Grand Utopia official lashes back at Palafox

A top official of the controversial $120-million hotel and casino that has become the subject of environmental concern has finally lashed back at its former architect who turned into the project’s No. 1 critic after being sidelined from the project.

In a statement, Executive Manager Eric Ghi-Buhm Park said that Grand Utopia Inc. is deeply disappointed that their former architect Felino Palafox Jr. began criticizing their Subic Project in the media using documents of their company.

“By coming out in the media and speaking before various public gatherings [while] criticizing our Subic project, the architect has committed a breach not only of the provisions of the subcontract agreement but also of professional ethics,” Park added.

Environment Secretary Lito Atienza also inspected the project site last January and confirmed that the trees remained intact at the project site.

“If architect Palafox, as our professional local architect, was sincerely concerned about the trees from the very beginning, wasn’t it his responsibility to advise his client Grand Utopia of an alternative solution instead of publicly criticizing his client’s project in an unethical way with all exaggerations?” Park rued.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza in a separate statement is urging the critics of the project to be objective and stop sensationalizing the issue that has only delayed the project.

“We still think that this project would be beneficial to the Subic Bay Freeport, especially with the projected manpower hiring of about 5,000. It’s a project proposal that we have to evaluate objectively,” Arreza said.

Arreza made the appeal after the Special Committee on Bases Conversion of the House of Representatives on Tuesday conducted its initial hearing on two resolutions seeking to investigate claims made by noted architect Palafox.

The project remained on hold since November last year after Palafox’s claims triggered protests from environmental groups concerned about trees at the project site.

The SBMA official also bared project proponent Grand Utopia Inc. has already asked the SBMA to give them an alternate location since the allegations have caused the project much delay. (Anthony Bayarong, Manila Times)

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Subic hotel-casino proponent now looking for new site in Subic

Despite the raging controversy stirred by allegations of tree cutting to make way for the Ocean 9 hotel-casino project in Subic Freeport, the Korean proponent has not given up on its $120 million project and is now scouting for another location.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said in a media briefing that Grand Utopia Inc. asked Subic authorities for help in finding another site for its hotel-casino complex.

"We have, in fact, found a suitable new location, but it's not yet final," Arreza said.

He identified a block of waterfront property where the decade-old steel skeleton of an aborted hotel project still stands as a possible site.

"Understandably, Grand Utopia is already impatient because of the delay resulting from the controversy," Arreza said, referring to allegations by noted Filipino architect Felino Palafox Jr. that the project would destroy about 300 trees at the proposed site.

The purported tree cutting has caused uproar among environment, religious and civic groups, although not a single tree has yet been cut, as some independent groups had verified, including Environment Secretary Lito Atienza, who inspected the site last month.

Arreza said what happened was really unfair to Grand Utopia, "because this locator has, since the beginning, indicated its willingness to abide by Philippine laws."

He added if the Ocean 9 proposal would indeed destroy trees, the plan could always be altered or rejected by authorities. "That's why we have laws to guide us in making decisions," he said.

Arreza also called on critics of the project to stop "sensationalizing" the issue for the truth to emerge and the matter resolved rationally.He said the issue is "already moot" since no trees have actually been cut at the project site, and the SBMA and the Department of Environment and Natural Resources (DENR) have categorically stated they will not allow any tree to be cut.

"This is already a closed case as far as we're concerned, but the problem is somebody continues to muddle the issue," Arreza said, referring to Palafox.

"Palafox fancies himself as a crusader for the environment and a fighter of corruption, but so far he has been making unsubstantiated allegations," Arreza said. "He owes a lot of people explanation for what he' s done," he added.

Arreza said Palafox began "exposing" internal documents about the Ocean 9 hotel-casino project even before Grand Utopia could formally present its plan to the SBMA.

The initial environmental examination (IEE) report for the project was received by the SBMA only in the first week of January this year, but Palafox has been talking about its details since late November, Arreza said.

"That was grossly unethical because he [Palafox], technically, did not own the plans since he was just hired as a project designer," Arreza said.

Palafox claimed last year that he backed out of the project after learning that Grand Utopia intended to cut trees.

Arreza said documents from Grand Utopia indicated that Palafox was precisely hired because he promised the Korean firm to facilitate the granting of an environmental compliance certificate for the project.

SBMA documents also show that an environmental assessment group hired by Palafox for the project's IEE had said in its initial report "tree-balling is highly recommended."

A manifesto from the Council for Built and Natural Environments (CBNE), composed of nine professional organizations, meanwhile, urged "a second look" at the Ocean 9 controversy to "come up with a more objective and intelligent appreciation of the situation."

The CBNE said a fact-finding mission it conducted on February 5 validated that the proposed project site is in Subic's commercial district, there is no natural forest in the proposed project site and that no tree has been cut or felled.

Based on its findings, the group concluded that vegetation in the project site can neither be considered virgin forest, or a natural old-growth forest, and that there are no century-old trees in the area.

The CBNE is composed of the United Architects of the Philippines, Philippine Institute of Environmental Planners, Philippine Association of Landscape Architects, Geological Society of the Philippines, Integrated Chemists of the Philippines, National Master Plumbers Association of the Philippines, Philippine Association of Agriculturists, Philippine Institute of Interior Designers, and the Society of Filipino Foresters. (Henry Empeno, Business Mirror)

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Aboitiz Power defers Subic power project

THE construction of the 300-megawatt (MW) coal-fired power plant of Aboitiz Power Corp. (AP) at the Redondo Peninsula in Subic has been deferred indefinitely as a result of reduced demand in the Luzon grid.

AP chief financial officer Iker Aboitiz said, "We are basically taking a closer look at the project and looking at what's going to happen in the Luzon grid this year because of the slowdown. The need for more capacity is not as clean-cut as in the Visayas grid."

However, Aboitiz said they are not abandoning the plan to put up the $450-million power plant, a joint project of AP and Taiwan Cogeneration Corp. that was originally slated for completion in 2011.

"It is just a matter of when to build it. We will need it and the capacity, for sure. We are just looking at our options in terms of timing." Aboitiz said.

Aside from its Redondo Peninsula project, AP is pushing for other brand-new generation projects: the 460-MW coal-fired plant in Toledo in partnership with Metrobank and Formosa Heavy Industries of Taiwan, and the hydroelectric plant in Sibulan in Davao Oriental by AP subsidiary Hedcor.

At the same time, AP is preparing to create a special purpose vehicle to bid for the Sual and Pagbilao power plants expected to be up for bidding by the middle of the year. Sual-Pagbilao produces about 1,700 MW.

"We can bid for two [facilities] , but the government does not want one company to control that much power so that we are only bidding for one," said Aboitiz. He did not identify which facilities AP is considering. (Wilfredo Rodolfo III, Business Mirror)

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Subik Clicks Photo contest opens

Subic Bay and the surrounding area are a nature and photography lovers haven and now the Greater Subic Bay Tourism Bureau (http://www.greatersubicbay.com) wants your help in showing the world.

GSBTB is proud to announce "Subik Clicks," a photography contest that highlights the four areas that make up the Greater Subic Bay area.

The Greature Subic Bay Area is composed of the Province of Bataan, Olongapo city,
Subic Bay Freeport, and the province of Zambales (also collectively referred to as "Subik")

The contest will accept photographs taken in any part of the four areas between January 1, 2009 and April 24,2009 the deadline for submissions.

Subic Bay itself is becoming well know as a tourist destination and the area has seen a growth in hotel rooms.

Visitors from Manila and Cebu are increasing as they see it as a great alternative to other locations.

The global economic crisis has caused many of them to look for lower cost alternative for vacations and they have discovered that not only does Subic Bay offer a great value, it also offers great vacations.

The beaches along the Zambales coast are some of the best in Asia. Being less than a two hour drive from Manila, it is also great for a short getaway.

Tourists from neighboring countries are also exploring the area. The DMIA at Clark Freeport Zone is a great gateway. The facilities are much better than the Manila airport giving visitors a much better arrival experience.

A number of airlines are now flying into DMIA instead of Manila. The Subic Bay Freeport, the hub of Subik, is directly connected to the DMIA airport by the Subic-Clark- Tarlac expressway.
Forty-five minutes after stepping out of the terminal at Clark you can be stepping onto a beach.

Subic bay offers much more than great beaches and water sports. the Aetas, the nomadic tribe that has lived in the mountains for centuries allow tourists a glimpse into the jungles and their traditional lifestyles with hikes into the jungles and survival skill demonstrations.

There are a number of theme parks also, such as Ocean Adventure, Zoobic Safari, Jungle Joe's and Tree Top Adventure.

The photography contest is open to everyone. The theme is simple show off what the Subic Bay area's tourism is all about.

Photos submitted should be 8x10 in size unmounted. Entries will be entered into categories which are based on the location the photographs were taken.

Each category will have a top prize of 20,000 pesos. There will be over 200,000 in cash prizes. The top 100 entries in each category will be displayed at the Subic Bay Exhibition and convention Center from 2 May to 14 May 2009. Winners will be announced on 8 May, 20009.

See the web site http://www.greatersubicbay.com for more details and entry form. (c/o Olongapo-SubicBay News)

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Architects, planners call for objectivity on Subic ‘tree-cutting’ issue

Various professional associations, including the biggest group of architects in the country, have urged an objective appraisal of the proposed hotel-casino project in this free port, pointing out that development and conservation can co-exist.

In a manifesto released to the media on Wednesday, the Council for Built and Natural Environments (CBNE), which is composed of nine professional organizations, said “a second look” at the project is needed to come up with “a more objective and intelligent appreciation of the situation.”

“The CBNE believes that development and conservation can go together and both can synergize with each other to ensure the welfare of the public,” the group said.

“A careful review of the facts together with scientific, proper and judicious implementation of environmental and natural resource guidelines will achieve this,” the CBNE added.

The CBNE is composed of the United Architects of the Philippines (UAP), Philippine Institute of Environmental Planners (PIEP), Philippine Association of Landscape Architects (PALA), Geological Society of the Philippines (GSP), Integrated Chemists of the Philippines (ICP), National Master Plumbers Association of the Philippines (NAMPAP), Philippine Association of
Agriculturists (PAA), Philippine Institute of Interior Designers (PIID), and the Society of Filipino Foresters (SFF).

The group said it has taken a “special interest” on the tree-cutting issue considering the widespread interest and concern that it has generated.

The Ocean 9 hotel-casino project proposed by Korean firm Grand Utopia has been sidelined since groundbreaking in November last year after Architect Felino Palafox Jr. alleged that it would result in the destruction of some 300 trees, including supposedly century-old trees at the proposed project site.

The allegations by Palafox, who was previously hired to design the project, stirred a controversy, although the Subic Bay Metropolitan Authority (SBMA) had categorically stated it would not allow any tree-cutting.

The CBNE said the purported tree-cutting in the Subic Freeport “has been made to appear as an unconscionable imperative in favor of development that is grossly inimical to the environmental integrity of the proposed site.”

“This has sent an alarming signal that seems to pit development versus (the environment),” the group added.

The CBNE said that it also conducted a fact-finding mission to the site on February 5, 2009 after reviewing project technical reports presented to the media.

Among others, the fact-finding mission validated that the proposed hotel-casino project site is within Subic’s commercial district, that there is no natural forest in the proposed project site, and that no tree has been cut or felled, the CBNE statement said.

It also stressed that the three species of trees in the area, consisting of 33 individuals, that were earlier classified as “endangered” or “critically endangered” referred to species whose survival in the wild is unlikely, or those facing “extremely high risk of extinction in the wild.”

But “while some of those in the list may indeed be vanishing in the wild, they are actually planted and growing in abundance and are readily available commercially in just about anywhere else all over the Philippines,” the CBNE asserted.

The group also said that based on its investigation, it has concluded that the vegetation in the project site can neither be considered virgin forest, nor a natural or old-growth forest, and that there are no century-old trees in the area.

In view of its findings, the CBNE urged all concerned “to take a second look at the issue and come up with a more objective and intelligent appreciation of the situation.” (SBMA Corporate Communications)

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Hanjin delays expansion of Shipyard

With no new ship orders, Hanjin Heavy Industries Corp., Philippines (HHIC-Phil) is slowing down its shipyard expansion.

Hanjin received 34 ship orders in the early part of 2008 in its shipyard but the number of orders has not increased to date.

Ship owners have put off new orders as they watch the manufacturing industry grapple with slackening consumer demand.

Armand Arreza, Subic Bay Metropolitan Authority (SBMA) administrator said, Hanjin was supposed to go on with the construction of dry dock number 7, but has not started the expansion because of the changed business environment.

The present shipyard is handling the construction of 34 vessels scheduled for deliveries from 2008 to 2013. This year, Arreza said 14 vessels are scheduled for delivery.

Vessel sales are estimated to be between $840 million to $900 million, as ships vary in sizes.

Last year, Hanjin launched four 4,300 TEU container ships that cost around $60 million each.

Hanjin’s dry-dock numbers 1, 2 and 3 are all in its shipyard in Korea.

Dry-dock numbers 3 and 4 are in Subic and another one will be constructed to accommodate future vessel constructions.

Dry-dock no. 6, a 480-meter long 13 meter-wide and 13 meters deep was completed last year. It has a bigger assembly line, with a 1.7 kilometer quay wall installed with two more units of ultra huge gantry cranes.

“The dry-docks are included in the first phase of development worth $1.6 billion. The second phase of the project development which involve the construction of
dry-dock 7 is supposed to deliver another $1 billion investment,” Arreza said.

"The shipyard currently employs 20,000 workers. Their commitment to employ about 40,000 employees would happen if the phase 2 of the project would be in place," He added.

Hanjin uses state of the art technology to ensure being at par with competitors and be able to maintain value for customers.

Hanjin’s shipyard expansion will allow the company to compete well with other major shipbuilders in Korea, such as Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering.

The firm plans to increase the shipbuilding capacity in Subic equipped with facilities that can generate annual sales of about $3.1 billion, the company said.

“We will promote the shipyard as a global shipbuilding base,” Hanjin said. (c/o Olongapo-Subic Bay News)

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Bidding for Subic container terminal starts

The Subic Bay Metropolitan Authority (SBMA) has announced that bid documents for the operation and management of the New Container Terminal-2 (NCT-2), the second phase of the multi-million dollar Subic port project, are now available to interested parties.

Capt. Perfecto Pascual, general manager of the SBMA Seaport Department, said on Tuesday that bid documents may be obtained from the Project Management Office (PMO) upon payment of a non-refundable amount of P100,000 or $2,500..

The PMO, which is located at Bldg. 29, Waterfront Road Extension, SRF Compound, Subic Bay Freeport, is open Monday to Friday, from 8 a.m. to 5 p.m.

“We have started selling out bid documents today after completing the requirements of publishing notices in January,” Pascual said on Tuesday.

He added that bidders are expected to submit their proposals on or before 2 p.m. of April 14, after which the bids will be evaluated by the Special Bids and Awards Committee (SBAC) for Port Commercialization.

“If we have a successful bidding, then we intend to finish with the awarding sometime in July,” Pascual said.

According to the bid invitation sent out by the SBAC, the contract will be for the operation, management and maintenance of the NCT-2 as a transshipment hub.

The NCT-2, which is located at the Cubi Point in Subic, has a 14-hectare newly-constructed container yard, a 280-meter long newly constructed wharf, two units of 53-ton capacity quay gantry cranes, as well as other buildings, equipment and utilities.

Pascual said the facility, which has a capacity of 300,000-TEUs (twenty-foot equivalent units), can accommodate big container ships, including Panamax vessels.

The SBMA bid invitation has set minimum requirements to determine the eligibility of interested bidders.

Under technical qualifications, the SBMA said that the bidder must be an operator of an international container shipping line, or a consortium of operators; and that the bidder handles at least 2 million TEUs per year, or has an operating capacity of 100,000 TEUs, which are combined in case of a consortium.

The bidder or consortium of bidders must also have a net worth of at least US$50 million, which are again combined in case of a bidding consortium.

Under the financial requirements, the SBMA said, among others, that each bidder or joint venture or consortium “must be able to submit evidence of the availability of, or the ability to raise the amount needed for the operation and maintenance of NCT-2 in the amount of at least US50 million.”

Legal qualifications, meanwhile, require each bidder to submit proof of legal eligibility and competence, as well as proof of payment of current taxes, among others.

Moreover, in case of a foreign bidder, the SBMA set as a condition for award that the equity participation of a foreigner “shall not exceed 40 percent of the total equity of the winning operator.”

Pascual said the SBMA is encouraging foreign shipping lines to participate in the bidding because it is positioning the NCT-2 as a transshipment hub.

“A lot would benefit if NCT-2 becomes a transshipment hub,” Pascual said. “The government would earn more revenue, commerce and trade in Central Luzon would be enhanced, and more jobs would be created.”

He said that the 300,000-TEU NCT-1, which is operated by the Subic Bay International Terminal Corp. (SBITC), is now being utilized mainly for shipping export and import requirements of business locators in Subic and Clark free ports, as well as other port users in the Luzon area. (SBMA Corporate Communications)

PHOTO: Subic’s New Container Terminal-2

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We did best to comply with safety laws - Hanjin

The president of Korean firm Hanjin Heavy Industries and Construction on Tuesday said that they did their best to comply with the Philippine’s safety laws, rules and regulations and even promised to “go the extra mile" to protect the lives of their workers."

"[Hanjin] feels that it has done in its two years of existence its best to comply with all safety laws, rules and regulations and if necessary would go the extra mile of providing what is lacking in this laws to completely protect the lives of our workers," Hanjin president Jeong Sup Shim told the Senate panel investigating the fatal accidents in the shipyard and construction site.

He added that Hanjin would continue to contribute to the economic development of the Philippines.

Based on the records of the Subic Bay Metropolitan Authority, there were 19 work-related deaths at Hanjin.

Jeong Sup Shim thanked the Senate and other parties for the concern to the safety of their shipyard but he asked the panel to be objective in releasing its findings.

"The Senate and other parties will gather enough information to come up with a fair finding taking into account both sides of legislation with all objectivity and impartiality, " Jeong said.

"We believe that the purpose of the inquiry is in aid of legislation and to further improve the safety of the workplace and not really to find fault in our company which could easily hinder operations," he added.

Jeong said the firm will recognize the findings of the panel. "We are one with the Senate and other concerned parties that it is vital to implement health and safety programs in our shipyard," Jeong said.

Upon the questioning of Senator Pilar Juliana Cayetano, Jeong said that being the company’s president, his primary job is to concentrate in marketing and getting ship orders.

He said he is just relying on the report of his men on the ground particularly about labor matters. Mr. Jeong assumed his position only in February 2008.

Also present at the hearing were Hanjin general manager Myung Goo Kwon and deputy managing director Pyeong Jong Yu; Feliciano Salonga, chairman of the Subic Bay Metropolitan Authority and representatives from the Department of Labor and Employment and Department of Health. (Amita Legaspi, GMANews.TV)

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First RP cruise ship makes Subic its homeport

The first cruise ship to fly the Philippine flag has made Subic Bay its homeport, giving an added boost to this free port’s claim of being one of the country’s most spectacular tourism destinations.

Esteban Tajanlangit, chairman of the 7107 Islands Cruise, said the 370-passenger ship will now start its twice-monthly inter-island tours here, after cruise line officials saw Subic’s advantage as a nautical gateway.

“This is the Philippines’ first cruise ship and Subic Bay is the ideal homeport for it,” Tajanlangit said when the ship first sailed to Subic on February 14.

He noted that Subic’s Alava Pier, where US warships used to dock, offers an instant panorama of the freeport zone, unlike in Manila where containerized cargoes blocked the view of the city.

“The 7107 Islands Cruise is committed to make Subic a takeoff point to our country’s 7107 spectacular islands, and today is just the beginning,” he said.

On its maiden cruise to Subic on Valentine’s Day, the Filipino cruise ship brought close to 300 vacationers who spent a day exploring some of the top attractions in this free port under tour packages arranged by the Subic Bay Metropolitan Authority (SBMA).

The tour destinations included theme parks like Tree Top Adventure, Zoobic Safari, and Ocean
Adventure, as well as duty-free shops and other leisure facilities in Subic’s central business district.

With the ship homeported at Subic, meanwhile, tourists from Central and Northern Luzon will now have the chance to join the ship’s island-hopping tours, said SBMA Chairman Feliciano Salonga.

“They can take the Subic-Clark-Tarlac Expressway (SCTEx) and be in Subic in no time for the scheduled tours,” Salonga said.

Tajanlangit said the succeeding 7107 cruise schedules will start from Subic, proceed to Manila to pick up additional passengers, then begin the hops to Puerto Galera, Boracay and Coron.

The ship will dock one or two days in each destination before sailing back to Subic Bay, he said.

The 110-meter long 7107 Islands cruise ship has 137 cabins with a total bed capacity of 370, a swimming pool, sauna and spa, poolside bar, and entertainment lounge that features professional bands and guest artists.

The cruise line also has tie-ups with destination resorts for diving, snorkeling, boating and other water sports activities.

The entry of the 7107 Islands cruise line in Subic was the result of the aggressive promotion campaign by the SBMA Tourism group, which has been busy creating various tour packages for Subic Bay.

A private firm has also developed areas at the SRF for a passenger terminal and tourist complex, and built a Bali-type resort along the waterfront.

Salonga said the passenger cruise industry is expected to energize Subic’s tourism sector and provide some steam to port and maritime-related businesses here in face of the global recession. (SBMA Corporate Communications)


PHOTO:
The 7107 Islands Cruise Ship steams into Subic Bay, its new home port.

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Customs vows 100% X-ray scanning of cargo in Subic

The Bureau of Customs (BoC) has vowed to fully implement the mandatory X-ray scanning of containerized cargo passing through the Subic Bay Freeport after the Subic Bay Metropolitan Authority (SBMA) offered assistance in the bureau’s revenue collection efforts.

Port of Subic customs collector Marietta Zamoranos assured the Congressional Oversight Committee chaired by Rep. Jeci Lapus of Tarlac that her office would ensure the proper use of the X-ray machine at Subic’s New Container Terminals (NCT-1 and 2) in order to plug any revenue leak and prevent the entry of anti-social goods.

“I believe that, at least with respect to the collection of fees, it can be done properly with the help of the SBMA,” Zamoranos said, after SBMA Administrator Armand Arreza proposed that boom gates be installed at the entry/exit to the container ports to facilitate X-ray inspection of containerized goods.

Lapus and oversight committee members Rep. Teodoro Casiño (Bayan partylist) and Rep. Ma. Carissa Coscolluela (Buhay partylist) conducted a hearing here last week to investigate reports that the X-ray machine installed here by the Department of Finance in late 2007 has not been utilized.

Kurais Jusman, BoC field officer for the X-ray inspection project in Subic, however, reported that only 20 percent of all containerized cargo passing through Subic from October 2008 to January 2009 were scanned.

Jusman told the committee that container truck drivers on their way out of the cargo terminal refused to stop for X-ray scanning even if they were flagged down by Customs agents.

He said that because of this, out of the total 2,125 containerized cargoes that entered the Port of Subic since October, only 433 passed through X-ray scanning.

Jusman also said that only 1,267 cargoes have been assessed for the container security fee (CSF), which is charged to help defray the $150-million cost of 10 X-ray machines installed in various ports throughout the country.

He added that in the same period, 834 cargoes were assessed for the CSF but were not scanned, while 361 did not pay the CSF and also bypassed the scanning requirement.

Arreza said that boom gates should be set up at the cargo terminal’s point of entry/exit to solve the problem.

“If this was relayed immediately to us, we could have gone after the business locators here who refused to have their cargo scanned,” Arreza said, adding that the SBMA will now take a more active role in seeing to it that Freeport locators comply with Customs scanning procedures as far as their incoming containerized cargoes are concerned.

With this, Lapus asked Jusman if the scanning requirement can be carried out once the boom gates are set up.

To which Jusman replied: “I will resign from my position if we fail to scan 100 percent of the containers.”

The X-ray scanning of all containerized cargoes in Subic is aimed at enforcing Executive Order No. 660, which imposed taxes on excess capital goods imported at the Subic Bay Freeport and Special Economic Zone to prevent technical smuggling.

Under EO 660, importations by Subic locators of capital goods in excess of what they need would be deemed brought into or sold within the customs territory and subject to taxes.

Early last month, SBMA senior deputy administrator for operations Ferdinand Hernandez issued a memorandum to all investor-firms in Subic to remind them about the required X-ray scanning of all containerized cargoes arriving in Subic. (SBMA Corporate Communications)


PHOTO: Members of the Congressional oversight committee (from left) Buhay partylist Rep. Ma. Carissa Coscolluela, Bayan partylist Rep. Teodoro Casiño, and committee chairman Rep. Jeci Lapus (Tarlac) conduct a probe on the use of X-ray scanning machine at the Port of Subic.

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Feature: LUB, SCTEX extends development in Freeport, Zambales

IBA, ZAMBALES—Less than a year into its opening, the Subic-Clark-Tarlac Expressway (SCTEX) is fast gaining prominence among tourists and businessmen, and a great number of investors within the Subic Freeport Zone gave nothing but praise to the tollway project.

John Corcoran, president of the Subic Bay Freeport Chamber of Commerce, Inc. (SBFCCI), said that the SCTEX will provide local and foreign visitors with better and faster access to Subic’s recreational facilities as well as commercial and industrial establishments.

“This is going to have such a positive impact all over the Subic Bay Freeport because the new highway has significantly cut travel time to Subic from Clark and from as far as Tarlac,” said Corcoran.

“I am sure that we will see more development along the Subic-Clark growth corridor,” added Corcoran, who is also president of Ocean Adventure, a popular marine theme park here.

Another Subic investor, Yvett Ocampo-Desiongco, CEO of the newly-opened Subic park Jungle Joe’s World, also expressed confidence that the SCTEX would bring in more business here.

“Subic can now count on more visitors not only from Metro Manila and South Luzon areas, but also those from North Luzon.”

“And the highway is awesome and world-class,” she added, saying the SCTEX reminds her of the highway going from San Francisco to Idaho in the United States.

The SCTEX, which covers a total distance of 93.77 kilometers and touted to be the longest four-lane expressway in the Philippines today, is also expected to open up more investment opportunities along the Subic-Clark growth corridor.

SCTEX: Luzon Urban Beltway’s priority component

A flagship project of Pres. Gloria Macapagal-Arroyo, the SCTEX was funded with a loan from the Japan Bank for International Cooperation (JBIC), and is composed of two packages: the 50.5-km Subic-Clark connection, and the 43.27-km span that connects Clark to Tarlac.

The tollway project is the backbone of the Subic-Clark Mega Logistics Hub and a part of the priority infrastructure projects designed for the Luzon Urban Beltway (LUB).

LUB is one of the regions included in the super regions concept eyed to usher development towards the countryside.

“Our resolve to provide the necessary infrastructure for growth and prosperity has heightened investors’ confidence in our ability to slug it out in the global arena…we have billion dollar investments coming in because they have seen us putting money, our own money, our own investment in infrastructure. “

These words, delivered by PGMA during the Luzon Urban Beltway (LUB) Infrastructure Conference at the Subic Bay Freeport Zone in Zambales almost two years ago, sum up the government’s determination to usher development all over the country through the super region concept.

Zambales: Gearing up, cashing in

Subic Bay Metropolitan Authority Administrator Armand Arreza announced that SBMA has maintained its status as the country’s leading investment agency after posting US$1.1 billion in committed investment employing nearly 70,000 workers this year.

“Our new challenge today is to bring investments to the nearby towns of Zambales and Bataan and Olongapo City. This will be easier now after the President issued Executive Order 675,” Arreza said.

With the EO 675, according to Arreza, new investors who are looking for bigger land area will be allowed to put up investment to other places near the Subic Bay Freeport and Clark areas.

“We are also preparing a plan for the construction of access roads going to some tourist and investment sites in Zambales. There are also new power plants to be built inside the Freeport zone that will provide lower power rates,” he said.

In a similar move, Zambales Governor Amor Deloso has announced that Zambales is gearing towards development as it vows to open major road networks that will connect the province to other economic zones in Northern and Central Luzon.

“There is a need to open new roads to expand the development opportunities of the provinces and maximize its potentials as a new investment site in the region,” said Gov. Amor Deloso.

He identified the new economic doors as the Santa Cruz-Mangatarem Road that will connect the northern town of Santa Cruz with the town of Mangatarem in Pangasinan and the Iba-Tarlac Road which will connect the province to Tarlac.

The roads are necessary to open new space for possible economic zones and to shorten travel going in and out of the province to and from Central Luzon, Northern Luzon and Western Luzon areas.

“The roads will also maximize the use of our Masinloc Port as a major seaport in the area benefiting investors, particularly exporters and importers, from Zambales and Pangasinan,” Deloso said.

The governor noted that the Tarlac-Iba Road, which would span to about 60 kilometers when finished, has already a plan that was approved during the administration of former president Ramos.

“The road will boost the potentials of the Masinloc Port which will be constructed under a built-operate-transfer (BOT) scheme by a Canadian business group to the amount of US$5 billion. When finished, Masinloc Port will become a major transshipment port in the region,” he said.

Meanwhile, the official said that the Mangatarem-Santa Cruz Road Project is about 82 kilometers and could be finished at the cost of P200 million. The road will shorten travel time going to Pangasinan from Iba, Zambales from six hours to about two hours.

Deloso has also announced that discussions have already been started to study the possibility of putting a 500-hectare industrial estate in the former San Miguel Naval Air Stations in San Antonio Zambales.

The proposed industrial zone will fast tract the many development programs of the province to turn the province into a tourism and light industry destination in the region.

“Roads will bind our resources- land, people and infrastructures. Due to the completion of the SCTEX, space for investment in Bulacan and Tarlac is getting scarce. Subic Freeport soon could not accommodate more factories. But Zambales has vast land space to offer and we have pier, ship repair facilities and a small airport for tourism,” Gov. Deloso said.(AMV/PIA-Zambales)

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RP-Taiwan meet inks four accords, launches incentives for Clark, Subic investors - MECO

Antonio Basilio, Manila Economic and Cultural Office (Meco) managing director and resident representative, said among the highlights of the 16th RP-Taiwan Joint Economic Conference (JEC) held recently was the signing of four major trade and investment agreements between the Philippines and Taiwan.

These are a memorandum of understanding on Philippine-Taiwan Cooperation on Industrial Technology Development; an MoU on Small and Medium Enterprise Food Development; an MoU on Intellectual Property Cooperation; and an MoU on Standardization and Conformity Assessment for Electronic Products.

At the luncheon meeting hosted by the Philippine delegation headed by Trade Secretary Peter Favila, an entirely new set of investment incentives uniquely packaged and formulated to meet the evolving requirements of Taiwan’s high-technology companies was launched.

The package includes unprecedented incentives for Taiwanese companies, and presented various development opportunities within the Clark and Subic Bay economic corridor. The package is designed to compete with current offerings by the Vietnam government to Taiwanese players.

“This set of incentives, never before offered to any foreign locator in the Clark-Subic economic corridor, is also designed to fill existing gaps in the Philippines’ electronics and information and communications technology (ICT) value chain,” said Basilio.

Basilio said another highlight of the JEC was the holding of the 21st Joint Meeting of the Chinese-Philippines and the Philippine-Chinese Business Council, while the Philippine Investment Seminar was held on Feb. 11, organized by the Chinese International Economic Cooperation Association, the Philippine Chamber of Commerce and Industry (PCCI) and the Meco.

Clement Yang, chairman of the Chinese-Philippine Business Council, delivered the opening remarks while Valentin Khoe of the Philippine-Chinese Business Council provided the response during the event.

Chairman Tomas Alcantara of Meco and PCCI chairman Miguel Varela also delivered their remarks during the affair.

Basilio said the plenary session and seminar proper focused on a number of investment opportunities including high-yield tourism, investing in the Philippine economic corridor, the RP-Taiwan ICT industry collaborative ventures, sectoral investment opportunities, and renewable energy.

Tourism Undersecretary Phineas Alburo gave his presentation on investment opportunities in the Philippine tourism development together with Philip Chao, deputy director of the International Affairs of the Tourism Bureau of Taiwan ’s Ministry of Transportation.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza presented the Master Plan of Development in the Subic Bay Free Port while Benigno Ricafort, president of Clark Development Corp. (CDC), delved on the Master Plan of Development in the Clark Free Port.

Meanwhile, on the topic of RP-Taiwan ICT Industry Collaborative Ventures, Arthur Young, chairman of the Semiconductor and Electronics Industries in the Philippines gave an overview of the Philippine electronics and semiconductor industry while Dr. Gwo-Jiunn Huang, fellow of Taiwan’s Institute for Information Industry, focused his presentation on the ICT industry.

Discussions on Exploring Sectoral Investment Opportunities particularly on aqualculture and agriculture were spearheaded by Philip Ong, president of Santeh Feeds Corp., and Dr. Cheng-Wei Chen, associate professor of the Department of Agriculture Economics, College of Bio-Resources and Agriculture, National Taiwan University.

For renewable energy, Felix Velasquez, president of Bataan Manufacturing Co. Inc. and Phillip Cheng, president of Cosmo Electronics Corp., spoke about investment prospects in the country.

An open forum followed the presentations after which Vice Minister Sheng-Chung Lin of Taiwan’s Ministry of Economic Affairs and Secretary Favila gave their closing remarks. (PNA)

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Interconnection of phone lines in Subic, Clark proposed

CLARK FREEPORT - The Angeles City council has endorsed a proposal for the interconnection of phone lines along the Subic-Clark growth corridor in a resolution unanimously approved by its members recently.

In the resolution sponsored by Councilors Jesus "Jay" Sangil and Ruben Maniago, the members of the city council stated they are "endorsing the move of the Metro Clark Advisory Council (MCAC) to press for the immediate interconnection of telecommunications facilities in Clark Freeport Zone with those in Tarlac and
Zambales."

"It would definitely fast-track business undertakings and greatly minimize costs to local residents," Sangil said, referring to the MCAC-initiated project which was earlier lauded by President Arroyo.

Sangil likewise called on other officials of local government units (LGUs) situated along the Subic-Clark corridor to support the move, saying this will attract investors and provide jobs for the people.

"I am urging our counterparts in government in the cities, towns along the SCTEx to follow suit and support the same as it will invite investors and eventually create employment for our constituents," Sangil said.

In the resolution, the city council stated that the "Clark Freeport and the Subic-Clark- Tarlac Growth Corridor are foreseen as one of the world’s major economic hubs and catalysts for development, hence a major employment generator in North Philippines."

Also, "the development and improvement of infrastructure facilities, including the
establishment of state-of-the art telecommunications facilities in the Metro Clark Area (Clark FZ, Pampanga and Tarlac) enhance the viability of the Metro Clark area as a choice investment destination.

"The city council noted the importance of providing interconnected telephone exchanges, saying it "is vital in minimizing costs to investors and their clientele that includes government offices."

"Interconnecting telephone exchanges in Metro Clark Area is in keeping with the integration policy of the National Telecommunications Commission (NTC) in which long distance and other toll charges are waived," the resolution also said.

"The general welfare clause of the Local Government Code, among other provisions, obliges us to support moves of major employment generators," it further stated. (Fred Roxas, Manila Bulletin)

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Subic - Kuwait flights inked; RP, Kuwait agree on more flights

MANILA - Local carriers can now mount more flights to Kuwait with the conclusion of air talks between the Philippines and the oil-rich Arab emirate.

From only six, the Philippines is now entitled to 29 weekly flights to Kuwait.

The additional 23 entitlements were approved yesterday afternoon, said Porvenir P. Porciuncula, deputy executive director of the Civil Aeronautics Board.

The 29 flights are divided as follows: Manila, eight flights; Subic, 14; and Cebu, Davao and other airports, seven. A fifth freedom right was also given to flights from Clark, allowing carriers to pick up a passenger from Kuwait before flying to another destination in a third country.

The Philippine negotiating panel was headed by the acting board chairman, Doroteo A. Reyes. The Civil Aeronautics Board is scheduled to start air talks with Bahrain, Brunei, and Australia this year.

The government has been going after flight entitlements to several countries to address an expected increase in air travel.

Mr. Porciuncula downplayed any potential hesitation local carriers may have in competing with Middle Eastern airlines — which have access to cheaper fuel — noting that fuel costs have dipped.

Lance Y. Gokongwei, president of Cebu Pacific, said the low-cost carrier is considering flights to Kuwait."We are always looking at possible route network expansion and we are studying the possibility of mounting flights to Kuwait," Mr. Gokongwei said.

Officials of Philippine Airlines were not available for comment. (Jose Bimbo F. Santos, Business Online)

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Subic emerges as top sports venue, training hub

Due to its pristine environment and superb facilities, the Subic Bay Freeport is now emerging as a favorite venue for sports events, as well as a training center for professional athletes.

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga said several international sports events are slated to be held in Subic this summer, including a bike festival in April and a triathlon event in May.

"We're getting some of the best events because athletes like to race in a healthy environment, and Subic definitely has this edge," said Salonga.

"Add to this the modern sports facilities that the SBMA has put in place, and there's no wonder why Subic is now a favorite venue both for training athletes and for staging sports events," he added.

According to Salonga, at least two groups have opened training camps for professional athletes in Subic in the past few years.

These are Team TBB (The Bike Boutique), which trains athletes mainly for triathlon and other bike-related events, and the Philippine triathlon team, which recently put up its High Performance (HP) Training Camp.

The TBB camp recently dominated the Subic elimination round of the Milo Marathon when 14 of its foreign athletes training in Subic finished in the top 10 for both the male and female divisions.

Salonga, who flagged off the Milo marathon participants, identified the Subic-trained TBB athletes as: Bella Bayliss of Great Britain, who placed first in the ladies division of the 21-km race; Erika Csomor (Hungary), who placed 2nd; Angela Elaine Naeth (Canada), 3rd; Maki Nishiuchi (Japan), 6th; and Lucie Zelenkova (Czechoslovakia), 8th.

TBB male athletes also topped the Milo marathon leg here: James Cunnama (South Africa), 3rd in the men's division; Crifrankreadel Indapa, 4th; Stephen Bayliss (Great Britain), 7th; and Hiroyuki Nishiuchi (Japan), who finished 9th in 21-km run.

Rolen Paulino, the Milo sports director for the Subic Bay-Olongapo area, also observed that most of the winners in major races now are foreigners who have trained in Subic.

Salonga said the Triathlon Association of the Philippines (TRAP) meanwhile had also reported similar success stories for athletes training in Subic.

According to TRAP president Tomas Carrasco Jr., the group's training program in Subic "has resulted in the best competitive season for our national team in a while."

Carrasco said the TRAP accomplishments in 2008 included several first places and numerous podium finishes in regional races the team competed in. These include the 1st place finish by Joash Serrano in the juniors division of the Hong Kong Triathlon and the Taipei International Triathlon; the 1st place finish by Monica Torres in the Singapore Duathlon; and the 2nd place finish by Kim Mangrobang in the juniors level of the Taipei International Triathlon.

Six other athletes who trained in Subic had placed third in other races in Hong Kong, Malaysia, and Singapore.

"These successes can be attributed to a training environment conducive to achieving excellence that Subic provides," Carrasco said in a letter to SBMA.

Last year, the TRAP staged two major events here in Subic: the ITU Subic International Triathlon 2008 held in May, and the first ITU 03 Asian Long Distance Triathlon held in August.

Subic Freeport also hosted last year the President's Cup Regatta / China Sea Race, the Terry Larrazabal Bike Festival, the 3rd Philippine Olympic Festival, a beach football competition by the Beach Football Association of the Philippines, the Goodyear President's Cup, the Marlboro Road Trip, the 4th National Summer Training of the Philippine Sports Commission, the Globe Platinum Independence Day Regatta, a tournament by the Philippine Sports Fishing Club, the PNP's Subic International Marathon 2008, a jet ski competition by the Jetsports Association of the Philippines, the run leg for the White Rock Triathlon, the Amazing Race of Mazda Philippines, and the Miata and BMW Motorcycle Club's "Hill Climb Race." (SBMA Corporate Communications)

PHOTOS:
[1] A foreign athlete completes the run leg of the last year's White Rock Marathon at the Subic Bay Freeport, which has become a favorite training ground for contenders in international races.







[2] Participants in the 2008 President's Cup Regatta maneuver their racing sailboats at Subic Bay.






[3] A bicycle race in the Subic Bay Freeport







[4] Archers compete at Subic's Remy Field during the Philippine Olympic Festival in 2008

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