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12 August 2010

Subic raceway closes, but owner eyes more int’l races

The Subic International Raceway (SIR), the first international raceway in the Philippines, has flagged off its black-and-white checkered pennant for the last time here, marking the end of its 17-year stint as a popular attraction for racing aficionados.

In a bittersweet celebration at the racetrack last weekend, representatives of more than 20 motor racing clubs in the country led by the famed racing Ramirez family, gathered at the SIR for a three-day racing event dubbed as “The Last Lap” to bid farewell to what was once a home to racers.

Seventeen years ago, after decades of trying to put up a dedicated racing facility, the late Pocholo Ramirez, Mike Potenciano and five other icons of Philippine motor racing opened the SIR and revived circuit racing in the country.

When it was completed in 1994, the 2.9-kilometer, 12-turn-circuit SIR became the first year-round racing facility in the country. It became the country’s first international race track later.

Georges Ramirez, son of Pocholo and organizer of “The Last Lap”, recalled, “Seventeen years ago, I can still remember th
e place was filled with ash, and it was an exciting time. Thanks to Subic (Bay Freeport) and the SBMA, we were able to revive and sustain circuit racing for 17 years.”

“And here, 17 years later, it is coming to an end, which is a bit sad,” Ramirez added. “It’s been a landmark. It’s been an important part of the motor sports in the Philippines and tourism.”

Since its inception, the SIR has hosted many national and international racing events for cars, motorcycles, bicycles, go-karts, soap box derbies, remote-controlled cars, and even horse-and-carriages.


It also became the venue for drag races, rallies, slaloms, drift events, and even driving school and club events.

Ramirez said the typical race season consisted of a Formula 3 race, motorcycle races, SVI Grand Prix, and the Phi
lippine National Touring Car series which uses touring cars, Miata (Mazda) and vintage cars.

Usually, 12 races of three days each were held in a year. Likewise, a “Run What You Brung” race was held in April, an
d the Annual Philippine Motor Sports Festival was featured in November.

Before its closure, the Subic raceway was operated by Sports Values, Inc. of the R
amirez family, and governed by the Automotive Association of the Philippines (AAP) and the Federacion Internationale de Automotive (FIA).

The raceway witnessed many of the famous feats of Filipino drivers in the motor racing world, including the Caltex–Mitsubishi Production Car Championship in 1995-1996, as well as in 1997, and 1998-99, and the most prestigious Formula Asia in 1996.

At the Subic raceway, Mike Potenciano became the only Filipino to win rookie championships in 1996, and also placed 2nd over-all, missing by only 2 points, in the Formula Asia 2000.

Potenciano also noted that in the last Formula series in 2003, Subic drivers using Shell Formula 3 won the first place, beating competitors who had more improved cars in the promotion class.

“And the fact that Subic was always hosting the first leg of the Asian Formula series made it a very good experience,” Potenciano added.

Meanwhile, Ramirez gave the assurance that even when the Subic raceway closes, the sprint race will not go away and more international races will be seen in Subic in the future.

“We would like to organize more races, even though our permanent track might be closed,” Ramirez said. “If we could be allowed to use the runway at the Subic Bay International Airport on weekends, we can still organize races.” (SBMA Corporate Communications)

07 August 2010

SBMA awards beach property

The Subic Bay Metropolitan Authority (SBMA) has awarded the management of a 5,600-square meter prime beach area here to a Filipino firm, Brighterday Subic Ltd., Inc. (BSLI).

SBMA deputy administrator for Business Raul F. Marcelo said this will boost the potentials of the “All Hands Beach Resort” as a world-class beach facility and turn it into a revenue-generating asset.

All Hands is one of SBMA’s tourism facilities formerly operated by the Freeport Service Corporation (FSC) under a facilities management agreement that was pre-terminated by both parties.

The pre-termination was prompted by the cesssation of the FSC’s business operations due to “irreversible financial losses,” said Marcelo.

The financial problems of FSC affected its management of All Hands, which failed to meet the standards of the Department of Tourism (DOT) last year, he said.

“Now that the resort has reverted to its owner, which is SBMA, it is incumbent upon the agency to ensure that the development and management of All Hands (beach resort) would meet DOT standards,” Marcelo explained.

Records show that while FSC operated several tourism facilities in the Freeport under a management contract with SBMA, it was never able to fully remit SBMA’s share of the earnings from these facilities, All Hands included.

Moreover, these FSC-operated tourism facilities slowly deteriorated due to FSC’s inability to institute the necessary maintenance programs.

The SBMA Board of Directors approved on June 18 this year the proposal of BSLI to develop and maintain the whole beach area and the facilities of All Hands in accordance with world-class standards.

According to Marcelo, BSLI has pledged to invest P10-million within five years to immediately uplift the status of the beach resort.

Under the management agreement, the revenues from entrance fees will go to SBMA while rental earnings from cottages, pavilions, nipa huts and other facilities will go to BSLI.

This means an estimated P 12 million in annual revenues for SBMA.

SBMA took over the beach resort Tuesday (August 3), deploying cashiers to man the entrance and other personnel to temporarily run the facility preparatory to the turn over to the new operator.

BSLI’s development plan on All Hands include the construction of drainage facilities, a sewerage system, 30 concrete Mediterranean-type beach cabanas, retaining walls for sand protection; conversion of existing pavilions into function halls, and the rehabilitation of the present 10 overnight cottages into 20 world-class Mediterranean-inspired cottages.

Existing facilities to be overhauled include plumbing, showers, restrooms and dressing rooms. Safety facilities, life guard towers, light facilities are set for improvement. Landscaping works for the entire beach facility will also be undertaken. (SBMA Corporate Communications)

Photo: All-hands beach property

03 August 2010

Subic braces for ‘purely Pinoy’ festivity this month

The Subic Bay free port community is gearing up for a full-blast barrio fiesta celebration on August 14-16 to commemorate the feast of San Roque, Subic Bay’s patron saint.

Everything from food, music, decoration and presentations will feature the countryside Filipino lifestyle for this year’s version of the Subic Bay “Karakol” festival, which since its inception in 2000 has drawn people to its core religious message.

To drive home the “Authentic Filipino Fiesta at Subic Bay Freeport” theme this year, the Subic Bay Metropolitan Authority (SBMA) has also sponsored a “building dress-up contest” here, whereby building facades will be decorated with the best of indigenous materials to create a truly festive atmosphere throughout the celebration.

“So don’t be surprised to see nipa huts, farm implements, and ‘banderitas’ suddenly sprouting all over the Freeport,” said SBMA deputy administrator Raul Marcelo. “These native decorations will also be complemented by lights and sounds that will really set the mood for our rural-inspired festivity.”

The Subic Bay Karakol Festival, Marcelo explained, has become a form of thanksgiving for the sustained economic success of the Subic Bay Freeport Zone over its 18 years of existence.

“We give thanks specifically for having weathered the recent global economic slowdown, and then experiencing growth in the first half of 2010,” Marcelo added.

Subic’s upcoming barrio fiesta celebration will kick off on August 14 with a sand sculpture competition for 10-member teams at the Boardwalk Park here. This will be followed by indigenous games for children on the next day at the San Roque chapel grounds, as brass bands and various presentations will rev up the excitement.

The festivities will culminate with the Karakol Parade on August 16, the actual feast day of San Roque.

Marcelo added that on the last day, tourists and locals alike could also look forward to a street-dancing competition, highlighting colorfully-costumed participants and ethnic-designed floats that would make a round of the central business district here.

Group contests during the festival will be open to employees from the private and public sectors, non-government organizations, and schools in and near the Subic Bay Freeport.

Cash prizes ranging from P2,000 to P10,000 await the winning entries. Contest mechanics and registration forms are now available at the SBMA Human Resource Department at Bldg. 255, Barryman Road, Subic Bay Freeport. (SBMA Corporate Communications)

02 August 2010

Subic-made exports hit $713.15M in Jan-June 2010

Export value posted by registered enterprises in this free port reached $713.15 million from January to June this year, marking an all-time high record in mid-year export value in the last 16 years.

Subic’s first semester export production also indicated an increase of $180.26 million, or 33.83 percent, compared to the $532.89 million generated in the same period last year.

According to Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza, the freight-on-board (FOB) value posted by Subic’s top 10 exporters from January to June comprised some 86 percent, or a total of $613.44 million, of the exports.

Korean shipbuilder Hanjin Heavy Industries Co.-Philippines (HHIC-Phil) remained Subic’s top exporter since last year by posting an FOB value totaling $372.74 million.

Arreza said that the SBMA expects Subic’s export FOB value to grow in the coming months, as free port enterprises roll out more products due to brightening prospects in global trade.

“Hanjin, for one, is expected to rally its production in the coming months. After delivering container ships like the APL Bahrain , Leyla K, and Eser K in the first semester, Hanjin is set to fabricate some 36 vessels more, with delivery schedules within the next two years,” Arreza pointed out. “So we’re expecting Hanjin to remain as the Subic free port's top exporter for the next few years, and also fuel the growth of Subic’s maritime industry.”

Arreza also said that after HHIC-Phil, the next biggest exporters were Taiwanese computer maker Wistron Infocomm (Phils.), which posted $66.71 million; Japanese micro-motor manufacturer Sanyo Denki, with $50.98 million; Japanese ATM-maker Hitachi Terminals, $31.34 million; and Japanese wood products manufacturer Juken Sangyo with $24.86 million.

Also in the top 10 list were Taiwanese lock maker Tong Lung (Phils) Metal Industry with $23.7 million; Japanese electronics sensor maker Nicera, with $14.42 million; newcomer Taiwanese firm Tapu Corporation, which manufactures metal products, with $10.9 million; Taiwanese aircon maker Hitachi, $9.51 million; and another Taiwanese newcomer Cano Subic Corporation, also a metals producer, with $8.28 million.

SBMA figures also indicated that the biggest export values were recorded in the first quarter of the year, with $230 million in February, $181 million in January, and $119 million in March. Meanwhile, the second quarter yielded $67 million in June, $60 million in April, and $55 million in May.

On the other hand, import value from January to June this year stood at $1.64 billion, up by $539.53 million or 48.88 percent from last year’s $1.1 billion.

Arreza said that some 81.35 percent of the import FOB value during the period was contributed by the top 10 importers, which brought in goods worth $1.34 billion.

Besting all other importers in the Subic Freeport was Japanese electric appliance parts manufacturer Sanyo Denki with $303.16 million; followed by Filipino firm PTT Philippines Trading Corp. with $270 million; HHIC-Phil., Inc. with $193.97 million; Japanese manufacturer Koryo Subic, Inc. with $110.83 million; and Wistron Infocomm with $109 million.

Other firms that completed the top 10 importers list were Nicera Phils, Inc. with $104.83 million; Nidec Subic Phils. Corp. with $90.93 million; Micro Dragon Petroleum, Inc. with $58.86 million; Koushin Manufacting Phils., Inc. with $56.54 million; and Subic Int’l Air Charter Inc. with $38.68 million. (SBMA Corporate Communications)

21 July 2010

Subic ties up with China ecozone

This free port is firming up ties with a counterpart economic zone in Suzhou city in Jiangsu, southern China, particularly in the fields of tourism, real estate development and business process outsourcing (BPO).

The Subic Bay Metropolitan Authority (SBMA) said in a statement yesterday that it recently hosted a trade and investment mission from the Suzhou Wuzhong Economic Development Zone.

A presentation on Subic’s investment policy and plans was conducted by SBMA Senior Deputy Administrator (SDA) for trade and tourism Stefani C. Saño, SDA for legal affairs Ramon O. Agregado and SBMA investment department head Kenneth G. Rementilla.

The visit was facilitated by Subic-based housing developer Grand Pillar International Development, Inc. Chairman Johnson Yang and Chief Operating Officer Josephine Chua.

The SBMA statement quoted Yu Xingnan, head of the delegation, as saying Subic Bay Freeport could be an ideal location for China firms engaged in BPO, noting the availability of skilled, English-proficient workers.

He added that this free port could be used as a transshipment hub for China-made products that are exported throughout the world, citing its strategic post in the Pacific region.

For his part, SBMA Administrator and CEO Armand C. Arreza said the state firm is promoting Subic as a haven for foreign retirees from Japan, US, Australia, Canada and China.

"We are presently developing a large area in Subic...to accommodate the growing needs of retirement homes for foreigners," Grand Pillar’s Ms. Chua said.

Mr. Yu also said Wuzhong and Subic could also be partners in tourism-related ventures that will require direct chartered-flights between them. He said Wuzhong will be actively engaged in IT development, as well as in tourism by developing the new South Suzhou Trade Circle and the Taihu Lake National Tourism Resort. (RMG, BusinessWorld)

17 July 2010

Pres. Aquino unveils PNP training school in Subic Freeport

President Benigno Aquino III yesterday inaugurated a police training facility here in his first visit to the Subic Bay Freeport as the highest official of the land.

Aquino, who flew into Subic via the presidential helicopter, arrived at the Subic Bay International Airport and then motored a short distance to the Naval Magazine area where the Philippine National Police School for Values and Leadership (PNP-SVL) is located.

Aquino was welcomed at the airport by PNP Dir. Gen. Jesus Verzosa, Interior Secretary Jesus Robredo, Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga, SBMA administrator Armand Arreza, Zambales governor Hermogenes Ebdane Jr., Bataan governor Enrique Garcia, and Olongapo City’s first lady Anne Gordon.

In his speech, the President stressed the importance of a strong police force, noting that police officers played a major part in quelling military uprisings that were launched during the administration of his mother, the late President Cory Aquino.

“Kaya pangunahing layunin ko ngayon ay magpasalamat sa taumbayan at sa Kapulisan na tumulong para sa pagpapanatili ng kapayapaan,” he said.

“Kailangang matugunan ang pangangailangan ng Kapulisan upang maging epektibong tagapangalaga ng mga mamamayan. Tulungan natin sila,” Aquino added.

Meanwhile, Verzosa expressed thanks for the support extended by the SBMA and the Philippine Anti-Graft Commission (PAGC) in establishing the police training school here.

Versoza said the SBMA provided a free 25-year lease for the 1.8-hectare school site, while the PAGC gave a P14-million grant for the construction of the buildings.

Versoza added that the training facility, which can accommodate 100 police officers at any given time, will be used to conduct refresher courses on values formation, leadership training, and personality development to transform police officers into servant-leaders.

Meanwhile, when asked whether he has already made new appointments for the SBMA, President Aquino clarified that he had so far not appointed any replacement for Salonga and Arreza.

“No. There is no new appointment yet. Wala pa,” he said. (SBMA Corporate Communications)


PHOTO:
President Noynoy Aquino gets a warm welcome at the Subic Bay International Airport in his first visit to the Subic Bay Freeport from SBMA Chairman Feliciano Salonga, Zambales Gov. Hermogenes Ebdane Jr., Bataan Gov. Enrique Garcia, and SBMA Administrator Armand Arreza.

15 July 2010

Aviation firm invests $1.1M in Subic airport

Efforts by the Subic Bay Metropolitan Authority (SBMA) to carve a niche in aircraft chartering service finally hit pay dirt, as an aviation company based in Guam decided to establish a world-class, full-service aviation center here at the Subic Bay International Airport (SBIA).

Aviation Concepts Holdings (AC), an American-Canadian joint venture, is investing US$1.1-million to rehabilitate facilities at the SBIA and start operations by mid-September, said Anthony Decostes, the firm’s senior vice-president.

Decostes said they are committed to offer a full range of aviation services and facilities to clients. These include ground handling, maintenance repair and overhaul, FBO facility with VIP crew lounge and amenities, air ambulance, aircraft scheduling and recordkeeping, aircraft detailing, hangarage and technical stop services.

Decostes and AC aviation security head Edward Pooley signed the contract for the aviation service project here last week with Stef Saño, SBMA senior deputy administrator for business, and retired B/Gen. Marcelo Santos, head of the SBMA airport department.

SBMA administrator Armand Arreza, meanwhile, referred to the AC project as the “resurrection” of the SBIA, which has lain dormant since February 2009 when the Federal Express transferred its Asia-Pacific hub here to China.

He said that just as FedEx in 1995 ushered in the first wave of foreign business locators to this free port, the AC project could now open new opportunities by attracting intercontinental jets to the SBIA.

“Aviation Concepts has transformed an abandoned and dilapidated military hangar into Guam’s aviation center. SBIA will surely reap huge benefits from the expertise of this international firm,” Arreza also said.

Decostes echoed this optimism, saying the jets his company services will bring aircraft owners and VIPs here to see “what a wonderful area Subic Bay is, physically and business-wise.”


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“Our concept here is to basically copy what is in Guam, bring it here and expand it,” said Decostes, who also serves as AC’s country director in the Philippines.

AC, he said, began looking at the Philippines when their Guam operations “grew exponentially, but faced problems with actual, physical growth.”

In 2007, in partnership with Universal Weather and Aviation, Inc., AC opened the first aircraft scheduling center for business aircraft in Makati. Due to the success of this venture, AC targeted Subic Bay for a bigger operations program.

“Lucky for us the SBIA was vacated by FedEx. Everything seems prepared for us — world-class aviation facilities, minimal air traffic, availability of trained workforce. Everything we need is right here in Subic,” Decostes said.

Decostes also praised Subic’s easy accessibility via the Subic-Clark-Tarlac Expressway, and the ease of making transactions with the SBMA.

“Bureaucracy is better here than in Manila,” he commented. “I’m going to say that is a great factor for us.”

Decostes also said his company will hire 50 employees for its Subic operations, and that the workers will be trained to the highest level attainable. (SBMA Corporate Communications)

PHOTO: Officials of the Subic Bay Metropolitan Authority and Aviation Concepts Holdings sign the contract for a full-service aviation center project at the Subic Bay International Airport (L-R): SBIA manager Marcelo Santos, SBMA senior deputy administrator for business Stef Saño, Aviation Concepts senior vice-president Anthony Decostes, and AC aviation security head Edward Pooley.

Udenna wins bid for Subic power plant

MANILA - Udenna Corp., the investment arm of Phoenix Petroleum Philippines Inc., owner Dennis Uy, won in the bidding yesterday for the 116-megawatt (MW) Subic diesel power plant (SDPP).

Informed sources said among the four pre-qualified companies, only Udenna submitted financial and technical proposals, prompting Subic Bay Metropolitan Authority (SBMA) to enter into a negotiated sale with Udenna.

The sources declined to give the identities of the other bidders but earlier reports indicated that Aboitiz Power Corp. and Pacifica Inc. had signified interest to join the SDPP bidding.

SBMA auctioned off the SDPP after it was turned over by the Power Sector Assets and Liabilities Management Corp. (PSALM) last year.

The plant was commissioned in 1994 through a build-operate-transfer (BOT) agreement between National Power Corp. (Napocor) and Enron Corp.

It was also learned that the SBMA board has ordered management “to enter into a consortium agreement with R-II Builders Inc. for purposes of the bidding or submission of the pre-qualification requirements and proposal for the SDPP project.”

Udenna owns minority shares at publicly-listed Phoenix Petroleum one of the most aggressive independent oil companies in the country.

Formerly known as Davao Oil Terminal Services Corp., Phoenix Petroleum is 68 percent-owned by Phoenix Petroleum Holdings Inc. The rest of the company’s shares are owned by Udenna Corp., Udenna Management and Resources Corp., Udenco Corp., and certain individuals.

The company is engaged in trading refined petroleum products, lubricants and other chemical products on wholesale basis operation of oil depots and storage facilities; and allied services mainly in Mindanao. ((Donnabelle L. Gatdula, Philippine Star)

13 July 2010

Subic locator begins export of ‘E-scooter’

A Japanese-Filipino joint-venture company has begun exporting battery-powered electric scooters, riding the crest of the popularity of “green” products designed to help mitigate climate change.

World Green Inc. (WGI), which began operations here only last year, has already delivered 240 units of its “E-scooter” to Japan after only six months of operation, said Gemma Villaseñor, the firm’s general manager.

“Now, we have an outstanding order for 600 units more,” Villaseñor added.

WGI has invested $208,000 for its factory here at the Subic Gateway Park, engaging in the importation, assembly, warehousing and exportation of rechargeable scooters to various Asian countries.
Villaseñor said the company also hopes to capture the Philippine market before the year ends, as well as penetrate other Asian markets like China and Korea, where the popularity of the so-called green products is fast catching on.

“The E-scooter is very earth-friendly because it has zero-smoke emission. It is powered by rechargeable batteries and does not emit carbon dioxide into the air,” Villaseñor said.

She added that the E-scooter, which has a top speed of up to 60 kilometers per hour (kph), is “very ideal for short-distance travel” because of its maneuverability.

“With the size of a domestic bicycle, the E-Scooter also provides you hassle-free parking,” she added.

The company’s E-scooter weighs about 120 kilograms and comes in four colors—blue, red, orange and black. It is powered by eight pieces of 12-volt battery, which could be fully charged in just four hours. Parts used in the assembly of the units are manufactured in China and Taiwan.

Villaseñor said they are selling the E-scooter at a plan retail price of ¥238,000 (about P125,800), which includes tax and registration fee. (Henry Empeño, Business Mirror)

In Photo: A prospective buyer checks out an E-Scooter on display during the opening of World Green Inc.’s assembly plant at the Subic Bay Free Port.

12 July 2010

SBMA, Korean university launch cultural exchange program

The Subic Bay Metropolitan Authority (SBMA) and Youngsan University of South Korea (YSU) have signed a memorandum of understanding to enhance cultural cooperation between the two institutions.

SBMA chairman Feliciano Salonga said the MOU aimed to promote mutual understanding, collaboration and cooperation between SBMA and YSU through exchange programs that will mutually benefit YSU students and SBMA staff.

Salonga and university president Gu Wuck Bu signed the agreement recently after a YSU delegation composed of 27 students and three officials arrived here on June 30 for five days of community immersion under the university’s Global Overseas Volunteers (GOV) program.

The signing was witnessed by Sung Sim School chairperson Ro Chan Young and other officials from both the SBMA and YSU.

“This is another door of opportunity being opened for SBMA employees,” Salonga said, noting that under the MOU, the Korean school shall give scholarship grants to two SBMA nominees for one year, inclusive of tuition and application fees. On the other hand, SBMA will accept two YSU students each year for an internship program.

Salonga said that payments for board and lodging, book allowances, medical insurance and international travel fare shall be separately negotiated and approved by both parties when the exchange program is implemented.

Aside from the cultural exchange, the YSU delegation conducted community outreach projects at the Pastolan Aeta village in the Subic Bay Freeport.

A day before the MOU was signed, Salonga, Bu and Young inaugurated a basketball court in Pastolan, an Aeta village inside the Subic Freeport Zone.

The court was funded by the Korean group and constructed by the 27 student-volunteers in five days.

Won-Cheol Choi, project manager of the YSU GOV, said the volunteers also participated in community projects like the construction of playground, and the repair and remodeling of the day care center in Pastolan.

Choi said the five-day immersion activity has made Subic “a very special place for us now.”

“The volunteers enjoyed being with the members of the community,” Choi said. “They taught the Aeta children taekwondo, music and art, and beauty care and acupuncture to adults.”

On the other hand, Young said the agreement signified a better future for both the SBMA and YSU.

“We are delighted to mark the beginning of our new relationship with your beautiful community and the SBMA,” said Young. “We hope that this project will bring better opportunity and much joy, especially for the younger generation.” (SBMA Corporate Communications)

PHOTO:
SBMA Chairman Feliciano Salonga (right) and Youngsan University president Gu Wuck Bu conclude an agreement for a cultural exchange program.

05 July 2010

SBMA’s manpower subsidiary suspends operations

“We’ve exhausted all possible means to keep it operating,” this was how Atty. Ed Tamondong described efforts to resuscitate the manpower subsidiary of the Subic Bay Metropolitan Authority which he heads, the Freeport Service Corp. (FSC).

“(FSC has) no more source of revenue, we can no longer sustain the expenses for salaries and operations,” Tamondong said as he confirmed the decision of the board to mothball the company.

The FSC Board, which he has chaired since July last year, also decided last Friday (June 25) to give the remaining 240 employees separation pay equivalent to one month for every year of service.

The remaining FSC assets – two gasoline stations and a couple of beach facilities - have to be leased or put under private management to earn the amount needed to pay separation benefits and other obligations.

“Until we are ready to pay, we will not serve the retrenchment notice,” Tamondong added. FSC employees will be given 30 days notice before their separation from service takes effect.

Meanwhile, SBMA Administrator Armand Arreza directed Labor Department Manager Atty. Severo Pastor, Jr. to prepare a program to assist the workers who will be retrenched.

FSC was created in 1995 to provide manpower services needed by the SBMA. The SBMA leased out to its subsidiary several tourism facilities under a revenue sharing arrangement, with the SBMA share fixed at only 5 percent .

According to Tamondong, however, the FSC has never remitted any share to SBMA, prompting the agency to get back most of its assets over the past two or three years.
Since 2000, the SBMA has been subsidizing FSC to the tune of P 6 million monthly or P 72 million a year to cover salary and operating expenses.

The FSC’s financial problem was aggravated by its “bloated” manpower. More than 800 personnel were listed in its payroll before the first manpower reduction was undertaken in 2008.

“For the size of its business operations, 200 would have been enough,” Tamondong said.

In the first manpower reduction, some 652 FSC employees were absorbed by the SBMA. The SBMA also advanced some P 40 million for the partial payment of their separation benefits.

With the company’s manpower down to 240, the SBMA reduced its monthly subsidy to the FSC to P 4 million a month until it was totally scrapped by January this year.

With the revenues from its remaining assets barely enough to keep it afloat, the FSC borrowed another P 4 million from SBMA in January for personnel salaries. In the summer months, which was peak season for tourism, the beleaguered SBMA subsidiary survived from revenues from its gasoline stations and beach facilities.

“Now it’s the lean season again, walang kita,” Tamondong said, adding, “Rather than pile up debts, the board decided to implement its decision last February or March to mothball the company.” (SBMA Corporate Communications)

02 July 2010

SBMA to track down blue-plate vehicles

SUBIC Bay Metropolitan Authority (SBMA) is set to roll out its third major automation project for the year, which aims to create a system that will track the whereabouts of the shipments of blue-plate vehicles, among others, that will enter and exit the free port.

SBMA Administrator Armand Arreza in an interview said the agency will launch a system that will track all types of vehicles that will enter the country through the free port, which has been accused by other government agencies of being a haven of smugglers.

Arreza said SBMA and E-Konek Pilipinas are devising a way to place a global-positioning system tracking device on all vehicles that will be shipped through the free port.

E-Konek, which is headed by former Customs and Internal Revenue commissioner Guillermo Parayno, is one of the value-added service providers of the Bureau of Customs (BOC).

The Subic management, Arreza said, is trying to curb smuggling, because it is trying to promote the free port as a place that is investor-friendly but, at the same time, transparent and clean.

“Finally, we will know where the vehicles are being used,” he added.

When finally launched, the said system will be the third major automation project of SBMA this year.

By July 15, SBMA and the BOC will implement a gate-management system, under which no loaded cargo truck will be allowed to go out if the duties taxes due its cargo have not been paid to the BOC or the port and wharfage charges of the ship that brought the cargo are still unpaid.

The system has already been pilot- tested in May with PTT Philippines, an oil company, and Microbase Transport and Equipment Inc., which both used electronic-gate passes.

During the past years, BOC officials have been accusing Subic as one of the places where smuggling of goods, including oil products and other second-hand vehicles is rampant.

Earlier this year, Customs Commissioner Napoleon Morales ordered a crackdown on all unaccounted Subic blue-plate vehicle that were brought in through the free port but later sold outside Subic.

Morales created Task Force “Oplan Subic Blue Plates” to recover at least 184 motor vehicles that are subject to seizure and forfeiture pursuant to Customs Special Order 6-2010. (VG Cabuag, Business Mirror)

30 June 2010

Inaugural Speech of President Benigno S. Aquino III (Official English Translation)

His Excellency Jose Ramos Horta, Former President Fidel V. Ramos, Former President Joseph Estrada, Senate President Juan Ponce Enrile and members of the Senate, House Speaker Prospero Nograles and members of the House, justices of the Supreme Court, members of the foreign delegations,Your Excellencies of the diplomatic corps, fellow colleagues in government, aking mga kababayan.

My presence here today is proof that you are my true strength. I never expected that I will be here taking my oath of office before you, as your president. I never imagined that I would be tasked with continuing the mission of my parents. I never entertained the ambition to be the symbol of hope, and to inherit the problems of our nation.

I had a simple goal in life: to be true to my parents and our country as an honorable son, a caring brother, and a good citizen.

My father offered his life so our democracy could live. My mother devoted her life to nurturing that democracy. I will dedicate my life to making our democracy reach its fullest potential: that of ensuring equality for all. My family has sacrificed much and I am willing to do this again if necessary.

Although I was born to famous parents, I know and feel the problems of ordinary citizens. We all know what it is like to have a government that plays deaf and dumb. We know what it is like to be denied justice, to be ignored by those in whom we placed our trust and tasked to become our advocates.

Have you ever been ignored by the very government you helped put in power? I have. Have you had to endure being rudely shoved aside by the siren-blaring escorts of those who love to display their position and power over you? I have, too. Have you experienced exasperation and anger at a government that instead of serving you, needs to be endured by you? So have I.

I am like you. Many of our countrymen have already voted with their feet - migrating to other countries in search of change or tranquility. They have endured hardship, risked their lives because they believe that compared to their current state here, there is more hope for them in another country, no matter how bleak it may be. In moments when I thought of only my own welfare, I also wondered - is it possible that I can find the peace and quiet that I crave in another country? Is our government beyond redemption? Has it been written that the Filipino’s lot is merely to suffer?

Today marks the end of a regime indifferent to the appeals of the people. It is not Noynoy who found a way. You are the reason why the silent suffering of the nation is about to end. This is the beginning of my burden, but if many of us will bear the cross we will lift it, no matter how heavy it is.

Through good governance in the coming years, we will lessen our problems. The destiny of the Filipino will return to its rightful place, and as each year passes, the Filipino’s problems will continue to lessen with the assurance of progress in their lives.

We are here to serve and not to lord over you. The mandate given to me was one of change. I accept your marching orders to transform our government from one that is self-serving to one that works for the welfare of the nation.

This mandate is the social contract that we agreed upon. It is the promise I made during the campaign, which you accepted on election day.

During the campaign we said, “If no one is corrupt, no one will be poor.” That is no mere slogan for posters -- it is the defining principle that will serve as the foundation of our administration.

Our foremost duty is to lift the nation from poverty through honest and effective governance.

The first step is to have leaders who are ethical, honest, and true public servants. I will set the example. I will strive to be a good model. I will not break the trust you have placed in me. I will ensure that this, too, will be the advocacy of my Cabinet and those who will join our government.

I do not believe that all of those who serve in our government are corrupt. In truth, the majority of them are honest. They joined government to serve and do good. Starting today, they will have the opportunity to show that they have what it takes. I am counting on them to help fight corruption within the bureaucracy.

To those who have been put in positions by unlawful means, this is my warning: we will begin earning back the trust of our people by reviewing midnight appointments. Let this serve as a warning to those who intend to continue the crooked ways that have become the norm for too long.

To our impoverished countrymen, starting today, your government will be your champion.

We will not disregard the needs of our students. We will begin by addressing the glaring shortage in classrooms and educational facilities.

Gradually, we will lessen the lack of infrastructures for transportation, tourism and trade. From now on, mediocre work will not be good enough when it comes to roads, bridges, and buildings because we will hold contractors responsible for maintaining their projects in good condition.

We will revive the emergency employment program established by former President Corazon Aquino. This will provide jobs for local communities and will help in the development of their and our economy.

We will not be the cause of your suffering or hardship. We will strengthen collections by the Bureau of Internal Revenue and we will fight corruption in the Bureau of Customs in order to fund our objectives for the public welfare, such as:

· Quality education, including vocational education, so that those who choose not to attend college or those who cannot afford it can find dignified livelihood;

· Improved public health services such as PhilHealth for all within three years;

· A home for every family, within safe communities.

We will strengthen the armed forces and the police, not to serve the interests of those who want to wield power with impunity, but to give added protection for ordinary folk. The armed forces and the police risk their lives daily so that the nation can live in peace and security. The population has doubled and yet their numbers remain unchanged. It is not right that those who make sacrifices are treated pitifully.

If there was a fertilizer scam in the past, today there will be security for farmers. We will help them with irrigation, extension services, and marketing their products at the best possible prices.

We are directing Secretary Alcala to set up trading centers that will directly link farmers and consumers thereby eliminating middlemen and opportunities for corruption. In this way, funds can be shared by farmers and consumers. We will make our country attractive to investors. We will cut red tape dramatically and implement stable economic policies. We will level the playing field for investors and make government an enabler, not a hindrance to business. This is the only means by which we can provide jobs for our people.

Our goal is to create jobs at home so that there will be no need to look for employment abroad. However, as we work towards that end, I am ordering the DFA, POEA, OWWA, and other relevant agencies to be even more responsive to the needs and welfare of our overseas Filipino workers.

We will strengthen the process of consultation and feedback. We will strive to uphold the constitutional right of citizens to information on matters of public concern.

We relived the spirit of people power during the campaign. Let it take us to good and effective governance. Those who believe in people power put the welfare of others before their own.

I can forgive those who did me wrong but I have no right to forgive those who abused our people.

To those who talk about reconciliation, if they mean that they would like us to simply forget about the wrongs that they have committed in the past, we have this to say: there can be no reconciliation without justice. When we allow crimes to go unpunished, we give consent to their occurring over and over again. Secretary de Lima, you have your marching orders. Begin the process of providing true and complete justice for all.

We are also happy to inform you the acceptance of Chief Justice Hilario Davide of the challenge of strengthening and heading a Truth Commission that will shed light on many unanswered issues that continue to haunt our country.

My government will be sincere in dealing with all the peoples of Mindanao. We are committed to a peaceful and just settlement of conflict, inclusive of the interests of all -- may they be Lumads, Bangsamoro or Christian.

We shalI defeat the enemy by wielding the tools of justice, social reform, and equitable governance leading to a better life. With proper governance life will improve for all. When we are all living well, who will want to go back to living under oppression?

If I have all of you by my side, we will be able to build a nation in which there will be equality of opportunity, because each of us fulfilled our duties and responsibilities equally.

After the elections, you proved that it is the people who wield power in this country.

This is what democracy means. It is the foundation of our unity. We campaigned for change. Because of this, the Filipino stands tall once more. We are all part of a nation that can begin to dream again.

To our friends and neighbors around the world, we are ready to take our place as a reliable member of the community of nations, a nation serious about its commitments and which harmonizes its national interests with its international responsibilities.

We will be a predictable and consistent place for investment, a nation where everyone will say, “it all works.”

Today, I am inviting you to pledge to yourselves and to our people. No one shall be left behind.

No more junkets, no more senseless spending. No more turning back on pledges made during the campaign, whether today or in the coming challenges that will confront us over the next six years. No more influence-peddling, no more patronage politics, no more stealing. No more sirens, no more short cuts, no more bribes. It is time for us to work together once more.

We are here today because we stood together and believed in hope. We had no resources to campaign other than our common faith in the inherent goodness of the Filipino.

The people who are behind us dared to dream. Today, the dream starts to become a reality. To those among you who are still undecided about sharing the common burden I have only one question: Are you going to quit now that we have won?

You are the boss so I cannot ignore your orders. We will design and implement an interaction and feedback mechanism that can effectively respond to your needs and aspirations.

You are the ones who brought me here - our volunteers - old, young, celebrity, ordinary folks who went around the country to campaign for change; my household help who provided for all my personal needs; my family, friends, colleagues at work, who shared, cared, and gave their support; my lawyers who stayed all hours to guard my votes and make sure they were counted; and the millions of Filipinos who prevailed, kept faith, and never lost hope - I offer my heartfelt gratitude.

I will not be able to face my parents and you who have brought me here if do not fulfill the promises I made.

My parents sought nothing less, died for nothing less, than democracy and peace. I am blessed by this legacy. I shall carry the torch forward.

My hope is that when I leave office, everyone can say that we have traveled far on the right path, and that we are able to bequeath a better future to the next generation. Join me in continuing this fight for change.

Thank you and long live the Filipino people!

June 30, 2010
Quirino Grandstand

Thanks to the NoyNoy Media Bureau
photo c/o Yahoo! Philippines

29 June 2010

SBMA adopts new scheme for release of LGU share from corporate taxes

The Subic Bay Metropolitan Authority (SBMA) will soon be collecting the two percent share of contiguous local government units (LGUs) from corporate taxes paid by business locators in this free port, instead of the Bureau of Internal Revenue (BIR).

This was announced by Subic authorities during a forum held under the auspices of the Department of Finance (DOF) for some 300 representatives of companies in the Subic Bay Freeport Zone.

“We are doing this to make sure that the LGU shares are distributed quickly,” SBMA administrator and CEO Armand Arreza explained.

He said that previously, Subic locators forward their corporate tax, or five percent of their gross income earned, straight to the BIR, which automatically remits payments to the national treasury.

Thereafter, the Department of Budget Management (DBM) releases the two percent share to the LGUs concerned.

Arreza also said that since the creation of the SBMA, the 2 percent share was only distributed for a few years, resulting to a lot of complaints from LGUs.

“The funds could have been used to finance LGU development projects and provide for basic support services in health, education, and peace and order,” Arreza noted.

“So it is but right and lawful that the LGUs receive their share on a regular basis,” he stressed.

According to Republic Act No. 9400, which amended RA 7227 or the Bases Conversion and Development Act of 1992, no national and local taxes shall be imposed within the Subic Special Economic Zone except for a five percent tax on gross income earned by business enterprises within the zone.

Accordingly, the corporate tax shall be remitted as follows: three percent to the National Government, and two percent to the SBMA for distribution to LGUs affected by the declaration of, and contiguous to the zone.

The two percent share is divided according to population (50%), land area (25%), and equal sharing (25%).

The contiguous communities include the City of Olongapo and the municipalities of Subic, San Antonio, San Marcelino and Castillejos in Zambales, and Morong, Hermosa and Dinalupihan in Bataan.

In the forum, Arreza said that there will be no other changes in the computation of the corporate taxes, except for splitting the check into two: 60 percent to be forwarded to the BIR and 40 percent to the SBMA Treasury Department.

Aside from Arreza, BIR assistant revenue district officer Maglangit Dicampong was present to address concerns raised by business locators. The forum speakers also included SBMA senior deputy administrator for internal services Ramon Agregado, SBMA deputy administrator for finance Cristina Millan, and SBMA treasury department manager Paulita Yee.

For her part, Millan assured the locators that the SBMA will issue guidelines to address matters regarding the new collection scheme for corporate taxes.

The new scheme will be implemented starting with the locators’ second quarter tax payments. (SBMA Corporate Communications)

SBMA seeks legal advice on award to HCPTI

THE Subic Bay Metropolitan Authority (SBMA) is making sure its award of contract to the Harbour Centre Port Terminals Inc. (HCPTI) for the operations of the international port is legal in every way by asking for a legal opinion from the Office of the Government Corporate Counsel (OGCC).

Armand Arreza, chief executive officer and administrator of the SBMA, said the SBMA is also reviewing all the documents submitted by HCPTI. “I expect the OGCC opinion to come out by mid-July, and then we will have to wait for their notice to proceed before we award the contract.”  

He said they made the move so future administrations will not try to overturn or question the decision to award the contract to the private port operator, or at least make it difficult to do so.

SBMA is forming a joint venture with Harbour Centre for the operation of the entire Naval Supply Depot (NSD), a port that currently handles mostly general cargo such as fertilizers and grains.

He is convinced the joint venture can operate the port smoothly because of Harbour Centre’s experience in both Manila Harbour Centre and the Manila North Harbor.

“We have made our due diligence, and we found out that Manila Harbour Centre is almost full, and we expect that we can handle their spillover volume,” added Arreza.

Earlier, Harbour Centre chief executive officer Michael Romero said the company will spend about P6 billion to P8 billion over the 25 years of the contract for improvements.

Romero said their winning the award for the Subic port is just in time to complement the operations of their private Manila container port, since the facility has already reached 95 percent of its capacity.

The terms of reference of the deal with SBMA show the Romero-owned company assures the government of fixed fees of $500,000, or P23 million, for the first year of operation, with the contribution gradually rising to $600,000 in the second year and so on, with yearly rises to a final $1.5 million in the 25th year.

Romero said that if the cargo volumes shoot up to more than 2 million tons in the NSD, Harbour Centre will pay the SBMA an additional 20 percent of the gross revenues. In total, the SBMA said Harbour Centre committed $32 million, or about P1.53 billion, for fixed and guaranteed revenue share of government over the 25-year joint-venture period.

According to the SBMA figures, the nine other port handlers managed 2.21 million tons of noncontainerized cargo in 2009, some 1.8 million tons of bulk and break-bulk cargo with the rest being transshipments, heavy equipment and roll-on/roll-off goods.

Last year the SBMA earned P30.1 million from the nine cargo handlers in handling fees and P8.5 million from warehouse rental and storage fees. (VG Cabuag, Business Mirror)