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WHEREAS , the Subic Bay Metropolitan Authority (SBMA) was created by law as the authority over the Subic Special Economic Zone (SSEZ), and the Clark Development Corporation was created as an operating and implementing arm of the Bases Conversion Development Authority over the Clark Special Economic Zone (CSEZ);

WHEREAS , on 21 June 2001, the BCDA, SBMA, CDC and the Department of Trade and Industry (DTI) entered into a Memorandum of Understanding and Created the Subic-Clark Alliance Development (SCAD) Task Force, which shall be their policy-making body in their integrated developmental program with the SSEZ and CSEZ and the corridor between them, to be known as the Subic-Clark Alliance Developmental Program;

WHEREAS , on 30 June 2004 the President declared as one of the ten-point legacy agenda of the Arroyo administration that the Subic-Clark corridor shall be the most competitive international service and logistics center in the region;

WHEREAS , Executive Order No. 365 (s. 2004) defined the functions of the Adviser for Subic-Clark Development;

WHEREAS , Executive Order No. 478 (s. 2005) placed the BCDA and its subsidiaries and attached agencies under the policy supervision of the Department of Trade and Industry;

WHEREAS , the development of the Subic-Clark corridor involves several senior officials from different departments and agencies, with no one clearly in charge on a full-time basis;

WHEREAS , there is a need for a single body with a full-time head to rationalize resources and harmonize strategies that will ensure an integrated and coordinated approach to the development of the Subic-Clark corridor;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO , President of the Republic of the Philippines, by virtue of the powers vested in me by law and the Constitution, do hereby order:

SECTION 1. Creation of a Subic-Clark Area Development Council. – The SCAD Task Force is hereby transformed into a Subic-Clark Area Development Council (SCAD Council).

SECTION 2. Powers and Functions of the SCAD Council. – The SCAD Council shall perform the functions of the erstwhile SCAD Task Force.

SECTION 3. Composition. – The SCAD Council shall be composed of the following:

a. Chairman, to be appointed by the President, with Cabinet rank, and who shall be a member of the National Economic and Development Authority (NEDA);
b. Director-General, NEDA – Member;
c. Secretary of Trade and Industry – Member;
d. Chairman, BCDA – Member;
e. Chairman, SBMA – Member;
f. Chairman, CDC – Member;
g. President, BCDA – Member;
h. Administrator, SBMA – Member;
President, CDC – Member;
Presidential Assistant for Central Luzon – Member.

The members shall elect among themselves the Vice-Chairman.

SECTION 4. Funding . – The Department of Budget and Management shall recommend the amount and source of the initial funding for the SCAD Council.

SECTION 5. Policy Oversight over BCDA . – Policy oversight over the BCDA and its subsidiaries other than the CDC shall be exercised by the Secretary of Trade and Industry.

SECTION 6. Repealing Clause . – Executive Order No. 365 (s. 2004) and Executive Order No. 478 (s. 2005) are hereby repealed. All other executive issuances, orders, rules and regulations or parts thereof inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 7. Effectivity . – This Executive Order shall take effect immediately.

DONE in the City of Manila, this 1st day of February, in the Year of Our Lord, Two Thousand and Six.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary