Strike Hampers Subic Port Operations

SUBIC BAY FREEPORT – A strike by employees of the Malayan Towage and Salvage Corporation (SALVTUG), led by the Federation of Free Workers (FFW), almost crippled this seaport operations here over the weekend.

Six vessels, including a US naval supply ship, were left at the open sea waiting for their escort tugboats that were docked due to a strike initiated by SALVTUG employees. The loss of service to these vessels would have meant a loss of millions of pesos worth of income for the government.

In a text message, Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia stated, “I hope strike is resolved soon.”

He added that both Hanjin Heavy Industries Corp.-Philippines (Hanjin) and Keppel are helping out with the predicament, ensuring that port operations here are not paralyzed and are normal.

According to an anonymous source, the strike stemmed from employees who want to have the same rate as that of their international counterpart. He added that the average salary of the employees there were more than R40,000.

He said that to them it was a question of principle, but to him, it was a question of patriotism. He added that if the employees could jeopardize the country’s port operations, the protesting employees will not only succeed in doing so but might also disrupt the country’s economic state.

SALVTUG was established in November 1974 with three (3) ocean-going coastal tugs and four (4) dry cargo and bulk oil barges. Over the years, the company has kept paced with the development of Asian Ports and has continued its modernization program. Presently, the fleet has grown to thirty one (31) multi-tasked tugs, two (2) specialized crafts, one (1) crew boat, thirteen (13) barges of various types and two (2) floating dry docks.

SALVTUG and its Western Pacific Associates specialize in Ocean Towage, Marine Salvage, Logistical Support, Cargo Recovery, Wreck Removal, Underwater Operations, Barging, Anchor Handling, Buoy Installation and Ocean-Spill Cleanup in the territorial waters of the Philippines, South China Sea and the Western Pacific Ocean.(Jonas Reyes, Manila Bulletin)

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Subic Freeport hosts 1st SEA Marine Mammal Stranding Network Symposium

Marine biologists from ten Southeast Asian countries pooled their expertise here since Monday to establish a network that would effectively deal with the growing incidence of marine mammal stranding in the region.

The 1st Southeast Asian Marine Mammal Stranding Network Symposium and Workshop held at Camayan Bay Resort here on February 4-9 drew 50 marine mammal stranding experts and scientists from the Philippines, Taiwan, China, Malaysia, Japan, Thailand, Indonesia, Cambodia, Singapore and Hong Kong.

The symposium was organized by the Subic-based Ocean Adventure Marine Park, Hong Kong’s Ocean Park Conservation Foundation (OPCF), and Subic’s Wildlife in Need (WIN), in collaboration with the Institute of Environmental Science and Meteorology at the University of the Philippines (UP-IESM), and the Philippine Marine Mammal Stranding Network (PMMSN).

Among the resource speakers were Dr. Lien Chen Chou (National Taiwan University), Gail Laule (WIN), Timothy Desmond (Ocean Adventure), Timothy Ng (OPCF), and PMMSN president Dr. Lemuel Aragones.

In a briefing, Ng explained that the ultimate objective of the symposium is to establish a regional stranding station for the marine mammal stranding network representatives to work together and effectively respond to stranding reports.

Ng said that the OPCF is supporting numerous conservation groups and marine mammal stranding chapters in Southeast Asia, including the Philippines, by providing financial support and technical assistance.

“Ocean Park Conservation has a long history of conservation connection with the Philippines, and for this Ocean Park has donated HK$2.5 million to the Philippine conservation NGOs, various universities and different institutions to support their 30 conservation projects,” Ng said.

For his part, Desmond said that the symposium-workshop aims to engage stakeholders and experts in an exchange of knowledge about the current and future affairs of marine mammal stranding networks in the region, the diseases the animals are confronting, and the condition of the ocean in the area.

Desmond added that in the Philippines, when marine mammal stranding experts show up in the community, they interact with local people in such a way to transform residents’ attitude towards marine conservation.

“We point out that these animals are of value to the entire eco-system where they live in,” he explained.

Experts in the symposium also noted that in the past, stranded dolphins and whales were usually slaughtered by fisher folks for meat. Today, however, people are more aware of the importance of saving these animals, prompting them to report any stranding incident to authorities, they added.

Meanwhile, Subic Bay Metropolitan Authority (SBMA) chairman Roberto Garcia commended the initiatives of the symposium organizers, saying that Subic Bay and the nearby coastal areas would benefit from the establishment of a marine mammal stranding network, as they are among the local places where strandings occur.

Garcia added that Ocean Adventure and Wildlife in Need, both members of the PMMSN, have been playing important roles in saving and documenting incidents of stranded marine mammals in the area.

He also noted that Ocean Adventure has conducted workshops on marine mammal (cetacean) stranding for the local Bureau of Fisheries and Aquatic Resources (BFAR) professionals, technical personnel, veterinarians, and members of the Municipal Fisheries and Aquatic Resources Management Council (MFARMC) nationwide.

Because of the efforts done by the Ocean Adventure in disseminating information on marine mammal stranding, members of local aquatic resources councils and residents in coastal communities have been at the forefront of rescuing stranded marine mammals, Garcia also observed. (RAV/MPD-SBMA)

PHOTO:
Dr. Lemuel Aragones, president of the Philippine Marine Mammal Stranding Network (right) stresses a point during a press conference in the on-going Southeast Asian Marine Mammal Stranding Network Workshop and Symposium held at the Camayan Beach Resort in Subic Bay Freeport. Joining him are Timothy Ng, deputy director of Ocean Park Conservation Foundation-Hong Kong; Timothy Desmond of Subic Bay Marine Exploratorium Inc.; and Gale Laude of Wild Life in Need.

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Subic tourism school holds eco-kayaking course

Kayaking enthusiasts from various provinces in the country took to the water here recently, not to compete in a race, but to learn about how their favorite activity could help in promoting tourism in the Philippines.

The course, spearheaded by the Subic-based International School for Sustainable Tourism, consisted of a three-day training on kayak paddling, kayak guiding, and kayak safety with an emphasis on eco-tourism.

The course took advantage of the waters of Subic Bay, which varied from placid to choppy, and featured notable kayaking experts from here and abroad, who gave practical lessons on eco-kayaking.

According to Buzzy Budlong, a noted kayaking enthusiast who has led an 88-day kayaking expedition around the country, kayaking can be both a recreational activity as well as a boost to local tourism in the country.

“It can create jobs, boost sustainable tourism, and at the same time educate people about our coastal and marine resources,” Budlong said.

Ogie Empeño, a registered scuba diver from the local government of Masinloc, Zambales, said they joined the course because they would be expanding their eco-tourism program in Masinloc Bay, featuring several resort islands and a unique mangrove island.

“This would be a big help in our efforts to conserve the bay area, as well as promote it to boost the local tourism market,” he added.

The course was also attended by Bill Temby, a seasoned kayaking instructor from Australia, who gave lessons on basic kayaking skills.

Temby said that the Philippines has a very big potential when it comes to kayaking, given the lengthy coastline in the country.

But he noted the differences between kayaking in Australia and the Philippines.

“Well, the conditions are completely different to start with. I was teaching in Australian waters where we have issues like hypothermia,” he said. “In Australia, it is competency-based and we instruct only with proper certification. It’s much more regulated there.”

Temby said he hopes that kayaking would be recognized as a tourist activity in the Philippines and that it would be standardized to ensure safety.

“It all comes back to safety,” he said. (FMD/MPD-SBMA)

PHOTO:
Participants in the eco-kayaking course at the Subic Bay Freeport Zone pose with kayaking expert Bill Temby (sixth from left)

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2012 BIR & BOC tax remittances hit P7.62 billion in Subic Freeport

Tax collection agencies in this country’s premier free port have turned over to the national treasury a total of P7.62 billion in taxes collected from January to December 2012.

Subic Bay Metropolitan Authority (SBMA) chairman and administrator Roberto Garcia said the amount was derived from taxes collected by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

Garcia said the combined collection of BIR and BOC here has consistently increased in the last four years, showing growing profitability among Freeport-registered locators.

SBMA records indicated that the two agencies yielded a combined collection of P5.28 billion in 2008. This increased by 6.18 percent to P5.6 billion in 2009; by 19.25 percent to P6.68 billion in 2010; by 8.14 percent to P7.22 billion in 2011; and by 5.42 percent to P7.62 billion last year.

During the same period in review, the BIR alone collected a total of P1.29 billion from income, value-added, percentage and other taxes, with a 16.22-percent surplus over the 2011 collection record of P1.11 million.

The BIR collections included a portion of the five-percent corporate tax levied on the annual gross income of Subic-registered locator companies. The three percent of the five-percent corporate tax that the BIR collected from January to December 2012 reached P205.33 million.

BIR’s peak monthly performance was recorded in April 2012 when its collection reached P139.43 million. However, the BIR fell short of its goal of P1.3 billion by 1.21 percent.

Meanwhile, the Port of Subic-BOC posted collections worth P6.33 billion in January-December 2012. This record indicated a slight increase of 3.47 percent over the P6.12-billion customs harvest in 2011.

Subic-BOC also posted non-cash collections worth P491.22 million from government-to-government transactions.

Garcia expressed optimism that this year, more businesses will invest in the Subic Bay Freeport, thus paving the way for more business activities, employment opportunities, and tax returns. (RFD/MPD-SBMA)

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USS Stockdale to Arrive in Subic Bay

MANILA – USS Stockdale (DDG-106), an Arleigh Burke-class guided missile destroyer, will arrive in Subic Bay on Tuesday, February 5th for a routine port visit. This stop in Subic will permit the Stockdale to replenish supplies as well as offer its crew an opportunity for rest and relaxation.

“Visiting Subic Bay provides us with a great opportunity to continue the long-term relationship between the Philippines and the United States and that is very important to us,” said Cdr. Lex Walker, Commanding Officer, USS Stockdale.

Cdr. Walker also spoke about the diversity of his crew. “We have quite a few Filipino –American Sailors among our crew, and I hope that the citizens of the Philippines can look at our ship and see that their people and their culture are well represented and respected in the U.S. Navy,” said Walker.

15 Filipino-Americans sail aboard the USS Stockdale, among them Sailors with family ties to Baguio City, Manila, Marikina City, Orion, Olongapo City, Quezon City, and Santa Monica. Some, like Geno C. Uy (GSM2) and Ryan Angeles (AM2), were born in the Philippines and immigrated to the U.S. in recent years. Others, including Joel Marsigian (AM2) and Dean Rivera-Villanueva (ADAN), were born in the United States but still have relatives in the Philippines. Many of the Stockdale’s Sailors plan to visit family while in port.

This will be the Stockdale’s first visit to the Philippines. The visit is part of the ship’s nine month deployment to the Western Pacific that began in January 2013. (US Embassy Public Affairs)

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SBMA releases P72-million revenue share to neighbor LGUs

The Subic Bay Metropolitan Authority (SBMA) will release this month a total of P72 million in revenue shares to the seven municipalities and one city that are located near this premier free port.

According to SBMA chairman and administrator Roberto Garcia, the funds to be given to neighboring local government units (LGUs) were derived from two percent of the corporate taxes paid by registered Subic Freeport enterprises from June to December 2012.

Since August 2010, the SBMA, under a new tax collection scheme, began directly receiving two percent of the five percent corporate taxes paid by Subic firms to help ensure the prompt release of these shares to neighboring LGUs.

The rest of the five percent, whichis three percent, goes to the national treasury through the Bureau of Internal Revenue (BIR).

For the second semester, Olongapo City has been allotted a total P17.5 million. In Zambales, the town of Subic will receive P10.69, while San Marcelino will get P8.7 million, San Antonio P6.35 million, and Castillejos P6.15 million.

In the province of Bataan, meanwhile, Dinalupihan will have P9.04 million, Hermosa P7.34 million, and Morong will get P6.22.

Garcia said the LGU revenue shares, which are given to communities that are contiguous to and affected by the Freeport, “are intended to augment local resources and enable stakeholder communities to undertake development projects in health, education, peace and order, and livelihood generation.”

The SBMA funds benefit an estimated 600,000 residents in the contiguous municipalities, Garcia added.

According to the SBMA Treasury Department, the allocation of the LGU revenue shares is determined according to population, which is accorded a 50 percent weight, land area for 25 percent, and equal sharing for another 25 percent.

A retention share of 10 percent is deducted from the actual allocations, but is refunded to the LGUs after a certain period.

Chairman Garcia said that the 10 percent retained amount from May to December 2010 amounted to P6.21 million and was included in the fund released this month.

The LGU shares are regularly released twice a year - the first semester share in August, and the second semester share in February of the following year.

For 2012, the SBMA released a total of P129.4 million in LGU shares, while it distributed a total of P132.96 million in 2011. (RFD/MPD-SBMA)

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SBMA Targets $800-M 2013 Investments

Subic Bay Metropolitan Authority (SBMA) expects $800 million in investments this year, a strong turnaround from an estimated $200 million in 2012, with two new shipbuilding facilities to be established by EU firms and major tourism projects.

SBMA chairman and administrator Roberto V. Garcia said this year would be a turnaround year from the poor investments performance last year.

"We expect $800 million in new investments this year because more investors are coming in. Last year was poor because all we have were mostly inquiries from foreign investors," Garcia said at the sidelines of the Philippine Port and Shipping Conference.

SBMA has no official report yet on the investments inflow in 2012, but Garcia estimated it at only $200 million.

Of the $800 million projected investments this year, $600 million are expected to come from the two new shipbuilding facilities which will manufacture small crafts for the exports market. The rest of the investments projection would come from the tourism and gaming projects of major hotel and casino operators.

Garcia, however, refused to identify the company but said they are European investors, which are expected to locate within the year in the freeport.

At present, Subic Freeport hosts the $2 billion shipbuilding facility of Hanjin of Korea.

While SBMA was a laggard in investments generation in 2012, Garcia earlier reported that the freeport achieved the highest profit last year in its 20-year history.

The freeport posted a record profit of P789 million in 2012. This is a drastic turnaround from the P1.2 billion loss in 2011.

Garcia said that the turnaround was due to increased revenues, reduced operating expenses and a favorable exchange rate.

The revenue increase of 16 percent versus 2011 was brought about by new major projects in seaport operations such as the Vale ore transshipment project and the start of commercial operations of the Phase 2 of the new container port.

Coupled with an aggressive collection campaign on existing accounts, new revenue streams were created through increased admission fees on importations and the imposition of fees to defray municipal expenses that were previously subsidized.

Operating expenses decreased by seven percent versus 2011, as the Agency implemented a comprehensive austerity program. Salaries similarly dropped by seven percent. as a freeze hiring policy was implemented and manpower count decreased. Repairs and maintenance likewise decreased by 46 percent and advertising was slashed by 35 percent versus 2011. As a result, earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 million - a 91 percent increase.

Due mainly to favorable exchange rates, unrealized foreign exchange posted a gain of P1.1 billion in 2012 from the previous year's FOREX loss of P566 million.

In the meantime, the SBMA's 2013 Strategic Planning session focused on developing new initiatives to sustain and improvefurther SBMA's financial position in the coming years.

New strategic initiatives concentrating on the seaport, airport, tourism, and commercial and industrial leases were formulated, targets were set and detailed plans of action were submitted and approved by the SBMA Board. (Bernie Cahiles-Magkilat, Manila Bulletin)

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Patillan, Echauz Top YOG Elims

Olongapo bet Jimuel Patillan outlasted Cebu's Justin Liam Chiongbian in a wild rush to the finish to rule the second Youth Olympic Games (YAG) qualifying tournament yesterday at the Dungaree Beach in Subic.

In topping the event, Patillan summoned his remaining energy in the final 200 meters to beat out his rival.

Organized by the Triathlon Association of the Philippines (TRAP) in cooperation with Subic Bay Metropolitan Authority (SBMA) Tourism Department, the race was staged in a new distance of 500-m swim, 20-k bike and 2.5-k run with Patillan posting 55 minutes and 12.32 seconds.

Chiongbian, who settled for third in the Batang Pinoy National Finals last December in Iloilo behind Patillan and gold medal winner Sixto Louie Lalanto, clocked 55:12:79 while Mandaluyong City bet Samuel Ranque took third with 55:37.00.

Magali Bernasconi Echauz stamping her class anew in the women's with 1:01:25. A far second was local bet Victoria Deldio at 1:02:22 while Laguna's Jessica Salazar took third in 1:08:05 time.

Patillan was ahead after the swim and bike leg but Chiongbian and Ranque made their moves in the run event to make the contest more exciting. (Manila Bulletin)

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USS Cheyenne arrives in Subic Bay

USS Cheyenne (SSN 773), a Los Angeles-class submarine, arrives in Subic Bay today (February 1st) for a routine port visit.

This stop in Subic will permit the Cheyenne to replenish supplies as well as offer its crew an opportunity for rest and relaxation.

The USS Cheyenne, named after the town of Cheyenne, Wyoming, is assigned to the U.S. Navy’s Seventh Fleet.

It is home-ported in Pearl Harbor, Hawaii. The Cheyenne, commissioned in 1996, is the last Los Angeles-class submarine to be built by the United States. (U.S. Embassy Information Office)

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2 European firms to invest $600M in shipbuilding

Subic Bay Metropolitan Authority chairman Roberto Garcia yesterday reported that two European companies will invest $600 million building small ships in Subic, encouraged by the success of Hanjin Heavy Industries.

Garcia declined to elaborate further, saying that inquiries were made last year. Garcia said during a break in the Philippines Ports and Shipping Conference at the Manila Peninsula yesterday that Subic has become an ideal investment destination for maritime and tourism.

He also reported that SBMA was able to turn around from 2011’s losses of P1.2 billion to profit of P789 million last year.

Garcia attributed the turnaround to increased revenues, reduced operating expenses and a favorable exchange rate.

SBMA raised 16 percent more in revenues last year than in 2011 on the entry of new major projects in seaport operations such as the Vale ore transshipment project and the start of commercial operations of the Phase 2 of the New Container Terminal.

Coupled with an aggressive collection campaign on existing accounts, new revenue streams were created through increased admission fees on importations and the imposition of fees to defray municipal expenses that were previously subsidized.

Operating expenses decreased by 7 percent versus 2011, as the SBMA implemented a comprehensive austerity program.

Salaries similarly dropped by 7 percent as a freeze hiring policy was implemented and the manpower count decreased. Repairs and maintenance expenses likewise fell 46 percent and advertising expenses were slashed by 35 percent from 2011 levels. As a result, earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 million – a 91 percent increase.

Due mainly to favorable exchange rates, SBMA registered an unrealized foreign exchange gain of P1.1 billion in 2012, versus the previous year’s forex loss of P566 million. (Irma Isip, Malaya)

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Subic Hosts SEA Marine Symposium

SUBIC BAY FREEPORT - With the frequent stranding of whales and dolphins in the country, many wildlife conservationists will be holding the first-ever Southeast Asian Marine Mammal Stranding Network Symposium and Workshop here.

Slated in the first week of February, the two-part event is made possible by the Ocean Adventure, Ocean Park Conservation Foundation Hong Kong and Wildlife in Need in collaboration with the University of the Philippines, Institute of Environmental Science and Meteorology and the Philippine Marine Mammal Stranding Network.

An officer of Ocean Adventure said the symposium and workshop aims to engage stakeholders and experts from the academic community, government, industry and non-government agencies in an exchange of knowledge about the current and future affairs of marine mammal stranding incidents in the region.

He added that it is also to advance a One World Health view in recognition of marine mammals as valuable sentinels of ocean and human health.

The tentative list of participants include marine mammal stranding experts, scientists and networks from the Philippines, Hong Kong, Taiwan, Thailand, Malaysia, and Japan.

This event comes in two parts: the Symposium that will be held on February 4-6; and the Training Workshop that will be held on February 7-9. Participants have an option to attend both.

"The objective of the symposium is to share knowledge and experiences in marine mammal stranding activities from all over the region. It also aims to discuss and plan the formation of a Regional Marine Mammal Stranding Network/Association whose purpose would be to disseminate knowledge, best practices, and shared experience of marine mammal strandings, to advance a One World Health regional view and recognition of marine mammals and their strandings as valuable sentinels of ocean and human health," he said.

He added that the objectives of the training workshop are to impart knowledge about the various aspects of marine mammals strandings, including anatomy, biology, causes of stranding incidents, first response, rehabilitation, decision-making, and public concerns, among others. (Jonas Reyes, Manila Bulletin)

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International sailing races return to Subic Bay

Subic will again host prestigious international regattas this year when the Subic Bay to Boracay Race kicks off here in February and the Commodore’s Cup promises to wow spectators and sailors alike in April.

The Subic Bay to Boracay Race, which is followed by the Boracay Cup Regatta, will be held on February 15-22. The two races are jointly organized by the Saturday AfternoonGentlemen Sailing (SAGS) group based at The Lighthouse Marina Resort here and the Boracay Cup Organizing Committee.

Organizers said the Subic Bay to Boracay Race and the Boracay Cup Regatta are acclaimed as among the best sailing competitions in Asia today. Both attract Grand Prix yachts and top-notch local and foreign sailors vying for the prestigious “Asian Yachtsman of the Year” and “Yacht of the Year” titles.

The Subic Bay to Boracay Race is a gruelling 210-nautical mile International Sailing Federation (ISAF) category 3 offshore race. It will start at noon on February 16 and will take between 17-40 hours, depending on the size of the boat and the sea and wind conditions in the route.

On the other hand, the Boracay Cup Regatta is expected to provide sailors with four glorious days of windward-leeward races and offshore races around the beautiful and exotic island of Boracay from February 18 to 22.

Overall winners in each class (racing, cruiser racing, and cruising class) of the combined Subic Bay to Boracay Race and the Boracay Cup Regatta series will bring home an impressive handcrafted solid brass trophy designed by Ferdinand Cacnio, a multi-awarded visual Filipino artist, which was officially commissioned by the provincial government of Aklan.

Last year’s overall winner of the combined regattas was Filipino businessman Ray Ordoveza on Karakoa. To give Ray a run for his money in this year’s foreseen tight race are former Yachtsmen of the Year Frank Pong on Jelik, Sam Chan on Free Fire and Neil Pryde on Hi-Fi.

Veterans and multi-titled Geoff Hill on Antipodes, Judes Echauz on his new boatCentennial II, Martin Tanco on Centennial III and Jonathan Mahoney on Zanzibarcomplete a formidable list of veterans to battle for the top division.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said the two races boost Subic’s claim as one of the best sports tourism venue in Southeast Asia today.
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“Undoubtedly, Subic is now ranked as among the premier sporting places in the world frequented by top-caliber athletes. These two regattas continue to put Subic on the sailing map, so these are very welcome events for the SBMA,” he added.

The Subic Bay to Boracay Race and the Boracay Cup Regatta are organized in conjunction with the Subic Bay Metropolitan Authority, The Lighthouse Marina Resort, the municipal government of Malay, the Philippine Coast Guard, the provincial government of Aklan, and Watercraft Ventures Corp. under the auspices of the Philippine Sailing Association.

The competitions are supported by Subic Bay International Terminal Corporation (SBITC), Standard Insurance Company Inc., Cebu Pacific, San Miguel Corporation, Tanduay, Recreational Outdoor eXchange (R.O.X.) and the Subic Bay Freeport Chamber of Commerce. (HEE/MPD-SBMA)

PHOTO:
Sailors race against the wind in the Subic Bay Freeport during the Subic Bay to Boracay Race last year.

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Budget allocation eyed for locators’ subsidy

The government will seek budget allocation to continue the subsidy enjoyed by three big projects in Clark and Subic.

Outgoing Trade Undersecretary Cristino Panlilio said the government is preparing a program that would effectively continue the industry competitiveness fund (ICF), providing it with a strong legal support like including it in the succeeding general appropriations act (GAA) of the country.

The ICF, which expired in March 2011, was granted to Hanjin Heavy Industries Corp. Philippines in Subic Freeport, Texas Instruments Philippines in Clark Freeport Zone and Phoenix Semiconductors Philippines Corp.

Panlilio said the program is very specific to these projects and is not open-ended.

The subsidy was a quid pro quo and as an incentive for these big projects which hired a lot of workers.

One of the companies, Phoenix Semiconductors, is entitled up to 2020.

He said the plan is to allocate it in the GAA.

Panlilio added that government is trying to negotiate a rate acceptable to both parties. The suggested rate has to be approved by the Department of Budget and Management, after which it would have to be approved by President Aquino.

“The reason why we are (extending) that is because we want to ramp up manufacturing,” Panlilio said.

The three were given cheap power under the ICF support under executive orders signed by then President Arroyo.

The government is now looking for other hydropower plants like Bakun and Casecnan to source fuel from on a subsidized rate following the privatization of Angat. These two operate more expensively than Angat per reports from the Power Sector Assets and Liabilities Management and the National Power Corp.

But the government still finds these two power plants as liable for the ICF but the power that they would produce would be more expensive than if the power is sourced from Angat.

This means government would have to shell out more to continue the ICF.

Based on computations, with Angat as the source of power, all-in cost would be below P5 per kilowatt-hour and above P5 for the two other hydropower plants.

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Subic solar energy firm gets DOE accreditation

A company based in this free port is gearing up to become a leading player in the country’s renewable energy program after receiving accreditation from the Department of Energy (DOE).

Bandacorp Solar, Inc., a registered locator here in the Subic Bay Freeport, was granted a DOE accreditation that entitles it to avail of incentives such as zero-percent value added tax rate, tax- and duty-free importation of components and parts and materials, and income tax holidays.

The accreditation was granted after a stringent evaluation and site validation by the DOE. It is valid for three years.

Bob Silvers, president of Banda Solar, said the company is the first small-business enterprise dealing on alternative energy projects in the Philippines that was granted such an accreditation.

This would help the firm promote its products better and in the process make alternative energy systems more accessible and affordable to the public, he added.

Silvers also said that the DOE certification will allow affordable products to be manufactured in the country, since the bulk of these products used in the Philippines are being imported from China, Germany and the United States.

“These incentives will be passed on to our customers to encourage them to use solar-powered products, thus helping in the improvement of renewable energy industry as well as achieving additional advantageous effects to the environment,” he added.

Banda Solar is also look at promoting the use of renewable energy in the Subic Freeport by working with Subic Enerzone, the local power distributor, and the Subic Bay Metropolitan Authority (SBMA) in the Tipo Expressway lighting project.

The company is also promoting alternative energy awareness among residents of local communities by installing a one-kilowatt power station in Iram, an upland village populated mostly by Ayta tribesmen.

Established here in 2010, Banda Solar focuses on the development of solar energy and has supplied renewable energy products across the country. (FMD/MPD-SBMA)

PHOTO: 
Bob Silvers, president of the Banda Solar Corp., proudly shows his company’s accreditation certificate from the Department of Energy.

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SBMA posts record profit

The Subic Bay Metropolitan Authority has disclosed that the agency achieved last year the highest profit in its 20 year history.

Based on preliminary figures presented at the SBMA’s Strategic Planning conference last week, the Agency posted a record profit of P789 million in 2012. This is a drastic turnaround from the P1.2 billion loss in 2011

Chairman & Administrator Roberto V. Garcia said that the turnaround was due to increased revenues, reduced operating expenses and a favorable exchange rate.

The Agency revenue increase of 16% versus last year was brought about by new major projects in seaport operations such as the Vale ore transshipment project and the start of commercial operations of the Phase 2 new container port.

Coupled with an aggressive collection campaign on existing accounts, new revenue streams were created through increased admission fees on importations and the imposition of fees to defray municipal expenses that were previously subsidized.

Operating expenses decreased by 7% versus 2011 as the Agency implemented a comprehensive austerity program. Salaries dropped 7% as a freeze hiring policy was implemented and manpower count decreased.

Repairs and maintenance likewise decreased by 46% and advertising was slashed by 35% vs 2011. As a result earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 milliona 91% increase.

Due mainly to favorable exchange rates, unrealized foreign exchange posted a gain of P1.1 Billion from previous years forex loss of P566 million.

The 2013 Strategic Planning session focused on developing new initiatives to sustain and improve further SBMA’s financial position in the coming years. New strategic initiatives concentrating on the seaport, airport, tourism, and commercial and industrial leases were formulated, targets were set and detailed plans of action were submitted and approved by the SBMA Board.

SBMA wanted to ensure it was ready and able to take advantage of the present upsurge in the country’s strong economic performance especially in attracting foreign investments. (SBMA)

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