Subic firm allows solar users to sell excess power

A solar power company located in this free port is now providing the means for power consumers to produce their own electric power supply and sell the excess power generated from their solar panels.

Bandacorp Solar Inc. (Bandasolar) officials said with the net-metering program already in effect, residents of Olongapo City would be able to install an on-site Renewable Energy (RE) facility, produce power for their own consumption, and even sell their excess electricity to distribution utilities.

The firm, which provides environment-friendly solar panels and cost-efficient light-emitting diode (LED) lamps to cut down power bills by up to 50 percent, banks on the net-metering program to draw this advantage.

Net-metering allows power users to install wind or solar power stations not exceeding 100 kilowatts (kW) in capacity for their own use. The electricity that was not consumed is automatically fed to the Olongapo Electricity Distribution Company (OEDC) system where they are paid as “generation cost.”

The OEDC computes the amount of excess power fed to system and then deducts the total from the consumer’s next electricity bill, thus lowering the cost.

Subic Bay Metropolitan Authority (SBMA) Administrator Wilma Eisma lauded the Subic company for its support in the government’s renewable energy program and for encouraging local households and businesses to play an active role in alternative energy production.

“This is what Subic is all about—innovation and public service,” Eisma said. “Bandasolar not only helps power consumers minimize the use of expensive conventional power energy fuels, and thus save on their power bills, it also helps protect the environment and preserve natural energy sources,” she added.

Bandasolar is accredited by the Department of Energy to design and supply equipment for solar-powered systems for commercial, government, industrial and residential customers. The firm is offering free consultation at their showroom-office along Sampson Road in the Subic Bay Freeport for those who wish to know more about solar-power generation.

Bandasolar also offers a line of energy-saving devices ranging from air-conditioning system to solar street lights, solar water heater, and even home and industrial solar-lighting solutions.

Among the companies in Subic Freeport that already use solar power or LED lamps are Ocean Adventure marine theme park; gastight plastic storage manufacturer GrainPro; packaging manufacturer PACTEC; the testing and certification firm SGS; and ink solution provider Printing Images CtC, Inc.

Bandasolar has also installed solar facilities for some residences at the Kalayaan and Binictican housing areas in the Subic Bay Freeport, and undertaken similar projects in Zambales, Pampanga, Batangas, and Ilocos Sur under the net-metering scheme.

Already implemented in some countries around the world, the net metering scheme in the Philippines is governed by Republic Act 9513, otherwise known as the Renewable Energy Act of 2008, and implemented through the Energy Regulatory Commission (ERC) in consultation with the National Renewable Energy Board (NREB). (RAV/MPD-SBMA)

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Experts urge Subic Freeport stakeholders to use renewable energy

Experts invited by the Subic Bay Metropolitan Authority (SBMA) on Thursday urged business locaters and residents in Subic Bay Freeport area to start using renewable energy to help minimize ecological damage and slow down climate change.

In the forum “Climate Change Management and Green Energy: Making Business Green Through Renewable Energy,” speakers led by Climate Change Commissioner Heherson Alvarez explained that the continuing emission of carbon into the atmosphere would create serious consequences like global warming and a drop in global food production.

The forum, which was organized by the SBMA Ecology Center, convened residents, investors, workers, and other stakeholders of the Freeport. The speakers included Alvarez, Dean Felino Lansigan of the College of Arts and Sciences in the University of the Philippines at Los Baños (UPLB), and Forester Rex Victor Cruz, who is also the Chancellor of UPLB.

In the forum, Alvarez and the other speakers warned of the dire effects of environmental destruction from the use of carbon-based energy sources and encouraged the tapping of energy from wind, sun, and water.

“Even a temperature increase of just 1.5 degrees Celsius will drive the fish to go deeper and farther into the open seas, as temperature increase may kill all the fish near the coast due to overheating,” Alvarez said.

The increase in global temperature, he said, is caused by over-emission of carbon into the atmosphere from millions of gas-fed vehicles, factories, machines, and power generators.

Alvarez pointed that the Aquino administration has officially committed an Intended Nationally Determined Contributions (INDC) target of 70 percent greenhouse gas reduction below business-as-usual levels by 2030. This primarily covers the energy, transport, forestry, waste, and industry sectors.

“That’s why we have to invest in our future and build renewable energy sources, while every Filipino should cut the usual emission of carbon,” Alvarez said.

“Let us mobilize every heart [person] to cut the use of carbon. Remember that we are on the edge of human extinction,” he added.

Meanwhile, Lansigan talked about the effects of climate change on food security and sustainable development, and pointed out that a one-degree increase in temperature would mean a 14.12 percent drop in corn and rice production and that from 20 to 30 percent of crop species would be at risk of extinction.

“Maraming lupa ang lulubog, maraming pananim at hayop ang masisira kung hindi man mawala na, kung hindi natin mapaghahandaan ang climate change,” he said.

Cruz, for his part, explained that while there may be downsides in the use of renewable energy, “cutting the use of carbon will save mankind from extinction.”

Atty. Ruel John Kabigting, who is officer in charge of the SBMA Ecology Center, assured the speakers and stakeholders in Subic Bay Freeport of the agency’s support and participation in various actions to mitigate the effects of climate change.

He also pointed out that because the SBMA strictly enforces laws and policies on environmental protection, the Subic Freeport remains to be the home of many species of plants and animals.

The participants in the forum also all agreed that the government and private groups should start developing and using renewable energy technologies, which are considered healthier to both man and his environment. (RAV/MPD-SBMA)

PHOTO:
Climate Change Commissioner Alvarez talks about the dire consequences of the use of carbon-based fuels while at the same time pushes for increased utilization of renewal energy at the Climate Change Management & Green Energy Forum in Subic Bay Freeport. (photo by Forester Patrick Escusa)

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Emerging Power to upgrade Subic project

Renewable Energy (RE) company Emerging Power Inc. (EPI) is partnering with California-based tech firm Amber Kinetics for the Flywheel Battery Storage Technology in the 150 Megawatt (MW) solar and wind power project in the Subic Bay.

“Amber Kinetics’ technology will be very useful in smoothing out the energy generation of our Solar and Wind farm by taking out the variability. We are very excited to work with Amber and hopeful that this milestone deal will be replicated in future renewable energy projects in the country,” EPI Head of Marketing Alberto Guanzon said.

EPI is looking at acquiring 10-MW worth of Multi-hour Flywheel Battery Systems from Amber Kinetics for the Subic project. The company will be the first to use the technology for a utility scale power plant in the Philippines.

Flywheel energy storage works by rotating steel rotors at very high speeds, allowing the system to store energy. In effect the flywheel is a reservoir for kinetic energy which can be drawn out at any time.

Aside from dealing with the variability of solar and wind energy, Amber Kinetics’ state of the art flywheels will also provide multi-hour flexible capacity to the transmission.

Amber Kinetics’ technology has demonstrated the ability to store and release electricity for hours. It also offers unlimited cycling for a 30-year lifespan with no degradation. These attributes make it ideal for integrating utility scale renewable energy and transmission.

“We are thrilled to be partnering with Emerging Power to integrate energy storage into the 150MW solar and wind farm in Subic Bay. We believe that our multi-hour flywheels are an ideal technology solution to help EPI smooth the variability of solar and wind generation into the transmission system. The EPI team is incredibly forward thinking and we are excited to be working together,” Amber Kinetics CEO Edward Chiao said.

EPI is majority owned by Nickel Asia Corporation, one of the country’s biggest mining firms. The miner has guaranteed up to P3 billion the loan facility of EPI over three years to finance the RE projects all over the country. (Voltaire Palaña, Manila Times)

PHOTO: Image c/o EPI

http://www.manilatimes.net/emerging-power-to-upgrade-subic-project/250791/

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Filipino, Taiwanese firms to build e-vehicles in Subic Freeport

Ropali Corporation, one of the top motorcycle dealers in the Philippines, and TECO Electric and Machinery Co., Ltd., a Taiwan-based company that develops and manufactures electric motors, introduced on Tuesday environment-friendly vehicles at its plant site in this Freeport.

In a simple launching ceremony, ROTECO, the company name for Ropali and TECO Corporation, unveiled to the public the electric tricycle or the E-Trike and the four-wheeled electric jeepney or the E-Jeepney.

TECO Chairman Chao Kai Liu said that the electric vehicles​ will​ provide the riding public with opportunities to replace second-hand diesel jeepneys ​that​ emit dirty smoke and consume much fuel.

“By bringing out green and smart mobility, we can raise the quality of public transport in the Philippines and at the same time​,​ help reduce carbon emission and dumping of used oil in our environment​,​ which cause climate change,” Liu said.

Ropali President Roberto Alingog​ on ​his part said that ROTECO’s main objective is to introduce innovation in the transport sector by creating battery-powered E-vehicles that do not emit smoke or make noise.

“It is our advocacy to drive social entrepreneurship by giving back to the people clean air and a ​clean living environment,” Alingog said.

Production of electric vehicles is expected to commence on the first of January next year, he added.

The ROTECO launching ceremony was graced by Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, Olongapo City Mayor Rolen Paulino, and Zambales Vice-Governor Ramon Lacbain II.

Chairman Garcia lauded the project, pointing out that it dovetails with the SBMA’s commitment to protect and preserve the environment, especially ​within​ the Freeport.

“We have successfully implemented the no-plastic policy in all establishments, and initiated programs for rain​forest and coastal protection as part of our commitment to help protect the environment,” said Garcia. “This project is another big step in that direction.”

He added that Subic will soon become a center for renewable energy, as the largest solar farm facility in Asia has started construction to produce cheap electricity for Freeport locators.

ROTECO officials said the electric vehicles provide various advantages. The four-passenger plus driver E-Trike, for instance, assures high cruising range of 80 kilometers for every battery life.

It also features heavy duty front forks, leaf-spring suspension and flat- and ladder-type chassis to give the spacious trike stability and maneuverability.

For the E-Jeepney, the vehicle has ​a ​side entrance and a rear emergency exit to​ provide​ passengers with​ safe and easy entry and exit.

With ​a​ water resistant and powerful 12-kilowatt electric motor, the E-Jeepney is able to produce 140 Nm of torque and guarantee a 20% climbing ability. It can accommodate 20 passengers and can travel 80 kilometers per newly-charged batteries.

Both the E-Trike and E-Jeepney capitalize on five premium qualities: safety, power, efficiency, comfort, ​and stability (SPECS). (RAV/MPD-SBMA)

PHOTOS:

[1] TECO Chairman Chao Kai Liu discusses the advantages of the E-Jeepney with SBMA Chairman Roberto Garcia during the launching of the e-vehicles project of ROTECO in Subic Bay Freeport. (AMD/MPD-SBMA)

[2] Olongapo City Mayor Rolen Paulino tries driving the E-Jeepney with Ropali President Roberto Alingog as passenger, as SBMA Chairman Roberto Garcia looks on during the launching of the e-vehicles project of ROTECO in Subic Bay Freeport. (AMD/MPD-SBMA)

[3] The E-Jeepney, which is designed to provide green and smart mobility, is launched by ROTECO at Subic Bay Freeport. (AMD/MPD-SBMA)

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Subic Freeport locator launches state-of-the-art grain dryer

GrainPro Inc., an American company that manufactures grain storage and drying systems here, recently launched its patented Solar Bubble Dryer (SBD) that provides a solution to challenges faced by farmers throughout the world.

The SBD is a collapsible drying facility for such commodities as coffee, cocoa, rice, wheat, corn, millet, and beans; and can hold up to one metric ton in one drying cycle while protecting commodities from rain and ultraviolet (UV) rays.

According to Dr. Pat Borlagdan, the firm’s manager for research and development, the drying facility is made from durable materials. Its transparent polyethylene cover is UV-resistant and water repellent, while its drying floor is made of sturdy plastic materials to ensure that water does not penetrate from below in case of heavy rains.

Borlagdan stressed that the SBD is a technology developed with food security as its ultimate goal.

“As such, it will help address inadequate agri-based technologies in order to help farmers ensure higher crop yield, thereby ultimately translating to higher food production and enough food supply for the Filipinos,” Borlagdan said.

He also said that a recent study showed that around 12 per cent of prime agricultural commodities are lost during the post-harvest drying process due to unpredictable weather conditions and lack of drying facilities.

The SBD will help farming communities in their critical post-harvest process because it dries grains and seeds to the right moisture safely and efficiently under any weather condition, keeping it from infestation and fungus, he added.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said the drying facility is “proudly Subic-made,” pointing out that the firm’s products are principally manufactured at its wholly-owned subsidiary here, the GrainPro Philippines Inc.

Garcia added that the Subic-made drying system will be a big boost to local farmers and farm producers.

“Here in the surrounding communities, we often see farmers drying their grain products on the roadside and a lot of these go to waste. The Solar Bubble Dryer can boost the productivity of these farmers, as well as our national food stock,” Garcia said.

GrainPro’s development of the SBD was in partnership with the International Rice Research Institute (IRRI) and Germany’s Hohenheim University. (RFD/MPD-SBMA)

PHOTO:
GrainPro President and CEO Tom de Bruin (left) demonstrates the operation of the Solar Bubble Dryer (SBD) during the product launch at the company’s headquarters in the Subic Bay Freeport Zone. (AED)

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SBMA, Jobin sign deal for $200-M solar/wind power project in Subic Freeport

The Subic Bay Metropolitan Authority (SBMA) has signed an agreement with Jobin-SQM, Inc., an all-Filipino corporation, for the establishment here of a $200-million renewable energy facility that will produce electricity from both solar and wind power.

SBMA Chairman Roberto Garcia and Jobin-SQM, Inc. President Nancy Tan signed an agreement reserving an 800-hectare property on Mt. Sta. Rita where the firm eyes to produce 20-megawatts (MW) of solar energy and 50 megawatts of wind energy.

Garcia said the project was formally committed during President Aquino’s state visit to China in September 2011.

The proposal is in line with Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008, which aims to accelerate the exploration and development of renewable energy resources, increase utilization of such and promote their efficient and cost-effective commercial application, and effectively prevent or reduce harmful emissions protecting health and the environment.

The national government has declared the development and promotion of renewable energy as among its priority projects under the Investment Priorities Plan of 2012.

Garcia said Jobin has successfully satisfied the requirements set by the Department of Energy (DoE) in line with its intention to develop the solar and wind power project and has signed a Memorandum of Agreement (MOA) with the SBMA for the reservation of the project site prior to signing a lease agreement.

Thomas Garcia, Jobin-SQM Inc. stockholder, said the firm is keen on developing the Subic project, which is expected to turn on power by June 2016.

“Subic, we believe, is a progressive place and there’s a lot of potential. I like Subic,” Garcia added.

The renewable energy project has been in the pipeline since 2011 when Jobin entered into a joint venture agreement (JVA) with Hydrochina International Engineering Co., LTD. (HIECL) for the development of the said project.

Hydrochina Subic LTD Corp., which is the Filipino counterpart of HIECL, has been tapped to undertake the Subic project.

Meanwhile, HIECL will be in charge of the technical aspect of the project, including engineering, procurement and construction. (RFD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia shakes hand with Nancy G. Tan, president of Jobin SQM Inc., after signing a memorandum of agreement for the establishment of $200-million renewable energy project in the Subic Bay Freeport. With them are other SBMA officials and representatives of Jobin SQM Inc.

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Subic Freeport, Nayong Pilipino turning in profits

CLARK FREEPORT—The financial viability of the Subic Bay Metropolitan Authority (SBMA) and the Nayong Pilipino sa Clark Expo (Nayong Pilipino) appears to have turned for the better lately in spite of prevailing global economic uncertainties brought about by slow-downs in First World markets (the US and Europe) and political turmoil besetting the Middle East.

SBMA Chairman and Administrator Roberto V. Garcia reported that the country’s first free-port zone sustained a profitable operation this year that began in 2012 ending a losing streak since it opened for business in 1992.

But due to increased expenditures, this year’s SBMA gains would somewhat be lower than last year’s P800 million on the back of projected year-round total operating revenues of P1.476 billion. In 2012 operating revenues reached P1.151 billion.

On the other hand, the losing Nayong Pilipino also began posting moderate gains beginning in 2012, when gross revenues soared to P24 million.

Nayong Pilipino trustee and Executive Director lawyer Apolonio B. Anota Jr. said the facility is now stronger financially both in gross and net revenues.

Anota traced the turnaround in the cultural-cum-resort venture of Nayong Pilipino in this free port to increased visitor arrivals in the past 20 months from a measly annual number of 20,000 to 300,000 as a result of improved management and introduction of new attractions.

Both Garcia and Anota were guests in Friday’s double media forum “Balitaan,” hosted weekly by the Capampangan in Media Inc. at its headquarters at the Bale Balita (House of News) here.

Garcia reported that locators’ committed investments in the SBMA this year could hit P24.8 billion, a hefty jump from the preceding year’s P2.3 billion.

The SBMA’s current 1,000 locators, which provide some 89.921-percent employment opportunities, are forecast to register a 33-percent dip in export receipts to $650 million this year from $963 million the previous year due to the global economic slowdown.

But there’s excitement in the Subic free port, Garcia said, brought about by the rising number of prospective locators, as well as those that have actually implemented their plans, led by the rising P20-billion complex of Resom Resort City Subic and the expansion of the floating terminal of Vale Holding Shipping Pte. Ltd., which services major iron-ore suppliers to China.

The SBMA, together with this free port, has been picked to host the senior ministerial meeting of next year’s scheduled Apec summit the Philippines is hosting, which could trigger the realization of the planned Subic-Clark business corridor, Garcia said.

As envisioned, the land on both sides of the Subic-Clark-Tarlac Expressway connecting Clark and Subic is to be developed into commercial-industrial areas to attract more local and foreign business locators.

“We’re also looking forward to generating fresh revenues from the prospective transfer of some of the operation of the Philippine Air Force to Subic,” Garcia said.

With its improving financial muscle, Garcia expressed optimism that the free port could finally pursue the programmed upgrading of its port and other facilities, as well as an increase in the compensation of SBMA personnel.

Sources said that the SBMA management has submitted to the Office of the President its proposed P65-million wage-hike package for SBMA employees. (Ashley Manabat, Business Mirror)

http://www.businessmirror.com.ph/index.php/en/news/economy/22632-subic-freeport-nayong-pilipino-turning-in-profits

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SBMA recognizes 11 environment-friendly business locators

In line with the celebration of World Environmental Month, the Subic Bay Metropolitan Authority (SBMA) recognized 11 top corporations in this free port that demonstrate sound environmental management practices.

SBMA chairman and administrator Roberto Garcia personally awarded certificates of recognition to the environment-friendly business locators in a simple ceremony held at the SBMA board room recently.

Those that received the SBMA citation were electronic data processing equipment manufacturer Hitachi Terminal Mechatronics Phils. Corp.; HDD spindle-motor producer Nidec Subic Phils., Inc.; cooling fan and servomotors manufacturer Sanyo Denki Phils. Inc.; semi-conductor diodes manufacturer Phil. Inter-Electronics Corp.; aircraft repair and overhaul provider Honeywell CEASA Subic Bay Co., Inc.; high precision plastic molding maker Koryo Subic, Inc.; electronics parts and accessories manufacturer Ringsthree Inc.; Fang Chan; Hitachi Air Conditioning Products (Phils), Inc.; inkjet cartridge and printer producer Cresc Inc.; and utility operator Subic Water and Sewerage Co., Inc.

Garcia said that the awardees, which have also attained ISO 14001 Certification, were recommended for citation by the SBMA Ecology Center after rigorous evaluation of their activities and environmental management program.

ISO 14001 is the world’s most recognized framework for Environmental Management Standard (EMS) which helps organizations both to manage better the impact of their activities on the environment and to demonstrate sound environmental management.

SBMA Ecology Center manager Angel Bagaloyos said the EMS is used by organizations worldwide to improve resource efficiency, reduce waste and drive down costs.

He said this standard, which has been adopted by more than half of the 160 national members of the International Organization for Standardization (ISO) and is endorsed by governments around the world, integrates environmental dimension in business strategy “to restore the image of the industry due to common notion that industry is always associated with pollution.”

Meanwhile, Garcia lauded the companies who made it to the agency's environment-friendly list.

“You are the primary examples of locators we are looking for,” Garcia told company executives and ISO coordinators who attended the ceremony. “It is only proper to honor each of these 11 green companies, as they will serve as example to other locators in Subic to strive for the best towards the seemingly never-ending journey to quality.”

“It’s not enough to satisfy your customers, you have to delight them,” he added.

SBMA is very much active in the advocacy to preserve, protect and propagate the rich and lush environment in the Subic Bay Freeport. It provides assistance to indigenous tribal communities and fisher folks in and around the free port zone for their environmental protection projects; initiates beach and coastal clean-up drives, tree planting and other environment protection-related activities; and regulates the operation of business locators according to the Subic Bay Protected Area Management Plan.

The SBMA has also required retail stores, restaurants and groceries to use environment-friendly materials and banned the use of plastic and styrofoam packaging in the free port zone. (RAV/MPD-SBMA)

PHOTO:
SBMA chairman and administrator Roberto V. Garcia (middle) pose with representatives of the top environment-friendly companies in the Subic Bay Freeport. With them are SBMA chief operating officer Joven Reyes (left), SBMA deputy administrator for regulatory Joy Alvarado (second from right), and SBMA Ecology Center manager Angel Bagaloyos (right).

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More Subic Bay Investors Eyed

The Subic Bay Development Management Center (SBDMC) disclosed that if this premier Freeport could provide an increasing supply of reliable and cost-effective power, more investors are expected to establish their businesses here.

According to SBDMC President Jeff Lin, administrator of the Subic Bay Gateway Park (SBGP), power costs represent a huge chunk of the cost of conducting business here.

The Subic Bay Gateway Park is a world-class industrial park offering approximately 150 hectares of prime industrial land, and is host to about 80 direct locators, and 60 plus sub-lessees made up mostly of manufacturing and production firms.

“The Philippines currently has one of the highest power rates in the Asian region. Foreign or even local businessman looking at locating and investing here will see this as a disadvantage. We believe we have to try to remedy this somehow,” he said.

At the same time, the SBDMC reiterated its support for the Redondo Peninsula Energy (RP Energy), a fellow SBFZ investor and locator.

Lin also disclosed that the SBDMC and its locators support the power project of the RP Energy, being developed within the Freeport.

They have actually been counting on the power to be supplied by the 600-megawatt power project to the Luzon Grid to help address the need for additional reliable and competitively-priced power.

The Department of Energy’s Philippine Energy Plan states that some 11,000-megawatt in additional capacity is needed until 2030 for the Luzon grid alone.

This projection is based on a 4.8-percent annual growth in energy demand.

This means a new 600-megawatt power plant needs to be online every year, starting 2016 onwards.

During the past, a group of Subic locators already projected the need to increase power supply in the Luzon area to keep up with economic development and avoid a power situation as that in Mindanao.

The Subic Bay Freeport Chamber of Commerce (SBFCC) reminded local and national stakeholders to recognize the need to move forward with power investments in the Luzon grid.

According to the chamber, the government needs to fast-track the construction of base-load power plants to augment the capacity and provide cheaper power. (Jonas Reyes, Manila Bulletin)

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SBMA Targets $800-M 2013 Investments

Subic Bay Metropolitan Authority (SBMA) expects $800 million in investments this year, a strong turnaround from an estimated $200 million in 2012, with two new shipbuilding facilities to be established by EU firms and major tourism projects.

SBMA chairman and administrator Roberto V. Garcia said this year would be a turnaround year from the poor investments performance last year.

"We expect $800 million in new investments this year because more investors are coming in. Last year was poor because all we have were mostly inquiries from foreign investors," Garcia said at the sidelines of the Philippine Port and Shipping Conference.

SBMA has no official report yet on the investments inflow in 2012, but Garcia estimated it at only $200 million.

Of the $800 million projected investments this year, $600 million are expected to come from the two new shipbuilding facilities which will manufacture small crafts for the exports market. The rest of the investments projection would come from the tourism and gaming projects of major hotel and casino operators.

Garcia, however, refused to identify the company but said they are European investors, which are expected to locate within the year in the freeport.

At present, Subic Freeport hosts the $2 billion shipbuilding facility of Hanjin of Korea.

While SBMA was a laggard in investments generation in 2012, Garcia earlier reported that the freeport achieved the highest profit last year in its 20-year history.

The freeport posted a record profit of P789 million in 2012. This is a drastic turnaround from the P1.2 billion loss in 2011.

Garcia said that the turnaround was due to increased revenues, reduced operating expenses and a favorable exchange rate.

The revenue increase of 16 percent versus 2011 was brought about by new major projects in seaport operations such as the Vale ore transshipment project and the start of commercial operations of the Phase 2 of the new container port.

Coupled with an aggressive collection campaign on existing accounts, new revenue streams were created through increased admission fees on importations and the imposition of fees to defray municipal expenses that were previously subsidized.

Operating expenses decreased by seven percent versus 2011, as the Agency implemented a comprehensive austerity program. Salaries similarly dropped by seven percent. as a freeze hiring policy was implemented and manpower count decreased. Repairs and maintenance likewise decreased by 46 percent and advertising was slashed by 35 percent versus 2011. As a result, earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 million - a 91 percent increase.

Due mainly to favorable exchange rates, unrealized foreign exchange posted a gain of P1.1 billion in 2012 from the previous year's FOREX loss of P566 million.

In the meantime, the SBMA's 2013 Strategic Planning session focused on developing new initiatives to sustain and improvefurther SBMA's financial position in the coming years.

New strategic initiatives concentrating on the seaport, airport, tourism, and commercial and industrial leases were formulated, targets were set and detailed plans of action were submitted and approved by the SBMA Board. (Bernie Cahiles-Magkilat, Manila Bulletin)

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2 European firms to invest $600M in shipbuilding

Subic Bay Metropolitan Authority chairman Roberto Garcia yesterday reported that two European companies will invest $600 million building small ships in Subic, encouraged by the success of Hanjin Heavy Industries.

Garcia declined to elaborate further, saying that inquiries were made last year. Garcia said during a break in the Philippines Ports and Shipping Conference at the Manila Peninsula yesterday that Subic has become an ideal investment destination for maritime and tourism.

He also reported that SBMA was able to turn around from 2011’s losses of P1.2 billion to profit of P789 million last year.

Garcia attributed the turnaround to increased revenues, reduced operating expenses and a favorable exchange rate.

SBMA raised 16 percent more in revenues last year than in 2011 on the entry of new major projects in seaport operations such as the Vale ore transshipment project and the start of commercial operations of the Phase 2 of the New Container Terminal.

Coupled with an aggressive collection campaign on existing accounts, new revenue streams were created through increased admission fees on importations and the imposition of fees to defray municipal expenses that were previously subsidized.

Operating expenses decreased by 7 percent versus 2011, as the SBMA implemented a comprehensive austerity program.

Salaries similarly dropped by 7 percent as a freeze hiring policy was implemented and the manpower count decreased. Repairs and maintenance expenses likewise fell 46 percent and advertising expenses were slashed by 35 percent from 2011 levels. As a result, earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 million – a 91 percent increase.

Due mainly to favorable exchange rates, SBMA registered an unrealized foreign exchange gain of P1.1 billion in 2012, versus the previous year’s forex loss of P566 million. (Irma Isip, Malaya)

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Budget allocation eyed for locators’ subsidy

The government will seek budget allocation to continue the subsidy enjoyed by three big projects in Clark and Subic.

Outgoing Trade Undersecretary Cristino Panlilio said the government is preparing a program that would effectively continue the industry competitiveness fund (ICF), providing it with a strong legal support like including it in the succeeding general appropriations act (GAA) of the country.

The ICF, which expired in March 2011, was granted to Hanjin Heavy Industries Corp. Philippines in Subic Freeport, Texas Instruments Philippines in Clark Freeport Zone and Phoenix Semiconductors Philippines Corp.

Panlilio said the program is very specific to these projects and is not open-ended.

The subsidy was a quid pro quo and as an incentive for these big projects which hired a lot of workers.

One of the companies, Phoenix Semiconductors, is entitled up to 2020.

He said the plan is to allocate it in the GAA.

Panlilio added that government is trying to negotiate a rate acceptable to both parties. The suggested rate has to be approved by the Department of Budget and Management, after which it would have to be approved by President Aquino.

“The reason why we are (extending) that is because we want to ramp up manufacturing,” Panlilio said.

The three were given cheap power under the ICF support under executive orders signed by then President Arroyo.

The government is now looking for other hydropower plants like Bakun and Casecnan to source fuel from on a subsidized rate following the privatization of Angat. These two operate more expensively than Angat per reports from the Power Sector Assets and Liabilities Management and the National Power Corp.

But the government still finds these two power plants as liable for the ICF but the power that they would produce would be more expensive than if the power is sourced from Angat.

This means government would have to shell out more to continue the ICF.

Based on computations, with Angat as the source of power, all-in cost would be below P5 per kilowatt-hour and above P5 for the two other hydropower plants.

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Subic Investors Unite For Tourism

In an effort to push the current status of this premier Freeport’s tourism, hotel and tourism companies here unite to come up with the “Stay in a Hotel in Subic, Play a round of golf for free!”

Subic Leisure World Inc. President and CEO Benjamin John Defensor III said all tourists who stay at their accredited hotels can play a free round of golf at the Subic Golf Course.

“It’s a simple, yet effective way, of enticing tourist golfers to take their families in Subic Bay Freeport and enjoy the many tourism sites here. It would also give those golfers a chance to try out the new golf course,” Defensor added.

Accredited hotels that give out free round of golf are Venezia Hotel, White Rock Waterpark, Subic Homes Apartelle, Mango Valley, The Terrace Hotel, Bayfront Hotel, Seorabeol, and Playa Papagayo Beach Inn.

Subic Bay Freeport was hounded by controversies such as the alleged “toxic waste” dumping that has lessened the usual number of incoming tourists during peak season.

“We believe that investors such as we, can help in increasing the current number of tourists coming to Subic by creating a package not just for ordinary tourists but golf enthusiasts as well,” Defensor said.

The golf course formally reopened on January 1st upon the completion of the renovation of their fully functional nine holes and is currently in the process of completing up to the 18th hole. (Jonas Reyes, Manila Bulletin)

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Subic seen hub for general aviation

It was November 24, 1991 when the last American jet fighter took off from Subic, marking the end of their military stay, but now a new breed of jet have taken over the Subic Bay International Airport (Sbia)--business jets.

“This is our blueprint, to see our airport as a bustling hub for general aviation,” says Subic Bay Metropolitan Authority (SBMA) chairman Robert Garcia.

The former US military base cum- industrial-commercial complex turns 20 years old this November 24th.

“I will go very strongly into general aviation, which includes charters, flight training schools and corporate jets, he said, adding that logistical services, aircraft refurbishing and repair are also the ideal businesses for the SBIA.

With more than US$8 billion in foreign investment, Subic Bay remains the country’s top attraction in the foreign investment community.

Leading the pack in this mixed commercial and military thrust is Aviation Concepts, a charter jet firm, whose clients are as diverse as their fleet of commercial fixed wing aircraft.

“Most of our clients are in Asia. They are the corporate executives who need to shuffle from place to place quickly, efficiently, and comfortably,” says Joel Edmonton, Aviation Concepts general manager.

Edmonton witnessed the airport’s ups and downs. A Subic-based a US Navy pilot for 26 years, he led Federal Express’ team as chief pilot until the courier giant decided its business was better off in China.

“Because of national defense considerations, we would have to operate SBIA as a mixed use aerodrome,” Garcia explained, “meaning it might be used as a jumping off point for fighter squadrons, side-by-side with commercial jet charters.”

Just recently, the US Navy leased portions of the airport terminal to support its troops participating in the joint American-Filipino military exercises.

Garcia says Aviation Concepts fits with the SBMA plan, noting that corporate jet charter is a huge business: “Malaking negosyo ang magpa-charter.”

Globally the charter industry is worth about US$15 billion and growing significantly. The industry is forecasting nearly 10,000 new business jet deliveries worth about $250 billion from 2012 to 2022 with some 700 jet to be delivered to buyers this year.

The Asia Pacific region grew double digit during the past five years, according to Honeywell’s Aviation Business, and SBMA, with 200 hectare facility, together with Aviation Concepts, are prepared to catch some of the business.

Operating out of a former Fedex hangar, the firm manages seven jets, employs 51 workers, including six American pilots. The company operates throughout Asia and other parts of the world.

“Our aircraft are based here, we’re in Subic for the long haul,” Edmonton said. (Malaya)

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US aviation firm sees big growth in air ambulance

An American aviation company sees good growth prospects for the air ambulance service it started last July in Subic.

It just brought in a second aircraft for the air 911 service.

The Philippines, according to Scotty Watson, Carejet Assist program director, is central to the company’s service in Asian countries like Hong Kong, Taiwan, China, Vietnam and Guam.

Watson said they intend to cash in on a vast pool of clients in Asia-Pacific and in North and Central Pacific, particularly with the tourism boom in Asia.

“The way tourism is going in Asia-Pacific, particularly diving and fishing, we can make air ambulance work,” he said, adding their firm is receiving an average of two to three calls a week from clients.

He said the air ambulance business is ideal in the Philippines where medical treatment is cheaper while offering quality service.

“We have a good spectrum of medical professionals. Your doctors here are very excellent,” he said.

The firm also caters to AIG, considered the biggest insurance company in the world.

Carejet was tapped by American-owned Aviation Concepts, based in Subic to implement the air ambulance project.

Aviation Concepts is run by his friend, Terry Habeck, president and chief executive officer. Habeck said that they may also venture into potential markets like Korea, Taiwan, Japan, Vietnam and Cambodia.

Air ambulance assets include a fixed-wing seven-seater jet converted into an intensive care unit which offers patients safe and on-time, bedside-to-bedside transport. It is manned by a team of doctors, nurses and is equipped with state-of-the art facilities providing basic life support, advanced life support, pediatric advanced life support, critical care transport and specialty neo-natal care.

While it is still a fledgling industry in the Philippine, air ambulance is a common transport facility in the US. It is considered a better aerial vehicle than helicopters since it is faster, more spacious, has less noise and vibration, less weather-dependent, less costly, can operate 24/7 and is highly recommended for journeys of up to 240 kilometers.

An air ambulance service is considered more significant as it can cover a large region, including remote areas where there are few hospitals, inadequate ground transport or other problems such as poor roads or communications.

Aside from providing medical services, air ambulance also provides repatriation through coordination with other commercial airlines. He said over the past two weeks, they have brought in patients from Copenhagen and London.

Watson said their West-Wind aircraft has a range of 2,000 nautical miles and piloted by American, Japanese and Filipinos experts.

Watson started the air ambulance business in his native New Zealand in 1991. He teamed up with Habeck who enticed him to put up a medical service company in Makati and working with insurance and medical companies.

In the Philippines he met his future wife, Gelmi at the Clark Freeport Zone and decided to settle here.(Jay Chua, Malaya)
Photo:
The air ambulance is a seven-seater jet converted into an intensive care unit which offers patients safe and on-time, bedside-to-bedside transport.

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PNoy: ‘Philippines and Subic now open for business’

The Philippines, especially Subic, is now open for business, as the country begins to reap the fruits of good governance, according to President Benigno Aquino II.

In a speech delivered by Maritime Industry Authority deputy administrator Nicasio Conti on behalf of the chief executive during the recent Subic Bay Maritime Conference and Exhibit here, President Aquino said that the country’s efforts in regaining the national dignity and the confidence of the world send a clear message that the Philippines is ready.

“From weeding out corruption and government in society, to prudently spending our budget, to streamlining our business processes at the national and local levels, we are continuing to regain our national dignity and the confidence of the world in our capabilities,” he said. “The Philippines is open for business and the Filipino people mean business.”

Mr. Aquino also noted the recent upgrades given by international rating agencies to the country and said that these recognition by international observers gave the Philippines new opportunities for development.

“From Luzon to Mindanao, the gears of development are turning, providing opportunities and possibilities that we could only imagine in the past,” he said.

At the same time, President Aquino also noted the rise of Subic as a major logistics hub.

“Here in Subic, we are seeing the emergence of a world-class logistics and investments hub in Southeast Asia. With the Philippines as the fourth largest shipbuilding nation worldwide, boasting the construction of 117 ships in 2011, we are becoming an excellent alternative location for shipbuilding and ship repair,” Mr. Aquino said.

He further noted that the development that the country is enjoying is a product of Filipino ingenuity and action.

Mr. Aquino then pointed out the importance of good governance in national development and how it brings out the best in the Filipino people: “Good and conscientious governance yields positive results, igniting a virtuous cycle of continuous prosperity founded on trust and competence, and at the core of our reform agenda — the empowerment of the common Filipino: to aspire, to work harder, to be more productive, for the greater good of our people. “

“We are witnessing the growth for our nation, reaching its fullest potential,” he added.

With this, Mr. Aquino asked everyone to unite to ensure that the country remain on course towards progress.

“By working hand in hand to ensure that democracy, standards and cooperation prevail because every venture won, every investment obtained, every job created in our land is not only the victory of an enterprise but the success of one Filipino movement, of a nation treading the straight and righteous path, towards a more equitable, a more modern, more peaceful Philippines,” he stated.

The first Subic Bay Maritime Conference and Exhibit was successfully held here last week, with more than 500 shippers and shipping line operators attending the two-day event at the Subic Bay Exhibition and Convention Center.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said that representatives from various shipping and logistics companies from as far as South Africa, Australia, Singapore, Malaysia and Japan, aside from the Philippines, attended the forum which focused on the advantages of Subic as a logistics and investment hub.

Garcia said the maritime conference should be an eye opener because the Port of Subic has one of the most beautiful and technologically-advanced container terminals in the whole country, and it is now ready for business as an alternative port to Manila. (FMD/MPD-SBMA))

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SBMA woos call centers to Subic’s ICT Hub

The Subic Bay Metropolitan Authority (SBMA) is now enticing call centers to locate in this free port, trumpeting its superb facilities for business process outsourcing (BPO) operations.

In an assembly meeting of the Business Processing Association of the Philippines (BPAP) and the Contact Center Association of the Philippines (CCAP), SBMA Chairman Roberto Garcia expressed optimism that Subic Bay will become the next place to be for information and communication technology (ICT) businesses in the country.

The SBMA official, who was invited by BPAP and CCAP president Benedict Hernandez to present the many opportunities awaiting investors in Subic, also said that while BPO continues to grow as a successful industry in the Philippines today, Subic is preparing to become a new ICT destination.

“BPO is the most vibrant industry in the country today. And Subic is now ready to accommodate you as we gear towards becoming ICT hub,” Garcia said.

He added that Subic has complete ICT facilities “in an environment where you will love to stay.” Proof of this is the 44 BPO locators now in Subic Bay, which altogether employ some 2,400 call center agents, he added.

Garcia also stressed that the Freeport now enjoys three-way (global) connectivity, a link from fiber-optic cable network to satellite transmission system and microwave uplink services needed to set up an international call center.

Most of all, he said that the free port zone at present has a 116-megawatt power plant, supplying the national grid and is working to have a switch for this plant to supply the Freeport to ensure continuous and steady power supply should the grid goes down.

The SBMA chief further added that working in the Subic Freeport is enjoyable as the agency maintains the best security in the country, enforces traffic discipline which eliminates traffic jams, and promotes a clean and friendly environment that is conducive to good health and happy living.

To accommodate more BPO locators, Garcia is offering a former assembly building of computer-maker Wistron Infocomm (Philippines) inside the Gateway Park, an industrial estate managed by the Subic Bay Development and Management Corporation.

The building has plenty of office space in a 10-hectare lot, and is located near the Freeport’s Central Business District, Garcia pointed out.

Garcia also advised the BPO executives that they can source out manpower elsewhere to fill up the seats for their call center projects.

“You offer good jobs in one of the best places in the country, and you will attract people to come with you to Subic,” he said.

Garcia explained that because of the expected influx of thousands of BPO workers in Subic, the SBMA is planning to build a workers’ dormitory, which can accommodate 8,000 workers near the proposed ICT hub.

He added that the proximity of the dormitory to the ICT hub will mean some P4,000 monthly savings on travel expenses of call center agents, thereby making the cost of living in the Subic Bay Freeport about 40 percent cheaper than in Manila.

Meanwhile, Hernandez expressed optimism that Garcia’s vision for an ICT hub in Subic is not far away from realization. He noted that Subic is a beautiful place, which has attracted everyone.

Garcia closed his meeting with BPAP and CCAP members with an invitation to them to visit Subic for a first-hand view of the ICT hub program. (RAV/MPD-SBMA)

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Puregold to set up Subic unit

LISTED Puregold Price Club Inc., the country’s second-biggest supermarket chain, is setting up a subsidiary to handle stores in the Subic Bay Economic Zone in Olongapo City.

In a filing to the Philippine Stock Exchange on Wednesday, Puregold said its board approved the incorporation of PPCI Subic Inc., which is wholly owned subsidiary.

The company has been widening its footprint outside Metro Manila, where the bulk of its stores are situated.

Earlier this week, Puregold acquired the 19-store Parco supermarket chain with 12 Metro Manila-based stores and seven in nearby provinces.

Following the acquisition of Parco and sister-company S&R Price Club Inc., Puregold +will have a total network of 131 stores, with more than half situated in the country’s capital.

The retailer reported earlier that net income in the three months to June rose 24 percent to P469 million as sales rose 30 percent to P10.7 billion. Puregold shares declined 0.44 percent to P22.60 each on Wednesday, giving it a market value of P45.2 billion.(Miguel R. Camus, Business Mirror)

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Hanjin Plans $700-M New Investments

MANILA - Hanjin, world’s leading ship manufacturer, is expanding its existing shipyard facility in Subic Freeport cementing the Philippines rank as the world’s fourth largest shipbuilder and construct a 200-megawatt power plant for estimated new investments of up to $700 million.

Trade and Industry Undersecretary for International Trade and Investment Promotion Cristino L. Panlilio revealed the Korean firm’s additional investment forays in the country after attending the recent investment promotion conference in Seoul organized by the ASEA-Korean Center where he spoke on the country’s favorable macroeconomic factors.

According to Panlilio, Hanjin through its local unit Hanjin Heavy Industries & Construction – Philippines, Inc. (HHIC-Phil, Inc.) would undertake the construction of its third slipway drydock at a cost of $300 million and plans to put up a 200 megawatt power plant that may cost between $200 million to $400 million.

Of the 200-mw power, Hanjin is expected to allocate between 50 to 60 MW for its own requirement and the rest to be supplied to the national grid.

For its shipyard facility, Panlilio said the construction of the third drydock would enable the facility to further expand its capacity to accept more shiprepair jobs. At present, HHIC-Phil is concentrating on shiprepairs and maintenance jobs because of a global slowdown in orders for new ships.

Panlilio said that Hanjin, which occupies 600-hectare lot in Subic Freeport, is working on a lease contract with Subic Bay Metropolitan Authority for an additional 100 hectares in the Redondo Bay for the new drydock.

The expansion of its Subic facility followed after Hanjin’s decision to abandon its expansion plan in Phividec in Misamis Oriental as it encountered problems with the local government units. In fact, it reservation for a 400-hectare property inside the industrial estate had already expired.

Since its first vessel delivery in 2008, Hanjin has already accumulated worth P125 billion in annual export sales as of the end of 2011.

Jin Kyu Ahn, president of the Korean shipbuilder giant, said that the recent vessel deliveries by Hanjin highlighted the competitiveness of HHIC-Phil’s Subic shipyard which produced the state-of-the-art commercial vessels.

Its newly delivered vessels are: M/T Brightway, a DWT 160,000 Crude Oil Tanker ordered by a Liberian company Modmal Shipping Limited and M/V FMG Matilda, a DWT 205,000 Bulk Carrier owned by Bocimar Hong Kong Ltd. based in Belgium. Both ship owners are engaged in international shipping and maritime solutions.

At present Hanjin employs 20,000 people at its Subic facility and plans to hire more this year.

Ahn said that, once targets for ship orders are reached this year, Hanjin could add over ten thousand workers which “would clearly benefit the Philippine economy, and bring opportunities to Filipino entrepreneurs and skilled workers, and much needed revenue to the Philippine government.”(Bernie Cahiles-Magkilat, Manila Bulletin)

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PLDT data center to drive Subic BPO development

MANILA - Philippine Long Distance Telephone Co.’s newly launched VITRO Data Center in Subic has been cited as a boost the development of the area’s business process outsourcing (BPO) industry.

“We see BPOs sprouting all over the Philippines but it still remains very underdeveloped here. We aim to increase our BPO seats here as we pursue a major program for this industry,” Subic Bay Metropolitan Authority (SBMA) chairman Bobby Garcia said during the launch of PLDT’s VITRO Data Center at the Subic Bay Freeport Zone.

“We hope we can make use of the facilities that PLDT has installed in the area. The data structure and the network that we have in place now is a reason why we can make Subic a central place for BPO. We are very happy to have PLDT as our partner”, he added.

The Subic VITRO Data Center provides companies the full information management and telecommunication services essential in business such as co-location, server hosting, disaster recovery/ business continuity, data security, network management, and other IT services. These services minimize costs of running and managing their own data centers which are essential for BPO companies.

“Subic’s continuously developing economic zone is home to a growing business community, one that will reap the many benefits of having our data center services within easy reach,” PLDT EVP and head of enterprise and international and carrier business Eric Alberto said.

“We are committed not just to building this facility but to replicate the achievements of our flagship site in Pasig – to ensure that we deliver the same consistent levels of quality service in all our data centers,” he added.

The opening of the Subic VITRO Data Center is also aligned with the SBMA objective of setting up a business operations resiliency zone in Subic. Garcia aims to declare Subic as a resiliency zone for companies in Metro Manila, especially for big multinationals, which are looking into setting up their disaster recovery centers.

“The VITRO Data Center in Subic assures stability, security, and reliability for the ICT demands of our clients, coupled by PLDT’s unparalleled domestic fiber network in the country as well as the robust wireless connectivity of Smart,” Alberto said.

The first VITRO Data Center in Pasig has already received numerous citations and multiple ISO certifications from various organizations. It acts as a global gateway for all major BPOs, local telcos, leading international telcos, and major Internet service providers (ISP). It houses the country’s only high-speed local IP peering platform that facilitates seamless delivery of bandwidth-intensive contents to carriers and ISPs. (Mary Ann Ll. Reyes, Philippine Star)

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