadofus.Therearepocketsofunderdevelopmentthatneedtobeaddressedatthesoonestpossibletime.Therearenewfrontiers,newterritoriesthatmustbeopenedup.Moreopportunitiesneedtobecreated,ifwearetokeepabreastofafastchangingandverydauntingglobaleconomicorder.

Clearly,wecannotrestonourlaurels.Yet,comingfromafruitfulanddefiningyear,weareemboldened,andourresolvestrengthenedtofacemorechallengesaswesailontomoreunchartedwaters.

AsChairman,IamgratefulfortheopportunitytosteerthecorporateshipthatisBCDA,knowingthatveryablehandsarewithmeonboard.

ALOYSIUSR.SANTOSChairman


Message of the Presidentand Chief Executive Officer

Thereismuchtolookbacktoin2008fortheBasesConversionandDevelopmentAuthority(BCDA),andIcanconfidentlysaythatthisyearwillstandoutasamongtheagency’smostproductiveandsignificantperiodstodate,especiallybecauseitsawthecompletionofourflagshipproject,theSubic-Clark-TarlacExpressway(SCTEX).

Inthelargerschemeofthings,2008willalwaysbemarkedastheyearwhentheglobalfinancialmarketswentonadangeroustailspinthatneededtheconcertedeffortsofallcountriesintheworldtocontain.Aswewritethisreport,muchfinancialuncertaintieshavetakenovertheworld—furtherdestabilizingcurrenciesandcausingeconomiestobeinastandstill;withmajorplayersbidingone’stimeforeventstoruntheircourse.

BCDA,however,playeditdifferentlyandassuch,stooddeterminedtodeliveronitsmandates.

Wepouredourresourcesintocompletingthe93.7-kmSCTEX,whichstartedcommercialoperationsinthefirstsemester;wecontinuedtodrawinvestorstoourspecialeconomiczonesinCentralandNorthernLuzon;wewereabletodisposeofsomeofourprimeassetsinFortBonifacio;wesucceededinrestartingthedevelopmentofCampJohnHay,tonameafewofourachievementsduringtheyear.

WiththeSCTEXfinallycompletedanddelivered,weshallnowfocusourenergiesonotherequallyimportantundertakings.Wehaveprovenourcapabilityasanorganizationtodelivernotjustpromisesbutalsoourmandate.Weareinfactreadyforthebiggerchallengesthatlieahead.


SuchsignificantgainshaveproventhattheBCDAremainstobeacatalystfornationaldevelopment—successfullydeliveringonitspromiseofinfrastructuredevelopment—inlinewithPresidentArroyo’s10-pointactionagenda.WiththecompletionoftheSCTEX,othernationalpriorities—suchasthecreationofsuperregionsunderthegovernment’sLuzonUrbanBeltwayprogram,hasteningdevelopmentoutsideanddecongestingMetroManila,thegenerationofemploymentopportunitiesandtheestablishmentoftheSubic-Clarkcorridorasaninternationalservicesandlogisticshub—havebecomeevenmoreattainable.Admittedly,ourfinancialperformancein2008isclearlyimpactedbythehugeappreciationoftheyenvis-à-visthepeso,whichresultedinforeignexchangelossesforus,especiallysincetheSCTEXwasfinancedinbulkbyaloanfromtheJapanBankforInternationalCooperation.Butthisshouldonlybefortheshortterm,becauseweexpecttheprojecttostartcontributingtoBCDA’sbottomlinenowthatitisfullyoperational.

Despitethecrisis,totalgrossoperatingrevenuesgeneratedbyBCDAin2008amountedtoPhp1.494billion,anincreaseof60percentcomparedtothepreviousyear’sPhp935million.Incomefromjointventureoperationswhichmakeup70percentoftotalrevenuesreachedPhp1.05billion,anincreaseofPhp646millionfromthePhp404millionin2007.Further,revenuesfromtheSCTEXtollcollectionalsostartedoffthisyearwithPhp155million.Alongwiththe2.032billionproceeds(inclusiveofcreditablewithholdingtax)fromthedispositionofFortBonifaciolotsandgrossproceedsfromtheFBDCjointventureworthPhp1.481billion,BCDAgrossrevenuesin2008reachedmorethanPhp5billion.

OuroperatingexpensesofPhp1.442billionis32percenthigherthanlastyear’sPhp1.091billion,asMaintenanceandOtherOperatingExpensesrosefromPhp969millionin2007toPhp1.284billion.AmongtheMOOE,substantialvariationsarepostedfordonationsandsubsidiesmainlyduetoincreasedcontributionstothemodernizationoftheArmedForcesofthePhilippines(AFP),whileSCTEXoperationsandmaintenancesetoffthisyearwithPhp230million.

Still,withPhp1.494billioninoperatingrevenuesasagainstPhp1.442billioninoperatingexpenses,BCDAregisteredanetincomefromoperationsof

Php52.5million,aturnaroundfromlastyear’sPhp156millionnetloss.However,asmentionedearlier,theconsiderableappreciationoftheyenresultedtoaforeignexchangepaperlossofPhp6.598billion,andweendedtheyearwithaPhp6.173billioninnetloss.

Despitethesuddeneconomicdownturn,ourAssetDispositionProgramcontinueditshealthycontributiontothenationalcoffers,specificallytotheAFPModernizationProgram.GrossdispositionproceedswereupbyalmostPhp5billion—thebulkofwhich,Php2.032billion,inclusiveofcreditablewithholdingtax,camefromthesaleofourassets.Thisbringsourtotalgrossdispositionproceedssince1993toalmostPhp41billion,andoutofthistotal,Php16.63billionhasgonetotheAFP.Cumulatively,theprivatizationanddispositionofFortBonifaciohavebroughtaboutmassiveinvestmentsinrealestateandconstruction.The2.6million-squaremetersofgrossfloorarea(GFA)resultingfromverticaldevelopmentsuntil2012intheBonifacioGlobalCityalonewillhaverealizedinvestmentsofaboutPhp78billion,byconservativeestimates.Thesedonotasyetincludeinvestmentsarisingfromthe50-hectareMcKinleyHillareaestimatedatPhp38billion;the25-hectareNewportCityprojectedatPhp35billion;and,the43-hectareNorthBonifacioarea.

TheseinvestmentsinFortBonifacioandVillamorAirBasehasenabledthecreationofatleast25,000jobopportunities.

Itmayhavebeenaroughyear,butwehaveallthereasonstobeproudoftheagency’saccomplishmentsin2008.WiththeSCTEXfinallycompletedanddelivered,weshallnowfocusourenergiesonotherequallyimportantundertakings.Wehaveprovenourcapabilityasanorganizationtodeliverpromisesandfulfillourmandates.Weareinfactreadyforthebiggerchallengesthatlieahead.

TothemenandwomenofBCDA,andtoourstakeholders:Congratulationsforajobwelldone!

GENNARCISOLABAYA(RET)PresidentandChiefExecutiveOfficer


The Subic-Clark-Tarlac Expressway:

The Backbone of a New Economic Corridor

TheBasesConversionandDevelopmentAuthorityin2008accomplishedwhatnootheragencyhasprobablydoneinrecentmemory:Successfullydeliveritsflagshipproject,theSubic-Clark-TarlacExpressway,rightonschedule.

BreakinggroundonApril4,2005,the93.77-kilometerworld-classtollroadstartedcommercialoperationsonApril28,2008,afeatthateasilystandsoutamongthemanyachievementsofBCDAinits16-yearhistory.

TheearlycompletionoftheSCTEXshowcasesthefirmpoliticalwillanddeterminationofPresidentArroyo’sadministrationtotransformtheSubic-Clarkcorridorintoaworld-classlogisticshubfortheAsia-Pacificregion.

TheSCTEXcompletionalsobooststhecountry’sstandingintheeyesofforeignfundinginstitutionsliketheJapanBankforInternationalCooperation,whichfinancedbulkoftheflagshipprojectthatnowprovidesaseamlesslinkbetweentheSubicBayFreeportZoneandtheClarkSpecialEconomicZone.

Judgingbythenumberofsatisfiedmotoristsandtravelerswhohaveexperiencedtraversingtheworld-classtollroadin2008,theSCTEXmayyetprovetobeoneoftheArroyoadministration’smostdurableandlastinglegaciestotheFilipinopeople.

B C D A A n n u a l R e p o r t 0 8 7

The early completion of the

SCTEX showcases the firm

political will and determination

of President Arroyo’s

administration to transform

the Subic-Clark corridor into a

world-class logistics hub for the

Asia-Pacific region.


SCTEX Timeline

March18,2005ContractsigningwithJapanesecontractorsKajima-Obayashi-JFEEngineering-MitsubishiHeavyIndustriesCo.Ltd(KOJM)forPackage1(Subic-Clarksegment)andHazama-Taisei-NipponSteel(HTN),forPackage2(Clark-Tarlac)

April4,2005Groundbreakingceremony

April21,2005Startofconstruction

June11,2007SigningoftheTollOperationAgreement(TOA)betweenBCDAandtheTollRegulatoryBoard

March18,2008PresidentGloriaMacapagal-ArroyoleadsthefreeHolyweekdryrunfromMarch18-24,2008forthe50.5-kilometerSubic-ClarksegmentoftheSCTEX,dubbed“Handog ni Pangulong Gloria: Libreng Biyahe sa SCTEX.”

April5,2008TheseconddryrunfromApril5to9,2008fortheSubic-ClarksegmentwasPresidentGloriaMacapagal-Arroyo’sgifttothepublicontheoccasionofherbirthday.

April9,2008TheTollRegulatoryBoardapprovesaPhp2perkilometertollforthenewlyconstructed93.77-kilometerSCTEX.

April18,2008The`̀94KWeekend”heldonApril18-20,2008broughttogetherathletes,bikersandcarenthusiaststotestthenewhighway.

April21,2008DryrunoftheClark-Tarlacsegment

April28,2008TheSubic-Clarksegmentopensforcommercialoperations.

July24,2008TheBCDAlaunchesthe“GreeningSCTEXProgram”thataimstoplant50,000treesalongthe93.77-kilometertollroadinfiveyears.

July25,2008TheClark-Tarlacsegmentopenssignalingthefulloperationsoftheentire93.77-kilometertollroad.

December23,2008TheClarkNorthInterchangeopensforcommercialoperations.


B C D A A n n u a l R e p o r t 0 810

Athletes,bikersandcarenthusiastsputtotestthenewhighwayinanatmosphereoffunandexcitementfromApril18to20forthehistoricpre-inauguralopeningrites.

Dubbedthe94KWeekend,sincetheexpresswaymeasuresnearly94kilometers,thethree-dayeventbroughttogethernotonlyathletesbutalsothecountry’smostdistinguishedbusinessleadersandcelebritiesforaweekendofrunning,bikinganddriving.BCDApartneredwithClarkDevelopmentCorporationandSubicBayMetropolitanAuthorityforthisevent.

ActivitiesincludedthefirstLuzonMotorcycleFederationInc.’s(LMFI)PhilippineInternational

MotorcycleExhibitandConvention,theTourdeSCTEXLinked:ARaceforProgress,andawallclimbingexhibition.

Therewasalsothe94KDriveand94KRide,apartnershipbetweenBCDAandBMWPhilippineswheredrivingenthusiastswereallowedtotestthe100kphspeedlimitofthetollroadonboardthemostluxurioussportscarsandbigbikes.

Therewasthe10-kilometerFunRunthatletfamiliesexperiencethesmoothasphaltoftheSCTEX,whileaspiringmarathonrunnerstestedtheirmettleinthe42-kilometerlong-distanceendurancemarathon.

Theaffairs’highlightwasthe94KTorchRelayonApril19,whenguestrunnerscomingfromSubicandTarlacnegotiatedportionsoftheentireSubic-Clark-TarlacExpresswaythatculminatedattheClarkFreeportZone,wheretheSCTEXpyrewaslightedbyBCDAChairmanAloysiusSantosandPresidentandCEONarcisoAbayatosymbolizeabetterfuturenotonlyforCentralLuzonbuttheentirenationaswell.

Fortheweekend’sgrandfinale,BCDApartneredwithR.O.X.and10PinoyUltraRunnersina“runforlife”94KUltraMarathonthatbenefitedcancerpatientsaroundthecountry.

ThemarathoncoveredtheentirelengthoftheSCTEXfromTarlactoSubic,withtherunnersstartingintheafternoonofApril19inTarlac,endingthegrueling15-hourchallengethenextdayattheTipoInterchangeinZambales.ThePinoyUltrarunnershavethedistincthonorofbeingtheonlyoneswhohavedonethesaidfeat.

Andrew Tan of Megaworld

Pinoy Ultra Marathon Runners

BGen Robert Gervacio leading the SCTEX delegation

Hiroshi Togo of the Japan Bank for International Cooperation

Tollways Management Corporation delegation

Tri-athlete Denise Weldon


Leica Carpo of thePhilippine Daily Inquirer

(L - R) SCTEX Program Manager for Operational Support Robert Gervacio, SBMA Administrator Armand Arreza, BCDA Chairman Aloysius Santos, JBIC Chief Representative Hiroshi Togo, BCDA President & CEO Narciso Abaya, BCDA General Counsel Arnel Casanova, CIAC President Victor Luciano, and Presidential Assistant forCentral Luzon Lorelei Fajardo

Andreas Beihler of BMW Philippines

B C D A A n n u a l R e p o r t 0 8 1�

Aeta Community representatives

Butch Jimenez of PLDT Nina Herrera-Huang of Runners for Others

Clark Investors and Locators Association delegation

Gov. Enrique Garcia of Bataan

Raul Ignacio of the Manila North Tollways Corp.


Congresswoman Herminia Roman of the First District of Bataan

Fernando Zobel de Ayala

BCDA President and CEO Narciso Abaya and BCDA Chairman Aloysius Santos lead the symbolic lighting of the SCTEX Pyre. Looking on is Presidential Assistant for Central Luzon Lorelei Fajardo.


Speedy, Comfortable Travel Via A World-Class ExpresswayGivingthepublicafirsttasteofSCTEX,theBCDAallowedmotoristsafreeHolyWeektrialruninvolvingtheSubic-ClarksegmentstartingonHolyTuesday,March18,withthesoftopeninggracedbyPresidentGloriaMacapagal-Arroyo.

Onthefirstday,atotalof2,356Class1and2vehiclesusedthe50.5-kilometerportionoftheSCTEXfromtheClarkFreeportinAngelesCity,PampangatotheSubicFreeportinZambales.Thedryrun,dubbed“HandogniPangulongGloria:LibrengBiyahesaSCTEX”,lasteduntilMarch24,theMondayafterEaster,whenmostmotoristsreturnedtothecity.

ThejointventureofFirstPhilippineHoldingsCorporation(FPHC),EgisRoadOperation(ERO)andTollwaysManagementCorporation(TMC),SCTEX’sinterimoperator,recorded50,130vehiclesenteringtheSCTEXfromMarch19to24–avalidationofBCDA’sprojectionsofanurgentneedforadirectandfasterroutebetweenSubicandClark.

Lessthantwoweekslater,theBCDAonceagainallowed,forfree,eagermotoristsonthebrand-newtollroadfromApril5to9asPresidentArroyo’sbirthdaygifttoholidaymotorists.

Clark-TarlacTestRun

Ridingonthemomentumofthetwosuccessfuldryruns,BCDAimmediatelyfollowedwithasuccessfultestrunontheClark-TarlacsegmentonApril21,againwithPresidentArroyoontheleadculminatingintheinspectionoftheongoingworksattheClarkSouthInterchangeoftheSCTEX.

TheClarkSouthInterchangeisoneofthreeadditionalinterchangestotheoriginalSCTEXdesign.ItwillserveastheentryandexitpointfromSCTEXtothebustlingClarkFreeportZoneandAngelesCity.

GlobalGatewaysCaravan

AcoupleofdaysbeforetheSCTEXopenedtocommercialtraffic,theexpresswayservedasthemainroutefortheGlobalGatewaysCaravanonApril26whichhighlightedtheexcitinganddiversetouristdestinationsofCentralLuzon.

Some200vehiclesjoinedthecaravanthatstartedattheLuisitaMallComplexinTarlacCity,proceedingtotheSubicBayBoardwalkandexitingattheClarkFreeportZonewheretheparticipantstouredandenjoyedtherecreationalandtourismfacilitiesoftheFreeportzones.

SCTEXbeginscommercialoperations

Atexactly12:01p.m.onApril28,thefirstmotoristboundforSubicpassedthroughtheMabalacatTollPlazainPampanga,heraldingthestartofcommercialoperationsofthecountry’slongesttollroadinitsSubic-Clarkstretch.

Earlier,SecretaryPamintuan,onbehalfofPresidentArroyo,deliveredthekeynoteaddressattheTollOperationsCenterfollowingtheremarksofBCDAPresidentNarcisoAbaya,JapaneseAmbassadortothePhilippinesMakotoKatsuraandJapanBankforInternationalCooperation(JBIC)ChiefRepresentativeHiroshiTogo.

AmbassadorKatsuraprovidedregionalperspectivetotheroleofSCTEXinmaximizingthepotentialoftheSubicandClarkFreeports.Forhispart,JBIC’sTogocitedtheSCTEXasalastingsymbolofPhilippine-Japanfriendshipandcooperation,withmorethan200Japaneseengineersdeployedforthelandmarkproject.

OpeningtollrateswereatPhp2perkilometerforClass1vehiclesasapprovedbytheTollRegulatoryBoard.TraveltimefromSubictoClarkispeggedat40minutes.


OpeningoftheClark-TarlacSegment

HailedasthebackboneofCentralLuzon’sneweconomiccorridor,theBCDAformallyopenedtheremaining32-kilometerstretchoftheClark-TarlacsegmentonJuly25,signalingthestartoffullcommercialoperationsandofficiallymakingtheSCTEXthecountry’slongesttollhighway.

Providingthefastestroutetothecountry’snorthernprovinces,motoristsfromManilaarefinallyabletousetheSCTEXviaaseamlessconnectionfromtheNorthLuzonExpressway(NLEX)todestinationsinTarlac,Cabanatuan,LaUnion,Pangasinan,BaguioCityandIlocos.ThedrivefromtheMabalacatInterchangetoTarlacCityisreducedto25minutes.

ClarkNorthInterchangeopenstopublicTheClarkNorthInterchangeandthe3.8-kilometerPandayPiraRoadwereopenedtovehiculartrafficonDecember23atexactly6a.m.Withitscompletion,onlythreeSCTEXinterchangesremaintobeopened:TheClarkSouthInterchangeneartheYokohamamanufacturingfacilityinClark,andthoseinPoracandFloridablancatowns,allinPampanga.Withthecompletionofthenewinterchangesin2009,nearbytownswillhavedirectaccesstotheSCTEX.

Bringing the good news tolightSidebysidewiththeagency’snumerousdevelopmentpursuitsin2008,theBCDAembarkedonacomprehensiveandwide-reachingmarketingandinformationcampaigntohighlightthemanygoodnewsabouttheSCTEX.

Attheforefrontofthesecorporateinitiativesisthetravelingexhibitdubbedas,`̀ BCDA:15YearsattheForefrontofDevelopment:CreatingNewEnginesofGrowth,”theexhibitcelebratedtheagency’sstrongpartnershipwithlocalgovernmentunitsandtheprivatesectoringeneratingbusinessopportunities,jobsandeconomicdevelopment—withtheSCTEXasitscenterpiece.

ThecorporateexhibitmadetheroundsofsixshoppingmallsinMetroManila,CentralLuzonandNorthernLuzon,namely,Market!Market!inBonifacioGlobalCity,GloriettainMakati,TrinomainQuezonCity,SMCityClarkandSMCitySanFernandoinPampangaandSMCityBaguio.

Further,theBCDAinvitedselectgroupsofjournalistsandinformationofficersfromvariousgovernmentagenciestofamiliarizationtoursofthenewtollroadandtouristspotsinCentralandNorthernLuzon.Dubbed`̀TheJourneyandtheDestination,”thefamiliarizationtoursalsobroughtmembersofthemediaforafirsthandviewofrecentdevelopmentsinBCDA-affiliatedeconomiczonesthatweremostlyformerUSmilitaryfacilities.EmployeesofBCDAanditssubsidiarieswerealsobroughttotheprojectsiteforafamiliarizationandappreciationtouroftheSCTEX.

Avision-sharingworkshopwasalsoconductedbyBCDAincooperationwiththeDepartmentofTourismandthePhilippineTourismAuthorityforkeyplayersinthetourismindustryinRegion3.CapitalizingontheopeningoftheSCTEX,theparticipantsfromgovernmentandprivatesectorcameupwithideasandplansonhowtofurtheraccelerategrowthofthePhilippinetourismindustry,particularlyinCentralLuzon.

ItwaspointedoutthatcrucialinfrastructuressuchastheSCTEX,therefurbishedDiosdadoMacapagalInternationalAirport(DMIA)inClarkandtheNorthLuzonExpresswayhavemadeCentralLuzonwell-positionedtoprovideviableinter-regionaltourpackagesandefficientlinkstotouristdestinationsinthenorth.Theparticipantsagreedtoimplementamoreaggresivepromotionalcampaignanchoredonthesedevelopments.


Rising Above Challenges in the

EcozonesWhiletheglobaleconomicslowdowncausedmassivejobdislocationsinmanyadvancedeconomies,thespecialeconomiczonesunderthewingsoftheBasesConversionandDevelopmentAuthority(BCDA)escapedtheturmoilrelativelyunscathed,andsomeevenpostedmodestgainsintermsofbothrevenuesandnumberoflocators.

Moreimportantly,theClarkFreeportZoneinPampanga,theCampJohnHaySpecialEconomicZoneinBaguioCity,thePoroPointFreeportZoneinLaUnion,andtheBataanTechnologyParkinMorong,areabletomaintaintheirworkforcelevelsin2008,significantlycontributingtothestabilizationofthelocaleconomyinthefaceofthefinancialcrisis.

Theseeconomiczones/freeports,afterall,enjoydistinctanduniquefeaturesasinvestmentlocationsthatarehardtomatch.And,withthegovernmentbentonmatching,orevensurpassing,theincentivesbeingofferedbyourAsianneighbors,itisjustamatteroftimewhentheseeconomicdynamosrealizetheirfullpotentialsnotonlyascentersofeconomicgrowthbutalsoofhumanandsocialdevelopment.

Clark Special Economic Zone

Theyear2008openedauspiciousenoughfortheClarkFreeportZonewhen,onJanuary29,PresidentGloriaMacapagal-ArroyodeclaredtheDiosdadoMacapagalInternationalAirport(DMIA)asthecountry’spremierinternationalairportandnotjustasadevelopmentalroute.

Inlinewiththispronouncement,theClarkInternationalAirportCorporation(CIAC),whichhasbeendesignatedtodevelopandoperatetheClarkCivilAviationComplex(CCAC),wasrestoredasadirectsubsidiaryoftheBCDAonApril3byvirtueofExecutiveOrderNo.716(EO716).ThismovetotransfertheCIACunderthewingsoftheBCDAfromtheClarkDevelopmentCorporation(CDC)wasmeanttoensurethatthedevelopmentoftheCCACisalignedwiththeover-allconversionprogramofBCDA.ItisalsomeanttoclarifythefunctionsanddelineatethejurisdictionoftheCDCandCIAC,respectively,inordertocreatesynergybetweenthetwocorporationsinvolvedinthedevelopmentofthe4,400-hectareClarkComplex.

Assuch,BCDAeffectivelybecameresponsiblefortheDMIA,whichPresidentArroyohasenvisionedasthecountry’snextpremiergateway.


With the government bent

on matching, or even

surpassing, the incentives

being offered by our Asian

neighbors, it is just a

matter of time when these

economic dynamos realize

their full potentials not only

as centers of economic

growth but also of human

and social development.


DMIA,APremierGateway

TheBCDA,throughtheCIAC,beganexpansionofthePassengerTerminalBuildingoftheDMIAtoenabletheairporttoaccommodatetwomillionpassengersannuallyfromitspresentonemillionpassengercapacity.TheprojectwasinauguratedbyPresidentGloriaMacapagal-ArroyoonApril4,2008,adayaftershesignedEO716.TheDMIA,livinguptoitsbillingasthecountry’spremiergateway,continuestohostaninfluxofdomesticandforeigntravelers,withpassengerarrivalsonboardinternationalflightsrecordedat245,241,upslightlyfromarrivalfiguresin2007of241,954,withthenumberofdepartinginternationalpassengersat245,507.

CIACrecordsshowdomesticandinternationalflightsareup40percentoverthepreviousyear.Domesticairlines,SeairandCebuPacific,service16flightsperweektotwoprovincesinthePhilippines(CebuandCaticlan).Internationalcarriers,ontheotherhand,servicesevenAsia-Pacificdestinations,namely:Singapore,Hongkong,Macau,Bangkok,KotaKinabalu,KualaLumpur,andIncheon.CebuPacific,whichhasestablisheditshubinDMIA,hasbeenservicing21internationalflightsperweeksinceOctober.

Thetotalnumberofflightsinyear2008was5,263flights,representing2,623passengerflightsand2,640cargoflights.TheDMIAhadanaverageof14flightsperdayinyear2008.

Further,internationalpassengertrafficincreasedby0.2percentcomparedtotherecordedpassengersin2007.TotaltouristarrivalsintheClarkFreeportZonewerethusdramaticallyupby26.31percent,from614,542in2007to776,254visitorsin2008.Asidefromdomesticandinternationalairportarrivals(265,241),thenumberoftouristsswelledbasedonattendanceineducationaltoursandevents(148,000)androomoccupancies(363,000).Totalcargotonnagefor2008was130,585tons,a1.5percentincreasedmarkedoverthepreviousyear.

CIAC’soperationsfortheyearyieldedatotalofPhp278.82millioninrevenues,bulkofwhichcomesfromtollandterminalfees,check-incounterfees,concessionairefees,adspacerentals,leaserentals,securityfeesandparkingfees,accountingformorethan66percent,orPhp183.1million.Anothersignificantcontributorarelandingandparkingfeesforaircraftusingthefacility,amountingtoPhp90.88millionor33percentoftotalrevenues.

SustainedInvestorInterestTheeconomicdynamothatistheClarkFreeportZonecontinuestochurnoutbignumbers,whichishardlysurprisingconsideringthemoderninfrastructurefacilitiesalreadyinplaceintheformerUSmilitaryfacility,andcomplementedbycontinuingdevelopmentsandtheopeningofthestrategicSubic-Clark-TarlacExpressway(SCTEX)duringtheyear.

WiththesustainedinvestorinterestintheClarkFreeportZone,employmentjumped11.11percentin2008,withatotalof


57,790jobsgeneratedcomparedto52,010theyearbefore.ThiscanbeattributedtotheincreaseinexportandimportreceiptsintheFreeport—withexportsreaching$949.95million,up7.40percentcomparedtothe$884.46millionfigurein2007,whileimportsrose4.88percentto$927.61millionfrom$832.16millionayearago.ThebiggestexportersfromtheFreeportin2008wereNanoxPhilippineswith$412.47millionandYokohamaTire(Phils.)Inc.,with$222.19million.

AsignificantshiftisdetectedintheinvestmentmixinClarkduringtheyear,followingtheoverallpatterninthenationaleconomy,whichhasseenarobusttourismsector.OutofthePhp13.11billionintotalinvestmentcommitmentsin2008,thebulkofPhp9.45billioncamefromtourisminvestmentsthataremostlynewanddirectleasesintheFreeport.

ThesustainedeconomicandtourismactivitiesintheFreeportenabledtheClarkDevelopmentCorporation(CDC)toincreaseits2008revenuestoPhp871.72million,up8.78percentcomparedtothepreviousyear’sPhp801.33million.

Correspondingly,taxesremittedtothenationalgovernmentfromtheoperationsoflocatorsinClarkreachedPhp1.85billion,an11.45percenthikecomparedtothePhp1.66billionremittedin2007,makingtheClarkFreeportZoneasignificantcontributortonationaleconomicdevelopment.

ClarkInternationalAirportCorporationNowUnderBCDA

TheClarkInternationalAirportCorporation(CIAC),whichhasbeendesignatedtooperatetheClarkCivilAviationComplex,wasmadeasubsidiaryoftheBCDAbyvirtueofEO716,whichwasissuedbyPresidentArroyoonApril3,2008.

ThemovetotransfertheCIACunderthewingsoftheBCDAfromtheClarkDevelopmentCorporation(CDC)wasmeanttoensurethatthedevelopmentoftheClarkCivilAviationComplex(CCAC)-DMIAisalignedwiththeconversionprogramofBCDA,aswellastoclarifythefunctionsanddelineatethejurisdictionoftheCDCandCIAC,inordertocreatesynergybetweenthetwogovernmentcorporations.Assuch,theBCDAeffectivelybecameresponsiblefortheDiosdadoMacapagalInternationalAirport(DMIA)locatedattheCCAC,whichPresidentArroyohasenvisionedasthecountry’snextpremiergateway.WiththereversionoftheCIACtotheBCDA,theconversionagencyshallbetherecipientofdividendsfromCIAC.

Inlinewiththis,theBCDAthroughtheCIAC,beganexpansionoftheterminal1BuildingoftheDMIAtoenabletheterminaltoaccommodatetwomillionpassengersannuallyfromitspresentonemillionpassengercapacity.TheprojectwasinauguratedbyPresidentGloriaMacapagal-ArroyoonApril4,2008,adayaftershesignedEO716.

AtotalofPhp278.82millioninrevenueswasgeneratedfromCIAC’soperationsfortheyear2008,morethan66percent,orPhp183.1millionofwhichcomesfromtollandterminalfees,check-incounterfees,concessionairefees,adspacerentals,leaserentals,securityfeesandparkingfees.Othersignificantcontributorsarethelandingandparkingfeesforaircraftusingthefacility,amountingtoPhp90.88millionor33percentoftotalrevenues.

StrategicDirections

WithatleastPhp13.11billionintotalinvestmentcommittedbylocatorsin2008,theClarkFreeportZonehasembarkedonalong-termbusinessagendatoextendandexpanditsdevelopment,highlightedbythecompletionofaMasterDevelopmentPlanwhich,inturn,wastheresultofaperfectedagreementtheyearbeforetomanageanadditional10,684hectaresoflandintheClarkSub-Zone.

Amajorlocator,SMClark,startedexpansionactivitiesandsignedaleaseagreementforanadditional5.5hectaresoflandwiththeCDC.Thecompanyplansamixed-usefacilityforoffice,retail,commercial,leisureandentertainmentactivities.SMClarkcommittedaminimumPhp500-millioninvestmentsfortheexpansion.

Beyond2008,CDCwillactivelybuildupfromtheprogressithasmadeinrecentyearstomakedoingbusinessintheClarkFreeportZonemostefficient.TakingadvantageoftheseamlessintegrationofbusinesszonesspurredbytheSubic-Clark-TarlacExpressway(SCTEX),CDCwillcloselyworktogetherwithconcernedLocalGovernmentUnits(LGUs)forthepossibledevelopmentofothereconomiczoneswithintheSCTEXcorridorandthepromotionoftourismattractionsintheirrespectiveareas.

Further,Clarkwillcontinueplayingitsroleascatalystinspurringparalleldevelopmentsinsurroundingcommunities,embarkingonprogramsthatpromoteself-sufficiency.

Texas Instruments Oxford Hotel

�0 B C D A A n n u a l R e p o r t 0 8

John Hay Special Economic Zone

TheCampJohnHaySpecialEconomicZonegotabigboostin2008withtheentryofrealestategiantAyalaLand,Inc.(ALI).ALIhascommittedtobecomeanactiveplayerinthezonethatisexpectedtocontributesignificantlytofurtherenhancingthevalueofthehistoricandscenicproperty.

AyalaLandstartedthedevelopmentofitsBusinessProcessOutsourcing(BPO)CampusatJohnHayinJulyof2008.Theprojectconsistsofsixlow-riseofficebuildingswithsupportingretailandresidentialfacilities,withthearchitecturecomplementingtheCampJohnHay(CJH)ambiance.TheretaildevelopmentisenvisionedtobethenewcommercialdestinationinBaguio.

TheBCDAandCampJohnHayDevelopmentCorporation(CJHDevCo)officiallysignedaRestructuringLeaseAgreementonJuly1,2008,whichobligestheprivatedevelopertocompletethedevelopmentoftourism-relatedfacilitiesinitsleasedareabasedonarevisedprojectimplementationplan.TherestructuredagreementalsoassuresBCDAanannualfixedrentalofPhp150million,ofwhichPhp75millionwillcomefromAyalaLand,Inc.,nowasub-lesseeinCJHDevCo.’sleasearea.

CampJohnHaySpecialEconomicZonesustainedgrowthsinmajorperformanceindicators,includingahealthyincreaseintouristarrivals,employment,andrevenuegeneration.Atthesametime,ecologicalbalanceandprotectionofJohnHay’suniqueenvironmentandforestwatershedareaarecontinuouslybeingmaintained.

TheyearsawemploymentintheCampJohnHaySpecialEconomicZonereach1,510,a5.5percentincreasecomparedtothe1,436jobsregisteredin2007,withabigupsidepotentialoncethereviveddevelopmentplansgofullblast.

OfthetotalemployeesinsidetheSEZin2008,atotalof1,410workerscamefromtheBaguio-LaUnion-Itogon-Sablan-Tuba(BLIST)area,incompliancewiththeBaguioCityresolutionin2004whichmandated,amongothers,thatatleast85percentofworkerstobehiredintheCampJohnHaySpecialEconomicZonemustcomefromtheaforementionedareas.TheBLISTshareofworkershasconsistentlybeenabove90percent.

TouristarrivalsintheJohnHaySpecialEconomicZonelikewiseposteda7.5increaseduringtheyear,reaching119,873fromitsyearagolevelof111,517visitors.ThedataissourcedfromrecordsofthethreehotelsoperatinginsidetheJHSEZ:CampJohnHayManor(107,094guests),Mile-HiInn(4,170guests),andtheAIMIgorotLodge(8,609guests).

BCDA,throughitssubsidiary,theJohnHayManagementCorporation(JHMC),achievedabigincreaseinitsoperatingrevenuesthatreachedPhp18.69million,upmorethan70percentfromPhp10.98millionoflastyear.ThisindicatesahealthyeconomicreboundfortheJHMC,withitsrentalincomereachingPhp11.51million,miscellaneousincomeatPhp5.73million,andincomefromtheeconomiczoneatPhp1.44million.

EnvironmentandForestManagement

JHMCcontinueditsprudentimplementationofenvironmentalpoliciesin2008,focusingoninitiativessuchasthemonitoringofairandwaterqualitywithintheSEZandthesolidandhazardouswastemanagementoflocators.AnothermajorundertakingduringtheyearistheproposedconstructionofasewerlinebyCJHDevCoandthecontinuousbiodiversitymonitoringoftheCampJohnHayReservation.

JHMCalsomaintained,enhancedandfurtherdevelopedtheSEZasawatershedandforesteco-tourismdestination,whichhasbeenthetopdrawofCampJohnHayformorethanahundredyears.Activitiesunderthisinitiativeincludedthemeticulousandregularinspectionofcentury-oldtreestocontrolinfestations,aswellastoassureforestdensitywithinthesprawlingreservation.Stepstopreventforestfireswerelikewiseactivelypursued.

OthernotableJHMCaccomplishmentsin2008include:a)theawardingof15TransferCertificatesofTitletohousingbeneficiariesundertheongoingScoutBarrioHousingProgramwhohavecompletedtherequirementsthatqualifiedthemtotheawardedtitles;and,b)theimprovementoftheCampJohnHayHistoricalCore,anothertoptouristdrawthathasseenasteadystreamofvisitorsthewholeyearround.

Bell House

Intercontinental Hotel Group Call Center

B C D A A n n u a l R e p o r t 0 8 �1

Bataan technology parkReadytosoarwiththetourismboom

TheBataanTechnologyPark(BTP)inMorong,BataanremainsthemostuntappedassetoftheBCDA.ThecontinuingboominthePhilippines’tourismindustrymakesitanidealtargetforpotentialinvestors,andthecompletionin2008oftheSubic-Clark-TarlacExpresswaybodeswellforthisuniquespecialeconomiczone.

TheBTP,likemanyotherinvestmentdestinations,wasseverelyaffectedbytheglobaleconomicslowdownduringtheyear.

TheBataanTechnologyPark,Inc.(BTPI),however,continuestomarkettheproperty’spotentialstoprospectivelocatorswhomayseethevalueoftheareaforeco-tourism,retirementandleisuredevelopments.

The365-hectareproperty,featuringscenicrollinghillsamidstquietandserenegreenerieseverywhere,isnowjustanhalfhourawayfromtheSubicendoftheSCTEX.Thisaccessibility,nottomentionthesizeofthezone,givestheBTPaclearadvantageoncedevelopedintoaleisure,adventureandsportsdestinationhighlysoughtbytouristmarketsinEurope,theUSandAsiaparticularlyJapan,KoreaandTaiwan.

Duringthe2008lull,theBTPIconcentratedincompletingitscomprehensivefive-yearBusinessandLandUseDevelopmentPlanthatfocusesonplanningitsdevelopmentthrust,aswellastherequisitefundingandmarketingaspectsforthezone.

Assuch,theBTPIcontinuestomaintainastrategiccoreofemployeeswhoaretaskedtopreparealltherequirementsandprocesstherequestsofinterestedinvestorsregardingviabletourismenterprisesthatmaybeestablishedintheecozonegiventhegovernment’sprojectionsofacontinuingboominthetourismindustryinthenextfewyears.

Despitethestalledinvestments,theBTPcontinuestoattractlocalandforeigntouriststoitsfacilitiesandsprawlinggroundsthatareperfectforteam-buildingactivities,eco-tourismhikesandotheroutdoorendeavors.Totalnumberofvisitorsin2008totaled6,296,mainlyonthestrengthofpass-on,wordofmouthendorsementofMorongtown’s``bestkeptsecret.”

ThesuccessofAyalaLand’sAnvayaCoveandrecordtouristarrivalsregisteredattheSubicBayFreeportandSpecialEconomicZone,whicharebothadjacentpropertiestotheBataanTechnologyPark,aregoodindicatorsthattheareaisripefortourismandleisureparkdevelopment.

St. Francis of Assisi Chapel

Administrative Building

Freedom Park

BTPI Museum

B C D A A n n u a l R e p o r t 0 8��

Poro Point

ThePoroPointFreeportZonegotitsbiggestboostin2008fromtheupgradingoftheSanFernandoAirporttobeabletoaccommodatebiggeraircraftsandattractmorecommercialflightsaspartofthegovernment’sbidtotransformNorthernLuzonintoasuperregion.

AnotherbigdevelopmentforPoroPointistheunqualifiedsuccessofoneofitsbiggestinvestors,ThunderbirdPilipinasHotelsandResorts,Inc.,whichoperatesthe65.5-hectaretourismcomplexinsidetheformerUSWallaceAirStationthatnowdrawsthousandsofvisitors.Thunderbirdopeneditssprawling,worldclassgolfcourseinMayof2008,withPresidentArroyoasguestofhonor.

Athirdsignificantdevelopment,whichstrengthenedtheFreeport’sbidtobecomeacenterofeconomicactivityinthenorth,isthelaunchinginlate2008oftheTarlac-LaUnionExpressway.ThiswillgivetheFreeportastrategiclinkbylandtoCentralLuzonandtheNationalCapitalRegion,therebygivingnotonlytheFreeportbuttheentireprovinceofLaUnionandtherestofNorthernLuzonacrucial,world-classtollroad.

WorthyInvestments

ThunderbirdPilipinasHotelsandResorts,togetherwithitssistercompanyThunderbirdPoroDevelopmentVentures,Inc.,havepouredinhugeinvestmentstodevelopthetourismcomplexintheFreeport,whichnowboastsofaworld-classhotelanda9-holegolfcourse,amongothers.

In2008,Thunderbirdalsostartedbuildingaswimmingpool,startedexpandingitsentertainmentandleisurecomplex,andcommencedconstructionofthebeachclubasthecompanyforgedaheadwithitsplantomakePoroPointamajortouristhubintheregion.Thefacilitiesareallscheduledforcompletionbythefirstquarterof2009.

SignificantResults

Asaresult,2008sawaninfluxofvisitorstoPoroPoint,registeringalmost66,000localandforeignguests.Employmentlikewisejumpedto1,688fromthepreviousyear’s1,440,withThunderbirdagainleadingthepackwith505employees.Asinpreviousyears,thefiguresdonotincludethethousandsofstevedoresandarrastrepersonnelemployedintheseaportona‘pakyaw’basis.

RevenuesandInvestments

TotalinvestmentsinthePoroPointFreeportZonenowtotalPhp845.22million,thebulkofwhichiscourtesyoftheThunderbirdGroupwithoverPhp730millioninactualinvestments.

TotalrevenuesgeneratedbytheFreeportin2008reachedPhp86.80million,a23.4percentjumpfromtheyearagolevelofPhp70.32million.ThesearemainlyfromrentalsandfromthepercentageofgamingrevenuesfromThunderbird’sentertainmentandleisureoperations.

TaxesremittedtothenationalgovernmentfromPoroPointoperations,includingtaxesandfees,totaledPhp19.56millionin2008.

Thunderbird Resort

B C D A A n n u a l R e p o r t 0 8 ��

Seaport,AirportOperations

TheSanFernandoSeaportinsidetheFreeportZonecontinuestogenerateeconomicactivities,mainlyasatransshipmentpointaswellashandlinginwardandoutwardforeigncargowhich,asearliermentioned,contributestoemploymentgenerationmainlyforthousandsofdockhands.

Commodityimportationviatheseaportwasvaluedat$1.79millionduringtheyear,whilebringinginofimportedarticlesbyPPFZRegisteredEnterpriseswasat$1.12million,withlocalpurchaseamountingtoPhp79.52million.

Theairport,ontheotherhand,continuestohandleincreasingtrafficasaresultoftheupgradingactivities,with17flyingschoolsusingtheairportforcross-countrytrainingflights.Privateandcharteredflightsregister2,172duringtheyear,plusmilitaryandgovernmentaircraft,andsomecommercialflights.

WiththecompletionofthePhp477.934-billionpesoupgradingproject,SouthKorea’stourismandaviationofficialshaveexpressedinterestinutilizingtheSanFernandoAirport,whichcannowaccommodateBoeing737sandAirbus300s.

OfferingOpportunities

WiththescheduledcompletionoftheSanFernandoAirport,thecontinuingdevelopmentofitsbreathtakingseasidetourismcomplex,andthepromiseofaseamlesslandconnectionthroughamodernexpressway,PoroPointisindeedwell-positionedtoofferitssprawlingfacilitiestomoreinvestors,andthePoroPointManagementCorporationhasembarkedonanaggressivemarketingthrusttoluremorelocators.

Twonewsignificantlocators,infact,signedupin2008:LeadingEdgeInternationalAcademy,Inc.,andtheGrandUnionBusinessDevelopmentGroup.Moreareexpectedoncetheairportresumescommercialoperationstobringinnotonlytouristsandinvestorsbutairlinecompaniesandotherrelatedindustriesaswell.

Poro Point Seaport

San Fernando Airport


Maximizing Yields Through Prudent

Asset Management

Theyear2008startedandendedonamixednoteforrealestateandforBCDA’sAssetDispositionProgram.Comingfromahighlyupbeat2007,theyearstartedoutwithforeignandlocalrealestatedevelopersbullishonthesector.Acceleratingcapitalvaluesspawnedbysuchaggressiveinvestorswerehoweverarrestedbytheglobalfinancialmeltdownwhichmanifestedinthelatterpartoftheyear.

Nonetheless,BCDAregisteredgrossdispositionproceedsofalmostP5billionbyend-2008,realizedprimarilythroughacombinationofprudentassetmanagementandasustainedassetdispositionthrust.TheseenabledBCDAtoreapthebenefitsofharddecisionsandcarefulbusinessjudgmentmadeinthepast,aswellastakeadvantageofopportunitiesinthemarket,howevershort-lived.


BCDA registered gross

disposition proceeds of

almost Php5 billion by

end-2008, realized primarily

through a combination of

prudent asset management

and a sustained asset

disposition thrust.


BonifacioGlobalCity

SaleofExpandedBigDeltaLots

SaleofExpandedBigDeltaLotsBCDAbidoutandsoldthe12,036sq.m.ExpandedBigDeltaLots(formerlythe“GovernmentCenterforInvestments”Lot)atapriceofPhp168,889.11persq.m.foratotalofPhp2.0327billion.Themixed-usepropertyisstrategicallylocatedintheE-squareAreawherelocatorscanqualifyfortaxandotherincentivesfromthePhilippineEconomicZoneAuthority.

ANoticeofAwardwasissuedtoand,subsequently,aDeedofSalewassignedwiththeunincorporatedjointventureofcompaniesheadedbytheNetGroupofMr.CarlosS.RufinoandMr.JacquesA.Dupasquier.TheNetGroupundertookdetailedplanninganddesignforthepropertyimmediatelyafterthefullpaymentofthepurchasepricelastJuly23,2008.

CumulativeInvestments

Byend-2008,cumulativeinvestmentsinSerendraandMarket!Market!since2004reachedPhp7.273billionandPhp5.187billion,respectively.In2008alone,investmentsinSerendratotaledPhp1.977billion.

TaxespaidamountedtoPhp321.536millionforinputValue-AddedTax(VAT),Php512.013millionforoutputVAT,Php26.973millionforBusinessTaxandPhp331.860millionforCreditableWithholdingTax(CWT).

Ontheotherhand,cumulativeinvestmentsinMcKinleyHillsince2004wereestimatedatPhp14.428billion,withPhp2.886billioninvestedin2008.

McKinleyHillwillsoonshowcasemorethan9,000residentialcondominiumunits,300,000squaremetersofofficespaces,78,000squaremetersofretailspacesandaVenetian-themedretailmall.By2012,investmentsareprojectedtoreachPhp38.475billion.

ReturnsfromInvestmentsinFortBonifacioDevelopmentCorporation

Theyear2008wasoneofthebanneryearsforFortBonifacioDevelopmentCorp.(FBDC),thejointventurebetween

BCDAandBonifacioLandCorporationledbytheconsortiumofALIandEvergreen(otherwiseknownastheCamposGroup),whichisdevelopingtheBonifacioGlobalCity.ReturnsfromFBDCrealizedPhp1.481billioninrevenuesforBCDAintheformofdividendincomeandredemptionofpreferredshares.

DividendincomefromFBDC,cumulatively,hasreachedPhp1.867billionfrom2005to2008.Includingredemptionofpreferredshares,returnsfromFBDCsince2003havereachedPhp2.943billionasofend-2008.

JointVentureandLeaseProceeds

Ontheotherhand,jointventureandleaseproceedsin2008totaledPhp1.049billionandPhp283.415million,respectively.ThesejointventuresareforSerendra,McKinleyHill,NewportCityandPacificPlazaTowers,whileleaseproceedscamefromMarket!Market!andtheInstitutionalArea,amongothers.

Asofend-2008,theleadersinnetdispositionproceedsareMarket!Market!whichhassofarremittedtoBCDAPhp1.525billion,SerendraatPhp1.405billion,McKinleyHillsatPhp1.404billionandNewportCityinVillamoratPhp380million.

Theseactualproceedsdonot,asyet,includesomePhp820millionworthofreplicationprojectsforthePhilippineAirForceandcommunityfacilitiesandschoolsinVillamorAirBasewhichwereadvancedbythedeveloperofNewportCityandchargedtodispositionproceeds.

Serendra

TotalsalesofBCDA-allocatedunitsinSerendraDistricts1&2hitPhp3.027billionoranequivalentof347residentialunitsand60parkingslotsoutofatotalBCDAinventoryofPhp3.752billionoranequivalentof419residentialunitsand239parkingslotsforthefivesellingperiodssinceFebruary2004.Outofthetotalsoldunits,grosscollectionsreachedPhp2.395billion,fromwhichtheadvancesanddevelopmentandmarketingfeeswerededucted.CumulativesellingefficiencyofresidentialunitsallocatedtoBCDAisat84.91percentforSerendraDistrict1and81.54percentforSerendraDistrict2.Forparkingslots,SerendraDistrict1hitasalesachievementof40percentandSerendraDistrict2posted23.74percent.

Prime office and residential spaces at the Bonifacio Global City

The BCDA Board of Directors


5th Ave.Place

EssensaEast Forbes

RegentParkway ADVL

Fairways Towers

SingaporeChancery

One McKinley Place Hyundai One

GlobalPlace

TrionTower

TheFort Strip

NBCTent

HONDA

TheInfinitySouth

ofMarket

Sere

ndra

Mar

ket!

Mar

ket!

TaguigCivicCenter

STIEveryNation

PNOC-EDC

Departmentof Energy

British School Manila

MGCAcademy

TraceUniversity

MeralcoSubstation

InternationalSchool Manila

Manila JapaneseSchool

SummitSchool

MWSSReservoir

NAPOLCOM(Philippine Public Safety College)

W Tower

HANJIN

BonifacioTriangle

Total Corp.Center 1Saint

MichaelChurch

Metrobank/ Federal Land, Inc. Lots

North Bonifacio Lots

NCBD Lots

NCBD Lots

NCBD Lots

LexusS & R

MC Home Depot

St. Luke’sMedicalCenter

CarPlaza

HSBCNet Cube Net

Quad

NetSquare

NetOne

Parklane

ForbeswoodHeights

FurnitaliaKensington

Bellagio

BonifacioRidge

Grand HamptonBonifacioStopover

BonifacioTechnologyCenter

NetPlaza

5th AvenueRizal Drive

4th

Aven

ue

8th

Aven

ue7th

Aven

ue 26th Street

9th

Ave.

10th

Ave

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28th Street

5th

Aven

ue

30th Street9t

h Av

enue

Bonifacio High Street 11th

Ave

nue

McK

inle

y Pa

rkwa

y

C-5 R

oad

14th Drive

32nd Street

34th StreetRizal Drive

2nd

Ave

3rd

Ave

Kalayaan Avenue

9th

Aven

ue

8th

Aven

ue

38th Street

10th

Ave

nue

Unive

rsity

Parkw

ay

NorthBonifacioLots

BasedonthenewmasterdevelopmentplanforNorthBonifacioDistrict,formulatedandagreeduponbyandamongBCDA,Metrobank/FederalLand,Inc.andFBDC,andonthebasisoftheNEDAJointVentureGuidelinesissuedlastMay2,2008,BCDAconditionallyacceptedtheunsolicitedproposalofMegaworldCorporationforthe8.38hectare-NorthBonifacioLots.

Thereafter,BCDAenteredintodetailednegotiationswithMegaworld,verifyingtheproponent’stechnicalandfinancialcapacityaswellaseffectingsomecrucialrevisionstothetechnicalandfinancialparametersforthejointventuredevelopmentoftheNorthBonifacioLots.Whilenegotiationsanddiscussionswereongoing,

theglobalfinancialmeltdownreareditsuglyheadwiththedeclarationofbankruptcyofLehmanBrothersinSeptember2008.NegotiationswereheldinabeyanceasMegaworldrequestedformoretimesoastomonitordevelopmentsintheglobaleconomy.

JUSMAGProperty

OntheheelsofthefinalSupremeCourtrulingonthe35-hectareJUSMAGproperty,BCDAundertookpreparationstorespondtorenewedinterestinthepropertyandcausedthecancellationoftitlesonthepropertyheldbytheSouthsideHomeowner’sAssociation,Inc.,theprivateclaimantwhoseallegedownershipwasnullifiedbytheSupremeCourt.BCDAacquiredtitleto31hectaresoftheJUSMAGpropertyand

Pacific Plaza

Towers

Map of the Bonifacio Global City


The Bonifacio Global City skyline

appliedforspecialpatentontheremaininguntitledportion,basedonactualgroundsurvey,alsocompletedbyBCDAlastyear.

Thesepreparationspavedthegroundworkforafull-blownmasterandbusinessplanningactivity,notjustfortheJUSMAGpropertybutfortheentire,high-valueBonifacioSouthpropertycovering120hectares.TheJUSMAGproperty,alongwithotherportionsofBonifacioSouth,istargetedfordispositionanddevelopmentby2009.

NCBDLots

Pursuanttothe2007agreementbetweenBCDAandFBDCtojointlydevelopthe8.5hectare-NCBD(NorthernCentralBusinessDistrict)Lots,ajointdevelopmentagreementwasfinalizedforsigning.The8.5hectare-NCBDLotswillcompletethedevelopmentoftheNorthBonifacioDistrictconsistingofthe10.5hectare-Metrobank/FederalLand,Inc.LotsandBCDA’s8.38hectare-NorthBonifacioLots.

ThenewmasterdevelopmentplanforNorthBonifaciowasthreshedoutandfinalizedamongthethreelandownersconcerned.RecognizingtheneedtodevelopthemainthoroughfarecrucialtothesuccessofNorthBonifacioDistrict,BCDAandMetrobank/FederalLand,Inc.agreedtojointlydevelop8thAvenue,otherwiseknownasBonifacioBoulevard.Constructionwasstartedandwasinfullswingin2008.

DetailedengineeringplanswerealsopreparedbyBCDA,FBDCandMetrobank/FederalLand,Inc.fortheconstructionof7thAvenueand9thAvenue,twoofthemainthoroughfaresconnectingtoandcomplementing8thAvenue.FBDCcompletedthedevelopmentanddetailedengineeringplansfortheNCBD,allocatingatleastPhp682.4millionforthedevelopmentofthearea,andstarteddevelopmentin2008.

Foritspart,BCDAcompletedthedetaileddesignandengineeringplanstocompletetheinfrastructureandsite

developmentoftheBCDA-ownedInstitutionalAreaandNorthBonifacioAreaandissettoimplementPhp305millionworthoftheseprojectsin2009.

SigningofthejointdevelopmentagreementfortheNCBDLots,however,wasdeferredfor2009pendingresolutionofcertaintaxissues.

EmploymentGeneration

AlongsideoutstandingachievementsunderBCDA’sADPisthenotableriseinemploymentopportunitieswithMarket!Market!generatingthemostjobsat9,000,Serendrawith6,200,SerendraRetailwith1,900andBonifacioHighStreetwith1,000jobs.

Ontheotherhand,some187,000squaremetersofofficespacehavebeenbuiltatMcKinleyHillwhichcurrentlyhosts7,400employees.

NewportCityinVillamorAirBaseTheyear2008sawthecontinuingclearing,relocationandreplicationofmilitaryandcivilianfacilitiesaffectedbythedevelopmentofNewportCityinVillamorAirBase,witharoundPhp611millionspentoutofabudgetofPhp624.7millionforPhilippineAirForcefacilities.Relocationandreplicationofcommunityfacilitieslikebarangayhalls,daycarecenters,etc.,aswellasthedredgingofMaricabanCreekwascompletedin2008atatotalcostofPhp30.3million.

TherelocationandreplicationofVillamorAirBaseElementarySchoolandPasayCitySouthHighSchoolwerecompletedatatotalcostofPhp173.49million.DiscussionswerestartedfortherelocationandreplicationoftheVillamorDrivingRangeandthePhilippineStateCollegeofAeronautics(PhilSca).

Intotal,almostPhp820millionintheformofreplicatedfacilitieswereadvancedbyMegaworldCorporation,

St. Luke’s Hospital

Bonifacio High Street


NewportCity’sdeveloper,tomakewayforthedevelopmentofandforshowcasingthecountry’snewinternationalgatewayinVillamorAirBase.

NewportCity,rightacrossthenewinternationalpassengerterminal,isemergingasthecountry’spremiereurbanintegratedtourismresortcomplexwithastrongI.T.(informationtechnology)componentandairport-relatedbusinesses.Constructionofthefive-starMarriottHotel,withmorethan300rooms,wasongoingin2008andistargetedforcompletionbyend-2009.

InvestmentsinNewportCity,cumulatively,wereestimatedatPhp17.314billionfrom2003to2008.In2008,investmentsreachedatotalofPhp4.809billion.Ontheotherhand,totalprojectedinvestmentsuntil2012isPhp35.589billion.

Theentryofastrategicinvestor,Malaysia’sGentingBerhadGroup,whichpartneredwithMegaworldtoestablishTravellersInternationalHotelGroup,Inc.,signalstheincubationofmoreinnovativetourismprojectsinNewportCity.Asix-star,luxury,all-suiteshotelwillbedevelopedontopofapremiumentertainmentandleisurecenter.

Complementingthehotelentertainmentandleisurecenterwillbeahigh-endmallandcommercialcenterwithatransparentdome.A1,000-roombudgethotelisalsointheworkstocatertoforeigntravelersandbusinessmen.

Tosupportthesetouristandtravelfacilities,a1,000-seattheaterfortheperformingartsandawholly-integratedacademyandtrainingcenterforemployeesoftheentertainmentandleisurecenter,hotelandrestaurantpersonnel,trainorsandmedicalprofessionalsarealsoplanned.Allthesewillgeneratemuch-neededinvestments,jobsandtechnologytransfer.

By2012,NewportCityisexpectedtogenerate10,000jobs.NewportCityisenvisionedtobethecountry’sfirst24/7leisureandentertainmentcomplex.

Heritage Park

The Venice, McKinley Hill

Serendra

Enderun Colleges

HeritagePark

In2008,BCDAwasabletogeneratePhp34.37millionfromthesaleofBCDA-heldinventoryofHeritageParkInvestmentCertificates(HPICs)representingmemorialproductsinArea2ofTheHeritageParkalongBayaniRoadinTaguigCity.

BCDAexpectstogeneratemorerevenuesfromthisprimememorialparkdevelopmentwiththecompletionofthePavilionTerraces,theNorthTerracesandtheAngel’sTouchColumbariumwhichshallsoonbelaunchedforselling.

ThePavilionTerraces,strategicallylocatedatthebaseofThePavilion,HeritagePark’simposingChinesearchitecture-inspiredcolumbarystructure,arecomprisedofnewinventoriesofvariousmemorialproductssuchasestatelotswhichcanaccommodatemausoleumandabove-groundcrypts,FamilyGardenLotswhichcanaccommodatefourburialplotsand,CompanionGardenlots,designedasside-by-sideburialplots.ThevalueoftheinventoriesatthePavilionTerracesisestimatedatPhp161.2million.

TheNorthTerraces,aptlycalledasitislocatedatthenorthernportionoftheparkneartheman-madelagoon,hassimilarinventoriesasthePavilionTerracesandoffersprimeheadstonelawnlots.EstimatedvalueoftheinventoriesattheNorthTerracesisPhp334.12million.

TheAngel’sTouchColumbarium,agranite-finishedstructureinArea2ofTheHeritagePark,features128companionnicheswithatotalvalueofaboutPhp6.8million.Ontopofthisgranitebaseisacastbronzesculpturedepictingtwoangels,theirhandsintertwinedastheystandwiththeirbacksagainsteachotherandtheirfaceslookingtotheheavens.TheAngel’sTouchsculptureisbyJoseMendoza,thesameartistwhohasproducedsuchworksastheGabrielaSilangmonumentonAyalaAvenueandthePiodelPilarandSultanKudaratmonumentsonPaseodeRoxasatAyalaCenter.

B C D A A n n u a l R e p o r t 0 8�0

AstheBCDAwentfullblastinitsmyriaddevelopmentandconversionactivitiesin2008,theagencypursuedwithequalzealandenthusiasmitsvariouscorporatesocialresponsibility(CSR)programsfortheyear,reachingoutnotonlytopeoplewhohavebeendirectlyaffectedbyitsundertakingsbutalsothosewho,inonewayortheother,sharetheorganization’saspirationsforamorecaring,morenurturingPhilippinesociety.

And,likeinitsdevelopmenttasks,BCDA’scorporatesocialresponsibilityeffortsarevariedandfar-reaching,fromthesimplemedicalmissionstolivelihoodprogramsandenvironmentalpursuits,tomakingadifferenceinthelivesofcancer-strickenchildren.

CommunityRelations

Ascanbeexpected,theSubic-Clark-TarlacExpresswayprojectaffectedthousandsofpeoplelivingalongthepathofthe93.77kilometertollroad–before,duringandafteritsconstruction.PartofBCDA’staskwastomakesurethattheimpactsoftheprojectaremitigated,andallaffectedpartiesareadequatelyandpromptlycompensatedfortheirtroubles.

Thus,personnelfromtheSCTEXCommunityRelationsUnithelpedfacilitatedialoguesandnegotiationswithlandownersandtenantsduringroadright-of-wayacquisitionprocedures,andmadesurethatdisturbancesarekepttothebareminimum.

Beyond Development: A Nurturing and Helping Hand

B C D A A n n u a l R e p o r t 0 8 �1

Atthesametime,BCDAconductedseveralmedicalmissionsinproject-affectedareasincludingthreebarangaysinHermosa,BataaninJune.ThiswasfollowedbysimilarmissionsinFloridablanca,PampangainDecember2008,with160beneficiariesfromBarangaySanRamonand326beneficiariesinanAetacommunityinBarangayNabuclod.

TheBCDAYuletideCommitteealsoconductedaChildren’sProgramandGift-givingactivityfor100AetastudentsoftheNabuclodPrimarySchoolduringthesamemonthaspartofitsoutreachprogram.

Livelihoodprogramsforproject-affectedpeople,ontheotherhand,werelaunchedincoordinationwiththeLandBankofthePhilippineslikethehog-fatteningprojectinConcepcion,Tarlac,particularlyinthebarangaysofTinang,Talimundoc-SanMiguelandSto.Nino.

BCDApersonnelalsoassistedintheorganizationandregistrationoftheSama-SamaMulti-PurposeCooperativecomposedofSCTEP-affectedpeopleandbeneficiariesofthelivelihoodprojectinConcepcion.

Selectionofprospectivepartnernon-governmentorganizations(NGOs)forthedirectimplementationofalivelihoodmicro-lendingprojectinBataanwasalsopursued,leadingtotheidentificationofthegroupDaansaPag-unlad,Inc.(DSPI)asthepartner-NGOintheprovince.

DiscussionswiththeLocalGovernmentofFloridablanca,PampangathroughtheMunicipalSocialWelfareandDevelopmentOffice(MSWDO),forpossiblelivelihoodprojectsinaffectedbarangaysinthetownhavealsobeenstarted.

GreeningSCTEX

Asidefromitscommunityinvolvement,BCDApursuedenvironmentalprojectslikeits“GreeningSCTEX”aprogramthatnotonlyaimstoplant50,000nativetreesalongtheentirestretchofthetollroadinfiveyears,butalsoestablishaTreeMuseumthatwillpropagateendemicandindigenoustrees–manyofwhichareunknowntomostFilipinos.

Thekick-offceremonyinJulysawsome2,000NarrasaplingsplantedinthevicinityoftheClarkNorthBInterchangeinBarangayDolores,Mabalacat,Pampanga.Some500volunteersfromBCDA,ClarkDevelopmentCorporation,SubicBayMetropolitanAuthority,theTollwaysManagementCorporation,theArmedForcesofthePhilippines,DENRRegionIII,andlocalNGOstookpartinthetree-plantinginitiative.

Theprogramisalsodesignedtoforgepartnershipswithcorporationsandotherorganizationsintoadoptingakilometereachofthe94-kmstretchoftheSCTEXfortree-plantingandmaintenanceactivitiesthroughtheyears.

94KRunforLife

Amorehigh-profileCSRactivityfortheyearwasthe94KUltraMarathon,wherein10PinoyUltraRunnerscoveredtheentirelengthoftheSCTEXfromTarlactoSubic,ina15-hourchallengedubbed`̀RunforLife.”Therunwasmatchedbyfinancialpledgesfromsponsors,withtheproceedsamountingtoP50,000donatedtotheKytheFoundationinV.LunaHospitalfortreatmentofcancer-strickenchildren.


CY2008:FinancialCondition

ThetotalassetsofBCDAincreasedby 4.843billion,from 98.669billion in 2007 to 103.513 billion this year. Such increment isattributed primarily to the capitalized construction cost of theSubic-Clark-Tarlac Expressway (SCTEX) Project, even as InventoriesdecreasedduetothesaleofBigDeltaLotsatBonifacioGlobalCity.In addition, Short-Term Investments increased considerably from322millionin2007to 2.943billionthisyearduetocashreceipts

fromtheredemptionofFBDCshares,dispositionofBCDApropertiesandsharesinJVprojects.

Total liabilities grew by 12.486 billion, from 24.889 billion to37.375billion,due to the increase in loans payableensuing from

loandrawdownsfromtheJapanBankforInternationalCooperation,aspartoftheloanextendedtoBCDAforthefundingoftheSCTEXProject. Moreover, inter-agency payables increased which isattributabletotherecordingofthe72.5percentshareofbeneficiaries

onthesaleofBigDeltaLotsandredemptionofFBDCshares.Thereis also a considerable increase of 824million indeferred creditsthisyearduemainlytothetaxsubsidyissuedbytheDepartmentofFinanceforthetaxportionsoncontractors’billingsfortheSCTEX,aswellasontheunrealizedincomefromtheunsoldallocatedunitsofBCDAinSerendraandMcKinleyHillProject.Intra-agency payables,ontheotherhand,decreasedasaresultoftheremittanceof 1billiontoClarkDevelopmentCorporation(CDC)fortheimplementationoftheConcepcion-ClarkPowerTransmissionProjectpursuanttoEONo.666.

Total Capital dropped to 66.138 billion from 73.780 billion in2007. This resultedmainly from thenet loss incurred for the yearwhichisattributabletothelossonforeignexchangeonaccountoftheyenloanforSCTEX,asmentionedin“ResultsofOperations”.

2008

2007(Asrestated)

ASSETS

Current Assets

Cashandcashequivalents 2,138,963,290 2,056,772,655Short-terminvestments 2,943,234,751 322,349,334Receivables 2,909,382,197 2,838,855,790Inventories 3,497,886,826 5,370,467,935Prepayments 2,304,484,948 1,914,953,244Othercurrentassets 10,515,528 10,809,996

TotalCurrentAssets 13,804,467,540 12,514,208,954

Non-Current Assets

Investmentsinandadvancestosubsidiaries/affiliates 23,989,220,339 24,317,544,769Otherinvestments 323,584,391 433,875,943Propertyandequipment-net 63,665,721,364 59,944,405,909Othernon-currentassets 1,729,861,345 1,459,322,573

TotalNon-CurrentAssets 89,708,387,439 86,155,149,194

TOTAL ASSETS 103,512,854,979 98,669,358,148

LIABILITIES AND EQUITY

Current Liabilities

Payables 436,065,929 324,799,557Inter-agencypayables 4,686,927,946 2,211,813,804Intra-agencypayables 251,607,572 1,253,141,134

TotalCurrentLiabilities 5,374,601,447 3,789,754,495

Non-Current Liabilities

Loanpayable 23,618,893,855 13,515,974,048Deferredcredits 8,244,625,160 7,420,169,184Otherlong-termliabilities 136,985,421 163,169,985

TotalNon-CurrentLiabilities 32,000,504,436 21,099,313,217

Total Liabilities 37,375,105,883 24,889,067,712

Equity 66,137,749,096 73,780,290,436

TOTAL LIABILITIES AND EQUITY 103,512,854,979 98,669,358,148

ParentCompanyBalanceSheetsDecember31,2008and2007

Financial Report


CY2008:ResultsofOperations

For this year, total revenues generated by BCDA amounted to1.494billion,arecordincreaseof60percentascomparedtothe

previousyear’srevenuesof 935million.Income from joint venture operations (Serendra,McKinleyHill, Seaport/Casino,NewportCity,andPacificPlazaTowersparkingspaces)whichmakeup70percentoftotalrevenues,totaled 1.05billionshowinganincreaseof 646million from 404milliongenerated in2007. On theotherhand,revenues fromLease Incomedecreased to 283million from 517million in 2007 on account of delayed remittance from ManilaInternationalAirportAuthority (MIAA) of its lease payment, whichwas due for collection by yearend. Revenues from the SCTEX tollcollectionstartedoffthisyearwith 155million.

Operatingexpenses,whichamountedto 1.442billion,is32percenthigherthanlastyear’s 1.091billion.Personal Servicestotaled 158millionregisteringa30percentincreasefromthatof 122millionin2007.Maintenance and Other Operating Expenses(MOOE)likewiserosefrom 969millionin2007to 1.284billionin2008.AmongtheMOOE,substantialvariationsarepostedfordonations and subsidies

whichrose to 504million from 231million in2007mainlydueto increased contributions to AFP Modernization; and in SCTEXoperations and maintenancewhichsetoffthisyearwith 230million.Conversely, expenses on taxes, insurance premiums and other fees decreasedby 93million from 154million in2007 toonly61millionthisyear.Depreciation expense likewisedecreasedthis

yearto 184millionfrom 261million.Advertising and promotiondecreasedaswellfrom 94milliontoP67million.

Tosummarize,withtherecorded 1.494billionrevenuesasagainst1.442 billion operating expenses, BCDA registered a net income

fromoperationsof 52.5millionthisyear.Thisisaturnaroundfromlast year’s 156 million net loss from operations. However, afterconsidering all other income and expenses including income tax,BCDA registered 6.173billionnet loss.This resultedmainly fromitemsundernon-monetary income/loss,consistingofloss on foreign exchange and impairment loss, the former due to the considerableappreciationoftheJapaneseYenagainstthePhilippinePesothisyear,thusaffectingloandrawdownsfortheSCTEXProjectwhichisfundedunderaspecialyenloanpackage.

ParentCompanyStatementsofIncomeFortheYearsEndedDecember31,2008and2007

2008 2007(Asrestated)

REVENUESSharefromincomeofjointventureoperations 1,049,883,969 404,185,387Leaseincome 283,415,436 517,026,974SCTEXtollcollection 155,127,424 -Miscellaneousincome 6,259,002 13,541,971

TOTAL REVENUES 1,494,685,831 934,754,332

EXPENSESPersonalServices 158,521,324 122,097,004MaintenanceandOtherOperatingExpenses 1,283,663,681 968,909,625

TOTALEXPENDITURES 1,442,185,005 1,091,006,629INCOME (LOSS) FROM OPERATIONS 52,500,826 (156,252,297)

OTHER INCOME (EXPENSES) Dividendincome 409,767,738 182,666,667Interestincome 253,827,381 128,155,423Financialexpenses (95,732,089) (70,420,488)Lossondisposalofproperties (154,847,149) (9,114,707)

INCOME FROM OPERATIONS AFTER OTHER INCOME (EXPENSES) 465,516,708 75,034,598

NON-MONETARY INCOME (LOSS) Gain(Loss)onforeignexchange (6,598,410,291)* 1,506,247,241ImpairmentLoss (10,500,000)** -

INCOME (LOSS) BEFORE INCOME TAX (6,143,393,584) 1,581,281,839INCOME TAX (29,893,717) (19,606,526)

NET INCOME (LOSS) ( 6,173,287,301) 1,561,675,313

* The loss incurred on foreign exchange transactions represents the foreign currency difference of JBIC loan drawdown on the SCTEX Project which resulted from the considerable appreciation of the Japanese Yen over the Phil. Peso from a closing rate of ¥0.3642 last year to ¥0.5221 this year. This loss does not involve actual cash transaction but recorded in the Profit & Loss Statement as paper loss in compliance with the provision of International Accounting Standard No. 21 which became effective in 01 January 2005.

** Impairment loss pertains to the difference in the carrying amount of Other Investments against its recoverable amount. This loss was recorded in accordance with International Accounting Standard No. 36 with effective date of adoption in 01 April 2004.


2008

2007(Asrestated)

CASH FLOWS FROM OPERATING ACTIVITIES

Netcashfromoperatingactivities 2,998,809,453 450,974,314

CASH FLOWS FROM INVESTING ACTIVITIES

Netcashusedininvestingactivities (2,353,551,917) (5,225,110,975)

CASH FLOWS FROM FINANCING ACTIVITIES

Netcashfrom(usedin)financingactivities (582,719,310) 5,845,989,832

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND

CASH EQUIVALENTS 19,652,409 (29,852,856)

NET INCREASE IN CASH AND CASH EQUIVALENTS 82,190,635 1,042,000,315

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,056,772,655 1,014,772,340

CASH AND CASH EQUIVALENTS AT END OF YEAR 2,138,963,290 2,056,772,655

investments, and for the SCTEX-related acquisitionof property andequipmentandotherinfrastructureprojectstotaling 1.074billion.

Netcashused infinancing activities totaled 583million, resultingprimarily from the release of funds held in trust for CDC’s powertransmission project. The loan drawdown from JBIC amounted to651million.

Consequently,atyearend,thenet increase in cash and cash equivalentsamountedto 82.19million,showingadropof92percentfromlastyear’s 1.042billion. Theendingcashbalance for2008is 2.139billionwhichis4percenthigherthanthatoftheendingbalanceof2.057billionin2007.

ParentCompanyStatementofCashFlowsFortheYearsEndedDecember31,2008and2007

CY2008:CashFlows

Net cash proceeds from operating activities amounted to 2.999billion,abigleapfromlastyear’s 451million.Thelion’sshareofcash inflowscame fromnewdisposition totaling 2.012billion,aswellasthosefromjointventureprojectsamountingto 1.151billion.Conversely, the largest portion of cash usage were for paymentsmadetosuppliers/creditorswhichreached 444million,followedbyremittanceof 215millioncontributiontotheAFPmodernization.

For investing activities, net cash used amounted to 2.354 billion,showinga55percentdecreasefromthatof 5.225billionin2007.ThemaincontributorforcashinflowhailedfromtheredemptionofFBDCshareswhichamounted to 1.076billion. Outflows,on theotherhand,wereshowninthe 2.478billiondecreaseinshort-term


DispositionProceeds

FortheperiodJanuary-December31,2008

SalePhp3.055B

�1%

LeasePhp0.243B

�%

JointVenturePhp0.505B

1�%

TOTALPhp3.803B

DispositionProceeds

Fortheperiod1993-31December2008

TOTALPhp40.911B

LeaseandJointVenturePhp5.592B

1�%

SalePhp4.959B

1�%FortBonifacioPhp30.360B

74%

DistributionofDispositionProceeds

Fortheperiod1993-31December2008

ShareofOtherBeneficiaryAgenciesPhp5.924B

1�%

TOTALPhp40.911B

Non-MilitaryReplicationExpenses

Php0.619B

�%

DirectExpensesPhp8.624B

�1%

ShareofContiguousMunicipalitiesPhp0.409B

1%

BCDASharePhp6.023B

1�%AFP/Share

Php16.634B

�0%

In 2008, BCDA felt the pressures of the global financialmeltdown that hasaffectedtheveryaggressivebehaviorofforeignandlocalrealestatedevelopers.Nevertheless,BCDArecordedgrossdispositionproceedsofalmostPhp5-billionbyend-2008.

Through prudent asset management and a deliberate disposition program,BCDAwasabletotakeadvantageofopportunitiesinthemarketandbroadenitscontributiontothesoundconversionofformermilitarybaselandsintoself-sustaining and globally competitive investment centers.This has resulted tomorepropertydevelopmentsinFortBonifacioandVillamorAirBasein2008.

Further,withtheopeningoftheSubic-Clark-TarlacExpressway(SCTEX),thereisreasonforBCDAtoremainoptimisticforanexpansionofbusinessopportunitiesinCentralLuzon,andthecountryingeneral.

DispositionProceedsfromBCDA’sAssetDispositionProgram

Since 1994, BCDA has generated a total of Php40.911 billion dispositionproceeds, net of creditable withholding tax, from the disposition of MetroManilaCamps (MMC).Of this amount, 74 percent or Php30.36 billionwasderived from the sale of a large portion of the BonifacioGlobalCity to theFortBonifacioDevelopmentCorporation.ProceedsfromleaseandjointventuretransactionsamountedtoPhp5.592billionorequivalentto14percentofthetotaldispositionproceedswhileBCDAreceivedatotalofPhp4.959billionorequivalentto12percentfromthesaleofcertainportionsofMMC.

DistributionofDispositionProceeds

PursuanttoRA7227,asamendedbyRA7917andtheExecutiveOrder309,thenetproceedsfromthedispositionofMetroManilaCampsareremittedtotheBureauofTreasuryfortheutilizationofthebeneficiarygovernmentagenciesasmandatedintheBCDAcharter.

For the period of 1994 to 2008, theAFP has received a total of Php16.634billionorequivalentto40percentofBCDA’sdispositionproceedsconsistingofPhp7.138billionfortheAFPmodernizationprogramandPhp9.496billionforthereplicationofmilitaryfacilitiesaffectedbythegovernment’sdevelopmentprojects.

Likewise,BCDA’sshareofPhp6.023billionwasused to fundtheconversionofformerU.S.militarybaselandsandtheconstructionofmajorinfrastructureprojectsthatincludetheSubic-Clark-TarlacExpresswayandtherehabilitationoftheSanFernandoAirport-PhaseI.Therestofthedispositionproceedswentto the following: Php5.924 billion as share of other government beneficiaryagencies;Php409millionrepresentstheshareofthecontiguousmunicipalities;Php8.624 billionwas incurred as direct expenses related to the disposition;Php2.678billionwaspaidfortaxesandfeesandPhp619millionwasdisbursedforthereplicationofnon-militaryfacilities.

AssetDispositionReport

TaxesandFeesPhp2.678B

7%

AFPModernization

ProgramPhp7.138B

MilitaryReplicationExpenses

Php9.496B


Board of Directors

GenNarcisoLAbaya(Ret)President and CEO

AloysiusR.SantosChairman

IsaacS.PunoIII RafaelJulianV.Azanza

AlvinP.Capino

GerardR.Seno

JorgeL.Banal,Sr.

StefaniC.Saño

RenatoC.Valencia


Aloysius R. Santos

Chairman - Bases Conversion and Development Authority (BCDA) since November 2006Chairman - BCDA Management and Holdings, Inc. (BMHI) Chairman - Heritage Park Management Corporation (HPMC)Vice-Chairman - Fort Bonifacio Development Corporation (FBDC)Director - John Hay Management Corporation (JHMC) Adviser to the Board - Clark International Airport Corporation (CIAC)

AsidefromhisinvolvementwithBCDA,Mr.Santosisarenownedbusinessman.HeisVice-ChairmanofGuidanceManagementCorporation,andExecutiveCommitteeMemberofGlobalRestaurantConcepts,Inc.(CaliforniaPizzaKitchenPhilippineFranchisee).HewasViceChairmanofDiner’sClub(Phils.).HewasanMBAprofessoriallectureroftheAteneodeManilaUniversityfrom1980to2005andtheDeLaSalleUniversityfrom1973to1993.HegraduatedwithaMasterinBusinessManagementattheAsianInstituteofManagementin1971andhehasundergraduatedegreesfromLoyolaUniversityofLosAngeles,CaliforniaandDeLaSalleCollege,Manila.

Gen Narciso L Abaya (Ret)

President and Chief Executive Officer and Vice Chairman - Bases Conversion and Development Authority (BCDA) since November 4, 2004Vice-Chairman - BCDA Management and Holdings, Inc. (BMHI)Vice-Chairman - Clark Development Corporation (CDC) Director - John Hay Management Corporation (JHMC) Director - Fort Bonifacio Development Corporation (FBDC) Adviser to the Board - Clark International Airport Corporation (CIAC)

PriortohisappointmentinBCDA,Gen.AbayaservedasuccessfulcareerintheArmedForcesofthePhilippines(AFP),culminatingwithhisappointmentasAFPChiefofStaffinApril2003tohisretirementinOctober2004.HeisadistinguishedgraduateoftheUSMilitaryAcademyatWestPoint,NewYork(Classof1971),andholdsaMasterinCivilEngineeringfromLehighUniversityinBethlehem,Pennsylvania,USA.HetoppedtheCivilEngineeringBoardExaminationinFebruary1974.HefinishedhisMasterinBusinessAdministrationattheUniversityofthePhilippines,wherehegraduatedwithhonorsin1980.

Isaac S. Puno III

Executive Vice President and Director - Bases Conversion and Development Authority (BCDA) since February 1996President and Chief Executive Officer - BCDA Management and Holdings, Inc. (BMHI)Director - Fort Bonifacio Development Corporation (FBDC) Director - Bonifacio Estate Services Corporation (BESC)Director - Heritage Park Management Corporation (HPMC) Director - Rosehills Memorial Management (Phils.) Inc. (RMMI)

Mr.PunoisalsotheProgramDirectorandheadoftheOperationsandMaintenanceProjectManagementOfficeoftheSubic-Clark-TarlacExpressway(SCTEX)Project,thecountry’slongestandmostmoderntollway.HefinishedhisMasterinBusinessAdministrationandhisBachelorofArtsdegree,majorinEconomics,fromtheUniversityofthePhilippinesin1976and1972,respectively.

Alvin P. Capino

Director - Bases Conversion and Development Authority (BCDA) since May 2001Director - BCDA Management and Holdings, Inc. (BMHI)Director - Bataan Technology Park, Inc. (BTPI)Director - North Luzon Railways Corporation (NorthRail)Adviser to the Board - Fort Bonifacio Development Corporation (FBDC)

Mr.Capinoisacareerjournalist.Hepresentlywritesabi-weeklypoliticalcolumn,Counterpoint,fortheManilaStandardTodayandheisoneofthehostsandcommentatorsofthedailyradioprogramKarambolaoverdwIZ882khz.HehaspreviouslybeenacolumnistandseniorreporterforbroadsheetsPhilippineDailyGlobeandToday.HehasalsobeenacontributortoObserverMagazineandPhilippineFreePress.Hehasalsoworkedaspoliticalcommentator/hostinradiostationsdzRH,RadioVeritasanddwWW.Otherpositionshehasheldinclude;ChairmanandDirectorofPoroPointManagementCorporationandDirectorofBonifacioGasCorporation.HeisagraduateoftheAteneodeManilaUniversitywhereheholdsanABPoliticalSciencedegree.

Gerard R. Seno

Director - Bases Conversion and Development Authority (BCDA) since May 2001Director - BCDA Management and Holdings, Inc. (BMHI)Director - Bataan Technology Park, Inc. (BTPI) Director - Fort Bonifacio Development Corporation (FBDC)

Mr.Senoisalaborrightsadvocate.Hecurrentlyholdsthefollowingpositions:PresidentoftheAssociatedLaborUnionsforBanking&AlliedIndustry;PresidentoftheAssociatedLaborUnionsforBuilding&ConstructionIndustry;VicePresidentandmemberoftheBoardofDirectorsoftheTradeUnionCongressofthePhilippines(TUCP)andInternationalMetalworkersFederation-PhilippineCouncil;ViceChairmanofAssociatedMulti-PurposeCooperative,Inc.(AMCI);and,LaborRepresentativeoftheBankIndustryTripartiteCouncil,theHotelandRestaurantTripartiteConsultativeBoardandtheConstructionIndustryTripartiteCouncil.HegraduatedwithBachelorofLawsandBachelorofScienceinBusinessAdministrationdegreesfromUniversityofSanCarlos,CebuCityin1986and1981,respectively.

Jorge L. Banal, Sr.

Director - Bases Conversion and Development Authority (BCDA) since March 22, 2007Director - BCDA Management and Holdings, Inc. (BMHI)Director - Fort Bonifacio Development Corporation (FBDC)Adviser to the Board - Poro Point Management Corporation (PPMC)

Afour-termerCityCouncilorrepresentingthe3rdDistrictofQuezonCity,hewasfirstelectedin1988and,consequently,re-electedforthreeconsecutiveterms.HeservedasMajorityFloorLeaderin1990,PresidentProTemporeoftheCityCouncilfrom1998to2004andNationalPresidentoftheJuniorChamberInternational(JCI)SenatePhilippinesin2005.Mr.BanalisalsoPresidentoftheFederationofSeniorCitizensAssociationsofthePhilippines(FSCAP)-NationalCapitalRegion(NCR),FSCAPQuezonCityChapter,andtheRegionalSeniorCitizensFederation-NCR;memberoftheNationalExecutiveBoard,BoyScoutsofthePhilippines;and2008PresidentofJCISenateASEAN.ADirectoroftheLandBankRealtyDevelopmentCorporation,hepursuedhisgraduatestudiesattheFarEasternUniversity,whereheholdsaBSCommercedegree.HeishappilymarriedtotheformerCharminiaBaluyut,presidentoftheLigangBarangay,3rdDistrictofQuezonCity.Blessedwitheightchildren,theireldestsonJorge,Jr.,istheincumbentPresidentProTemporeoftheQuezonCityCouncil.

Stefani C. Saño

Director - Bases Conversion and Development Authority (BCDA) since June 19, 2008Director - BCDA Management and Holdings, Inc. (BMHI)

Mr.SañoiscurrentlyaconsultantoftheSubicBayMetropolitanAuthority(SBMA)anditssubsidiary,theFreeportServiceCorporation(FSC),wherehehadtwiceservedasPresidentandCEO.HewasformerlymanagerofthePhilippineNationalOilCompany-AlternativeFuelCorporation(PNOC-AFC)PetrochemicalIndustrialParkinBataanandproprietoroftheSCSPublicAffairsConsultancybasedinQuezonCity.AformerstudentactivistoftheUniversityofthePhilippines,whereheobtainedhisdegreeinIndustrialEngineering,andstafferofthePhilippineCollegian,hewasoncedetainedatFortBonifacioasoneofthosewhofearlesslystoodagainsttheMarcosdictatorshipduringthetimeofMartialLawin1972.

Renato C. Valencia

Director - Bases Conversion and Development Authority (BCDA) since September 2004 Director - Fort Bonifacio Development Corporation (FBDC)Director - BCDA Management and Holdings, Inc. (BMHI)

Mr.ValenciaisaformerPresidentandCEOofSocialSecuritySystemandaformerChairmanandCEOofUnionBankofthePhilippines.Hesitsasanindependentdirectorinsomelistedcompanies.HefinishedhisMasterinBusinessManagementattheAsianInstituteofManagementin1971andhisBachelorofSciencedegreemajorinGeneralEngineeringatthePhilippineMilitaryAcademyin1963.

Rafael Julian V. Azanza

Director - Bases Conversion and Development Authority (BCDA) since May 2001, and Chairman of the BCDA Board’s Audit CommitteeDirector - BCDA Management and Holdings, Inc. (BMHI) also serving as Treasurer of BMHI Director - Fort Bonifacio Development Corporation (FBDC)Director - Bonifacio Water Corporation (BWC)Director - Bonifacio Gas Corporation (BGC)

ProfessorAzanzaisafacultymemberoftheAsianInstituteofManagement(AIM).HeisalsopresentlytheChairmanoftheLeukemicIndigentsFundEndowment.ForyearshewasaTrustee,thenChairman,oftheDr.FedelMundoMedicalCenterandGeneralHospital.HeholdsaMasterinBusinessAdministration,majorinfinance,fromtheHarvardBusinessSchool(1971)andhasundertakendoctoralworkattheUniversityofthePhilippines.


Top Management

GenNarcisoLAbaya(Ret)President and CEO

IsaacS.PunoIIIExecutive Vice President and SCTEP Program Director

NievelenaV.RoseteVice President for Corporate Services

VictorV.ZablanVice President for Finance/

Chief Finance Officer

AileenAnunciacionR.ZosaVice President for Business Development

and Officer-in-Charge for Operations

Atty.ArnelPacianoD.CasanovaGeneral Counsel and Corporate Secretary

OFFICEOFTHECHAIRMANALOYSIUS R. SANTOSChairmanTel.No.(632)816-0935Tel/FaxNo.(632)816-0936

Internal Audit Service OfficeMA. LINA P. OCAMPOOfficer-In-ChargeTel.No.(632)816-0938

OFFICEOFTHEPRESIDENTGEN NARCISO L ABAYA (RET)President & CEOTel.No.(632)816-0915FaxNo.(632)816-0917

PATRICK ROEHL C. FRANCISCOHead Executive AssistantTel.No.(632)816-0916FaxNo.(632)816-0917

Corporate Planning Services DepartmentEDUARDO G. POLICARPIO, JR.Department ManagerTel/FaxNo.(632)816-0987

Information and Communications Technology DepartmentMA. ESPERANZA M. ESPINOChief Information OfficerTel.No.(632)816-1108Tel/FaxNo.(632)816-0978

Legal Services DepartmentATTY. ARNEL PACIANO D. CASANOVAGeneral Counsel and Corporate SecretaryTel.No.816-1098FaxNo.816-1092

Public Affairs DepartmentLEILANI BARLONGAY-MACASAETDepartment ManagerTel/FaxNo.(632)816-0947Tel.No.(632)816-0948

OFFICEOFTHEEXECUTIVEVICEPRESIDENTISAAC S. PUNO IIIExecutive Vice PresidentTelNo.(632)816-0962FaxNo.(632)816-0963

Subsidiaries, Affiliates, & Projects Monitoring DepartmentATTY. REGINA SALVE R. LAPUZOfficer-In-ChargeTel.No.(632)816-1071FaxNo.(632)816-1086

JOEL V. BERINGUELADepartment ManagerTel.No.(632)816-4690Tel/FaxNo.(632)816-1083

PLANNING & BUSINESS DEVELOPMENT GROUP

AILEEN ANUNCIACION R. ZOSAVice PresidentTel.No.(632)816-1015 Tel/FaxNo.(632)816-1016

Business Development DepartmentBARBARA L. ANDALProject ManagerTel.No.(632)816-1043

Land & Assets Development DepartmentDEAN J. SANTIAGOProject ManagerTel.No.(632)816-1013

FINANCE GROUP

VICTOR V. ZABLANVice President & Chief Finance OfficerTel.No.(632)816-1052Tel/FaxNo.(632)816-1063

Budget & Monitoring DepartmentHEDDA LOURDES Y. RULONADepartment ManagerTel.No.(632)818-4684Tel./FaxNo.(632)816-1067

Financial Management Services DepartmentERLEDA S. SAN JUANDepartment ManagerTel.No.(632)816-4683Tel./FaxNo.(632)816-0993

Treasury & Investments DepartmentNORMA S. PABUSTANDepartment ManagerTel.No.(632)816-1076

OPERATIONS GROUP

AILEEN ANUNCIACION R. ZOSAOfficer-In-ChargeTel.No.(632)816-1015 Tel/FaxNo.(632)816-1016

Contracts Management DepartmentATTY. REGINA SALVE R. LAPUZProject ManagerTel.No.(632)816-1071Tel/Fax(632)816-6666loc.167

Housing & Relocation DepartmentROLANDO C. MANALOProject ManagerTel.No.(632)816-1089

Infrastructure Development DepartmentJOVITO M. SUNGAOfficer-In-ChargeTel.No.(632)816-1070

Security Services DepartmentBGEN ROBERT C GERVACIO (RET)Project ManagerTel/FaxNo.(632)816-1008

CORPORATE SERVICES GROUP

NIEVELENA V. ROSETEVice PresidentTelNos.(632)816-1003 Tel/FaxNo.(632)816-1004

Administrative Services DepartmentELEANOR L. ATIENZADepartment ManagerTel/FaxNo.(632)816-1030

Human Resources Development & Management DepartmentRIZALITO L. FABULADepartment ManagerTel.No.(632)816-1029

Premises Administration & Transportation Services DepartmentEDUARDO R. ROSQUETAOfficer-In-ChargeTel.No.(632)816-0925

SUBIC-CLARK-TARLAC EXPRESSWAY (SCTEX)PROJECT MANAGEMENT OFFICE

ISAAC S. PUNO IIIProgram DirectorHead, Operations and Maintenance Project Management OfficeTelNo.(632)816-0962FaxNo.(632)816-0963

MGEN TRIFONIO P SALAZAR (RET)Program Manager for Administrative Support ServicesTel.No.(63)(045)599-7213Tel/FaxNo.(63)(045)599-7210

MGEN EDUARDO J LENA (RET)Program Manager for Engineering and ConstructionTel/FaxNo.(63)(45)599-7212

BGEN ROBERT C GERVACIO (RET)Program Manager for Operational Support ServicesTel/FaxNo.(63)(45)599-6053

COMMISSION ON AUDIT

ATTY. MA. SYLVA Z. ISIDERIOCorporate AuditorTelNo.(632)816-1344Tel/FaxNo.(632)816-1345

MANAGEMENT DIRECTORY


SUBSIDIARIESBataan Technology Park, Inc.BTPComplex,Brgy.SabangMorong,BataanTel.No.:(63)908122-6002Email:[email protected]:www.bcda.gov.ph

ANTONIO I. HABANAChairman

WILFRIDO E. CASTORPresident & CEO

BCDA Management and Holdings, Inc.2/F,BonifacioTechnologyCenter31stStreet,CrescentParkWestBonifacioGlobalCity,TaguigCityTel.No.:(632)861-1340Email:[email protected]:www.bcda.gov.ph

ALOYSIUS R. SANTOSChairman

ISAAC S. PUNO IIIPresident

Clark Development CorporationBldg.2122,C.P.GarciaSt.ClarkFreeportZonePampanga,PhilippinesTel.No.:(63)(45)599-9000Email:[email protected]:www.clark.com.ph

RIZALINO S. NAVARROChairman

BENIGNO N. RICAFORTPresident & CEO

Clark International Airport CorporationCivilAviationComplexClarkSpecialEconomicZoneClarkFreeportZone2023Pampanga,PhilippinesTel.No.:(62)(45)599-2702FaxNo.:(63)(45)599-2044Email:[email protected]:www.clarkairport.com

NESTOR S. MANGIOChairman

VICTOR JOSE I. LUCIANOPresident

John Hay Management CorporationJohnHaySpecialEconomicZoneCampJohnHay,BaguioCity2600PhilippinesTel.No.:(63)(74)424-5824FaxNo.:(63)(74)444-5823Email:[email protected]:www.jhmc.com.ph

JHMC Manila Extension Office148G/F,ATCCentre,KatipunanRoadBrgy.St.Ignatius,WhitePlainsQuezonCityTel.No.:(632)710-2531FaxNo.:(632)437-7106

MA. CRISTINA R. CORONAOIC, Office of the Chairperson President

Poro Point Management CorporationPoroPointFreeportZoneSanFernandoCity2500LaUnion,PhilippinesTel.No.:(63)(72242-4016FaxNo.:(63)(72)242-0683Email:[email protected]:www.poropointfreeport.com

Airport OfficePoroPointFreeportZoneCaliforniaAvenue,CanaoaySanFernandoCity2500LaUnion,PhilippinesTelNo.:(63)(72)607-5649FaxNo.:(63)(72)607-5648

FELIX S. RACADIOPresident & CEO

ANTHONY C. MANGUIATExecutive Vice President & COO

DIRECTORY OF SUBSIDIARIES AND AFFILIATES

AFFILIATESFort Bonifacio Development Corporation2/F,BonifacioTechnologyCenter31stStreet,CrescentParkWestBonifacioGlobalCity,TaguigCityTel.No.:(632)757-6117,818-3601Website:www.fbdcorp.com

JOSELITO D. CAMPOS, JR.Chairman

JAIME I. AYALAPresident & CEO

Subic Bay Metropolitan AuthorityBldg.233,BarrymanRoadSubicBayFreeportZoneOlongapoCity,ZambalesPhilippinesTel.No.:(63)(47)252-4283,252-4214Website:www.sbma.com

FELICIANO G. SALONGAChairman

ARMAND C. ARREZAAdministrator

Subic Clark Area Development Council

EDGARDO D. PAMINTUANPresidential AdviserTel.No.:(63)(45)599-7418

Amertron,Inc.

AlveoLandCorporation

AsianCarmarkersCorporationBMW

Philippines

AyalaMallsGroupofAyalaLand,Inc.

BataanTechnologyPark,Inc.

BonifacioHighStreet

BonifacioTechnologyCenter

ButterflySanctuaryinCampJohnHay

CampJohnHaySuites

ClarkDevelopmentCorporation

ClarkInstituteofAviation

ClarkInternationalAirportCorporation

ClarkMuseum

DrupeInternational,Inc.

EdwinBacasmas,PhilippineDailyInquirer

(forLeicaCarpo’sphotoonpage11)

ElKabayoEquestrianCenter

EnderunColleges,Inc.

FortBonifacioDevelopmentCorporation

HeritageParkManagementCorporation

HotelVida

HolidayInnConventionCenter

IntercontinentalHotelsGroup

JohnHayManagementCorporation

JungleJoe’sWorldAmusementPark

KitaCorporation

L&TInternationalGroup

LighthouseMarinaResortHotel

ManorHotel

Market!Market!

McKinleyHillVillage

MegaworldCorporation

MeridienDevelopmentGroup

Mile-HiCenter

MimosaGolfandGrandSpa

MimosaResortandCountryClub

NCOPhilippines,Clark,Inc.

NewWellBeingSpaCity,Corp.

NewportCity

NinoyAquinoInternationalAirport

Terminal3

OceanAdventure

OfficeofthePresident

-CorrespondenceOffice

OrchidsworldInternationalIncorporated

PacificPlazaTowers,Inc.

ParadiseRanch,Inc.

PhilippineDailyInquirer

PoroPointManagementCorporation

Portico

RosehillsMemorialManagement(Phils.),Inc.

SeorabeolGrandLeisureHotel

ShopsatSerendra

ACKNOWLEDGMENTS:

PUBLICATIONS TEAMThis 2008 Annual Report is a project of the BCDA Public Affairs Department composed ofLeilaniBarlongay-Macasaet,RoyVictorR.Rosales,MaricarGaySavella-Villamil,RhonaL.Ramos,IrahF.David,GarryA.Cativo,MichelleS.SanJuanandAgemO.Alfafaras

Editorial Adviser

AileenAnunciacionR.ZosaBCDAVicePresidentforBusinessDevelopment

Concept, Design and Photography by:

ModeMatrixManila,Inc.

SMShoppingCenterManagement

Corporation

SubicBayMetropolitanAuthority

Subic-Clark-TarlacExpresswayProgram

ManagementOffice

SubicInternationalHotel

TexasInstrumentsPhilippines,Inc.

ThunderbirdPilipinasHotelsand

Resorts,Inc.

TollwaysManagementCorporation

TreeTopAdventure

TriciaV.Pangilinan

(www.makeuptricks.multiply.com)

UnitedParcelService,Inc.

YokohamaTirePhilippines,Inc.

ZoobicSafari

BCDACorporateCenter2/F,BonifacioTechnologyCenter31stStreet,CrescentParkWestBonifacioGlobalCity,TaguigCity,PhilippinesTel.No.:(632)816-6666FaxNo.:(632)816-0996E-mail:[email protected]:www.bcda.gov.ph

Documents

SCTEX: A Promise Delivered