SBMA grants P4 million to Subic fisher folks

The Subic Bay Metropolitan Authority (SBMA) has extended P4 million in assistance to a fisher folk group here to jumpstart their livelihood and marine resources conservation programs in accordance with the sustainable development of the bay of Subic.

SBMA Administrator Armand Arreza said the fund, which was created as a condition under the environmental compliance certificate (ECC) issued for the Subic Bay Port Development Project and the Hanjin shipbuilding venture here, will be spent on social and environmental activities that will balance the industrial thrust of this maritime port.

The Subic Bay Integrated Fisheries and Aquatic Resource Management Council (SB-IFARMC), a non-government organization representing fishing associations and communities that rely mainly on Subic Bay’s marine resources, will receive the P4-million environmental guarantee fund.

“The fisher folks, who have been dependent on Subic Bay’s bounty even before the creation of the Subic Bay Freeport, will be the beneficiaries of this grant,” Arreza said.

“They may have been affected by restrictions imposed in Subic as the maritime sector boomed, but this grant proves that the SBMA also champions the interest of the fishing sector,” he added.

On Tuesday, Arreza and SB-IFARMC chairman Laureano Artagame signed a memorandum of agreement (MOA) governing the terms and conditions of the P4-milion grant.

Artagame, who profusely thanked the SBMA for providing the assistance, said the fund will be spent mostly on building artificial reefs, as well as scholarship and livelihood programs for fisher folks.

Under the SB-IFARMC program, the SBMA will assist the group in the implementation of its projects, along with other government agencies like the Bureau of Fisheries and Aquatic Resources, Department of Environment and Natural Resources, and the Department of Interior and Local Government.

Arreza, meanwhile, assured the fishers group that while the Subic port modernization program and the Hanjin shipyard project are contributing much to the government’s revenue collection in Subic, the SBMA has not overlooked the importance of the fishing industry.

“That is why the SB-IFARMC was formed in 2002, as a result of the SBMA Ecology Center’s initiative to empower the fishing sector, as mandated under Republic Act 8550 or the Philippine Fishing Code of 1998,” Arreza said.

The SBMA chief explained that the formation of the SB-IFARMC was also aimed at coordinating the enforcement of fishery laws, and boosting the integrated and sustainable management of Subic Bay’s ecological values and marine resources.

“Organizing is the first step in social empowerment, and that is the first thing the SBMA did for the fisher folks here,” Arreza said. “And what better way to manage Subic’s marine ecosystem than to involve those who consider the sea as their lifeblood?”

In response, Artagame gave the assurance that the SB-IFAMC will immediately implement proposals from fishing communities, which have lain dormant for the most part due to lack of funding.

He added that the membership of SB-IFARMC has grown over the years to more than 3,000 fisher folks from the coastal communities of Zambales, Bataan and Olongapo City. (SBMA Corporate Communications)

PHOTO: SBMA Administrator Armand Arreza (left) signs an agreement with SB-IFARMC chairman Laureano Artagame for the release of a P4-million environmental guarantee fund to benefit fisher folks in the Subic Bay area.

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GMA inaugurates one-stop wellness center in Subic Bay

President Gloria Macapagal-Arroyo will inaugurate on Aug. 14 the George Dewey Medical and Wellness Center - the only one of its kind in the Philippines- located at the Subic Bay Freeport Zone.

The George Dewey Medical and Wellness Center is a 100-bed tertiary hospital owned and operated by the George Dewey Medical College, Inc., a 5-year old nursing college. It sits on a 12-hectare facility, perched on top of a hill surrounded by a lush forest.

"The Center is our response - the Philippine response-to the Challenge posed by our neighbors like Thailand, Singapore and Malaysia for leadership in Medical tourism," Dr. Carmen Dinglasan, the George Dewey president said.

President Arroyo will lead a group of leaders from Olongapo City, Subic Bay Freeport Zone, Guam and the medical community in the opening of the one-stop medical and wellness center.

Located at Villa Amorosa, Upper Cubi, inside the Freeport, the center has the potential to become a leader in medical tourism. Many of its medical staff were trained in the United States and Europe and are some of the best in their fields of specialization in the country. Many of the doctors are speakers in International conventions.

Because of its proximity to Central and Northern Luzon, the George Dewey Medical and Wellness Center can serve the medical and health needs of the residents from Zambales, Bataan, Pampanga, Tarlac, parts of Bulacan, Nueva Ecija, CagayanValley, Isabela, La Union, the Ilocos provinces and the Clark Economic Zone.

Some of is services include cardiac surgery; joint and hip replacement; reconstructive surgery; corneal transplant; refractive surgery and multi-focal intraocular lens implantation; stem cell rejuvenation; sleep disorder therapy; transplant surgery; laboratory analysis; pain management; fertility clinic and dental implants.

In addition, the Center is a health resort for retirees. It caters to persons seeking medical treatment, checkup or have concerns about their well-being. When fully developed, it will have boutique stores, mini-groceries, a sports complex, a 500-unit condominium, a business center, fine restaurants, coffee shops, a conference center and places of worship for people of all beliefs.

Some of the people behind George Dewey Medical and Wellness Center are Dr. Fe Hidalgo (President George Dewey Medical College, former Undersecretary, Dept. of Education); Dr. Ruby Cereneo (VP for Academic affairs, George Dewey Medical College; former Dean, College of Arts and Sciences, Lyceum of the Philippines; Rony Diaz (former publisher, The Manila Times, former Labor undersecretary and former chief of a regional program of the International Labor Organization based in Islamabad); Dr. Carmen N. Dinglasan (President, George Dewey Medical and Wellness Center and one of the two owners of Makati Eye Laser Center at the Fort); Ms. Winnie C. Monsod (former head of NEDA and the UP School of Economics. She is the George Dewey Medical and Welless Center chairperson) ; Dr. Manuel Chua Chiaco (Medical Director, George
Dewey Medical and Wellness Center, a well-known, highly respected heart surgeon from the Philippine Heart Center); and Jose Araullo (former chairman of the Araullo, Punongbayan and Associates).

George Dewey Medical and Wellness Center is part of Villa Amorosa, a self-contained health resort for retirees, medical practitioners and medical students. A $30 million medical- tourism project, it employs 200 medical staff and health-related workers and would need another 300 for its shopping areas, sports complex, restaurants and condominiums when they open in 2010. It is the first of its kind in the Philippines. (PIA)

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SBMA rescuers continue assisting Botolan evacuees

BOTOLAN, Zambales — The emergency response team of the Subic Bay Metropolitan Authority (SBMA), along with some medical staff, will remain in this town to assist evacuees whose numbers continue to rise days after floodwaters inundated 10 barangays here.

At the instruction of SBMA Administrator Armand Arreza, who conferred with Botolan Mayor Rogelio Yap on Friday, the SBMA Rescue Team has set up its evacuation command post at the Porac Elementary School here.

Two doctors and some nurses were also stationed by the SBMA on 12-hour shifts at the said command post to augment two other doctors and some nurses sent there by the Department of Social Welfare and Development.

The SBMA medical team is backed up by an ambulance.

Arreza said the combined rescue and medical staff will stay in the area “for as long as the area is under a state of emergency,” referring to the declaration by Zambales Governor Amor Deloso on Friday..

The emergency unit has instructions to prioritize giving medical attention to women and children, as well as to provide noodles and bottled water to flood victims, Arreza added.

The SBMA’s emergency response team is composed of 14 rescue operators from the SBMA Fire Department, who were among the first to respond to calls for help from Botolan officials on Thursday, when a lahar dike protecting the municipality broke during heavy rains brought about by typhoon “Kiko.”

The team was later augmented by 25 rescue operators from the SBMA Law Enforcement Department, who brought in five rubber boats to evacuate residents from flooded areas.

Other rescuers who assisted in the evacuation were from the Philippine National Red Cross, Olongapo City Rescue Team, Philippine National Police, the Naval Education Training Command of the Philippine Navy, Philippine Army, and the Philippine Coast Guard-Subic Station.

According to Mayor Yap, the flooding was caused by the overflow of the Baquilan and Balin-Baquero rivers that both drain from the Mt. Pinatubo area.

The overflow destroyed a five-kilometer length of the San Juan lahar dike, thus sending floodwaters to 10 barangays in the municipality, he added.

The flood affected about 1,000 families who began evacuating to temporary shelters at 9:00 a.m. on Friday, Yap said.

Most of the flood victims were brought to evacuation centers at the Porac Elementary School and Bucao Elementary School, both in this town.

Arreza also said that lahar deposits from Mt. Pinatubo had collapsed the approach of the Bucao bridge, cutting off access from south Zambales to the Botolan town proper and five other municipalities in the north, including the capital town of Iba.

Gov. Deloso had reportedly ordered the construction of a temporary steel bridge to fill the gap. In the meantime, those who would like to go to northern parts of Zambales would have to take a roundabout route passing through Pangasinan, Arreza said.

In the meantime, Arreza said that the SBMA and the PNRC have set up a joint desk at the lobby of Bldg. 229, the main SBMA office in the Subic Bay Freeport.

Arreza said the agencies are soliciting donations in cash or kind to be delivered to Botolan flood victims. Prospective donors may arrange details with the SBMA at telephone numbers (047) 252-SBMA, added Arreza. (SBMA Corporate Communications)


PHOTO: SBMA Administrator Armand Arreza (right) confers with Botolan Mayor Rogelio Yap at the height of rescue operations on Friday.

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Subic seaport hits 2009 revenue target in 7 months

Revenue collections by the seaport department of the Subic Bay Metropolitan Authority (SBMA) in the first seven months have already exceeded the agency’s target for the entire 2009.

SBMA deputy administrator for operations Ferdinand Hernandez said collections from vessel lay-ups in Subic Bay, as well as wharfage fees on imported products boosted
seaport revenue to a total of P319.73 million, or P3.43 million more than the revenue target for this year.

The amount also represented a 15.7 percent growth over 2008 figures, Hernandez pointed out.

Comparative figures from the SBMA Seaport Department showed that from January to July, the SBMA collected P131.23 million in vessel charges, P91.67 million in cargo charges, P21.56 million in processing fees, P34.62 million in SBMA shares for port-related services, P35.6 million in leases and rentals, and P5 million in other charges.

These figures included a total of P68.3 million from fees paid by laid-up vessels, P39.8 million in wharfage fees on grains, wheat, fertilizer and rice, and P21.5 million in wharfage fees on imported petroleum products.

The P319.73-million collection from January to July 2009 was 169.7 percent more than the target for the same seven-month period, SBMA figures showed.

Because of the record collections, the SBMA Seaport Department has upgraded its 2009 target collection to P440.84 million, Hernandez said.

Hernandez said that despite the global economic slowdown, the SBMA Seaport Department “has consistently recorded banner revenues.”

“June 2009, which brought in P60.69 million is worth highlighting because it is the seaport’s highest monthly record thus far — ever since the SBMA was created in 1992,” he said.

“For the remaining quarters of 2009, it is a foregone conclusion that the targets will be surpassed,” Hernandez added.

Earlier, Subic seaport officials reported that the SBMA generated revenue worth P276.49 million from seaport operations in January to June 2009. This total also slightly surpassed the revenue posted during the 12-month period of 2008.

“This only goes to show that the SBMA is on the right track in its effort to market the Port of Subic to more shippers, importers, brokers and cargo forwarders,” said
Hernandez.

SBMA officials also attributed the record-breaking seaport figures to President Gloria Macapagal-Arroyo’s vision for Subic and the huge investments in infrastructure like the
Subic-Clark-Tarlac Expressway (SCTEx), the North Luzon Expressway (NLEx), and the Subic Port Development.

“These have made the SBMA’s marketing strategies for the port very effective, thus enabling us to greatly enhance Subic’s performance as a logistics hub,” Hernandez also explained.

Meanwhile, SBMA seaport manager Perfecto Pascual disclosed that the SBMA’s goal-setting program has so far worked wonders for seaport operations.

Pascual said his department first made revenue forecasts in 2006, the same year when seaport income rose significantly, allowing the department to achieve 94.75 percent of its P201.46-million forecast. This was followed by a 93.54-percent completion of the P233.21-million forecast in 2007, and the chart-busting record of 121.05-percent in 2008 when Subic posted actual revenue of P276.24-million against a forecast of P228.2 million.

Pascual added that the monthly collections this year have surpassed all previous records since 1993 as the SBMA Seaport Department posted P37.62 million in January, P41.57 million in February, P51.01 million in March, P44.49 million in April, P41.07 million in May, P60.69 million in June, and P43.24 million in July. (SBMA Corporate Communications)

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Subic, Clark to harmonize business permit systems

The neighboring free ports of Subic and Clark will soon be utilizing a unified business permit system designed to further harmonize their business operations and facilitate the entry of more investments in the two economic zones.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said the two free ports will start implementing the Subic-Clark Business Permit System in September this year.

The implementation of the harmonized system, Arreza said, was contained in a memorandum of agreement signed on July 22 by the Subic-Clark Alliance for Development Council (SCADC), Clark Development Corp. (CDC), Clark International Airport Corp. (CIAC), and the SBMA.

The agreement also called for, among others, a unified system for the issuance of Certificate of Registration and Tax Exemption (CRTE), Permit to Operate (PTO), and other business permits, in compliance with RA 9485, otherwise known as the Anti-Red Tape Act of 2007.

Arreza said the harmonized Subic-Clark business system is part of a strategic program to propel the Philippine economy toward heightened global participation.

“It’s the most logical recourse — to complement each other and play on each other’s strengths, rather than remain as islands of autonomy and inefficiency,” he said.

“By complementing each other, Subic and Clark will have the best chances of ever becoming the two most progressive investment sites in the Philippines, as well as globally-competitive logistics and service hubs that President Arroyo has envisioned,” Arreza added.

Harmonized business operations would also enable Subic and Clark to capitalize on both their US military-built ports and newly-constructed facilities to bolster their bid for economic significance in the Asia-Pacific region, the SBMA official said.

Efforts to turn Subic and Clark into interdependent nodes of development in Central Luzon have been the focus of the SCADC, which is headed by Secretary Edgardo Pamintuan.

In August last year, the SCADC brokered the signing of an agreement and joint memorandum order between the SBMA, CDC, and the Bureau of Customs (BoC) for the harmonization of immigration, customs and quarantine (ICQ) procedures in Subic and Clark.

These documents institutionalized the National Single Windows program in the two free ports, and facilitated the implementation of Electronic Transit Admission Permit System (e-TAPS), an automated cargo clearance and releasing facility.

Last month, the SCADC also embarked on a 15-day economic mission to the United States to promote Subic and Clark as twin logistics hubs.

Arreza said the mission resulted in the signing of a memorandum of understanding between the SCADC, SBMA, CIAC, and the Southern California Logistics Airport Authority (SCLAA), and the move by US-based door-to-door cargo forwarder Atlas Shippers International to make Subic its hub for North Luzon operations.

The SCADC also conducted a forum on the Subic-Clark International Logistics Hub during the U.S. mission to drumbeat developments in the two free ports and promote their potentials in catering to the needs of the Asia-Pacific region.

Arreza noted that Subic and Clark previously operated as competing economic zones that boasted of contrasting strengths — a seaport for the Subic Bay Freeport Zone and an airport for the Clark Freeport.

However, the two free ports that are now connected by the Subic-Clark-Tarlac Expressway (SCTEx) “have realized that their diversity could provide a common strength that will define, focus and magnify their individual capacities,” he added.

With these complementation efforts, Subic and Clark are steadily moving towards combining their assets to become catalysts of development for Central Luzon and other parts of the country, Arreza said. (SBMA Corporate Communications)

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Morong residents benefit from SBMA medical mission

More than 150 residents from remote areas in Morong, Bataan, benefited from a medical mission initiated by the Subic Bay Metropolitan Authority (SBMA) on the occasion of the 80th birthday celebration of Chairman Feliciano Salonga on Thursday.

The medical mission, which was conducted on Friday at the multipurpose hall of the Bataan Technology Park, Inc. (BTPi) in Sabang, Morong, provided medical check-up, as well as medical supplies and supplemental vitamins, to a total of 53 indigent families.

The SBMA also distributed food supplies, and bags and slippers for children, during the mission that was held in cooperation with a leading pharmaceutical company in the country.

According to Armina Belleza-Llamas, head of the SBMA Public Relations Department, which spearheaded the project, the beneficiaries came from the remote areas of SitioTimak and Sitio 12 in Morong’s barangay Mabayo, and Sitio Nossil and Sitio Repakpak in barangay Binaritan.

“A lot of residents from these remote areas lacked medical attention because of their remote location. We thought of this project to somehow help fill this gap,” Llamas explained.

The SBMA mission was also joined by Dr. Solomon Jacalne, head of the SBMA Public Health and Safety Department, and volunteer doctors Eve Lozano-Natividad and Conchita Carvagal.

They were assisted by members of the SBMA medical staff, SBMA forest rangers, and nursing students from the Subic Freeport-based Mondriaan Aura College.

The medical mission was part of a community service program undertaken by the agency on occasion of Salonga’s birthday on Thursday, July 23.

Aside from the medical mission on Friday, the SBMA initiated a tree-planting activity and conducted a seminar on waste management and recycling for families from neighboring communities on Thursday.

The conduct of these community-based activities during Salonga’s birthday, Llamas said, has become an SBMA custom since Salonga assumed the SBMA chairmanship in 2005. (SBMA Corporate Communications)


PHOTOS: Residents from remote areas in Morong, Bataan receive medical check-up during a medical mission initiated by the Subic Bay Metropolitan Authority on Friday at the Bataan Technology Park.

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SBMA marks Chairman Salonga’s day with community service

Employees of the Subic Bay Metropolitan Authority (SBMA) again commemorated the birthday of Chairman Feliciano Salonga on July 23, with community service by planting trees, conducting a seminar on waste management, and undertaking a medical mission for indigent patients in communities near the freeport zone.

Salonga, who turned 80 on Thursday, said that employees from various SBMA departments planted a total of 800 seedlings to mark his birthday.

“We’ve been doing this ‘green’ celebration of my birthday for the past four years,” said Salonga, who became SBMA chairman in 2005. “This is my humble gift to Mother Nature, which has provided Subic with so many natural attractions.”

Unlike most government executives, Salonga celebrates his birthday without the usual big bash and, instead, spends the day with his family doing community work.

Salonga said that SBMA’s core values of “malasakit,” excellence and passion complement his desire to share with his “kababayans” the blessings and opportunities that he receives in life.

He added that planting trees is also one way of investing in the future of Subic and the next generation of residents and workers in this freeport.

Aside from planting trees on Thursday, SBMA employees also conducted a seminar on waste management and recycling at the Subic Bay Exhibition and Convention Center (SBECC).

In this activity, some 500 residents from neighboring villages in Olongapo City, Zambales and Bataan, learned how to turn waste materials into usable and sellable items from Philippine Women’s Christian Temperance Union, Inc. experts.

“It is a very simple training that gives one the idea and technical know-how on how to turn, for example, empty tetra packs into bags,” said Armie Llamas, manager of the SBMA Public Relations Office, which coordinated the livelihood training activity.

The seminar speakers also demonstrated how to produce pesticides from used cigarette butts, vinegar from santol, burger patties and vinegar from plantain banana peelings, and tea from sweet potato leaves, among others.

The SBMA, in cooperation with a leading pharmaceutical company in the country, also conducted on Friday a medical mission at the remote village of Timak in Morong, Bataan as part of the community service activities for Salonga’s birthday celebration. (SBMA Corporate Communications)

PHOTO: SBMA employees plant 800 tree seedlings at Cubi Point in the Subic Bay Freeport to commemorate the birthday of SBMA Chairman Feliciano Salonga on Thursday.

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SBMA worker nominated for top CSC award

An employee of the Subic Bay Metropolitan Authority (SBMA) has made it as semi-finalist in the Presidential “Lingkod Bayan” Award, the highest category in the annual search by the Civil Service Commission (CSC) for outstanding government workers in the country.

Edmond de Jesus, who is a Community Development Officer III at the SBMA Ecology Center, was among the 23 public officials and employees nominated to the individual category of the “Lingkod Bayan” competition, according to the CSC awards secretariat.

Nominees in the same category this year included Commissioner Marcelino Libanan of the Bureau of Immigration, Home Guaranty Corp. president Gonzalo Benjamin Bongolan, Mayor Jerry Pelayo of Candaba, Pampanga, and Philippine Merchant Marine Academy president Fidel Diñoso.

Meanwhile, 19 other candidates have made it to the semi-finals of the “Dangal ng Bayan” competition, the next level in the honor awards program, and 12 in the CSC Pagasa award category, the CSC added.

De Jesus, who was named SBMA employee of the year in 2008, was nominated by the agency for his passionate undertaking of a mission to organize Aeta tribesmen in the Subic Bay Freeport Zone for the purpose of forest conservation.

According to SBMA Administrator Armand Arreza, De Jesus began living with the Aetas for weeks at a time since 2004 in order to introduce the concept of conserving the forest as a resource base, and to inculcate among the tribesmen their unique role as stewards of the environment.

“It was an uphill struggle for the first year or so,” De Jesus said, recalling his experiences with the tribe who then still practiced slash-and-burn agriculture, or kaingin, in the foothills of Subic’s forested mountains.

But De Jesus, an agriculture graduate with a background in education and psychology, persevered until he virtually became an adopted child of the Aetas.

According to Amethya dela Llana-Koval, manager of the SBMA Ecology Center, De Jesus “has become an Aeta at heart” in the process of accomplishing his mission for the agency. “Edmond lives with them, eats with them, and fights for them — especially on issues regarding the Aeta culture and their ancestral domain,” she said.

The patience and passion of De Jesus soon paid off, as his band of Aeta “environmental warriors” were later credited for planting and nurturing more than 100,000 new trees in the Subic Bay Freeport in the last four years.

It then became the job of De Jesus and his hundred-strong Pastolan Forest Conservation Group (PFCG) to replant areas where previous projects had failed, as well as to scout for new reforestation sites in the 140 hectares of grasslands that the SBMA has designated for tree planting.

De Jesus said the Aetas became very effective in tree-planting programs because members of the PFCG lived in areas near the reforestation sites and could thus devote more time to crucial care of the tree seedlings in the first three years.

As a result, it was determined that of the 152,713 new trees that survived under the various reforestation programs in Subic, a total of 102,100 were planted by De Jesus’ group since 2005. The PCFG group also posted a high survival rate of 94 percent for its reforestation projects, thus exceeding its annual reforestation target of 20,000 trees.

De Jesus, meanwhile, said he has found much satisfaction in working with the Aeta tribesmen.

“The Aetas have also taught me a lot,” De Jesus said, pointing out the two-way exchange of knowledge and skills that marked his relationship with the indigenous people of Subic. “They have been one of my best companions in this journey through life.”

He added that his nomination as a semi-finalist for the Presidential “Lingkod Bayan” Award was a feat “beyond my wildest dreams.”

“This too, I would like to share with the Pastolan Aetas,” De Jesus said. (SBMA Corporate Communications)
PHOTO: Edmond de Jesus leads in reforestation programs at the Subic Bay Freeport Zone with the help of Aeta tribesmen, who helped plant more than 100,000 trees since 2005.

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SBMA Official Statement on Legenda Employees

OFFICIAL STATEMENT by SBMA Labor Department Head, Atty. Roy C. Pastor
Re: Legend International Resorts Ltd. (LIRL) Employees
Date: 20 July 2009

We have been advised that the management of Legend International Resorts Ltd. has temporarily suspended the company’s hotel, food and beverage, and related facilities, as well as its administration and support functions, and has thus temporarily suspended as well the payment of all wages and benefits to 151 of its 250 employees for next six (6) months.

In a memorandum to its employees, LIRL said it was constrained to undertake such measures due to the SBMA’s actions against the company.

To pass the blame for the situation of these employees to the SBMA is grossly unfair.

The real culprit here is the mismanagement of LIRL, which has caused the company to accrue huge debts to the Philippine government, including unpaid obligations to the SBMA, amounting to PhP850 million.

In fact, the SBMA has worked on a debt restructuring scheme with the LIRL management, which the company has not complied with.

Nonetheless, the SBMA shall do everything within its power and authority to protect the welfare of LIRL employees, especially those who have been affected by this move by the LIRL management.

The SBMA Labor Department, in particular, will look into possible labor violations arising from LIRL’s action, including its alleged failure to file the appropriate notice with the Department of Labor and Employment (DOLE).

The SBMA will definitely not allow and will never allow these employees to become victims of LIRL’s mismanagement, resulting in its continued refusal to settle its outstanding debts to its creditors.

-End of Statement-

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Subic-based Legend International Resorts Inc. suspends operations, places 250 workers on forced leave

Beleaguered hotel and casino operator Legend International Resorts Ltd. (LIRL) has suspended operations of most facilities at its Legenda Resort Hotel here, placing some 250 employees on forced leave since Saturday.

David Maund, a Hong Kong-based liquidator acting as agent for the LIRL, said in a memorandum to Legenda workers that operations will be “temporarily suspended at some of the company’s hotel, food and beverage, and related facilities.”

“The company’s administration and support functions will also be temporarily rationalized commensurately,” he added in the July 17 memo.

According to Maund, the LIRL management “has taken the difficult decision to rationalize the company’s operations” in an effort to “stem losses and preserve the company’s cash reserves.”

As a result, the firm will suspend payment of all wages and benefits to all the affected employees effective on July 18 “and until further notice for a maximum period of up to six months,” Maund added.

“This is not a termination of your employment by the company,” the official assured the affected workers. “Any accrued entitlements as at July 18 will remain intact throughout the period of suspension of wages and benefits in full compliance with law,” he said.

Maund also told the suspended workers that they will be notified should any development arise regarding the status of their employment with the company.

In the same memo to employees, Maund said efforts by the Subic Bay Metropolitan Authority (SBMA) to terminate LIRL’s lease agreement, business registration and permit to operate had led to “a very substantial deterioration in LIRL’s occupancy levels.”

These, along with the closure of the company’s casino operations since May 2006, had placed “further pressure on cash flows,” he added.

The SBMA, however, said in a statement that attributing LIRL’s current woes to SBMA’s efforts to collect payment for the company’s debts was “grossly unfair.”

“The real culprit here is the mismanagement of LIRL, which has caused the company to accrue huge debts to the Philippine government, including unpaid obligations to the SBMA amounting to P850 million,” said lawyer Roy Pastor, manager of the SBMA labor department.

“In fact, the SBMA has worked on a debt-restructuring scheme with the LIRL management, which the company has not complied with,” he added.

Pastor said in face of the suspension of Legenda workers, the SBMA will look into possible labor violations arising from LIRL’s action, “including its alleged failure to file the appropriate notice with the Department of Labor and Employment.”

“The SBMA will definitely not allow these employees to become victims of LIRL’s mismanagement,” Pastor added, saying his department’s retooling program for displaced workers will be made available to Legenda employees.

SBMA labor officials also presided on Monday over the initial conciliation meeting between the LIRL management and workers, when they agreed that the leave credits of the affected employees be converted to cash.

It was also resolved in the meeting that the employees’ “saved funds”—a provident fund drawn from the workers’ salaries—be placed under security bond, and that the affected workers be paid all the wages and benefits due them “when resumption of operations will no longer be possible.”

Present in the meeting were LIRL’s legal counsel Rex Tadena and human resources manager Jennire Torres, as well as eight representatives from the rank of employees (Henry Empeño , Business Mirror)

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Subic is new hub of US-based cargo forwarder Atlas

Atlas Shippers International Inc., one of the leading door-to-door cargo forwarders in the country today, has signed up as a business locator in this free port, setting up a new distribution hub here for balikbayan boxes sent from abroad.

Atlas used the port of Subic as an entry point for the first time on Thursday, officially marking the US-based firm’s intent to establish its hub for Northern Luzon operations here.

The first cargo, a 40-foot cargo container that held 420 balikbayan boxes, took off from the Atlas branch in Covina, California, on June 24 and arrived here on July 15.

Atlas president Joel Longares said they decided to locate in Subic to take advantage of tax incentives in this free port, as well as lower tariff rates compared with charges at the Port of Manila, complete support facilities and infrastructures, faster document processing, and strategic location made more accessible by the Subic-Clark-Tarlac Expressway (SCTEx).

Longares said the first container to arrive through the port of Subic will be a test run to determine the viability of this port as the sole discharging point for Luzon.

“We’ll have to determine if we could save money this way,” said Longares, explaining that boxes for delivery to Southern Luzon will be trucked from Subic to their hub in Las Piñas City.

Longares also predicted that other shipping lines and cargo handlers may follow suit.

“It’s only a matter of time before the others locate here,” he said. “Aggressive marketing is just what the Subic free port needs [to attract other shippers].”

Longares said the company’s cargo load, which come from branches in Australia, Hong Kong, Italy and the United States, is expected to peak at about 30 containers per month.

With this projection, Atlas will hire about 50 employees for its Subic hub, where they will also install cargo-sorting equipment.

With Subic as their hub of operations, Longares said he expects the company to grow significantly and even expand to service outbound cargoes.

The company’s warehouse in Las Piñas will be maintained for their Southern Luzon operations, he said.

Meanwhile, Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza noted that the business sector is now taking notice of the advantages of using the port of Subic, which boasts of two container terminals with a combined capacity of 600,000 ten-foot equivalent units.

“This is a small beginning towards greater things to come,” said Arreza, referring to the Atlas decision to use the port of Subic.

He said the SBMA’s efforts to promote Subic Bay as a maritime gateway for Luzon and a prime logistics hub for Southeast Asia is now really paying off. (Henry Empeño, Business Mirror Online)

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Kenyan champ out to defend Subic Int'l Marathon crown

Kenyan runner Nelson Kirwa is expected to defend his title in the SMART-Subic International Marathon (SIM) 2009 scheduled on October 24-25 at the Subic Bay Freeport.

Kirwa finished the 42-kilometer event in two hours and 16 minutes, which was several minutes behind the world record of 2:04:55 posted by Ethiopian Haile Gebrselassie at the 2007 Berlin marathon.

Organizers said that they are again expecting runners from Australia, Canada, Kenya, Malaysia, New Zealand, Singapore and the United States.

Smart Sports head Patrick Gregorio told GMANews.TV recently that the marathon, the brainchild of retired Gen. Samson Tukay, was launched first in 2004.

Several years later, the SMART-SIM is the only long distance event accredited by the Association of International Marathons and Distance Races (AIMS) and draws 10,000 runners all over the globe.

Gregorio said that the decision to support the marathon was based on the idea that Filipinos can compete in long-distance events.

“The event involves a lot of drama, as we can see in the faces of athletes who participate in this grueling sport. And the Filipino, once trained well, certainly has the potential to excel in international events. Why can’t we win a gold medal in the Olympics, for example? It’s because there’s no serious, concrete program," explained Gregorio.

“We’ve been very meticulous in looking for a partner who would be passionate and very professional, we didn’t know it would be the former police officer," said Gregorio.

Tukay said that during the first few years of the event, he and several patriotic officers spent their own money for cash prizes and paying for the accommodation of several supporters.

“We started with just passion in our hearts. No one supported us. We spent our own money for prizes and to pay for the accommodations of those who helped us former police officers," said Tukay.

Tukay added that with the entry of Smart to the event he is optimistic that the best runners in the world will compete in the tournament.

“We wanted to bring in the best runners from all over the world to the Philippines and to go to different parts of our country to get the best contenders. Now with SMART as our sponsor, how can we go wrong?" Tukay added. (Perry Legaspi, GMANews.TV)

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Solon backs SBMA’s closure of Subic casino-hotel

Cagayan de Oro representative Rufus Rodriguez has expressed support to the Subic Bay Metropolitan Authority (SBMA) in ordering the closure of the Legenda Resort Hotel here, which has incurred obligations to the government amounting to more than P1 billion.

Rodriguez expressed dismay over the huge indebtedness of the Subic hotel chain during a hearing of the House Oversight Committee wherein SBMA administrator Armand Arreza presented accomplishments in Subic in the past four years.

Responding to queries by the committee member on the Legenda case, Arreza also briefed the congressional body on the circumstances leading to the takeover of Legenda facilities in the free port.

Rodriguez thereupon urged his colleagues to back the SBMA closure order, which is being resisted by the Legend International Resorts Ltd. (LIRL), a Malaysian-owned firm that operates the defaulting hotel.

“We should support (Arreza) in closing (Legenda) if it is really overdue,” said Rodriguez, referring to the debts incurred by LIRL, which includes lease rentals and gross revenue shares to the SBMA and casino revenue shares to the Philippine Amusement and Gaming Corp. (PAGCOR).

Rodriguez added that the SBMA’s move to recover its assets “was the right thing to do..”

“In other words, people who do not pay should be cut off from their contracts because otherwise, (the government) will continue to hemorrhage (lose revenues),” Rodriguez said.

According to Arreza, the LIRL located in this premier free port in 1993, and was among the first foreign investors to invest in this former US naval base. However, the firm has failed to meet its financial obligations in the past few years, he added.

“When I came in as SBMA administrator (in 2005), the number one creditor of SBMA was Legenda,” said Arreza.

SBMA records indicated that the agency has uncontested receivables of P339.31 million from LIRL, representing lease arrears and casino share dating back to 2004. Together with contested receivables, the SBMA’s total claims against LIRL amount to P850.17 million.

Arreza said that while a rehabilitation plan has been approved by the court in 2006, the SBMA saw that “it was going nowhere,” thus forcing the SBMA to file a motion to terminate the rehabilitation proceedings on October 9, 2008.

On February 9 this year, the Olongapo City Regional Trial Court lifted the stay order that prevented the SBMA from collecting unpaid accrued rentals from LIRL since 2004 because of the rehabilitation plan.

Thus, on February 12, Arreza said the SBMA sent the LIRL a notice of termination of the lease on Legenda and two other properties, and demanded payment of rentals worth P836.73 million within 90 days.

Arreza also told the committee that aside from pre-terminating LIRL’s leases, the SBMA has canceled the firm’s certificate of registration and tax exemption (CRTE) and permit to operate (PTO).

This made the LIRL, which continues to defy SBMA orders, an illegal occupant of the land and an illegal business operator in the Subic Bay Freeport, Arreza added. (SBMA Corporate Communications)

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RP’s largest tourism fair to feature Subic attractions

Subic’s iconic theme parks, along with unique tourism packages in this free port, will be highlighted in the 20th installment of the country’s largest and longest-running travel, tourism and trade fair— the Philippine Travel Mart (PTM).

Aptly themed “Beyond the Usual Philippines,” the event organized by the Philippine Tour Operators Association (PHILTOA) in cooperation with the Department of Tourism (DOT) is designed to showcase what is unique to the Philippines.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza, who signed a memorandum of agreement with PHILTOA president Cesar Cruz recently, said the SBMA will also be an official partner of the 20th PTM that will be held on September 4-6 at the Megatrade Halls of SM Megamall in Mandaluyong City.

Cruz said SBMA’s infusion of fresh ideas in developing eco-tourist sites in Subic provides a classic example of what the industry should do to realize the country’s full tourism potentials.

Cruz praised in particular the SBMA’s “hop-on, hop-off” transport scheme, whereby commuting tourists or “backpackers” can now tour the vast expanse of the Subic Bay Freeport onboard double-decker buses plying Subic’s scenic route at regular intervals.

“Subic’s novel hop-on, hop-off scheme can be adopted anywhere in the country,” Cruz said.

Cruz added that the Subic tourist transport system will be featured in tourism seminars during the 20th PTM, which shall also serve as an avenue for tourism stakeholders and students to discuss emerging trends in the industry.

Cruz further praised SBMA, the agency that administers the Subic Bay Freeport, for constantly adding new dimensions to its positioning as a prime nature hub.

Arreza, meanwhile, explained that tourism developments in Subic revolve exactly around what are considered the free port’s jewels— its unspoiled beaches and virgin tropical forests.

“Our top tourist draws — the Treetop Adventure, Jungle Joe’s World, Zoobic Safari, and Ocean Adventure, to name a few, offer unique adventures, which we constantly upgrade by introducing new activities like bird-watching,” said Arreza.

He added that, just recently, Subic Bay has been named by the DOT as one of the country’s official sites for bird-watching, a young but increasingly popular activity among nature lovers.

“We are also introducing the newest fads in adventure tourism, like wind surfing, kite boarding, sailing, and other water sports. Actually, one can do almost anything in Subic,” said Arreza.

For the upcoming travel mart, Arreza announced that a 24-sqm pavilion showcasing the complete set of Subic attractions will be set up by the SBMA.

The Subic Bay Freeport greatly benefits from the annual travel event, which brings in thousands of local and foreign corporate buyers, consumers and other stakeholders in a single venue for travel and tourism.

Arreza said the travel mart has carved a niche in the international market as a prime venue for Philippine tour packages and other tourism products.

“Last year, 50 foreign buyers went straight to Subic right after visiting the travel mart,” he said.

Arreza also said the SBMA has a successful partnership with the PHILTOA, which is the biggest association of tour operators and agencies that exclusively promote domestic and inbound tourism.

Cruz said the PHILTOA expects about 300 foreign buyers to visit this year’s event. (SBMA Corporate Communications)


PHOTO: SBMA Administrator Armand Arreza signs an agreement with Cesar Cruz, president of Philippine Tour Operators Association (Philtoa), making the SBMA an official partner of the 20th Philippine Tourism Mart to be held at the MegaTrade Halls of SM Megamall in Mandaluyong City on September 4-6, 2009. The said tourism and trade fair will feature Subic Bay Freeport’s unique attractions.

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‘Balikbayan box’ distribution center opened in Subic free port

Atlas Shippers International, a Filipino-owned freight forwarding service provider yesterday opened its distribution center here with the launching of its maiden shipment.

Atlas Shippers President and Chief Operating Officer Joel P. Longares said Subic will now be its distribution hub of ’balikbayan’ boxes.

Mr. Longares said Subic, which has modern seaport facilities and highly skilled workers, is an excellent location for freight forwarding services.

"We decided to change port destination from Manila to Subic because of several advantages that the free port has to offer," Mr. Longares told reporters here.

He added that his firm would also be banking on the free port status of Subic that ensures fast movement of cargo.

Mr. Longares said tax incentives enjoyed by free port companies will allow his firm to "save more" from its operational expenses.

He also pointed to the strategic location of the Subic free port in serving clients from Northern and Central Luzon, citing the newly built Subic-Clark-Tarlac Expressway.

Subic Bay Metropolitan Administration chief Armand C. Arreza said the setting up of business of Atlas in Subic free port was an off-shoot of a recent government trade mission to US.

The agreement with Atlas Shippers was signed on June 24.

"This is part of our efforts to develop Subic into a major logistic and distribution hub," Mr. Arreza said.

Trade and Industry regional director Blesila Lantayona told the BusinessWorld the government is encouraging local exporters from the region to use Subic to ship their products.

She noted that all cargo containers of Atlas Shippers would be empty after the shipment of balikbayan boxes in Subic, and said it would be a great opportunity to use Philippine-made export products as "back load" for cheaper freight charges.

"We are conceptualizing a business plan for Filipino exporters to have a tie-up with Atlas Shippers, for them to use those empty cargo containers for outbound shipment of local products abroad," Ms. Lantayona added.

Mr. Longares also said the company is preparing to operate a warehouse for its sorting facilities.

He said he was expecting more Filipino freight forwarding service companies to also use the Subic free port as its distribution hub.

"The international freight forwarding industry is so big that’s why I am encouraging them to come and also do business in Subic," Mr. Longares said.

The inaugural shipment of cargo container consisting of more than 400 balikbayan boxes was held at the Subic Port Container Terminal I, which is being operated by the Subic Bay International Terminal Corp., a subsidiary of the Enrique K. Razon, Jr.-led International Container Terminal Services, Inc.

Atlas Shippers started in January 1993 in Covina, California providing door-to-door cargo services to Filipinos in United States.

Five years after, the company took advantage of an opportunity to expand all over the US midwest, the East Coast, Alaska, and Hawaii.

On 2001, Atlas Shippers opened its doors to the international market by putting up branches in Hong Kong, Italy and Singapore to serve Filipino communities in Asia and Europe.

Other services offered by the firm are travel and tour services, air cargo service, and remittances. (Rey M. Garcia, BusinessWorld Online)

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