A determined soldier on a mission

Former defense secretary Delfin Lorenzana faced the challenge of his life when ex-president Rodrigo Duterte called him out of semi-retirement to serve as secretary of national defense. Facing him was a trifecta of threats that would test him to the limit.

There was China’s creeping invasion in the West Philippine Sea, the terrorist threats in Mindanao (which escalated to the 5-month siege of Marawi) and a looming communist insurgency. On his shoulders lay the responsibility of keeping the Filipino people safe whilst defending the nation’s sovereignty. The task was made even more difficult given the Armed Forces’ equipment limitations.

Fast-forward to 2022 and Lorenzana succeeded to neutralize the foreign-funded terrorist siege and reclaim Marawi. He prevented the communist movement from advancing and kept a bullying China at bay. His success is attributed to a well-considered defense strategy, discipline and persistence.

During his term, Lorenzana succeeded in mounting a decent modernization program for the AFP too. Defense assets were acquired, including new frigate and corvette vessels for the navy, a squadron of Blackhawk fighter helicopters and a fleet of F-16 fighter jets for the air force and a suite of artillery for the army, among others. Lorenzana left the armed forces more capable than it has ever been.

But the man is not yet done. Determined to see the military acquire the assets they need to credibly defend the country, the PMA graduate from class ’73 raised his hand to serve for yet another tour of duty. This time, as chairman of the Bases Conversion Development Authority (BCDA).

It will be recalled that former president Cory Aquino established the BCDA via Republic Act 7227 to turn military bases into engines of economic growth and to raise funds for the modernization of the AFP. By law, 30 percent of the BCDA’s direct operating profits and 50 percent of profits derived from joint ventures are to be appropriated to the military.

From 1993 to 2021, the BCDA booked P128 billion in profits, for which P56.4 billion was plowed back to the AFP.

Over coffee, I asked the new BCDA chairman how the adjustment has been from military leader to a quasi-private sector executive. Lorenzana finds few differences. At the heart of both the military and corporations is a chain of command, an overarching strategy and a plan of execution. The difference lies in the context. While the strategies of the military are geared towards overcoming the enemy, those of a corporation are designed to deliver the most competitive products and to maximize profits.

“I eat challenges for breakfast,” said the senior soldier who is in great physical health and who does not look his age. What I found admirable is that despite all the challenges he’s endured over his 50+-year career, the man is still in fighting mode. Even now, he diligently does his homework by reading numerous books relating to property development, sustainable cities and corporate leadership. He his currently reading Boards that Lead by Ram Charan.

Lorenzana’s self-proclaimed marching order is to maximize profits and shareholder value at the BCDA. Admittedly, his first hundred days came with unpleasant surprises. Legal cases with the lessee of Poro Point’s seaport stymied the ecozone’s development. The same is the case in Camp John Hay, what with the legal tussles with the Sobrepeña group (of Fil-Estate and College Assurance Fund fame). Outside this, legal encumbrances with the defunct Northrail project consume BCDA’s resources.

But there is Clark. The Clark Freeport and Special Economic Zone is 320.6 square kilometers or 134 times the size of BGC. It is massive. One can imagine how much it can contribute to the national economy if it were developed to the level of BGC. The prospects are enormous.

But Clark’s development has not been as fast as we would like. As of last year, the Freeport had only 1,153 locators. There are a few industrial export earners like Yokohama, Texas Instruments and SumoSys Inc. who collectively generated export revenues of $7.1 billion. There are a few tourism-related establishments too, like the Widus Hotel & Casino, Marriott and Hann Resort. But this is just scratching the surface. Clark has the potential to be an economic engine as vibrant as Singapore.

Lorenzana admits that the lack of physical and digital connectivity stands in the way of Clark’s full development. Access from Manila via rapid railway and internet connection of 500 mbps will make all the difference. The developments of both are underway. Lorenzana is also prioritizing water and power security as well as the construction of access roads in the areas outside the core industrial zone.

The transfer of government offices to Clark, as directed by Mr. Duterte, should have provided the Freeport with the critical mass to become a self-sustaining metropolis. But the transfers have been slow. So far, only the DOTr, the BSP, the DOST’s Virology Center and Philippine Science High School are among the few that committed to move. It will take a new directive from PBBM to expedite the transfer of government offices. BCDA hopes this directive will be handed down soon.

Lorenzana and his army of BCDA executives are working hard to transform Clark into the preferred Asian destination for industrial, commercial, financial and tourism-related establishments. But the road to its transformation is long and expensive. Similarly, the road to realize the full potentials of Poro Point, Camp John Hay, Subic and the Bataan Tech Park is equally difficult.

But Lorenzana is a determined soldier on a mission. Failure is not an option. As he exemplified in the war against terrorists, communists and China – no challenge is insurmountable. A well-considered strategy, discipline and persistence always wins the day.

*      *      *

Email: [email protected]. Follow him on Twitter @aj_masigan