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    Central Luzon & Central Visayas
    A Tale of Two Centrals
     
    By Roger M. Garcia
    Properties Editor
     

    Massive infrastructure development in two of the country’s regional centers has signaled the dawning and births of new economic growth corridors and is seen by many to become the focal point of the Philippines’ turnaround within the next 10 years. The synergy of various development-oriented infrastructure projects, such as the creation of world-class seaports, airports and modern expressways, industrial and residential enclaves, including tourism and leisure developments, is key to that quest.

    Experts even predict that, in no time, Mega Manila will soon become less significant once all these necessary infrastructures are in place, such as the ones currently being pursued in Central Luzon and Visayas regions.

    These two regions, aside from their strategic locations (Central Luzon being at the center of Luzon Island and its proximity to Metro Manila and Cebu City, which is at the center of  trade and commerce in the Visayan region) both enjoy ready infrastructures (natural and man-made).

    THE Subic-Clark-Tarlac Expressway: seen to create the backbone of a new economic growth corridor, which in time will be more significant than Metro Manila. --JACOB CUNANAN

     

    Central Luzon, which played host to two of the largest US military installations outside of continental United States—Subic Naval Base and Clark Air Force Base—has an almost built-in facility that could easily be converted into a major economic growth centers.

    Construction and development have boomed in Tarlac, Pampanga and Zambales since almost four years ago following the implementation of major infrastructure projects, more particularly the 92-km Subic-Clark-Tarlac Expressway (SCTEx) project, the Subic Bay Seaport and other infra-related projects within the region.

    These multibillion-peso road and seaport projects alone have trickled down to local economies in the provinces of Tarlac, Pampanga, Bataan and Zambales.

    Millions of tons of gravel and sand, including lahar materials, were used in the construction of the expressway and seaport. These two major construction projects were both financed by the Japan Bank for International Cooperation (JBIC). These materials were sourced out within and around these provinces.

    AN inbound container ship dwarfs a pleasure craft in the waters of Subic Bay. --HENRY EMPEŃO

     

    A total of P22.63 billion was spent for the construction of the SCTEx project, while the Subic seaport was granted by the Japan Bank a total of P11 billion. Out of the P33-billion budget for the two projects, more than half is spent for filling and aggregate materials sourced within the region’s three provinces.

    The region’s populace for the first time became the largest beneficiary in terms of employment and business. And this is just the beginning.

    With the recent completion of both the seaport and the expressway, and the preparation currently being undertaken in Clark for its airport to become a major international passenger and logistics hub, Central Luzon appeared to be ready to create a more progressive and synergetic stance aimed at propelling the country to, at the very least, compete in the fast-rising global economy.

     

    Subic-Clark Alliance for Development (SCAD)

    Not until recently, Subic and Clark used to operate as separate and distinct economic enclaves. Two former US military bases were converted for commercial use and tagged as “economic zones,” enjoying a head-start over other areas and with $15 billion worth of facilities left behind by the American Naval and Air Forces.

    With a mindset of leasing their respective lands to possible investors, both Subic and Clark administrations have, in the past, even fiercely competed against each other.

    Credit the most recent past leaderships in Subic and Clark and that of the Bases Conversion and Development Authority (BCDA), since they have all agreed and pursued the idea of complementation as they all saw the wisdom of integration to address their respective strengths and weaknesses.

    SCAD became the main guiding principle behind the complementation of the two economic zones. The imperatives of the new economic order have further driven the entire Central Luzon region to improve and redefine their existence and contribution to the country’s economic thrust as they create a new economic frontier anchored on infrastructure, logistics and manpower resource.

    The SCTEx serves as the backbone of the new economic corridor in Central Luzon. Subic’s natural harbor and deep water were projected to further develop a modern container facility as it hopes to take its share of the ever-increasing regional and global container cargo market. 

    Clark now enjoys a direct link to the Subic seaport, as travel time between the two facilities has been reduced to only 30 minutes through an efficient 55-km access roadway. In the same manner, Subic will have the same benefit as it hopes to utilize Clark’s logistics hub and international airfreight and passenger-airport service at less travel time.

    Central Luzon’s agricultural produce, including other products and services, will start to enjoy the benefits of having an efficient access road and world-class sea and airport facilities.

     

    Tourism potentials boosted

    Access, which is key to tourism business, is further boosted with the opening of the new expressway. Travel time from Manila to Zambales and Bataan is reduced to almost half the time. While motorists going to northern parts of Luzon, particularly Baguio and Pangasinan, now save almost an hour-and-a-half, passing through the Clark-to-Tarlac segment of the expressway.

    SCTEx project manager Robert Gervacio said that “by providing a fast and convenient access to both Subic and Clark from all the major points in Luzon, including Metro Manila and Baguio, more travelers will be encouraged to visit Central Luzon, because there are now more entertainment choices and alternatives.

    “Visitors who wish to stay in Subic, for example, can take a 45-minute trip via the SCTEx to events in Angeles City and return the same day. Those who are staying in the Clark area, on the other hand, can always go to resorts in Zambales and be back in their hotels the same day without much hassle,” Gervacio said.

    The BCDA official also noted that tourists from Northern Luzon provinces such as La Union and Pangasinan can now visit Central Luzon more frequently because of the shorter travel time and excellent road conditions.

     

    Cebu City: The Other Central

    The Queen City of the South through the years has been the center of trade and commerce, including tourism-oriented businesses.

    Being located in the Central Visayan region, Cebu has become a model of development and has been consistently included on the country’s top list as most competitive city and remains as the fastest-growing city.

    Unlike Subic and Clark, Cebu has been a major economic center and has maintained its tag as the regional economic hub of Central Visayas.

    And in recent years, property developments including public infrastructure have been in the works. In fact, its local leaders and business groups in the province consider Cebu “still as a work in progress.”

    At the moment, South Road Properties (SRP), the city’s version of creating a new economic frontier in their midst, however, still faces rough-sailing though.

    Aimed at creating new industrial and commercial zones outside of the overly crowded central business district of Cebu, the SRP is a landmark project for Cebu. Similar to Subic and Clark development, its funding also came from the Japan Bank of International Cooperation in 1992 as part of the city’s Metro Cebu Development Project 2 Package.

    But in spite of the hitches and problems besetting the SRP project, Cebu’s real-estate-related projects, mostly leisure and residential development projects, are still in full swing.

    Construction of buildings for call centers and BPOs has continued to mushroom in the city during the last three years. Residential condominium projects and leisure resorts and hotels have been on the rise despite the limited availability of open areas within the city limits.

    Outside of Mega Manila, Cebu has sustained its economic viability and independence owing to the fact that it has created for itself the necessary infrastructure such as seaport, international airport, a tourism hub (Mactan island) and industrial centers.

    In the final analysis, regional developments are now ripe for the country to reposition itself in the global economy and hope to compete in the global markets with the emergence of new economic frontiers.

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