BCDA law amendment hurdles Senate

BAGUIO CITY (February 6, 2025) -- Amendments seeking to strengthen the Bases Conversion and Development Authority (BCDA) hurdled the Senate’s third and final reading on Monday, 03 February 2025 citing significant contributions to the Philippine economy, the state-run Bases Conversion Development Authority (BCDA) said.

The measure paves the way for full ownership of properties for residential, mixed-use, institutional, and industrial purposes in BCDA properties, including John Hay in Baguio City; Poro Point in San Fernando City, La Union; Clark in Pampanga and Tarlac, and Morong Discovery Park in Bataan.

When finally approved into law, the amendments are expected to benefit workers within these zones while encouraging migration from Metro Manila to the provinces, further supporting national development. By boosting investor confidence, the measure also aims to strengthen economic activity and promote sustainable growth in these regions.

A key provision of the bill is the conversion of 5 percent of BCDA’s economic and freeport zones from leasehold to freehold status – an important step in unlocking new opportunities within the residential market.

Currently restricted to leasehold, the land status has posed a barrier to housing developers. Allowing the sale of converted lands for residential purposes will not only create new business opportunities and stimulate the housing sector but will also provide potential residents and their families with the opportunity for full property ownership.

This move will foster a strong sense of community while ensuring proximity to job opportunities within the economic zones, contributing to the overall growth and prosperity of the region.

BCDA President and CEO Engr. Joshua M. Bingcang thanked the Senate, particularly to Senators Mark Villar and Alan Peter Cayetano, for recognizing BCDA’s major contributions to the national coffers, the Armed Forces of the Philippines (AFP) Modernization Program, and job generation and economic development across the country.

“I would like to extend my deepest gratitude to our esteemed sponsors, Senators Villar and Cayetano, co-sponsor Senator Loren Legarda, as well as authors of the bill Senators Jose Ejercito, Jr. and Francis Tolentino, for their unwavering support in advancing this crucial piece of legislation. This game-changing bill is instrumental in strengthening the BCDA as it works to promote balanced regional development and drive inclusive growth across the country,” Engr. Bingcang said.

Senate Bill No. 2647 also extends BCDA's corporate life for another 30 years, ensuring the continued role of the BCDA as a key contributor to nation-building.

In a separate statement, Sen. Villar emphasized, “the proposed measure will provide policy stability and may increase investor confidence in BCDA. Investors are more likely to commit to significant investments when they are assured that the regulatory and policy framework they operate under will remain stable and supportive for the long term.”

Villar also emphasized that the extension of BCDA’s term strengthens its capacity to uphold existing contracts, some of which span decades and extend beyond its current corporate lifespan, set to expire in 2042. This move sends a strong signal to the private sector and international investors that BCDA will remain a reliable, long-term partner in fulfilling its contractual commitments.

With the current term set to expire in 2042, the limited 18-year timeframe presents challenges in fostering sustained investments. This extension ensures a stable and attractive environment for future collaborations, driving continued growth and development in key economic zones.

While Sen. Cayetano cited in his sponsorship speech last September 11, 2024, "if we develop Bulacan and Clark economic zones correctly, it could really be a twin engine of development in our country, and it could really pull the massive urbanization out of Metro Manila and spur development in Central Luzon."