Vol. XXII, No. 22 [ BusinessWorld Online ]
Tuesday, August 26, 2008 | MANILA, PHILIPPINES
CLARK FREEPORT — Construction of a $1.025-billion logistics and service hub began here yesterday with the project’s proponents promising the development would attract investors to the Philippines.
The Global Gateway Logistics City (GGLC) which will be built on a 167-hectare area, is an investment of Kuwait and Gulf Link (KGL) Investment Co., a private equity firm that has operations in the Middle East and elsewhere.
Groundbreaking rites were witnessed by President Gloria Macapagal-Arroyo, who said the project would boost the former US military base’s bid to become a globally competitive logistics and service center.
"The Global Gateway Logistics City will be the first fully-integrated master-planned center for airport and aviation-oriented operations and businesses in the Philippines and a crucial hub in what we envision to be the best service and logistics center in the region," Mrs. Arroyo said.
It will be developed by Peregrine Development International, which selected Palafox Associates, a local architecture and engineering firm, as project designer.
"We count on Global Gateway to be managed and maintained to the highest international standards, befitting the international companies who will be locating here," Mrs. Arroyo added.
KGL and Peregrine, in a statement, called the Philippines an ideal location for offshore operations, distribution centers, or manufacturing sites.
"The Philippines has assumed its leadership position because of its reputation for providing a reliable English speaking workforce that is highly-educated and internationally recognized," they said.
Construction of GGLC is expected to generate around 35,000 jobs. Mahdy Al Jazzaf, chairman of the KGL Group of Companies, said this could increase to 70,000.
Development involves two stages: The first, which will cost $25 million, involves infrastructure such as roads, streetlights, sidewalks, utilities, and access points. This phase will take about two years. The second stage, which will cost $1 billion, will involve the development of main facilities and buildings over a period of seven years.
Mr. Mahdy said the GGLC was the first major Kuwaiti investment in the Philippines. KGL and the Clark International Airport Corp. is April signed a memorandum of agreement which called for the establishment of the logistics park.
KGL claimed it had identified other attractive investments in the Philippines but did not elaborate.
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