WHEREAS, the Department of Trade and Industry (DTI) is the primary coordinative, promotive, facilitative, and regulatory arm of the Executive Branch of government in the area of trade, industry and investment;

WHEREAS, the Government declared as a policy, in Republic Act (RA) No. 7227, otherwise known as the Bases Conversion and Development Act of 1992, to accelerate the sound and balanced conversion into alternative productive uses of the Clark and Subic military reservations and their extension (John Hay Station, Wallace Air Station, O ™Donnell Transmitter Station, San Miguel Naval Communications Station and Capas Relay Station), to raise funds by the sale of portions of Metro Manila military camps, and to apply said funds as provided herein for the development and conversion to productive civilian use of the lands covered under the 1947 Military Bases Agreement between the Philippines and the United States of America, as amended;

WHEREAS, the Bases Conversion and Development Authority (BCDA) was created under Republic Act (RA) No. 7227, and Section 17 thereof placed it under the direct control and supervision of the Office of the President (OP) for purposes of policy direction and coordination;

WHEREAS, Section 13(a) of RA 7227 created the Subic Bay Metropolitan Authority (SBMA) as an operating and implementing arm of the BCDA;

WHEREAS, in order to facilitate the coordination of policies and programs between the DTI and BCDA to effect the progress of trade, industry, and investments, it is necessary to place BCDA and all fits subsidiaries and attached agencies including the SBMA under the policy supervision of the DTI;

WHEREAS, Section 20, Chapter 7, Title I, Book III of the Administrative Code of 1987 grants the President residual powers to reorganize the Executive Branch of government.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO , President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Bases Conversion and Development Authority (BCDA) and all its subsidiaries and attached agencies including Subic Bay Metropolitan Authority (SBMA) are hereby placed under the policy supervision of the Department of Trade and Industry (DTI).

SEC. 2. The Secretary of DTI shall recommend to the President nominees for the position of Chairman, President and Members of the Board of BCDA and SBMA.

SEC. 3. All orders, issuances, rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed and modified accordingly.

SEC. 4. This Executive Order shall take effect immediately upon publication in a newspaper of general circulation.

DONE in the City of Manila, this 19th day of December in the year of Our Lord, Two Thousand Five.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary