BASES CONVERSION AND DEVELOPMENT ACT OF 1992

Case Overview and Summary

Summary of RA 7227 - "Bases Conversion and Development Act of 1992"

Accelerating Conversion of Military Reservations into Productive Uses
- Declares policy to accelerate conversion of Clark and Subic military reservations into productive uses. (Section 2)
- Creates Bases Conversion and Development Authority (BCDA) as a corporate body to implement conversion. (Section 3)

Purposes and Powers of BCDA
- Own, hold, administer military reservations transferred to it. (Section 4a)
- Prepare and implement development plan for conversion of Clark and Subic. (Section 4b)
- Encourage private sector participation in conversion. (Section 4c)
- Serve as holding company and invest in Special Economic Zones. (Section 4d)
- Manage and operate projects outside subsidiaries and Special Economic Zones. (Section 4e)
- Coordinate with local government units on plans and projects. (Section 4f)
- Plan and undertake relocation or resettlement of population. (Section 4g)
- Powers include contracting, borrowing, executing deeds, constructing utilities, reclamation, acquiring properties, receiving donations, investing funds, eminent domain, and promulgating rules. (Section 5)

Capitalization and Funding
- Authorized capital of P100 billion, subscribed by the Philippines. (Section 6)
- Initial operating capital of P70 million appropriated. (Section 6)
- Funded from sale proceeds of Metro Manila military camps. (Section 8)
- Proceeds allocation: 32.5% for AFP, 50% for Clark and Subic conversion, 5% for housing assistance, balance to National Treasury. (Section 8)

Board of Directors and Management
- 9-member Board of Directors, including private sector and labor representatives. (Section 9)
- Functions include determining organizational structure, appointing officials, preparing budgets, and submitting annual reports. (Section 10)
- President as Chief Executive Officer with specified duties. (Section 11)

Subic Special Economic Zone
- Creation of Subic Special Economic Zone with specified policies and incentives. (Section 12)
- Subic Bay Metropolitan Authority (SBMA) as operating and implementing arm. (Section 13)
- SBMA's powers, functions, Board of Directors, and capitalization. (Section 13)
- Relationship between SBMA, BCDA, and local government units. (Section 14)

Clark and Other Special Economic Zones
- Authorization to create Clark Special Economic Zone and other zones. (Section 15)
- Governing bodies and policies to be determined. (Section 15)

Subsidiaries, Supervision, Legal Counsel, and Auditor
- BCDA can form subsidiary corporations. (Section 16)
- Under supervision of Office of the President. (Section 17)
- Government Corporate Counsel as legal counsel. (Section 18)
- Commission on Audit to appoint full-time auditor. (Section 19)

Interim Capacity, Injunction, Separability, and Repealing Clauses
- Interim capacity of Board members until July 31, 1992. (Section 20)
- Injunction and restraining order provisions. (Section 21)
- Separability and repealing clauses. (Sections 22-23)
- Effectivity upon publication. (Section 24)