Subic-Clark Railway Project endorsed for Luzon Economic Corridor

The Subic-Clark Railway Project (SCRP), expansion of the Clark International Airport, and the Clark National Food Hub are among the high-impact projects offered to American and Japanese investors in the proposed Luzon Economic Corridor, which forms part of the Group of Seven (G7) Partnership for Global Infrastructure and Investment (PGII). 

 

During the trilateral meeting of President Ferdinand R. Marcos Jr., US President Joe Biden, and Japanese Prime Minister Fumio Kishida in Washington DC early this month, it was unveiled that the G7 countries eye to develop the Luzon Economic Corridor. The Luzon Economic Corridor aims to establish connectivity in economic hubs in Luzon – Subic Bay, Clark, Manila, and Batangas. 

Bases Conversion and Development Authority (BCDA) President and CEO Joshua M. Bingcang said BCDA is optimistic that the inclusion of SCRP, expansion of Clark International Airport, and the Clark National Food Hub in the proposed Luzon Economic Corridor will help accelerate the implementation of these game-changing infrastructure projects, not just for the country but for the whole Indo-Pacific region. 

SCRP, a joint project with the Department of Transportation, is an integral part of the Philippine National Railways Luzon System Development Framework. Once completed, it will provide initial freight service between the Subic Bay Freeport Zone and the Clark Freeport and Special Economic Zone, linking Subic Port with Clark International Airport and other major economic hubs in Central Luzon, especially New Clark City. 

BCDA is also embarking on the expansion of Clark International Airport, which includes the construction of a second runway, taxiways, aprons, and landside access roads and utilities, intended to cater to major logistics firms locating in Clark. 

Meanwhile, the BCDA subsidiary Clark International Airport Corporation will also develop the 64-hectare Clark National Food Terminal hub aimed at making the Philippines a leading agricultural resource hub in the region and the world. 

These three high-impact projects are BCDA's contribution to the efforts of Special Assistant to the President for Investment and Economic Affairs Frederick Go to drive sustainable and inclusive economic growth in the country and make the Philippines a top investment destination. (SNL)

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DOTr approves Subic-Manila railway project

The Subic Bay Metropolitan Authority said Wednesday it secured the green light from the Transportation Department to include a P100-billion elevated railway and expressway project from Subic Freeport to the port of Manila among priority projects.

SBMA chairman Martin Dino said the 100-kilometer multi-modal elevated railway and expressway project would greatly relieve port and traffic congestion in Metro Manila and increase cargo transit in Subic Port, which was currently operating at only a third of its rated capacity of 600,000 twenty-foot equivalent unit containers.

Dino said the construction of the project could be completed in 48 months. He said he would ask for Malacañang’s approval to have the project included for financing under the Philippine-China Framework of Cooperation.

Cargo unloading at the Port of Subic

Dino also said his team was already working on increasing Subic Bay Port’s capacity for new container terminals 3 and 4 by an additional 600,000 TEUs.

He also welcomed the appointment of lawyer Wilma Eisma as SBMA administrator, saying the Freeport now had “an excellent working team.”

“Now we can really move forward at Subic in our goal to raise investments and revenues, eliminate smuggling and stamp out corruption,” Dino said.

Eisma replaced former administrator Roberto Garcia and brought to Subic her wide management experience. She is expected to take over the post next week in what Dino described as “a great start to a new year in our effort to turn Subic into an anchor of national growth.”

This developed as the new win-win tandem vowed to promote Subic as a major alternative gateway for international cargos.

Dino, who was appointed by Malacañang in September, said there were “no more roadblocks to a wide-ranging reform in Subic, because now we can truly say we have an excellent working team.”

He said President Rodrigo Duterte was expected to name the remaining members of the SBMA board, the policy-making body, so the Freeport “can move rapidly and urgently in seeking new investments and building much-needed infrastructure.” (Darwin G. Amojelar, Manila Standard)

http://www.thestandard.com.ph/business/225298/dotr-approves-subic-manila-railway-project.html

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SBMA eyes P140B Big-Ticket Projects to boost investment in Subic Freeport

Subic Bay Metropolitan Authority (SBMA) Chairman Martin B. Diño disclosed the multi-billion-peso big-ticket projects that the agency will be undertaking in anticipation of the upsurge of foreign investors by next year.

In a recent meeting with the press, Diño said that he will be sending to Malacañang his budget proposal in the amount of P140 billion (US$2.8 billion) to fast-track six major projects he intends to implement during his term as SBMA chairman.

SBMA Chairman Martin B. Diño

“Before I came here, the president (Duterte) instructed me to improve and make Subic the best investment area in Asia. But how can I achieve that when there is no area that I could offer to new investors?” Diño asked, adding, “I have to find new land.”

He said that after surveying and studying the geographic location of the Freeport, Diño was able to identify a 3,000-hectare industrial zone that can be potentially developed at the back of South Korean shipyard Hanjin Heavy Industries Corporation at Redondo Peninsula, Subic, Zambales.

He further stated that there is more than enough land for investors at Redondo, but infrastructure such as roads and bridges should be built first to make it accessible via Subic Freeport to the new industrial zone in Zambales.

Diño explained that the "big ticket projects" include the construction of four major roads and bridges that would cost around P126 billion (US$2.52 billion), and eventually shorten the travel time of cargo trucks and passenger vehicles to and from Northern Luzon and Metro Manila.

First on the list with a proposed budget of P11 billion (US$220 million), is the construction of a 17.273 kilometer bypass road that would connect the Subic container terminals to Subic-Clark-Tarlac Expressway (SCTEX) without passing the busy commercial and leisure areas of the Freeport.

Second, with a proposed budget of P22 billion ($440 million) is the 25.73 kilometer Tipo-Castillejos By-Pass Road which will also include the construction of seven bridges. The by-pass road will be connected to Tipo Road at the exit of SCTEX and run directly to Castillejos, Zambales by-passing heavy traffic in Olongapo City and Subic, Zambales.

Third, with a proposed budget of P91 billion ($1.82 million) is the construction of a 65-kilometer multi-modal expressway that would directly connect Subic Freeport to Manila.

And fourth, with a proposed budget of P2 billion ($40 million) is the Tipo-SCTEX Road Widening project which aims to improve the capacity of Tipo Road. This will entail adding another lane on both sides of the road with the improvement of the existing tunnel and the construction of an additional tunnel.

These projects, according to Diño, should provide easy access to and from Subic Freeport for both cargo haulers and tourists, especially those coming from or going to North and Central Luzon, as well as Metro Manila.

“These infrastructure projects will bring Subic Freeport and other centers of commerce in Luzon area closer to each other,” he said, noting that travel time from point-to-point will be greatly shortened, making development faster and easier, while at the same time helping decrease the volume of vehicles plying major roads of Metro Manila that cause traffic crisis.

“Where these roads pass, expect rapid economic growth which means more jobs being created and more revenue being collected. There will be more progress for everyone,” he added.

Meanwhile, to maximize the economic benefits brought about by the new roads, SBMA is also proposing the construction of additional container terminals and the expansion of Naval Supply Depot here.

According to Diño, he is proposing the construction of New Container Terminal 3 and 4 in the amount of P10 billion (US$200 million) which will the constructed parallel to the existing NCT 1 and NCT 2.

The Naval Supply Depot, which mostly serves as storage facility for bulk grains and other non-containerized cargoes, is being proposed for expansion and improvement in the amount of P4 billion (US$80 million).

Diño said that he has coordinated with the National Economic and Development Authority (NEDA) to seek its endorsement to Malacañang for the approval of the proposed projects.

“We have already sent a memorandum to NEDA seeking its endorsement to Malacañang so that we could go ahead and fast track these big ticket projects and complete them the soonest possible time,” he said. (RAV/MPD-SBMA)

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SBMA, Resom sign P20-billion tourism project

The Subic Bay Metropolitan Authority (SBMA) recently signed a contract with Korean-owned Resom Resort Phils. (Resom) for the development in the Freeport of a world-class tourism resort complex worth P20 billion.

In a simple ceremony held June 13 at the Freeport, SBMA Chairman and Administrator Roberto V. Garcia and Resom Chairman Sang So Shin signed lease development agreements that would pave the way for the construction of this landmark tourism project.

The first phase of the project involves the development of a prime waterfront property previously known as the mini-golf course with a gross area of two hectares and a buildable area of 6,000 sqm.

Resom is committed to invest P1.2 billion for the construction in this area of a luxury hotel with around 300 rooms, convention facilities, pool, spa, restaurants and other support facilities. This project is being targeted to be ready to serve the Asia-Pacific Economic Cooperation (APEC) conference in November 2015.

The second phase of the project will cover the development of the Resom City tourism complex involving several properties in the Naval Magazine area amounting to around 300 hectares.

This will include the construction of a world-class resort complex that will have hotels, condominiums, a theme park, luxury pool villas, casino and gaming operations, a waterpark and spa, health and wellness center, duty free shopping, and a championship golf course.

This phase involves an investment commitment of around P19 billion and is expected to take around 4 years to complete.

According to Resom Chairman Shin, the Subic Resom City project will be their centerpiece development.

Resom presently owns and operates four world-class resorts namely, Ocean Castle, Resom Waterpark and Spa, and the Forest Villa resort all in Korea, and a championship golf course and resort in Weihai, China. Resom operates a time-share membership chain and certain of their facilities are open to the public as well.

During the contract signing, Chairman Shin said that he loves nature and that Resom always develops their resorts by keeping and preserving the environment as a main priority.

He said the natural beauty of the forests and waters in Subic are the main features that convinced him that Subic is the ideal choice for their centerpiece resort.

On the SBMA side, Chairman Garcia welcomed this world-class resort project as a great tourist attraction that would draw millions more of local and international visitors to the Subic Bay Freeport and establish it firmly as one of the country’s major tourism destinations.

“This hopefully will contribute substantially to the country’s tourism campaign,” Garcia added. (FMD/MPD-SBMA)

PHOTO:
SBMA Chairman and Administrator Roberto Garcia and Resom Phils. Chairman Sang So sign an agreement for the construction of a P20-billion resort complex in the Subic Bay Freeport.

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2013 a productive year for Subic - SBMA chief

Subic Bay Metropolitan Authority Chairman and Administrator Roberto Garcia announced several huge projects for Subic Bay Freeport this year.

Garcia said most of the negotiations with different investors done last year would be pushing through in 2013.

Resom Resort Co., Ltd project in Minanga, in Morong, Bataan was sidelined because of a land dispute but this year, but Garcia said it will pursue three major builds.

Garcia said the first will be a multi-million dollar luxury hotel at the former mini golf area along the famous waterfront road.

The second will be a hotel, casino and spa in Cubi and a golf course in Minanga in Morong, Bataan.

Resom will invest an estimated P600 million in the projects, Garcia said.

Ocean Nine, which was also side-tracked last year due to a legal problem will start to renovate the former Legenda Hotel.

“Included in their license which is expected to come out this week is for the operation and renovation of the former Legenda hotel and the El Centro Convention Center,” Garcia said.

“These two project will infuse $30 million,” he added.

Another company in the leisure industry which will be doing a project in Subic this year is Holiday Inn with an estimated investment of P1.8 billion.

The agency is also looking for an investor to lease out the current administration building along waterfront road.

The administration building is considered as a historic landmark in Subic to some because this building was the former command center of the United States Navy.

Talks are currently being held with companies into aircraft and maintenance service, he added.

“We are also talking to several Hong Kong companies who are considering to relocate operation in Subic.” Garcia said.

“One company we are talking to right now has 16 and the other one has 36 charter jets, if all goes well, the airport will be a busy place this year,” he said.

Vale, an iron ore transshipment company who brought around P60 million in revenues for Subic last year is looking at doubling its revenues this year, he said.

Subic’s port is also expected to be busy after Garcia said Purefood, San Miguel and another fertilizer firm expressed keen interest in it.

Black and Decker, a US-based powertool manufacturer, will also be setting up shop in Subic soon, Garcia said.

“With all this investments coming this year, we are confident that Subic will prosper this year and we hope that we can sustain all of this and add more,” he added. (Anthony Bayarong, Philippine Star)

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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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IN SUBIC, BAGUIO, CLARK; P5B power subsidy for mega projects

The Department of Trade and Industry (DTI) plans to continue a power subsidy plan for mega projects or those worth over $1 billion in Subic, Baguio and Clark.

Trade Undersecretary Cristino Panlilio said that P5 billion is being budgeted to replenish an old fund-industry competitive fund- started during the term of President Gloria Arroyo.

The subsidy can last for seven years. Panlilio said the electric power support scheme is now awaiting approval of Malacanang after it has gotten the endorsement of the economic cluster for appropriation in the budget.

He declined to identify the companies that would benefit from the plan nor the power rates they would be enjoying but previous reports had tagged Texas Instruments in Clark and Baguio, Hanjin Heavy Industries Philippines in Subic, Samsung through unit Phoenix Semiconductors in Clark, Intel Corp. and Mindanao Electronics Inc. as the initial beneficiaries of the reduced power scheme.

Despite this incentive, Intel chose to shift operations to Vietnam and closed its Cavite plant.

The subsidized power rate was P2.15 per kwh, which is about half the current cost to ordinary consumers and includes generation, transmission and distribution charges.

Generation charge was 20 to 30 percent cheaper.

Panlilio clarified that the new scheme being worked out is for just projects worth over a billion dollars and is separate from the one earlier forged by the Philippine Economic Zone Authority (PEZA) for reduced power rates for about 279 ecozone locators.

“It would be an adequate support for them to be competitive,” said Panlilio of the electric power support scheme.

The ICF was part of a commitment granted by the Arroyo government to the mega investors in Clark, Subic and Baguio ecozones. The support was contained in Executive Orders 701, 856 and 666 and expired in March 2011.

The scheme reportedly cost government P500 million annually because the locators were few and operations were small..

Korean firm Hanjin invested $2 billion for shipbuilding in Subic; Texas Instruments also invested $2 billion for its expansion project; Phoenix Semiconductor invested $500 million in Clark.

The ICF was used to support and incentivize qualified power intensive industries which contribute significantly to the economy.

The ICF was used to recover any financial impact that PSALM had to incur for the subsidy. (Irma Isip, Malaya)

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