Finance Secretary Ralph G. Recto has lauded the signing of the Memorandum of Understanding (MOU) between the Maharlika Investment Corporation (MIC) and the Bases Conversion and Development Authority (BCDA) to explore potential investment portfolio, which he said would unlock a wealth of opportunities to enhance the quality of life and generate more jobs for Filipinos.
“With the wide-ranging areas to be explored by this agreement, we will be creating more sustainable urban communities that not only enhance the quality of life for Filipinos but also generate numerous job opportunities for them,” he said in his closing remarks.
On April 29, 2024, an MOU was signed between MIC President and CEO (PCEO) Rafael Jose D. Consing, Jr. and BCDA PCEO Engineer Joshua Bingcang that will allow the MIC to explore investment opportunities within BCDA properties, including Clark Freeport and Special Economic Zone.
The BCDA is a development corporation mandated to strengthen the Armed Forces, while engaging in public-private partnerships (PPPs) to push forward vital public infrastructure that contribute to the country’s economic growth.
Meanwhile, the MIC is tasked to establish a diversified portfolio of investments in the local and global financial markets and in other assets that promote the commercial as well as developmental and strategic objectives of the Maharlika Investment Fund (MIF).
Under the MOU, BCDA and MIC will further discuss, share knowledge, and explore potential collaboration that will lead to the development of a feasibility study report of a potential investment portfolio.
Among the BCDA projects that will be explored by the MIC are the expansion of Clark International Airport; the affordable housing project in New Clark City; the Clark Integrated Public Transport System; the Poro Point Seaport Modernization program; and the Clark Central Business District.
“I cannot think of a better inaugural investment portfolio for Maharlika than the BCDA’s flagship infrastructure projects within the vibrant Clark Freeport and Special Economic Zone,” Secretary Recto said.
“One can only imagine the wealth of opportunities that will be fully unlocked by this strategic partnership between the country’s two important growth vehicles,” Secretary Recto said.
The Finance Chief is confident that the newly formed partnership will set the standard for future collaborations and enhance the potential of the country’s first sovereign wealth fund.
Secretary Recto said he is eager to welcome more strategic partnerships that will bring forth more investments that will give rise to booming economic districts all over the country and promote widespread prosperity for the Filipino people.
After the MOU signing ceremony, Secretary Recto received on behalf of the Bureau of the Treasury (BTr) a cheque worth PHP 1.1 billion from the BCDA representing its dividend remittance for 2024 to help fund the national government’s development programs and projects.
The amount is double than its total remittance of PHP 527 million in 2023 and brought BCDA’s total dividend contribution to the national government to around PHP 9.6 billion since its inception in 1992.
Under Republic Act (RA) No. 7656 or the Dividends Law of 1994, government-owned or controlled corporations (GOCCs) are mandated to declare and remit at least 50% of their annual net earnings to the national government.
Secretary Recto and BCDA Chairman Delfin Lorenzana witnessed the milestone signing of the MOU between the BCDA and MIC.
Also present during the event were Department of Transportation (DOTr) Secretary Jaime Bautista; Clark Development Corporation (CDC) Chairman Edgardo Pamintuan, Jr.; MIC Regular Director Vicky Castillo L. Tan; MIC Independent Director Andrew Jerome T. Gan; DBP PCEO Michael O. de Jesus; and Landbank Senior Vice President for South-NCR Branches Group Althon Ferolin.
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