Government urged to make Clark a ‘business hub’

ANGELES CITY — The Angeles City Council yesterday urged the government to transform Clark into a "business hub" that will serve as the center of economic development on the entire island of Luzon.

In a privilege speech, Alexander S. Cauguiran, president pro-tempore of Angeles City Council, said that skilled workers in Northern Philippines number around 4.3 million, or more than one-fifth of the country’s total skilled workforce.

Business firms at the Clark ecozone employed 21,696 workers as of Aug. 31 this year, Cauguiran said.

In the same speech, Cauguiran urged the government to operate Clark International Airport, which was recently named Diosdado Macapagal International Airport, as the country’s international airport pursuant to RA 7227 or the Bases Conversion Law.

"Studies made by airport master planners as confirmed by the Japanese Airline Consultants, Inc. show that the DMIA can be developed on a fast track basis," he said.

Cauguiran said "with enough political and management will, we can have in our midst a fully operational airport within a period of three years."

He said the 22 provinces of Northern Philippines, which would benefit directly from the full operationalization of the DMIA, compose 84 percent of the entire area in Luzon.

Cauguiran also moved for the termination of the agreement between the government and the Philippine International Airport Corp. (PIATCO), saying the contract "hinders the realization of a premiere international airport inside Clark, much to the detriment of local and international passengers who continue to suffer from traffic congestion within the NAIA airport and Metro Manila roadways.

He said there are objectionable provisions in the PIATCO contract, namely:

• PIATACO was given a monopoly to maintain and operate an international passenger terminal for the entire Luzon island;

• Only after 10 million arrivals for three successive years at NAIA-3 can DMIA be fully developed as an international airport.

• PIATCO’s exclusive services at the NAIA-3 terminal prejudiced the existing concession agreements with current service operators, yet PIATCO is held "free and harmless" from legal suits.

• The PIATCO deal not only requires the government to postpone payments due it from PIATCO if the firm is unable to pay its loans to its lenders, but worse, the government can be required to assume PIATCO’s obligations to its foreign lenders if it defaults in payment.

• The amount of liquidated damages to be paid by PIATCO to the government is miniscule compared to that which is payable by the government to PIATCO. Worse, the agreement exempts PIATCO from paying the government liquidated damages even in cases where there is termination of contract due to PIATCO’s breach of agreement.