Clark - Frequently Asked Questions
        Frequently Asked Questions
       
  1. What is the Clark Freeport Zone?

  2. What is the Clark Development Corporation?

  3. What makes the Clark Freeport Zone "special?"

  4. What is Gross Income Earned, and how is it computed?

  5. Iíve been to Manila, but havenít been to Clark or Pampanga, how accessible is the place from the capital and how do I get there?

  6. I know very little about Clark as a potential investment site, but have always considered the portfolio of current investors as an indicator, how is Clarkís success in this area?

  7. How cost effective will it be should I locate my operations in Clark (e.g., power, water, labor, etc)?

  8. What investment opportunities are currently available in Clark?

  9. Iíve noticed that much of the advantages offered by the zone are strongly tied-in to the Clark Airport, where is the airport located and what advantages can it offer to the success of my business?

  10. My business will tremendously benefit from the logistical advantages from the planned interconnection of Clark Airport and Subic seaport, what is the current status of the project?

  11. As a businessman I value to my time, and am usually disappointed when routine processing of my applications and other papers takes excruciatingly slow, can I expect better and faster processing of my transactions in Clark

  12. Without safety and security there will be no investment, is that simple; how does Clark address this crucial issue?

  13. Iíve noticed that Clark is also being promoted as a travel destination, an economic zone as a tourist spot?

  14. Wonít lodging and hotel accommodations be a problem when Iím already in Clark?

  15. Are there any other travel destinations I can easily go to from Clark without the need to go back to Manila?

  16. I plan t o relocate my family should my business locate inside Clark, am a bit wary about the availability and access to residential spaces. Are there accessible and adequate schools, hospitals and other important facilities whether from the CFZ?

  17. I have other questions.

 


 

  1. What is the Clark Freeport Zone?

    The Clark Freeport  Zone (CFZ) is a vast (4,440-hectare Main Zone, 26,700-hectare Sub Zone) approximately 100km north of Manila on the island of Luzon. Formerly the United Statesí largest military base in the Pacific, CFZ is an ideal place for trade and recreation with its world-class infrastructure, state-of-the-art facilities and superb amenities. These include a multi-mode, high capacity fiber optic communications system, a modern power plant, and water and sewerage systems managed Clark Viola.

  2. What is the Clark Development Corporation?

    Clark Development Corporation (CDC) is a government-owned and controlled corporation that manages the Clark Freeport Zone. Constituted like a private-sector company, and given an extraordinary charter, CDC enjoys governmental powers inside the zone, including the authority to exercise police powers.

  3. What makes the Clark Freeport Zone "special?"

    CFZ is strategically located at the heart of the Asia-Pacific region, one of the most dynamic regions today. By flying time, it is only around 1 hour from Hong Kong, 2 hours from Taipei, 3 hours from Kuala Lumpur, and 4 hours from Singapore, Tokyo and Seoul.

    Liberal and generous investment incentives supplement these infrastructure and locational advantages to provide the ideal competitive advantages to CFZ investors. Clark is managed as a separate custom territory, ensuring free flow of articles within the zone. All importation of machinery, equipment, raw materials, supplies, and other articles including finished products are free of all taxes and duties. Firms located inside the zone are also exempt from all local and national taxes, paying instead a fixed fee of five percent (5%) of Gross Income Earned (provided locators export at least 70% of produce annually per BIR requirement, otherwise regular corporate income tax will be collected. One hundred percent (100%) foreign equity is allowed for many types of industries including manufacturing, tourism and service-oriented businesses. A wide array of deductions is permitted. Non-fiscal incentives include fast and liberal custom procedures, unlimited purchase and consumption of tax and duty-free goods within the zone, freedom form foreign exchange controls, liberal banking and finance incentives, and special visa status for investors.

  4. What is Gross Income Earned, and how is it computed?

    Gross Income Earned or GIE refers to gross sales or gross revenues derived from any business activity, less cost of sales, cost of production or direct cost of production or direct cost of services (depending on the nature of the business; refer to Allowable Deductions by Industry), excluding any deduction for administrative expenses and incidental losses incurred during a given taxable year.

  5. Iíve been to Manila, but havenít been to Clark or Pampanga, how accessible is the place from the capital and how do I get there?

    Clark Freeport Zone is easily reached either by land or air. Cebu Pacific now regularly flies Cebu-Clark, Clark-Cebu via DMIA, and more flights and destinations are being readied. Air Shuttle Services are also available through SEAir, Inc. and Omni Aviation Corporation. From the airport, taxi and PUJ services are available to bring you to your desired destination. By land CFZ is also easily accessible. From the North Luzon Expressway, exit through Dau Exit (83A), turn left at MacArthur Highway, turn right at the Manuel A. Roxas Ave. passing the Bayanihan Park, and go straight ahead passing the Clark Main Gate. CFZ is difficult to miss should you decide to visit using public transport. From any northbound bus lines, get off the Dau-Mabalacat Bus Terminal, proceed to the MacArthur Highway, and take a Checkpoint ĖDau PUJ, straight for the Clark Main Gate.

    For assistance, get in touch with the Tourism and Special Events Section of the CDC Marketing Department. Click here for your downloadable location map.

  6. I know very little about Clark as a potential investment site, but have always considered the portfolio of current investors as an indicator, how is Clarkís success in this area?

    As of  FEBRUARY 2011, there are  NINE HUNDRED FIFTY FIVE (955) investor-firms in the Clark Freeport Zone. Two Hundred Thirty Seven (237) firms are involved in Industrial Projects, Seventeen (17) are in Agro-Industrial Projects, One Hundred Thrity One (131) in Commercial Projects, One Hundred Eighteen (118) in IT-Related Projects, Two Hundred Sixty Four (264) in Service-Oriented Projects, Thirty Eight (38) are in Aviation-Related Projects, Fifty Six(56) are in Tourism Estate Development Projects,  Sixty Two (62) in Housing, and Twenty One (21) in Utility Projects. The latest Business Development Update and CFZ Locatorsí Directory provide more useful information regarding the current CFZ investment portfolio. Click here for your downloadable Business Development Update.

  7. How cost effective will it be should I locate my operations in Clark (e.g., power, water, labor, etc)?

     
    Power
       
     

    Clark's power supply is sourced directly from NAPOCOR (NPC) via National Transmission Corporation (TransCo) Mexico substation in Mexico, Pampanga. Two (2) Parallel lines at 69KV with the capacity of 80MW each. Clarkís peak demand as of March 2010 is about 46.704MW.

     

    Average Rate: Php 5.47/kwh
    (As of Nov. 18, 2010)
    Source: CEDC:
     
         
    Water
         
     

    Existing water supply facilities consist of water wells with a total capacity of 25,400 cu. m./day. Storage is through 5 tanks with a total capacity of 10,985 cu. m. The sewerage system consist of two (2) lift stations, and a 126km industrial waste pipeline, oxidizing pond for sewerage treatment. The water and sewerage system will be expanded to accommodate future requirements of Clark.

     
     
     
    Rates:
    Industrial/Commercial
    First 0-10 cu. m. Php 218.21
    Next 11-20 cu. m. Php 23.49
    Next 21-30 cu. m. Php 24.88
    Above 31 cu. m. Php 26.26


    Residential
    First 0-10 cu. m. Php 109.11
    Next 11-20 cu. m. Php 11.78
    Next 21-30 cu. m. Php 12.44
    Above 31 cu. m. Php 13.09

    Sewer charges - 40% of total water bill
    Source: CWC (as of Nov. 18, 2010)
     
     
       
    Telecom
       
     

    Telecommunication facilities are kept at the highest efficiency level by creating liberal business environment open to telecom providers that can extend the best information communication services including dual fiber optic backbone and digital exchange system for advanced telephony, cellular and internet connectivity. Our service providers have an extensive network infrastructure, connecting more than 200 countries and territories worldwide through their international gateway facilities and major cable systems.
    (As of Nov. 18, 2010):
    Source: PLDT Clark

     
     
     

    Rates:

    Commercial

    Php 936.41/month 

    Residential

    Php 542.19/month

    National

    PhP 3.75/min.

    International           

    US$ .36/min.

       
         
    Fuel/Petroleum, Oil & Lubricants (POL) Depot
     
     

    Clark is fully equipped to serve the fuel requirements of the airport locators and even the external market with the existence of a 550,000 barrel Clark Fuel/Petroleum Oil and Lubricants (POL) Depot consisting mainly of a 22-hectare facility with a 42-kilometers, 20-cm diameter existing underground Subic-Clark fuel pipeline which assures reliable supply even during bad weather.

     
     
    Waste Disposal System
     
     

    The CDC, through a service contract with the Metro Clark Waste Management Corp., manages and operates the Clark Integrated Solid Waste Management Facility for CFZ. The project is the first and only real sanitary landfill in the Philippines to date. All investors in Clark are assured of proper management and safe disposal of their garbage and can boast of full compliance to the national environmental regulatory and international certification requirements.

     
       
     
    Garbage Fees
     
     
    Category Waste Generation Garbage Fee
    A. Large Generators >30 tons/month Php 1,200/ton
    B. Medium Generators 2 to 30 tons/month Php 1,200/ton
    C. Small Generators <2 tons/month Php 2,500/month
    D. Residential / Small Office <1 ton/year Php 2,000/year
     
       
    Manpower Rates
     
     

    For non-agricultural firms (Manufacturing Firms, Duty-Free Shops, Hotels and Recreational-related)

    Minimum of P302.00 or US$ 3.83 per day for those employed in establishments with total assets of P30 Million or more

    Minimum of P294.50 or US$ 6.66 per day for those employed in establishments with total assets of less than P30 Million.

    For retail/service establishments (Small Firms Only)

    Minimum of P291.00 or US$ 6.57 per day for those employed in establishments with 16 or more employees

    Minimum of P277.00 or US$ 6.26 per day for those employed in establishments with less than 16 employees.
    (as of May 27, 2010)

     
    BRIEF SUMMARY OF PHIL. LABOR STANDARDS
    Foreign Investors shall abide by the Philippine Labor Code and Labor Standards. A brief summary of Philippine Labor Standards are as follows:
    1. Working Hours
    ē Normal Hours of work per day is 8 hours (not including 1 hour break for meals)
    ē Normal number of workdays per week is 6 days (24 hours rest required after 6 consecutive workdays
    ē Compulsory overtime/rest day work is allowed under certain circumstances (ex. non-hazardous work, work with perishable goods, etc.)

     
     
  8. What investment opportunities are currently available in the CFZ?

The infrastructures and incentives offered in Clark strongly complement the requirements of investments in

    • Information, Communications Technology (ICT);
    • Electronics design and assembly;
    • Aviation-related projects;
    • Commercial trading;
    • Agro-industrial; leisure and tourism;
    • Residential facilities and
    • Institutional research and training facilities.

Investments in aviation-related projects are made particularly more promising by the 2,500-hectare Diosdado Macapagal International Airport (formerly the Clark International Airport) located within the zone. As business activities become global, demand for fast, agile and flexible mode of transporting cargo and personnel makes immediate access to airports becomes more important. With DMIA, the zone becomes an ideal trading or transit point to the rest of the country, as well as to Asia, the United States, Europe and the rest of the world. Very few economic zones offer such an advantage.

  1. Iíve noticed that much of the advantages offered by the zone are strongly tied-in to the Clark Airport, where is the airport located and what advantages can it offer to the success of my business?

    The 2,500-hectare Diosdado Macapagal International Airport (DMIA) located inside the Clark Freeport Zone has a 4E classification that meets International Civil Aviation Organization (ICAO) standards for Category I precision approach runway. The complex has two 3.2 km. Parallel runways that can accommodate wide-bodied aircraft with ease; 4 parallel and 9 connecting runways; and, wide ramp and apron facilities. It also has a Category IX Crash, Fire and Rescue Capability.

    Access to DMIA, already designated by the Philippine Government as one of the countryís premier gateway site, significantly enhances businessesí speed and agility to respond to the dynamic demands of todayís markets.

  2. My business will tremendously benefit from the logistical advantages from the planned interconnection of Clark Airport and Subic seaport, what is the current status of the project?

    Under construction...

  3. As a businessman I value to my time, and am usually disappointed when routine processing of my applications and other papers takes excruciatingly slow, can I expect better and faster processing of my transactions in Clark?

    Yes, and to address these concerns of investors and exporters conducting business inside the zone, the Clark Development Corporation, in coordination with various government agencies, established a One-Stop-Action-Center (OSAC). The OSAC facilitates the prompt evaluation and approval of proposed investment projects for CFZ within a 30-day period. Aside from this, the OSAC also facilitates the immediate processing of permits, licenses and other pertinent documents needed by existing locators in their operations by housing agency desks of concerned government agencies like the DTI, SSS, DA, DOLE, DOH, HDMF and TESDA. One of its special features is the One-Stop-Export Documentation Center (OSEDC), which is an on-line processing center to ensure expeditious processing of export documents. At OSEDC, all concerned agencies are housed under one roof to facilitate prompt processing of export.

  4. Without safety and security there will be no investment, is that simple; how does Clark address this crucial issue?

    As a former US military base (the biggest outside of continental America), CFZ inherited the uncompromising security facilities in and around the borders of the zone, no matter how vast. Without disturbing its plush and scenic surroundings, 42 kilometers of concrete perimeter fencing and Philippine National Police "Kababayan" centers in all the gates assure the safety and security of the economic zone. These security infrastructures are complemented by the competent security force and personnel of the Security and Fire Department of the Clark Development Corporation. The presence of the Philippine Air Force Base, the "Air Force City", inside the zone helps provide further buttress the zoneís capability to guarantee peace, security and safety.

  5. Iíve noticed that Clark is also being promoted as a travel destination, an economic zone as a tourist spot?

    CFZ offers a wide array of world-class leisure and recreational facilities right within the zone such as a 36-hole championship golf course, residential and vacation villas, specialty shops and restaurants, duty free shops, leisure parks and casinos. It is also an ideal place to explore the rest of what the region offers from trek to the world-famous Mt. Pinatubo, trip to Baguio and the rest of the Cordilleras, enjoy the beaches of Pangasinan and La Union provinces, since the place is the converging point of the region.

  6. Wonít lodging and hotel accommodations be a problem when Iím already in Clark?

    Pampanga, the place and its people have long welcomed travelers, visitors and tourist from all over, and various hotels, inns and villas in and around the zone are primed to host you. Inside Clark, the Holiday Inn Resort Clarkfield, or the Fontana Resort and Country Club may be your home away from home. Outside the zone, lodging facilities are also available to suit various preferences and means. Pre-arranged tours are also available.

  7. Are there any other travel destinations I can easily go to from Clark without the need to go back to Manila?

    Practically the best of Luzon is easily accessible from the Clark Freeport Zone. Travel in time to Vigan, and see the renowned Spanish architecture, cobbled streets, good food and friendly folks of one of the oldest, and better-preserved towns in the country. You can frolic in the beaches of La Union, Pangasinan and the Cagayan Valley in no time since these destinations are only a few hours away from Clark. Baguio, and the best of the Cordilleras can easily be access from Clark.

    The rest of the country also became more reachable from Clarkís Diosdado Macapagal International Airport now that Cebu Pacific, the countryís second largest flag carrier, flies regular flights to Cebu. More flights and destinations are now being finalized.

  8. I plan t o relocate my family should my business locate inside Clark, am a bit wary about the availability and access to residential spaces. Are there accessible and adequate schools, hospitals and other important facilities whether from the CFZ?

    There are numerous residential facilities and housing units from within and outside the zone. Along Ninoy Aquino Avenue, CFZ, locators can opt to lease housing units ready for occupancy or undertake the rehabilitation and refurbishing any of the many housing units in the area, the cost of rehabilitation counted as monthly lease rentals for the rehabilitated property. Housing units ready for occupancy are available at the CFZ Redwood Villas; term of lease of a minimum of two years is often required. Access to these villas can be coursed through a number of private developers of these units or, the Marketing and Customer Services Department of CDC. In response to the expected upsurge in the demand, a good number of premium residential estates and subdivisions along the North Luzon Expressway are now being developed.

    Since provisions for academic, research and training facilities are made in the Master plans for both CFZ and the DMIA, access to quality schools and universities will not be a problem today, and will even be enhanced in the future. Among the number of learning institutions located inside the zone are the University of the Philippines Extension Program which offers both undergraduate and graduate courses, and a satellite unit of the world-renown Asian Institute of Management which has started offering its Graduate Studies in Entrepreneurship. Industry-based technical and vocational courses are the initial offerings of the Clark Polytechnic. A good number of colleges and universities surrounding CFZ offer a wide range of courses from vocational to degree courses such as engineering, medicine and allied courses, accountancy, computer science and other ICT-related courses.

Tel. Nos:
(63)45 599-2043/2642
Corporate Email
CDC Direct Lines
Email:
info@clark.com.ph
visitors: 
 
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