The Subic-Clark Alliance Development Council has its origin from a MEMORANDUM OF UNDERSTANDING (MOU) dated 19 June 2001, creating the Subic-Clark Alliance Development (SCAD) Task Force. The MOU was signed by the heads of concerned agencies, namely, the Bases Conversion Development Authority (BCDA), the Clark Development Corporation (CDC), the Subic Bay Metropolitan Authority (SBMA), and the Department of Trade and Industry (DTI).

The BCDA, CDC, SBMA, and DTI were committed to implementing an integrated development program in the Subic Bay Freeport Zone (SBFPZ), Clark Freeport Zone (CFZ) and the corridor between them, producing a unified government mega-project and creating the SCAD Task Force which, in consultation with the proponent agencies, shall formulate common programs, policies, rules and regulations that shall be adopted by both the SBFZ and the CFZ and other economic zones in Central Luzon. Moreover, the Task Force shall ensure common investment packages with the least amount of bureaucratic red tape and with sufficient flexibility to implement the integrated development plans for Central Luzon.

On 1 February 2006, Executive Order No. 504 was issued creating the Subic-Clark Alliance for Development Council to meet the need for a single body “to rationalize resources and harmonize strategies that will ensure the integrated and coordinated approach to the development of the Subic-Clark Corridor”.  EO 504 was subsequently amended by Executive Order 504-A, series of 2008 “to strengthen and enhance the powers and capabilities of the SCAD Council as the single body to ensure the development of the SCAD Corridor as a world-class mega-logistics hub and a global gateway to the Asia Pacific Region.”

EO 504 was amended on 10 April 2008 by E) 504-A, which included the Clark International Airport Corporation (CIAC) in the Council as a participating member-agency. Subsequently, the North Luzon Railway Corporation (NORTHRAIL) also gained membership with the issuance of EO 733 in 2008.

SCAD is mandated to exercise the following key functions: (1) formulate policies and programs to transform Subic and Clark into Mega Logistics Hub, (2) recommend infrastructure projects, (3) formulate common investment promotions initiatives and (4) harmonize programs and policies of all the development agencies concerned.