In March this year, the Clark Development Corporation (CDC) remitted its cash dividend for 2023 to the national treasury amounting to P1.8 billion, the highest remittance that CDC has given since it started managing the Freeport in 1993. Said amount is also 49% higher than its P1.207 billion remittance for 2022.
CDC’s P1.8 billion cash dividend is considered non-tax revenue that supports the government’s allocation of key projects and programs. But how big is this figure, and how does this fit in the picture of shaping a competitive and responsive Bagong Pilipinas and fulfilling the banner Build Better More, a flagship infrastructure program of President Ferdinand Marcos Jr.?
“Since those dividends also come from the people, let me assure you, that they will be carefully spent like the precious taxes that come from the sweat of their brow. It will be plowed back to them through projects and programs that will improve their lives today, and also create a better tomorrow for our children,” President Marcos assured during the 2024 Government-Owned or -Controlled Corporations (GOCCs) Day.
President Ferdinand R. Marcos Jr. attends the 2024 Government-Owned or -Controlled Corporations (GOCCs) Day where he commended the contributions of GOCCs in nation-building.
President Marcos assured that the remittances will be invested back into “growth-inducing activities” that allow to create jobs and harness opportunities for more Filipinos, citing his Philippine Development Plan (PDP) 2023-2028.
For a visual context, Department of Finance (DOF) Assistant Secretary Eufrocinio “Jun” Bernabe explained how non-tax revenues, particularly that of the CDC, can contribute to President Marcos Jr.’s administration.
“Among other GOCCs, we collect dividends. And one of these is Clark Development Corporation. So, if you try to sit in Clark Development Corporation’s dividend of P1.8 billion, it helps support the overall fund of collections from non-tax revenue,” he said.
“Of all the GOCCs—right now, under the supervision of the Department of Finance, there are more than a hundred GOCCs supervised—not all GOCCs contribute to the national coffers by providing non-tax revenues. So, si Clark Development Corporation is one of those that contribute positively to the nontax revenues of the national government, which eventually funds our projects,” he added.
In layman’s term, Bernabe visualized the fund in terms of funding the education sector: “If we use that P1.8 billion for classrooms, with an average allocation for each classroom of P2.5 million, that P1.8 billion can translate to around 720 classrooms.”
This means 720 less from the current 159,000 classroom backlog nationwide, according to the report of the Department of Education.
Bernabe went on to explain how the P1.8 billion remittance can also help strengthen the country’s connectivity through building roads and bridges, saying this in in line with the “Build Better More,” project, a flagship infrastructure programs of the Marcos administration.
“If the P1.8 billion is allocated mainly for roads, it could translate into 600 kilometers of roads,” he added.
For context, the Subic-Clark-Tarlac Expressway (SCTEX), the longest expressway in the country, spans 93 kilometers. CDC’s share, if used for road construction, can help construct at least 6 more SCTEX-lengthed roads that could help in smooth transport of goods from farms and manufacturing areas to markets. The project can also help in alleviating traffic congestion in urban areas and allowing passengers to experience travel more conveniently.
Aside from this, Bernabe discussed how the amount can help in disaster response efforts of the government: “If we actually allocate that P1.8 billion to the calamity fund with an average budget of P500 million per calamity, that Php1.8 billion can actually fund at least four calamities,” he said.
“The PBBM [administration] is working hard to uplift the lives of every Filipino whichever way we can, and hopefully we achieve that within the term of PBBM,” Bernabe said.
The record-breaking 2023 revenue wasn’t only historical. Since 1993, two decades or 20 years of navigating economic and social challenges, the COVID-19 pandemic included, shifting global landscapes, and the relentless pressure to attract investment and foster growth in the Clark Freeport Zone were testament to the long journey.
Against all odds and under the leadership of President Marcos, the CDC has achieved its best so far and is hopefully attaining more in the years to come as the CDC joins the chief executive in its “Bagong Pilipinas” vision of leadership.
