New luxury hotel opens in Subic free port

Global Hotel and Leisure Properties, Inc. (GHLPI) has opened its P70-million Segara Suites development late last week to complement its passenger terminal business and another existing hotel, officials said late last week.

Segara Suites managing director Dave Baldeo said the 18-room luxury hotel has been added to the 10 units of the Segara Villas.

The completed investment adds to the existing 1,662 rooms and 1,876 housing units in the free port and thus increases the area’s tourism potential, Subic Bay Metropolitan Authority (SBMA) Administrator Armand C. Arreza said.

The project of GHLPI, also the operator of a passenger terminal, will also bolster the free port’s plan to develop a cruise market here as more cruise liners set their sights in Asia, Mr. Arreza said.

Already, the SBMA has recorded a total of $1.02 billion in committed investments for tourism-related projects here, Mr. Arreza said.

Total investment commitments across all sectors meanwhile totaled $1.2 billion for 115 projects, a value nearly six times the $206.5 million recorded for 201 projects in 2009.

Of the 115 investment projects approved by the SBMA in 2010, the bulk was made up by the proposal of South Korean firm MCastle Philippines to spend about $1 billion to develop a resort in Morong, Bataan.

“The Segara resort complex now has the capabilities and facilities to serve visiting cruise ships,” Mr. Arreza said.

“Our plan to increase the number of high-quality rooms is imperative because of the increasing number of tourists coming to Subic,” he added.

The Segara Suites is said to cater to the high-end market which includes business executives as well as celebrities.

“Many are willing to spend for as long as they get their money’s worth,” Mr. Baldeo said.

He added that the new hotel is part of the expansion program of GHLPI that includes the on-going construction of Segara Residences -- a condominium project located near Subic’s Alava Pier -- and the Segara Promenade Commercial Building.

“This is the continuation of the development and expansion phases of Segara,” Mr. Baldeo said.

The company is also seeking to serve visiting cruise ships with the construction of a passenger terminal of its mother-company, the Global Terminals and Development, Inc., according to earlier reports.

The latest development comes as the SBMA had earlier sought to increase the number of shipping firms that use the economic zone’s ports.

Efforts had reportedly been under way to consolidate shipping needs of nearby manufacturers to lure carriers into serving the port, SBMA senior deputy administrator Redentor S. Tuazon had said.

The unnamed shipping firm being targeted, if it signs on, would increase the thrice weekly port calls seen by the Subic ports to daily calls.

Locators at the free port exported $1.345 billion worth of goods in 2010, an increase of 24.6% from the previous year, data from the SBMA Web site showed. But seaport revenues fell 12.33% that year to P414.538 million.

The Subic port covers 41 hectares and consists of 15 piers. (BusinessWorld)

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Subic Freeport hosts biggest IBP convention

Some 2,000 lawyers from different chapters of the Integrated Bar of the Philippines (IBP) across the country attended the organization’s three-day 13th national convention here, the biggest turnout so far in the history of the IBP.

The convention opened on Thursday at the Subic Bay Exhibition and Convention Center (SBECC), with guests of honor that included Vice President Jejomar Binay, Senator Francis Escudero, former Pamantasan ng Lungsod ng Maynila president Adel Tamano, and Public Attorney’s Office chief Persida Acosta.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza, Zambales governor Hermogenes Ebdane, Jr., Zambales 1st District representative Mitos Magsaysay, and Olongapo City mayor James Gordon, Jr. welcomed the convention-goers, with Ebdane and Gordon turning over symbolic keys to Zambales and Olongapo City to IBP officials.

In his welcome remarks, Arreza noted that in all of the conferences and conventions that Subic has hosted, this convention had the most distinguished attendees. He also invited everyone to take the opportunity to enjoy the sights that Olongapo, Zambales and the Freeport has to offer.

Meanwhile, Binay, who is concurrent presidential adviser on Overseas Filipino Workers (OFW) Affairs and chairman of the inter-agency campaign against human trafficking, urged lawyers to be in the frontline of the war against illegal recruiters, stressing that if the evidence points to their guilt, the illegal recruiters should rot in jail.

“We can nip in the bud illegal recruitment and human trafficking by making laws that make them answer before the law,” Binay stressed.

He emphasized that illegal recruiters should not be let off the hook, and that the full force of law should be imposed on international drug traffickers.

Apart from calling on lawyers to fight illegal recruitment, Binay, who was recently sent to China to plead the case of three Filipinos convicted of drug trafficking, also urged lawyers to contribute their own share in the realization of the objectives of good governance.

For his part, Escudero reminded lawyers of the importance of their title. He said that lawyers are seen in society as respected individuals and that their every move is being watched.

He therefore urged lawyers to maintain the level of respect that they are being accorded with.

“Sana, sa inyong mga lugar at komunidad, gampanan natin ang papel na dapat gampanan natin, papel na dapat gampanan hindi lamang bilang Pilipino, hindi lamang bilang abogado, kundi ng isang Pilipinong abogado na nagmamahal sa kanyang bayan, sa pamamagitan ng kanyang salita at gawa (I hope that, in your communities, you do your role not just as a Filipino, not just as a lawyer, but as a Filipino lawyer who loves his country in words and action),” Escudero said.

He also challenged lawyers to help eradicate recurring social problems, such as corruption and human rights violation. Escudero is chairman of the Senate Committee on Justice and Human Rights.

Meanwhile, Supreme Court administrator Jose Midas Marquez officiated the oath-taking of new chapter directors and officers during an induction ceremony held later that evening. (SBMA Corporate Communications)
PHOTO: Vice President Jejomar Binay (2nd from left) hands over to SBMA administrator Armand Arreza a statuette of the Lady of Justice in recognition of the agency’s support in the holding of the Integrated Bar of the Philippines 13th Convention held at the Subic Bay Exhibition and Convention Center in Subic Bay Freeport Zone. Also in photo are Roan Libarios(left), executive vice president and governor of the IBP, and retired Justice Santiago Kapunan, IBP officer in charge.

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Subic rescue chief: Disaster awareness a must for Filipinos

With earthquake experts warning of the possibility of a “big one,” there is more reason for Filipinos to be more prepared and properly trained to face calamities, according to Rannie Magno, chief of the fire and rescue group of the Subic Bay Metropolitan Authority (SBMA).

Magno, a member of a Philippine team sent to the tsunami-struck city of Sendai in Japan to conduct Oplan Bayanihan last March 18, noted that while Filipinos may have some training in disaster preparedness, they still need to develop a culture of disaster awareness.

“Filipinos must be ready, since the threat of a strong earthquake is highly possible,” Magno said.

In particular, members of disaster response teams should be properly briefed on what to do before and after earthquakes, he said. They must also have the proper tools and equipment in handling rescue operations, he added.

The Philippines, which is located in the so-called Pacific Ring of Fire, is susceptible to strong earthquakes, Magno noted.

According to the Philippine Institute of Volcanology and Seismology (PHIVOLCS), the Marikina West Valley fault line, one of the active faults in the country, can cause a 7.2-magnitude earthquake at its full movement. The fault line runs through Metro Manila, particularly through the cities of Marikina, Pasig and Muntinlupa.

PHIVOLCS also noted that the Manila Trench, located 50 kilometers off the island of Corregidor, could generate an 8.5-magnitude earthquake, which can produce a tsunami in the Manila Bay.

While in Japan, Magno said he also observed the way the Japanese people dealt with the disaster and noted that while Japan was very well-prepared, the system of notifying residents still needed to be enhanced.

He said that Filipinos who were evacuated from Sendai recounted that not everyone responded promptly after the tsunami warning was issued.

Japan suffered a magnitude-8.9 earthquake on March 11, which caused tsunami waves of up to 37 meters high. The tsunami caused extensive damage in Miyagi Prefecture, particularly in the cities of Sendai and Fukushima, where the Fukushima Nuclear Power Plant exploded and leaked some radiation in the aftermath of the tsunami.

Magno stressed that if a tsunami warning has been issued, people should seek higher ground within fifteen minutes.

When asked if he felt any fear during the recovery mission in Japan, Magno said that there was no reason to be scared since his team was well prepared. He also added that he had prior chemical, biological, radiological and nuclear training in the United States.

Magno is also a member of the core group of trainers/lecturers who conduct training for local and corporate executives on Incident Command System, which deals with all types of emergencies at all levels. This system, which was patterned after that in the United States, is to be adopted in ASEAN-member countries.

As of now, Magno is promoting disaster awareness activities in Subic and conducting earthquake awareness seminars and earthquake drills.

Magno, who recently received the Civil Service Commission’s Pag-asa award for his work as SBMA fire and rescue chief, said that he is always guided in his undertakings by the core values of the agency.

“Dala natin ang core values ng SBMA. Iba ang values natin,” Magno said. “Lagi kong sinasabi sa mga tao natin na dapat dala natin ito kahit saan tayo mapunta, para mas dumami pa ang maniwala sa ganitong values. Whatever I do, wherever I go, I look at myself as an ambassador of the SBMA,” he added. (SBMA Corporate Communications)

PHOTO:
SBMA Fire Chief Ranny Magno, in hazmat suit, checks radioactivity level at the premises of the Philippine Embassy in Tokyo, which was found to be within normal limits. Magno, a member of the Philippine government’s “Oplan Bayanihan” emergency mission, has called for intensified efforts to increase the level of disaster preparedness in the country.

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Subic’s Lighthouse Resort goes green with beach clean up, Eco-Art

Hundreds of residents and stakeholders in this free port joined hands to protect the environment during the Annual Summer Beach Clean-up organized here by The Lighthouse Marina Resort and the International Yachting Fellowship of Rotarians (IYFR).

The clean-up, held during the early hours of March 25 at the beach front area of the Moonbay Marina Complex, was joined mostly by students from local schools like the Mondriaan Aura College, St. Joseph’s College, and Olongapo City National High School.

Representatives from civic groups, locator companies, and tourism-related establishments also took time to help clean up the beach area.

The activity was followed by a junk art workshop conducted by environmental artists from Baguio City known as the “Junk Artists”, who coached student-participants in creating art works from junk.

The participants used trash collected during the clean-up as materials for their junk art. The artworks will be judged by a panel composed of IYFR leaders.

According to Jun Avecilla, CEO of The Lighthouse Marina Resort, organizers of the cleanup want to spread the mission of taking care of the environment.

Avecilla said that the Lighthouse group and the IYFR are committed to preserving the environment and have conducted tree planting activities across the Philippines, including about 1,000 trees at the Angat watershed and the La Mesa Ecopark.

During the Subic activity, the group also planted coconut trees along the beach front area near the Lighthouse Resort.

A day before the clean-up, the organizers also opened the Eco-Art Exhibit, which featured Nature paintings, including artworks by Filipino watercolorist Adriano "Boy" Valino. The activities were held in a run-up to the Earth Hour, which was held the following day, March 26.

Ameth Dela Llana-Koval, manager of the Subic Bay Metropolitan Authority’s Ecology Center, said in a message delivered during the Eco-Art Exhibit launch that people “should take baby steps to stop climate change.”

She also noted that activities such as planting trees and participating in the Earth Hour by turning off electrical appliances maybe considered small steps, but these would make a big impact if people would do it together.

The Subic Bay beach clean-up was made possible in cooperation with the Subic Bay Freeport Chamber of Commerce, various RotaryClubs, and the Subic Bay Metropolitan Authority. (SBMA Corporate Communications)

PHOTO:
Stakeholders help clean up Subic’s waterfront during the annual summer beach cleanup organized by The Lighthouse Marina Resort in the Subic Bay Freeport.

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Subic traders want review of Japan truck-import

Importers of used vehicles in this free port are urging the government to reconsider the admission here of right-hand drive vehicles from Japan under Executive Order (EO) 887-A, which bans the entry into the country of imported used cars but allows the importation of used trucks, buses and special-purpose vehicles.

According to Ben Perez, managing director of Subic-based vehicle importer Ichiban Import-Export Corp., used-vehicle traders in Subic are requesting the Department of Trade and Industry (DTI) to amend the proposed implementing rules and regulations (IRR) of EO 877-A, or the Comprehensive Motor Vehicle Development Program.

He said the DTI should go easy on used-vehicle imports, particularly those from Japan, as they constitute the bulk of used-motor vehicles that are now used in local industries as well as infrastructure-development projects in the country.

 “Both left-hand drive and right-hand drive trucks should be allowed to be imported through the Subic Bay Freeport since 90 percent of all [right-hand-drive] trucks arriving here are from Japan,” Perez said in a statement on Tuesday.

 “Vehicle importers here are all willing to accept EO 877-A, but [there should not be] additional requirements such as release certificate (RC) since documentary safeguards required by the Subic Bay Metropolitan Authority’s (SBMA) Seaport Department and the Bureau of Customs are already in place,” Perez added.

Perez said that in particular, Section 3.C of the IRR, which allowed the importation of left-hand trucks, buses and special-purpose vehicles, should also allow the entry of right-hand drives from Japan, as recommended by Committee Report 2157 of the 12th Congress on June 12, 2004.

Section 4.A.2 of the IRR, which requires imported vehicles to have roadworthiness and emission-compliance certificate from the country of origin, to be duly authenticated by the Philippine embassy or consulate, must be stricken out because the Japanese government would not issue such a certificate, he added.

Perez pointed out that the required roadworthiness and emission certificate only becomes a duplication because the SBMA already requires a comprehensive test on all imported trucks entering Subic prior to their registration with the Land Transportation Office. As of now, three motor vehicle-inspection centers are operating here: the Vehicle Inspection and Testing Corp., the Subic Bay Motor Vehicle Inspection (SBMI), and the Automotive Testing Emission Center Inc.

Perez contested Section 4.A.5 of the IRR, which calls for a release certificate (RC) to be given by a representative from the DTI’s Bureau of Import Services (BIS).

“The release certificate should not be issued by the DTI-BIS representative alone, as this could easily be a source of corruption. Instead, the RC should be issued after an ocular inspection by the Interagency Committee of Used Trucks and Engines Technical Working Group, together with the SBMA Seaport Department,” Perez said.

Subic traders are also suggesting that the Board of Investments (BOI) should come up with a schedule of fees that would be valid for from three to five years, with proportionate increases over the years.

Local importers are also requesting Trade Undersecretary Cristino Panlilio, who is also manager of the BOI, to conduct another public consultation at the Subic Freeport so that local stakeholders could air their opinion on the matter before the IRR becomes effective, Perez added.

 EO 887-A, which was signed by then-President Gloria Macapagal-Arroyo in June 2010, allowed the importation of used-motor vehicles with gross vehicle weight of from 2.5 tons to 6 tons and above, as well as special-purpose vehicles like firetrucks and ambulances.

However, the EO required that the used vehicles as well as used engines, parts and components should have a Certificate of Authority to Import (CAI) and RC from the DTI-BIS.

The CAI is issued only if the vehicle import has a roadworthiness and emission-compliance certificate from the country of origin which must also show compliance with Philippine roadworthiness and emission standards. The CAI is valid only for a period of 60 days under a letter of credit.

The RC from the DTI-BIS is required for the vehicle to be released from the Bureau of Customs and be registered with the Land Transportation Office. (Henry Empeño, Business Mirror)

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Flying V to put up solar-powered stations in Clark, Subic

CLARK FREEPORT — Leading independent player Flying V is set to pioneer a new innovation in the petrol industry as it plans to establish solar-powered gasoline stations.

Ramiro Villavicencio, project proponent director of the solar-powered gas station, said pilot areas will be this Freeport and Subic Bay Freeport Zone in Zambales by mid-second quarter of this year.

“Nearly everything we do in our modern society requires energy that is generated by burning fossil fuels, contributing to the carbon footprint which effectively harms our environment,” Villavicencio said.

“This move by Flying V won’t solve the environment and energy problems the world is experiencing; however this is part of our corporate social responsibility and we are doing our part to address such problems,” said Villavicencio.

He added that the advocacy is in support of clean and alternative energy, which is in line with the government’s Clean Air Act.

Villavicencio explained that the said solar-powered gas station will be equipped with solar panels that will energize approximately 25 percent of the facility's electric consumption, effectively minimizing carbon footprints.

He also said that the pilot stations will have self-service pumps, which are targeted to give consumers cheaper fuel.

The proposed solar-powered gas station is also one way of trying to change the mind-set of the Filipino people on how to be more conscious about our environment, he added.

Fling V has been actively supporting and promoting the use of alternative fuels, pioneering the sale of bio-diesel in the country.

The company has also been given due recognition by the national government for its active participation in its programs. (Reynaldo G. Navales, Sun Star Pampanga)

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SCAD to harmonize policies with Subic, Clark freeports

The Subic- Clark Alliance for Development (SCAD) is set to speed up harmonization of policies and regulations between the Subic Bay Freeport (SBF) and Clark Freeport Zone (CFZ).

SCAD chairman Nestor S. Mangio said this came on the heels of a recent meeting of the Central Luzon Regional Development Council (RDC-III), where a draft of the Central Luzon Medium Term Regional Development Plan 2011-2016 (MTRDP) was presented.

The plan, he said, underscored, among others, the need for integrated land, air and sea transport modes. SCAD has been a member of RDC-III since 2006.

In a statement, Mangio said the need for a transport mode interconnecting the two freeport zones was one of the strategies identified and included in the MTRDP draft, to ensure sustainable growth that would effectively reduce poverty in Central Luzon.

“In the past we have coordinated the completion of the Subic-Clark-Tarlac Expressway, SCTex Pampanga Interchanges and Access Roads, New Container Terminals in the Port of Subic Bay, and the Passenger Terminal of Diosdado Macapagal International Airport in Clark.

“These infrastructures have been serving the locators and the general public. This year, we will be coordinating more with growth partners and the private sector with regard to policy structures to find ways to further harmonize policies and regulations between the two freeports to attract more investments,” Mangio said.

Under the draft, SCAD is in charge of developing a “Global Gateway Program” aimed at strengthening the linkages between Subic, Clark and Tarlac’s industrial estate.

SCADC is a government office mandated to rationalize resources and harmonize policies and strategies that shall ensure an integrated and coordinated approach to the development of the Subic-Clark-Tarlac Corridor as a world-class mega logistics hub and global gateway to the Asia-Pacific Region.

It is composed of the Department of Trade and Industry, Bases Conversion and Development Authority, Subic Bay Metropolitan Authority, Clark Development Corporation, North Luzon Railways Corporation, and Clark International Airport Corporation.

Covering five kilometers on each side of SCTEx, the Subic-Clark-Tarlac Corridor is a vast expanse of 98,000 hectares straddling between and across 10 municipalities of Zambales, Bataan, Pampanga and Tarlac, and the cities of Olongapo, Angeles, and Tarlac. (U.S. News Agency / Asian)

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Aboitiz Power Expansion

Aboitiz Power Corp. will invest around $1.5 billion to expand the output of two planned coal power plants in Subic and Davao City to a combined 900 megawatts.

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Phoenix set to acquire Subic company

The board of directors of publicly-listed Phoenix Petroleum Philippines Inc. has given its go-signal for the company’s acquisition of the Subic Petroleum Trading and Transport Philippines Inc., a firm at the freeport zone engaged in the trading of refined petroleum products.

Following the board’s approval, the company noted that it will “conduct due diligence for the proposed acquisition.”

From the submission of the result of the due diligence process, the company explained that the management will make onward recommendation
as to how much it would be willing to invest to corner the petroleum trading firm.

The cost and terms of the acquisition will be among those to be fleshed out in the due diligence report which will then serve as the company’s guidance in the planned acquisition.

At the oil firm’s board meeting, it also approved an “investment of corporate funds to form and incorporate a new corporation,” which shall be utilized to subscribe to its majority shares and to have Chelsea Shipping Corporation as minority shareholder.

The proposed new firm, Phoenix Petroleum said, will be used for its plan in “acquiring and operating a new tanker vessel to boost and support the company’s fuel importation” as well as its proposed depot facilities expansion and the corresponding increase in fuel capacity of its depot terminals.

The Board has given its management the authority “to determine the corporate structure of said new corporation and its corporate purpose.”

With buoyed profitability and to respond to market growths, the oil firm has previously laid down plans of investing P1.5 billion this year for expansion projects, partly for the broadening of its retail network.

The company has mapped up plans of expanding further its niche in the Luzon market; while steadily growing its base in Mindanao. It has just recently reported a 140 percent jump in its core earnings to P427 million; and also surpassed its revenue target in 2010 at P14.79 billion. (Myrna M. Velasco, Manila Bulletin)

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$125-M renewable energy projects approved in Subic

The Subic Bay Metropolitan Authority (SBMA) has given the green light for the establishment of renewable energy projects in its freeport amounting to a total of $125 million (P5.59 billion), officials said over the weekend.

SBMA Chairman Feliciano Salonga announced that the request of Subic Wind Power Generation, Inc. (SWPGI) to expand its business and include the establishment and operation of a solar energy project on top of its original proposal to establish and operate a wind farm has been approved.

SWPGI, a subsidiary of the China-based Sunnew Investments Ltd., had committed $75 million last year for the establishment of a 25-wind turbine farm that would generate some 50 megawatts of power here.

However, after ocular surveys and initial data gathering in Subic, the firm decided to also build a solar energy project that would yield from 100 to 200 megawatts of energy, Salonga said.

The expanded project will be worth $125 million, covering some 300 hectares of land at Subic’s Mount Sta. Rita and Redondo Peninsula, and will generate from 150 to 200 megawatts of power.

Salonga said this is in line with the government thrust to accelerate the development of indigenous and renewable power generation systems in the country.

It is also expected to employ about 150 workers, and earn the SBMA some $816,000 in annual lease rentals, he said.

Salonga said that SWPGI’s renewable energy project will not only bring the Subic Freeport at the forefront of the green energy movement, but will also help stabilize power supply in the Luzon grid.

“Subic has long been a net power consumer, but with this project we’re now entertaining the prospect of Subic as a net power producer,” Salonga said. (Franco Regala, Jonas Reyes, Manila Bulletin)

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One-stop facility for business jet services arises in Subic

Aviation Concepts (ACI) announced that it has leased the former FedEx hangar located in Subic Bay, Philippines, and that the hangar is currently in the final stages of refurbishment.

This 100,000 square foot facility is scheduled to be fully operational by this month, and will serve as the company’s second functional base in Asia-Pacific.

The center will offer FBO services to transient aircraft, seeking to market itself as a low cost alternative to popular locations in Hong Kong, Singapore and Kuala Lumpur. In a memo released to the public, the company emphasized its desire to allow for quick technical stops, with inexpensive fueling and minimal handling fees.

ACI is expecting the convenience of a full service aviation facility centrally positioned in Asia to attract significant air traffic to the Subic Bay airport.

According to President and CEO Terry Habeck, “Subic Bay is poised to become one of the busier business aviation hubs in Asia as more owners and operators seek low cost solutions in the region.”

In addition to FBO services, the center will house factory-trained technicians available 24/7 to accommodate the maintenance needs of most long and medium range business jets.

Because of its special economic status as a Freeport Zone, Subic Bay has the advantage of eliminating duties imposed on inbound aircraft parts, thereby avoiding custom holds.

As soon as fully operational, Gulfstream, Challenger and Westwind aircraft will be available for charter, and ACI will begin offering aircraft management and air ambulance services from the new base. (aviationprofessionals.org)

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P15-M fire hits 'Gapo

OLONGAPO City – Some P15 million worth of property and grocery items were reduced to ashes when a fire hit the Pent House building and a nearby grocery store at the corner of 21st Street and Rizal Avenue in Barangay West Bajac-Bajac at dawn Saturday.

City Fire Marshall Maj. Jonas Silvano said a fireman, SFO2 Gerry Anonas, of the Olongapo City Fire Department, was wounded.

Silvano said the three-hour fire which started at 5 a.m. at the Pent House owned by Aboy Lim was caused by an LPG tank exploded. The fire quickly spread to Happy Valley Grocery store.

Firefighters from the city, SBMA, Subic and Castillejos helped put out the fire. (Mamer Bañez, Journal Online)

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SBMA assures investors of adequate power supply

The Subic Bay Metropolitan Authority (SBMA) has assured investors here that electric power supply in this free port will be sufficient this year, even as the rest of the country may possibly face outages in summer when power demand will be at its peak.

SBMA Administrator and CEO Armand Arreza gave this assurance, citing that Subic’s power generation capacity has been boosted by the re-commissioning in late December of the 116-megawatt diesel power plant here.

“There is a lot of fear and apprehensions that within two years, the country as a whole would face energy shortage starting 2011,” Arreza said. “But as always, the SBMA has taken the necessary steps ahead of whatever problem that may disrupt the robust economy in the Subic Bay Freeport.”

“Now, with the upgraded diesel power plant, the growth of businesses here will surely remain unhampered,” Arreza added.

According to the SBMA chief, the five-year lease contract for the 10-hectare property where the Subic diesel power plant is located, was auctioned and later awarded to One Subic Power Generation Corp. (OSPGC), as the contract among the SBMA, National Power Corp. (Napocor), and former plant operator Enron Power Corp. expired in 2009.

OSPGC then entered into a Power Administration and Management Agreement with Trans-Asia Oil and Energy Development Corp. (Trans-Asia), which will be responsible for the administration and management of the entire generation output of the leased diesel power plant.

The Subic power plant was built in 1994 by the Napocor through a build-operate-transfer (BOT) contract with Enron.

OSPGC and its partners held the ceremonial start-up of the power plant in December, with Arreza as guest of honor. The event was also graced by OSPGC chief Dennis Uy, who is also president of Phoenix Petroleum Corp. of the Udenna group; OSPGC chief operating officer Jose Manuel Quimson; Trans-Asia vice president Ritz Santos; and National Grid Corp. of the Philippines chief engineer Wilson Martin.

During the start-up ceremonies, Arreza also expressed satisfaction over the partnership among the SBMA, OSPGC and Trans-Asia, saying that it would ensure that the facility “is run smoothly, profitably, but at the same time responsibly.”

OSGPC’s Uy meanwhile said the ceremonial start-up marks another milestone for the Udenna Group of Companies.

“We thank the SBMA for trusting us and awarding us the rights to operate the power plant,” Uy added. (SBMA Corporate Communications)

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Subic banks on ‘open skies’ to revive airport business

Business leaders in this freeport are banking on the reportedly impending "pocket open skies" policy -- which will further ease restrictions on foreign airlines in select international airports outside Metro Manila -- to help boost growth, starting with foreign visitor arrivals here.

Executive Secretary Paquito N. Ochoa, Jr. said that a new executive order will "probably" be issued, providing such policy for secondary gateways.

These are international airports outside Metro Manila equipped with Customs, Immigration, Quarantine and Security facilities.

The Civil Aviation Authority of the Philippines lists nine such airports outside Metro Manila, namely: Laoag International Airport in Ilocos Norte, Diosdado Macapagal International Airport in Clark, Puerto Princesa International Airport in Palawan, Subic Bay International Airport (SBIA), Kalibo International Airport in Aklan, Mactan International Airport in Cebu, as well as Davao, General Santos and Zamboanga international airports in Mindanao.

Officials said the policy will enable foreign airlines to apply directly with the Civil Aeronautics Board to increase their flights without having to go through bilateral government-to-government air service talks. But they will still not be allowed to bring passengers from one point to another in the country.

Subic Bay Freeport Chamber of Commerce (SBFCC) President Danny J. Piano said in a recent letter to Malacañang that SBIA would need such a policy to revive business.

Mr. Piano explained that since Federal Express transferred its overnight delivery hub from this freeport to China almost two years ago, SBIA had become underutilized and almost dormant.

"Even while the SBFCC formed the Subic Airport Revival Committee and collaborated with the Subic Bay Metropolitan Authority and many other organizations, our progress has been slow partly because of limited rights of budget carriers," Mr. Piano said in his letter.

"By providing for a more liberalized air space, we would undoubtedly reinvigorate the SBIA faster," he added.

"Liberalizing our air space will enhance access to Subic Bay and surrounding destinations. We are a freeport, after all."

Subic Bay Gateway Park (SBGP) Senior Manager Roland P. Addun said in a phone interview that the policy should encourage foreign budget carriers like Kuala Lumpur-based AirAsia Berhad to use this freeport as a hub.

SBGP, a 300-hectare industrial park, now hosts 500 sublessees and 150 direct locators, including some Taiwanese export firms.

AirAsia Philippines, Inc. said during its launch last month that it will start commercial flights in the country, using either Clark or Subic as its base.

"It would be a welcome development for all of us if AirAsia would consider Subic as soon as it has been entitled to pocket open skies policy," Mr. Addun said.

Mr. Addun said reports that businessman Antonio "Tony Boy" O. Cojuangco, who had led local investors in partnering with AirAsia Group Chief Executive Officer Tony Fernandes to put up AirAsia Philippines, is firming up investments in various facilities here "all...point to Subic as the next hub of AirAsia after the granting [sic] of pocket open skies policy." (RMG, BusinessWorld)

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Hermosa hopes for industrialization thru EO 675

HERMOSA, Bataan — Local government officials in this town have expressed enthusiasm in bringing to life Executive Order No. 675, which provides for the development of “additional secured areas” that may be operated as special economic zones under the supervision of the Subic Bay Metropolitan Authority (SBMA).

Hermosa mayor Danilo Malana said in a dialogue with SBMA officials that local community leaders here are amenable to the implementation of EO 675, as they believe this will help realize their vision of an industrialized municipality.

EO 675 was issued in November 2007 to allow the extension of the secured area of the Subic Bay Special Economic and Freeport Zone (SSEFPZ) to areas within the SSEFPZ but outside the presently fenced-in former US Naval Base.

Malana and members of the Hermosa town council received a briefing on EO 675 from SBMA administrator Armand Arreza at the Sangguniang Bayan Conference Room in the town’s municipal hall.

“We are amendable to Executive Order 675,” said Malana. “The only missing link is the exit (from the Subic-Clark-Tarlac Expressway) to Hermosa, and then we can declare an area as extension of the Subic Freeport,” he added.

Malana told Arreza that the municipality has already identified 400 hectares of generally flat land at Sitio Mabiga in Barangay Tipo for the proposed extension area of the Subic Bay Freeport. Mabiga is about 10 minutes drive from Subic Freeport and about 25 minutes from Clark.

“Travel time will be shorter if an SCTEx exit road right in the proposed extension area is opened,” Malana pointed out.

Arreza said that under EO 675, the SBMA may declare areas outside the former US Naval Base as “additional secured areas” that may be operated as a “special economic and freeport zone” to be supervised by the SBMA.

The additional secured areas will be entitled to all tax, fiscal and other investment incentives (except real estate tax for privately-owned property) under Subic’s free port regime. However, only establishments in secured areas may avail of the duty-free
privileges enjoyed by businesses in the free port.

The declaration of an additional secured area may only take effect after a concurrence by a resolution of the concerned town or city council.

Arreza said that many new investment proposals submitted to the SBMA cannot be approved, as the Subic By Freeport has no more space available for industrial parks or even for expansion projects.

“The solution can be found along the stretch of vacant and available spaces along the Subic-Clark-Tarlac Expressway which are agricultural or undeveloped,” he said.

Arreza also noted that Olongapo City, which is near the Subic Freeport, does not have enough flat land and open space for industrial use, while the road going to Subic town is narrow and not suitable for trucks and trailers.

With its more than 400 hectares of available open space and its wider access road, “Hermosa is the ideal expansion site for the Subic Bay Freeport,” Arreza added. (SBMA Corporate Communications)

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