Clark Freeport -- The chairman of the Clark Locators and Investors Association (CILA) has strongly warned of another potential "volcano" whose explosion could wreak havoc on the Clark Freeport.

Dr. Ireneo "Bong" Alvaro described the potential massive harm that the proposed Tax Reform for Acceleration and Inclusion (Train) 2 could inflict on the bustling investment destination if implemented.

"It's like the sword of Damocles and could be the second volcano after Pinatubo," Alvaro warned.

The eruption of Mt. Pinatubo in 1991 devastated the former U.S. military base Clark, then the largest outside continental U.S.A, and forced the Americans to abandon it.

Alvaro foresees a similar destructive scenario if Train 2 is pursued.

By his own estimate, as much as 50 percent of the current investors and locators will leave Clark if Train 2 is approved.

"In fact, some are holding back on their expansion plans while potential investors are in a wait-and-see mode,” Alvaro said.

Under the proposed Train 2, tax benefits and other perks for Clark investors will be removed.

Alvaro stressed that the tax exemptions and other perks earlier guaranteed by the government where the main attraction to Clark investors.

He warned that the Philippine government or its agencies could be sued by investors whose contracts contained specific tax exemptions and other perks.

"You signed a contract for 50 years because of that guarantee and now the government is threatening to remove them, what do you do?” Alvaro asked.

Alvaro, who recently visited the United States, said American investors are bullish about Clark.

“They find Clark a very attractive, if not the most attractive investment haven in the world,” he said. “I would emphasize the word haven,” he added.

If Clark investors leave, they can always look at the Philippines' neighbors like Singapore, Vietnam and Indonesia as possible relocation, Alvaro said.

"I'm sure these countries will welcome them,” he said.

Alvaro heads four-star Midori Hotel, Aqua Planet, a resort and MIrej, an all-Filipino owned hotel under-construction in Clark.