Recognizing the potential of the former US military bases, Clark Freeport Zone and Subic Bay Freeport Zone, to become drivers of regional and national economic growth, the Bases Conversion and Development Authority (BCDA), Clark Development Corporation (CDC), Subic Bay Metropolitan Authority (SBMA), and the Department of Trade and Industry (DTI)  executed in 2006 a Memorandum of Understanding and created the Subic-Clark Alliance Development Taskforce that will work on formulating common programs, policies, rules and regulations to ensure harmonized investment packages and business-friendly environment.

During her presidency, former President Gloria Macapagal-Arroyo included in her 10-point economic agenda the development of the Subic-Clark Corridor as an expansion mechanism for the Freeport zones, with a vision of becoming an internationally competitive logistics center. President Macapagal-Arroyo deemed it necessary for a body to address land scarcity for investments owing to the rapid development in the Subic Clark area.

Thus,  President Macapagal-Arroyo issued Executive Order No. 365, s. 2004 creating the Office of the Presidential Adviser for the Subic-Clark Area Development mandated to formulate plans and programs for the development of the Subic-Clark area as globally competitive international services and logistics center in the Asia Pacific Region. 

With the completion of the Subic-Clark-Tarlac Expressway (SCTEX) in 2008 that has become the Subic-Clark economic corridor connecting SBFZ and CFZ, connectivity was likewise developed with the 4 provinces of Central Luzon; namely: Pampanga, Bataan, Tarlac, and Zambales; and the 13 Local Governments Units namely: Subic, Olongapo City, Hermosa, Dinalupihan, Floridablanca, Porac, Mabalacat, Angeles City, Capas, Bamban, Concepcion, Tarlac City, and La Paz. In 2006, President Macapagal-Arroyo issued Executive Order No. 504 that repealed Executive Order No. 365 creating the Subic-Clark Area Development Council (SCADC) as the single body with a full-time head to rationalize the use of resources and harmonize policies and strategies in the development of the Subic-Clark Corridor

The SCAD Council was headed by a cabinet rank Chairperson and supported by the following members:

∙      Director-General, NEDA;

∙      Secretary of Trade and Industry;

∙      Chairman, BCDA;

∙      Chairman, SBMA;

∙      Chairman, CDC;

∙      President, BCDA;

∙      Administrator, SBMA;

∙      President, CDC;

∙      Presidential Assistant for Central Luzon. 

SCADC’s mandate is to ensure an integrated and coordinated approach in the development of the Subic-Clark Corridor towards becoming a world-class mega logistics hub in the Asia Pacific Region, by fully utilizing the seaport in Subic, the airport in Clark, and the SCTEX that connects the two. Months after its creation, SCAD Council was renamed Subic-Clark Alliance for Development Council by virtue of Administrative Order 105.

In 2008, President Macapagal-Arroyo issued Executive Order No. 504-A strengthening the powers and functions of the Council:

a. Formulate policies and programs to develop Subic, Clark, and the corridor in between them as globally competitive Mega Logistics Hub;

b. Review, identify and recommend priority infrastructure projects for implementation;

c. Formulate common investment promotions activities;

d. Harmonize in the SBFZ and CFZ such programs, policies, rules, and regulations affecting investments, incentives, customs, immigration, leasing, privatization, and other matters necessarily related thereto;

e. Perform such other functions as may be authorized.

By virtue of Executive Order 733, series of 2008, SCADC was expanded to include the President and Chairman of Clark International Airport Corporation (CIAC) and the President and Chairman of Northrail Corporation as members.  In 2010, Executive Order No. 876 was issued renaming the Council to the Subic-Clark Alliance for Development (SCAD) and making the CIAC Chairman the SCAD Chairman.