BCDA expects investments hitting over P100 billion this year

MANILA, Philippines — The Bases Conversion and Development Authority (BCDA) expects its approved investments to reach over P100 billion this year amid strong investor interest.

“If we count the whole year, we will breach P100 billion in investments,” BCDA president and CEO Joshua Bingcang said during a forum organized by the Foreign Correspondents Association of the Philippines.

Investments approved by the BCDA surged by 535 percent to P49.96 billion in the first half from P7.87 billion in the same period last year, driven by investments of major international aviation and logistics companies including Lufthansa Technik Philippines, FedEx and UPS international, which are expanding operations in Clark.

Of the total approved investments, the aviation sector accounted for the biggest share of nearly 68 percent or P33.91 billion.

Meanwhile, the residential sector accounted for P5.9 billion in approved investments, while the government and sports sector accounted for P500 million and hospitality investments reached P30 million.

Agreements during the period included investments involving InfiniVAN, the Philippine Sports Commission, Sophia Real Estate Executives and Development Corp., Baguio Mountainscapes, Hann Philippines and ACWA Power Philippines, as well as a consortium composed of GTM Networks Asia and Volksbahn Technologies.

Bingcang said that the investment growth shows growing confidence in the Philippines as a location for long-term business expansion.

“Global companies are making larger and longer-term commitments to the Philippines because they see the potential to serve both the domestic market and the wider Asia-Pacific region from here,” he said.

He also said that the investment figures demonstrate how government-owned land and infrastructure can be used to attract private capital into strategic sectors while generating employment and economic activity.

The BCDA-approved investments in the first half are expected to generate 4,210 jobs.

Bingcang said that the BCDA’s approved investments may match the level approved by Board of Investments, the main investment promotion agency, in a few years.

The BCDA also expects investment activity as it continues work with its partners to develop infrastructure to support the development of the Luzon Economic Corridor (LEC).

Launched by the Philippines, United States (US) and Japan in 2024, the LEC seeks to accelerate infrastructure investments and strengthen the connectivity of Luzon’s growth centers covering Subic, Clark, Manila and Batangas.

BCDA wants to leverage the LEC to position the New Clark City as a hub for strategic investments.

Bingcang said that planned infrastructure includes the construction of an additional runway, as well as taxiway and apron at the Clark International Airport to support the expansion of logistics firms in the area.

He said that the BCDA management committee approved last week the procurement for the P1.4 billion construction of the apron.

Meanwhile, the construction of taxiways and additional runway costs around P7 billion to 10 billion.

Bingcang said that the US Development Finance Corp. is interested in the Clark Airport’s expansion.

He also said that the National Commission on Indigenous People has given its letter of no objection to the proposed extension of the North South Commuter Railway until New Clark City.

He said that the proposed extension will be a game-changer for Clark.

BCDA is also set to sign a memorandum of agreement with the Home Development Mutual Fund for the development of economic housing units in New Clark City.

Meanwhile, the Science Park of the Philippines Inc.’s 106-hectare industrial park for mixed-use development in New Clark City is targeted to start construction in the fourth quarter of this year.

As for the artificial intelligence industrial hub being developed with the US in New Clark City under the Pax Silica initiative, Trade Undersecretary Ceferino Rodolfo said that the government remains optimistic that the master lease agreement would be signed by the BCDA with the US government by November.

He also emphasized that there will be no diplomatic immunity for locators of the planned hub and this will be stated in the contract.

Outside of Clark, BCDA is looking to bid out the P40 billion development contract of the property near Market! Market! for mixed use by the first quarter of 2027.

Bingcang said that BCDA is looking at a joint venture for the development and will be meeting with three to four Japanese developers interested in the project.