Executive Order No. 7, March 26, 2001

AUTHORIZING THE MERGER OF CLARK DEVELOPMENT CORPORATION AND CLARK INTERNATIONAL AIRPORT CORPORATION

WHEREAS, Republic Act No. 7227 mandated the Bases Conversion Development Authority (BCDA) to adopt, prepare and implement a comprehensive and detailed plan for the sound and balanced conversion of the Clark and Subic military reservations and their extensions;

WHEREAS, Executive Order No. 80, series of 1993, established Clark Development Corporation (CDC) as the implementing arm of BCDA for the Clark Special Economic Zone which envisioned Clark to be converted into an international civil aviation complex, a modern industrial estate and tourism, trade and business center for Luzon and Asia;

WHEREAS, Executive Order No. 360, amending Executive Order No. 192, provided that Clark International Airport Corporation (CIAC) shall be a wholly-owned subsidiary of BCDA to operate and manage the Clark Aviation Complex;

WHEREAS, in the course of the development of the Clark Special Economic Zone, CDC and CIAC have been observed to be competing with each other and pursuing their policies and operations without coordination and, at times, in an inconsistent manner;

WHEREAS, to address the unproductive competition and overlapping functions between the CDC and CIAC, the BCDA proposes the merger of the two corporations, with the CDC as the surviving corporation;

WHEREAS, the proposed merger would mean a P50 to 60 million savings for the government.

Section 1. The merger of CDC and CIAC is hereby authorized subject to the provisions of the Corporation Code.

Section 2. The Chairman of the BCDA is directed to prepare a plan and take all the necessary steps towards effecting the merger of CDC and CIAC, with CDC as the surviving corporation.

Section 3. The BCDA Chairman shall submit a report to the President on the action taken as soon as the merger shall have been completed.

Section 4. All orders, rules and regulations, or parts thereof which are inconsistent with this Executive Order are hereby repealed, amended or modified accordingly.

Section 5. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 26th day of March, in the year of Our Lord, Two Thousand and One.

(Sgd.) GLORIA MACAPAGAL-ARROYO

President of the Philippines

By the President:

(Sgd.) RENATO S. DE VILLA

Executive Secretary