SBMA on another fatal accident at Hanjin: ‘Heads will roll’

The Subic Bay Metropolitan Authority (SBMA) said it will pursue the prosecution of all parties found liable in the death of another worker at the Hanjin shipyard here on Friday, even as it suspended a subcontractor whose operations led to the fatal accident.

“We’re definitely taking action on this, and heads will roll,” SBMA Administrator Armand Arreza said, as he announced the suspension of Great Steel Construction during a press conference held just a few hours after the accident.

“We will be firm, but fair,” he vowed.

Arreza ordered the suspension of Great Steel after an 11x5-meter curtain door that the firm was installing in one assembly shop fell on two shipyard workers.

Initial reports from SBMA investigators identified the fatality as Raldon del Rosario, 19 years old, and a resident of Kalinga Apayao, who suffered “massive head injury” as a result of the accident.

Another worker, identified as Camalao Bochei, 24, also from Kalinga Apayao, suffered leg injury and was brought to the St. Jude Hospital in Olongapo City for treatment.

Both Del Rosario and Bochei were hired only in November last year by Redondo I-Tech Corp., another Hanjin subcontractor.

SBMA investigators said the two victims were just passing by the assembly shop where Great Steel workers were installing a rain curtain when the accident happened at about 8:15 a.m.

At that time, Great Steel workers were reportedly testing the rain curtain – a huge manual canvass door with a metal base - by pulling the canvass up and down with a rigged chain and pulley.

However, the chain holding the door reportedly broke, causing the door’s metal base support to be detached.

The canvass door and its metal frame, which weighed a total of 800 kilograms, thereafter fell on the two victims.

Del Rosario is said to be the 18th fatality at the Hanjin shipyard since it began operations in 2006. Most of the fatal accidents, or a total of 15, occurred at construction sites worked at by various subcontractors.

But while emphasizing that the recent death “had nothing to do with shipbuilding activity”, Arreza added that this does not necessarily clear Hanjin Heavy Industries Co.-Philippines (HHIC-Phil), which operates the $1.7-billion shipyard here.

“The SBMA is also looking into the contingent liability of Hanjin, because it is the general contractor of the shipyard,” he said.

Arreza said he has also instructed the SBMA Legal Department to assist the families of the victims, even as the agency is investigating the incident fully.

“We will push through with prosecuting all those who will be found liable,” Arreza said.

He also said that SBMA safety personnel are now checking on all canvass doors installed by Great Steel Construction in the Hanjin facility to find out if the subcontractor had been using substandard materials in its projects.

Noting that there were no barriers nor warning signs that would have prevented the two victims from passing by the Great Steel worksite, Arreza said that as the general contractor, Hanjin should have enforced safety regulations in the area.

He also said that the SBMA has recently issued two notices of violation to Hanjin after the SBMA noted in a safety inspection on January 6 that some workers in the shipyard did not have personal protective equipment (PPE), and that some work areas were dimly-lit and not well-ventilated.

In a letter to the SBMA, meanwhile, HHIC-Phil deputy managing director Pyeong Jong Yu said the Hanjin subcontractor was to blame for the accident.

“As it is very clear that the incident was caused by either improper installation of chain block, or mechanical failure of some of its components, and no signage was installed by them thereon to prevent incidental use of it before completion of its installation, we will hold them (Great Steel Construction) responsible for the accident,” Yu said. (SBMA Corporate Communications)

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SBMA signs in 185 new investments, creates 13,321 more jobs in 2008

Investment and employment figures in this free port continued to soar in 2008 despite a slowing global economy, as the Subic Bay Metropolitan Authority (SBMA) approved a total of 185 new investment projects last year and increased the Subic workforce by 13,321 more workers.

Yearend reports from the SBMA Business Group indicated that investment projects grew by six percent last year, or from a total of 175 in 2007 to 185 in 2008. This brought a total of 1,147 approved projects in Subic as of the yearend with cumulative committed investments worth $5.75 billion.

The new projects, worth $249 million in committed investments, were mostly in the tourism, manufacturing and services sectors, which "historically employed the most number of workers in Subic," said SBMA Administrator Armand Arreza.

He said the fresh investments are projected to add 6,260 more jobs to Subic's active workforce that, as of December 2008, already stood at a total of 87,502.

Arreza added that while last year's total value of investments significantly dropped from Subic's all-time records of $1.71 billion in 2007 and $1.44 billion in 2006, "Subic continued to attract some big-ticket projects, while remaining one of the biggest employers in the whole Central Luzon region."

Citing data from the SBMA Business Group, Arreza said the top 10 investments in 2008 was headlined by Subic Neocove Corp., a Korean-led consortium that pledged $175 million to build a high-end leisure facility at Subic's Cawag area, a short distance from the Hanjin shipyard.

Following Neocove is Hanil E & C Subic, Inc., with commitments of $11 million for medium to high-rise commercial residential buildings; Sultan Ahmed Lootah Enterprises Corp., with $6.72 million to manufacture corrugated cartons, sheets, rolls, paper cores, corner pads, trays and duplex boards; George Dewey Medical and Wellness Center, Inc., $6.58 million to operate a hospital, medical and nursing school, wellness center, and research center; and Hanafil Golf & tour, Inc., with $3 million as initial investments to operate golf, tour & other related recreational facilities.

The rest in the top 10 list are: boats and marine-related products manufacturer Australasia Marine Alliance Corp., with $2.32 million; Pacific Pearl Airways Aviation School, with $2.3 million for an aviation technical/ vocational school; Taiwan Cogeneration Corp.'s Subic Bay branch office, with $2 million to design and engineer power plant, transmission and substation projects; Palmgold Int'l Ltd., with $1.94 million for the importation of gaming equipment and operation of slot machine arcade; and Grand Pillar International Development, Inc., with $1.9 million for a real estate venture.

Arreza said the top 10 biggest projects alone made up 85.43 percent of the total committed investments approved by the SBMA Board last year. Foreign direct investments (FDIs), meanwhile, composed 90.74 percent of the $249-million total.

Most of the FDIs were pledged by Korean firms, with a total of 61 projects worth $201.8 million. Filipino firms, however, still placed second to Koreans in terms of total investments in 2008, followed by companies from the United Arab Emirates, Taiwan, Malaysia, Norway, United States of America, Pakistan, and Japan.

Meanwhile, Subic's active workforce, which increased by 18 percent from the 2007 record of 74,181 to 87,502 in 2008, was still dominated by those in the services sector, with a total of 36,203 workers as of the yearend.

Workers in the shipbuilding and marine-related services, however, were catching up in numbers over the last two years, and totaled 30,728 or 35 percent in 2008. A total of 14,545 or 17 percent were recorded in the manufacturing sector; 5,480 or six percent in the construction sector; while 546 or less than one percent were employed as domestic helpers or caretakers.

In terms of manpower distribution, Olongapo City still occupied the number one slot, with 32,620 or 37 percent of Subic's workforce in 2008; Bataan with 11,412 or 13 percent; Zambales with 19,578 or 22 percent; Pampanga, 2,942 or 3 percent; the National Capital Region, 4,289 or five percent; and Tarlac, with 2,220 or three percent.

Arreza also said that Subic's employment generation efforts, a well as its joint program with various agencies to reduce job-skills mismatch, have successfully provided more livelihood opportunities for residents of communities near the free port.

Data from the Department of Labor and Employment's Bureau of Labor and Employment Statistics (DOLE-BLES) showed that the total labor force in the entire Central Luzon region increased by 2.4 percent last year, from 3.4 million in 2007 to 3.5 million as of October 2008.

During the same period, unemployment rate in Central Luzon declined from 8.6 percent in 2007 to 8.1 percent last October.

Labor statistics also indicated that out of the 3.5 million workers in the region in October, only 226,135 or 6.5 percent are underemployed. Underemployment rate in the region decreased by one percent from 254,700 or 7.5 percent in 2007, giving Central Luzon the least underemployment rate among the 17 regions in the country. (SBMA Corporate Communications)

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SBMA, Coast Guard firm up deal on maritime safety

Anticipating greater growth of the maritime industry within the Subic Bay Freeport, the Subic Bay Metropolitan Authority (SBMA) has entered into an agreement with the Philippine Coast Guard (PCG) to bolster maritime safety and safeguard the marine environment here.

In a simple ceremony recently, SBMA Chairman Feliciano Salonga and PCG Commandant Vice Admiral Wilfredo Tamayo signed a memorandum of agreement (MOA) sealing both parties’ commitments for maritime cooperation.

“It is very timely that this kind of cooperation between government agencies like the SBMA and the Coast Guard is made, as this will keep (Subic Bay) safe and encourage more investors to come to here,” Salonga said.

“As you can see, more and more shipping and transshipment activities are coming to Subic Bay and companies are bringing in their ships to Subic rather than to any other port in the country for repair and other maritime services,” he said.

Salonga said that with the assistance from the Philippine Coast Guard, the SBMA could strengthen its capability in maintaining a competitive shipping industry in the region.

“As you can see, more and more shipping and transshipment activities are seen in Subic Bay and companies are bringing in their ships to Subic than in any other ports in the country for repair and other maritime services,” he said.

Under the agreement, the Philippine Coast Guard will assist the SBMA and its Seaport, Law Enforcement, Ecology, and Maritime Affairs departments in enforcing maritime regulations in this free port.

These include conducting safety and maritime security inspections of all vessels plying the free port waters, safeguarding the marine environment and making periodic water testing, maintaining and developing navigational aid systems, and conducting search and rescue, harbor patrol, and oil spill response operations.

The SBMA-PCG agreement also provided for joint operations against all illegal activities at-sea within the Freeport zone.

For his part, Tamayo said that Coast Guard Station Subic, which is under Lt. Elizier Dalnay, will directly coordinate with the SBMA to ensure that all these undertakings are met.

“We will deploy some of our vessels in Subic Bay to assist the SBMA in implementing maritime safety and humanitarian operations within and in contiguous areas of Subic Freeport,” Tamayo also pledged after signing the agreement.

Tamayo and Dalnay also lauded the SBMA for “adopting” the PCG station in Subic and allowing the free use of a building near SBMA’s Boton Wharf as PCG detachment and quarters.

Salonga said that aside from these provisions, the SBMA will allot some space for the PCG to establish a training school, as well as a site for the planned PCG Academy.

The SBMA official also said the cooperation agreement with PCG is necessary because of the presence of big-ticket maritime investments in the Subic Bay area. These include shipyard operations by Korean shipbuilder Hanjin, ship repair facilities of Subic Dock inside the Freeport, and the Philippine Shipping and Engineering Company (Philseco), which is undergoing expansion in the nearby town of Subic, Zambales. (SBMA Corporate Communications)

PHOTO CAPTION:
SBMA-Coast Guard Agreement: SBMA Chairman Feliciano Salonga (right) seals a cooperation agreement with PCG Commandant Vice Admiral Wilfredo Tamayo. The accord aims to boost maritime safety in the Subic Bay area and promote further growth of the maritime industry.

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Aboitiz suspends construction of 300MW coal

The intended construction of the 300-megawatt coal plant in Subic Bay, Zambales has been suspended by the Aboitiz Group and its partners.

Erramon Aboitiz, president and chief executive officer of Aboitiz Power Corp., said the decision on whether to push through or not with the development of the coal plant will be based on the review they will conduct.

"We have pushed back our notice to proceed further. We’ve decided to hold off and review it for the second quarter. We were hoping to start construction in the first quarter of the year," he said.

Aboitiz Power Corp. and Taiwan Cogen International Corp., a subsidiary of Taiwan Cogen Corp., jointly own Redondo Peninsula Energy Inc., operator of the proposed 300-MW coal plant that will utilize clean coal technology.

The planned 300-MW facility will be built on a leased Subic Bay Metropolitan Authority property near the Hanjin shipbuilding facility. The plant can utilize local and imported coal.

Mr. Aboitiz said the coal plant is estimated to cost up to US$500 million. "We will look at costing again because costs have come down. We will also review the demand in the Luzon grid...because if the growth is negative, we would probably think of delaying the project further," he said. (LDV/MSN, PNA)

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SBMA sees ‘win-win’ solution to Subic tree controversy

Officials of the Subic Bay Metropolitan Authority (SBMA) are now looking forward to a “win-win” solution in the issue of the Ocean 9 hotel-casino project in this free port after Environment Secretary Lito Atienza on Wednesday debunked claims that trees have already been cut at the project site.

SBMA Administrator Armand Arreza said the allegation that trees have been sacrificed to make way for the hotel-casino project “has sidelined most of us from more important work.”

“Now we should be able to come up with a solution that would be acceptable to all parties concerned,” Arreza said.

Arreza said the “win-win” solution would adhere to requirements and conditions to be imposed by the Department of Environment and Natural Resources (DENR), while still giving the project proponent Grand Utopia, Inc. “enough reason to continue with its $120-million development project.”

Atienza, who met with SBMA officials and Grand Utopia representatives during an inspection of the project site on Wednesday, described the proposed hotel-casino as “a very good project” and noted that it would create more than 5,000 jobs when operational.

“Let’s work together for a win-win solution,” Atienza asked Ocean 9 executive managing director Louis Joong-Moon Choi during the inspection.

He suggested that the project should be redesigned to incorporate “mature trees” in the area, while saplings could be transferred to forest areas in the Freeport zone.

The retention of mature trees in the site “could even add ambiance to your project,” Atienza told Choi, adding that millions of dollars are being spent just to put trees in world-class tourism projects elsewhere.

Arreza said the SBMA agrees that the trees at the project site should be spared.

“This has been our position all along,” he stressed.

“The situation only took a turn for the worst when some critics began raising issues like century-old trees and tree massacre, which are all unfounded,” he added.

In his visit to the site, Atienza confirmed that there are no signs of tree-cutting and that only “mature”, not century-old, trees exist.

The same findings were made during a site visit last Saturday by a group of environmentalists and members of civic and religious groups led by the Association of Major Religious Superiors in the Philippines (AMRSP).

Sharing the same observations, Atienza said that reports about tree-cutting have been “exaggerated”. He also cautioned critics of the project “to stick with the truth”.

Fr. June Vic Diolata, ARSP executive vice secretary, meanwhile said that allegations on the Ocean 9 project by architect and urban planner Felino Palafox Jr. “would have to be re-assessed” in the light of these findings.

Arreza said the SBMA considers the Ocean 9 project “a critical infrastructure” to complement the agency’s tourism development program, particularly in attracting foreign tourists and cruise ships to the area, especially under present global economic conditions.

“This is envisioned to transform the Subic waterfront and make it a world-class tourism destination,” Arreza said. “A lot is riding on this project – investments, jobs, and revenue, so the SBMA would like to ensure its viability as well as its acceptability,” he added. (SBMA Corporate Communications)


PHOTO CAPTION

Environment Secretary Lito Atienza (middle) confers with Grand Utopia executive managing director Louis Choong-Moon Choi (left) and SBMA Administrator Armand Arreza during Atienza’s visit to the Ocean 9 hotel-casino project site. The environment czar proposed a “win-win” solution to resolve the environmental issue surrounding the site of the $120-million tourism project in the Subic Bay Freeport.

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Subic tree row: Atienza urges critics to stick to the truth

Environment Secretary Lito Atienza confirmed that no trees have been cut here to make way for the proposed Ocean 9 hotel-casino and urged critics of the project to stick to the truth.

Atienza inspected on Wednesday the controversial two-hectare site of the project, a week after the Department of Environment and Natural Resources (DENR) took over the issuance of environmental permits in this free port from the Subic Bay Metropolitan Authority (SBMA).

“They said that trees have been cut here, so where are those cut trees?” Atienza wondered aloud during his inspection.

“At this point, personally, I can see that no trees were cut and that is important,” the DENR chief said.

“It is very important that the whole country know that no trees were cut in SBMA up to now,” he added.

Atienza was accompanied in his inspection of the project site by SBMA Chairman Feliciano Salonga and SBMA Administrator Armand Arreza, as well as some representatives of the project proponent Grand Utopia, Inc.

Atienza revoked last week a DENR agreement with the SBMA that allowed the latter to issue environmental compliance certificates (ECCs) for projects within the Subic Bay Freeport Zone.

In revoking the agreement, Atienza noted that the SBMA has been taking criticisms lately because of allegations, notably by architect and urban planner Felino Palafox Jr., that some 300 trees would be destroyed to make way for the hotel-casino project.

But in his visit of the project site, Atienza noted that the trees remain intact, and that reports that century-old trees have been cut were exaggerated.

“If there were century-old trees here, we should be seeing them now; but there’s none,” Atienza said.

"This is a reclaimed area during the US Navy days and it’s impossible for century-old trees to be here," he added.

Atienza said that activism for the environment is good. “But, of course, we have to stick to reality and the truth,” he said.

Noting Palafox’s avowed passion for the environment, Atienza also said that he and Palafox “could work together.”

At the same time, Atienza directed DENR field officers to conduct tests at the project site to determine whether some trees have really been poisoned, as insinuated by Palafox and other critics of the project.

He said that results of the soil tests may be available after a week.

Atienza’s inspection came three days after some 200 environmentalists and members of religious and civic groups visited the project site to press the SBMA to save the trees.

But during the said visit, Fr. Jun Vic Diolata, executive vice-secretary of the Association of Major Religious Superiors in the Philippines (AMRSP), also confirmed that not one tree at the project site have been cut.

Diolata said after seeing the situation in the area that “all the allegations of Palafox will have to be assessed.”

During Atienza’s inspection, SBMA’s Salonga informed the DENR official that the SBMA has a continuing reforestation program to further enhance the environment in this free port.

“We have already planted about 170,000 seedlings since we assumed our positions here in the SBMA, and yet they are still accusing us of not loving trees,” Salonga said.

Atienza also expressed his appreciation with the SBMA after Salonga told him that since December 2 last year, the agency has frozen any work at the Ocean 9 construction site pending the issuance of ECC from the DENR. (SBMA Corporate Communications)

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Carriers parking their vessels in Subic Bay

International shipping lines have started to reduce the frequencies of their vessels going to and from the Philippines, and are parking some of their vessels in the ports of the country.

Perfecto Pascual, seaport manager of Subic Bay Metropolitan Authority (SBMA), said at least 12 vessels have already been parked in the free port since November last year, most of which are from ship agents Ben Line and BOW Marine Services Inc.

“International carriers started to temporarily park their vessels in the third quarter of the year and continue up to this time,” Pascual
said.

SBMA is charging $0.0174 per GRT (gross registered ton) per day for every vessel anchored along the territories of the free port on top of the one-time harbor fee of $0.06 per GRT per day. The rate for domestic vessels, on the other hand, is half of that price.

Shipping lines prefer to just park their vessels to reduce the cost as cargo volumes are on a steep downtrend since the third quarter last year due to the global recession.

Such move, however, has become a boon to local port authorities as they can still get a significant amount of revenues, even if cargo volumes are decreasing.

“Several other [ship] agents have expressed possibility of parking their vessels to Subic Bay if the shipping business continues to remain slow in the next weeks,”
Pascual said.

At the Port of Manila, the Philippine Ports Authority (PPA) is also allocating spaces for the international lines to lay up their vessels until such time that the economic crisis winds down. (VG Cabuag, Business Mirror)

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Ocean Adventure undertakes P283-M expansion

Subic Bay Marine Exploratorium, Inc. (SBMEI), the operator of the popular Ocean Adventure Marine Park here, announced on Tuesday that it will undertake a P283-million expansion program this year to develop an integrated world-class eco-tourism complex.

“The SBMEI is now in the midst of a major capital expansion program that will enhance the capacity of both our Ocean Adventure Marine Theme Park and Camayan Beach Resort and Hotel,” said company president John Corcoran.
The planned eco-tourism complex will offer amenities “not found elsewhere,” he added.

Corcoran said the Ocean Adventure Marine Park will have an all-new Sea Lion Stadium, with a sea lion holding and exhibits area that will allow underwater viewing for visitors.

“Additionally, there will be a new indoor multi-purpose theater, a new aviary exhibit area, an Ecology Theater which will feature educational terrestrial animal shows, and an Adventure Beach events area,” he said.

The marine park complex will also be enhanced with the planned Shady Grove Grill Restaurant, recreation and entertainment facilities for corporate and school groups, as well as new showers and changing rooms, he added.

Meanwhile, the nearby Camayan Beach Resort that SBMEI also operates will have a new 42-room “Sunset” wing that will offer guests with “incredible views of Ilanin Cove in Subic Bay,” Corcoran said.

The resort, which is also dive center accredited by the Professional Association of Diving Instructors (PADI), will also be connected to the beach by a new boardwalk under the SBMEI expansion program, he added.

“Continuing (SBMEI’s) commitment to the environment, a second sewage treatment plant will be part of the expansion program,” Corcoran said.

SBMEI’s expansion program is scheduled to be completed within two years and will generate 160 jobs during the construction phase.

Meanwhile, 85 new jobs will be created once the new facilities become operational, Corcoran said.

Ultimately, he added, the Ocean Adventure integrated complex will also feature a retirement village, resort/vacation villas, spa, boutique specialty shops, and more eco-adventure facilities and animal exhibits.

Corcoran added that the SBMEI expansion program was made possible by the increasing popularity of the marine park and demand for its products.

He added that the company’s projected revenue increases and resulting bottom-line “will be strong even given current economic conditions.”

The Ocean Adventure’s popularity as a tourism attraction in Subic is expected to be further bolstered by a recent court decision clearing the marine animal show in the said theme park.

The Philippine Animal Welfare Society (PAWS) and some environmental groups alleged in 2001 that the SBMEI violated Republic Act 8485, or the animal welfare act, for using dolphins, sea lions and false killer whales in various animal shows here.

However, the Court of Appeals said recently that the petition against the SBMEI was “devoid of merit.” (SBMA Corporate Communications)

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Aeta tribe gets computer, scholarship grants from SBMA, BOI media

For members of the remote Kanawan Aeta community in Morong, Bataan, 2009 finally introduced them to the wonders of technology and the promise of better education as the Subic Bay Metropolitan Authority (SBMA) presented them on Monday a computer set and scholarship grants, among other gifts to uplift their socio-cultural condition.

The post-Christmas presents were received by Kanawan tribal chieftain Josefina Alejo from SBMA Chairman Feliciano Salonga, Administrator Armand Arreza, and Director Maria Angela Garcia, who represents Morong in the SBMA board.
The items included a computer set, a brand-new tricycle, and a DVD player and amplifier worth a total of P125,000.

Aside from these, Alejo also received from the SBMA a check worth P120,000 to cover scholarship grants for students from the Kanawan community.

“The past year was a very good one for all of us in Subic, and we closed 2008 with more than 85,000 workers in the free port’s workforce,” Arreza said.

“But the SBMA is not only counting the jobs to measure what it has done to the community. We are also concerned about the larger impact that SBMA and its partners are creating for the community,” he added.

Arreza said that the equipment donations given to Kanawan were solicited by the Board of Investments media pool in Manila.

He said the same group has also conducted assistance projects and gave donations recently to needy residents at the Pastolan Aeta community in the Subic Freeport, as well as in Augusuhin, Subic, Zambales.

For her part, the leader of the Aeta community thanked the SBMA for its continuous assistance to Kanawan and lauded the agency’s community relations projects initiated by the SBMA Public Relations Office.

“We are very thankful to the officials of SBMA, because while our community is in a very remote area, SBMA personnel continue to make a sacrifice in visiting us and helping improve our way of living,” Alejo said in Tagalog.

Sitio Kanawan is located more than six kilometers into the hinterlands of barangay Binaritan in Morong, Bataan. It is home to 84 families, most of them upland farmers and forest gatherers.

“Sa lugar po namin ay walang masakyan ang mga tao. Wala pong computer kaya walang marunong mag-computer sa amin, at wala ding television,” Alejo said.

She added that the computer set given to the village will help teachers assigned to the area in providing better education to children, as well as introduce Kanawan youth to modern technology.

The tricycle, meanwhile, will be a big help in moving things about in the hilly terrain of Kanawan, and during emergencies could also serve as ambulance, she added. (SBMA Corporate Communications)

PHOTO CAPTION: SBMA Administrator Armand Arreza (right), Chairman Feliciano Salonga, and Director Maria Angela Garcia present the computer set, tricycle and scholarship grants donated by the Subic Bay Metropolitan Authority and members of the Board of Investments media pool. Kanawan tribal chieftain Josefina Alejo (third from left) received the donation.

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NGOs, religious groups reconsider Palafox claims on Subic trees

It pays to hear both sides of the story.

A visit to the site of the controversial Ocean 9 hotel-casino project here this weekend has prompted environmentalists, religious groups, and non-government organizations to reconsider accusations by architect and urban planner Felino Palafox Jr. against the Subic Bay Metropolitan Authority (SBMA).

The groups also pressed for a dialogue between the opposing camps to ferret out the truth about Palafox's allegations that the project would destroy more than 300 trees — a claim that the SBMA has disputed.

The site visit was organized by the Association of Major Religious Superiors in the Philippines (AMRSP) and was joined by some 100 representatives from the Haribon Foundation, Kapatiran, Zambales Earth Savers, and students from De La Salle University, Adamson University, Assumption Academy in Bulacan, and Columban College in Olongapo City.

Fr. June Vic Diolata, AMRSP executive vice-secretary, said the visit provided "helpful" information that countered "serious" accusations by Palafox.

"All the allegations of Palafox will have to be assessed," Diolata said. "We hope we could see a dialogue between the two (parties)," he added.

The groups visited the project site on Saturday after hearing Palafox speak in a forum at the Columban College in Olongapo.

However, Palafox did not join the on-site site visit, wherein the visiting groups were escorted by SBMA Administrator Armand Arreza.

Ocean 9's managing executive director Louis Jong-Moon Choi was also at hand to welcome the visitors and respond to their queries.

He pointed out that Ocean 9 has been complying with all relevant laws, rules and regulations of the Philippines as far as the project is concerned, and that Palafox has never visited the project site.
As Arreza answered inquiries about the project, he also assured the visitors that the SBMA is open to a dialogue with Palafox.


"That was what we have been asking Palafox ever since — instead of his propagating malicious ideas against SBMA, just like what he did this morning," said Arreza.

"I can face him right now if only he has had the courage to come here," he added.

During the assembly at Columban College, Palafox , a former consultant who turned critic of the $120-milion hotel-casino project, said that "161 trees are dying in the area," and further implied that the trees could have been poisoned.

"You can kill trees simply with rock salt, or bulldozers can be used to shake the trees overnight — which can cause their death," Palafox added.

Arreza, however, laughed off Palafox's claims, saying that the project consultant-turned-critic might be referring to some narra trees, which naturally shed leaves in this season, making them appear lifeless.

The SBMA official even welcomed a proposal to test the soil for poison, adding that the visiting groups can conduct the test if they wanted to.

"Anyone can come here anytime. Just inform us so we can secure arrangements with the project proponent," said Arreza, who also ordered the SBMA police to guide the group's convoy of vehicles to the project site.

"We have nothing to hide here," he added.

Palafox also told the Olongapo assembly that the SBMA took advantage of the holidays to sneak cranes inside the project site.

Presenting slides which showed markings on trees that were made during the tree inventory undertaken by the SBMA Ecology Center last year, Palafox said that the trees "were marked like convicts lined up for execution."

But Arreza explained that the markings were made during the tree inventory and "precisely to ensure that not one tree is touched until the Department of Environment and Natural Resources (DENR) is done with processing the project's environmental compliance certificate (ECC)."


As for the presence of cranes, which Palafox claimed are poised "to massacre the trees", Arreza said those were for soil testing, a necessary procedure to determine the integrity of the site, which was reclaimed from swamplands from the late 50s to the early 60s.

Fr. Diolata said that the visit confirmed that "the cranes were being used for soil testing only" and that "all of the trees are intact."

He added that the site visit "would enable everyone who participated here to come up with an objective opinion."

Meanwhile, an ARMSP member who asked not to be named, made it clear that the visiting groups were "in no way supporters of Palafox."

"We came here for the trees, and to find out the truth," the source said. (SBMA Corporate Communications)

PHOTO CAPTION:

SBMA Administrator Armand Arreza (right) fields inquiries on the Ocean 9 hotel-casino project during a visit to the project site by environmentalists, religious groups and non-government organizations. Arreza pointed out that contrary to claims by critics, the more than 300 trees in the project site remain intact to this day.

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SBMA ADMINISTRATOR AND CEO ARMAND C. ARREZA'S OFFICIAL STATEMENT ON REVOCATION OF DENR-SBMA MOA

"We respect the DENR's decision to revoke our Memorandum of Agreement (MOA) with them and will cooperate fully with the Department in ensuring environmental compliance within the Freeport. We also wish to reiterate that the SBMA remains committed to the protection of the environment and will seek the DENR's reconsideration.

As far as our alleged plan to cut down trees to make way for a hotel-casino project is concerned, we welcome the DENR's stepping into the picture, as this would help us in making sure that Subic's environment is preserved amidst all the development that is taking place in the Freeport. This will also be an opportunity for us to clear ourselves of the negative insinuations levied against us.

At the same time, we wish to assure the public that all 366 trees at the project site remain intact to this day." (End of Statement)

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Subic sees modest growth despite global recession

Despite forecasts of an even grimmer economic picture this year as a compounded result of the global financial crisis in 2007, the Subic Bay Metropolitan Authority (SBMA) said it is optimistic of continued growth in “anchor industries” to keep the Subic Bay Freeport afloat even in turbulent waters.

SBMA Administrator Armand Arreza said that the agency expects modest growth in Subic’s tourism, manufacturing and maritime sectors as these “are likely to defy the global slowdown due to their firm foothold in the market.”

These sectors, he explained, turned out the bulk of the P4.21 billion total investments that the SBMA approved in December 2008 — fresh infusions that Subic managed to secure even after the impact of the global financial meltdown began to sink in.

The new investments, Arreza said, brought total committed investments in Subic to $5.75 billion as of end-2008, and are expected to add at least 1,000 new jobs to Subic’s active work force of about 85,000.

In the short term, Arreza said that growth may be generally flat in 2009, especially for certain companies in the manufacturing sector.

“But in the long haul, we expect the tide to turn and eventually lead to recovery,” Arreza said.
“There should even be opportunities in the lean months, as some firms would shift production to more cost-competitive locations like Subic,” he added.

In particular, Arreza said the tourism industry in Subic should prove to be resilient amid the expected slowdown because of its own local market niche.

In addition, he said that the SBMA and Subic business locators are now tapping the foreign market to bring in more tourism revenue.

An example of the more enterprising firms, Arreza said, is Subic golf course operator Hanafil, which was scheduled to bring in on Monday night the first planeload of golf players from South Korea under its “golf junket” program.

Arreza added that Subic is also eyeing the still emerging but potentially huge Chinese tourist market, which is expected to reach 100 million by 2015, by building more facilities and adding to Subic’s repertoire of nature theme parks and adventure sports attractions.

He said that Ocean Adventure, one of the popular tourist draws in Subic, is expanding this year and will build a hotel at the nearby Camayan beach resort that it also operates.

Anticipating bigger tourist turnouts in Subic this year, Puregold Duty Free also embarked recently on a $50-million expansion program for its duty-free retailing business here, Arreza added.

In the logistics sector, Philip Morris will be putting up in Subic this year a P1-billion warehouse to expand its tobacco leaf supply hub for Southeast Asia. This facility is expected to accommodate up to 24,500 metric tons of tobacco leaves.

Meanwhile, the manufacturing sector is also expected to provide its share in Subic’s continued growth, as indicated by expansion projects for factories and construction of new production facilities worth over $25 million.

Several manufacturing firms in Subic, including Japanese ATM manufacturer Hitachi Terminals, Taiwanese lock maker Tong Lung and abrasives producer Tailin, are slated to build or start operating bigger facilities this year.

On the other hand, the maritime industry, headlined by shipbuilder Hanjin Heavy Industries Co.-Philippines, is expected to continue boosting Subic’s revenue and employment generation programs by turning out 15 new container vessels this year.

The company had so far launched four 4,300-TEU container ships that cost around $60 million each from its Subic shipyard, and expects a faster pace of production in 2009 as its more than 15,000 Filipino workers become more familiar with the shipbuilding process.

“By and large, Subic’s core industries will see it through this economic slowdown,” Arreza said.

“Overall prospects may be dampened by some effects of the global crunch, but we expect modest gains — then possibly, full recovery in two to three years, as the new investment projects we signed in last year begin to kick off,” he added. (SBMA Corporate Communications)


PHOTO CAPTION:

NEW SUBIC INVESTORS: SBMA Chairman Feliciano Salonga (6th from left) and SBMA Administrator Armand Arreza (4th from right) pose with new investors, who are among the 34 business locators that signed investment contracts worth P4.21 billion with the SBMA last December.

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Int’l airline flies in 1st batch of Korean golfers to Subic

South Korea’s Jeju Airlines made its first chartered flight from its base in Seoul to this free port Monday night, flying in 174 Korean nationals who are out for a three-day “golf holiday” here.

The Korean golfers comprise the first batch of about 3,000 tourists from Korea who shall visit the Subic Bay Freeport until March under a “golf junket” program arranged by Hanafil, a Filipino-Korean firm that now operates Subic’s 18-hole golf course.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza said that two junket flights, with about 180 persons per flight, have been scheduled each week to land at the Subic Bay International Airport (SBIA).

Arreza and SBMA Chairman Feliciano Salonga personally welcomed the golfers at the SBIA.

Arreza said he was happy now that the SBIA has resumed commercial operations after a year and a half of dormancy when Mandarin Airlines stopped its regular flights here.

“This maiden flight (of Jeju Airlines) demonstrates how important SBIA is to the free port,” he said, adding that the more than 24 scheduled golf junket flights would contribute about US$48-50 million to Subic’s income.

The junket flights program, which is an initiative of HanaTour, Korea’s largest tourism firm and mother company of Hanafil, “would certainly boost Subic’s tourism industry,” Arreza also said, noting that tour packages arranged by the organizers will bring the Korean golfers to other tourism attractions in Subic like beaches, forests, theme parks, recreational facilities, and duty-free shops.

HanaGolf president and CEO Jae Yeoul Kim, whose firm marketed the golf junket flights, said that these junket flights were just the initial result of their promotion of Subic in Korea.

He added that starting March this year, he expects regular tourist flights between Subic and Seoul.

“Subic is such an attractive place, and the main factor that draws tourists here is its secure environment,” Kim said.

He pointed out that 60 percent of tourist travels in Korea is being handled by HanaTour, which he said has an international network and is listed in the Korean Stock Exchange.

He added that with HanaTour’s network, Subic could be further promoted internationally.

“It would not be long before Subic would be recognized as a prime tourist destination among Koreans,” Kim said. “We have the power to do that,” he added.

Kim said they have arranged three tour packages for the visiting golfers: the golf package, which is a three-day, 8-hole golfing spree every morning and a visit to Subic attractions every afternoon; a free-to-do package, which has no fixed schedule; and a holiday tour package, which will become available once HanaGolf finishes its villa and condominium units in Subic.

Hanafil CEO Benjamin Defensor said meanwhile that the golf junket program would also help promote the SBIA as an entry point for international golfers and tourists.

“With this, Subic Bay will be the next big thing in tourism, especially since it has all the necessary infrastructure to support tourism growth,” Defensor said. “That is why our company is committed to developing the area,” he added.

According to Defensor, Hanafil has already renovated some parts of Subic’s 18-hole golf course and is now gearing up to construct additional nine holes.

On top of this, the company is currently finalizing plans to build a five-star hotel and luxury villas near the golf course at Subic’s Binictican area. (SBMA Corporate Communications)

PHOTO CAPTION:

Korean golfers arrive at the Subic Bay International Airport under a “golf junket” program arranged by Hanafil, operator of the 18-hole golf course in Subic.

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Tailin of Taiwan shrugs off crisis, eyes Subic expansion

Tailin Abrasives (Subic) Corp. of Taiwan is scouting for a new site in the Subic Bay Freeport for its expansion plans as it remains confident that demand for its products will not slow down despite the global recession.

Charles Wu, company chairman, told reporters in a visit to Tailin’s headquarters in Taipei last month that exports prospects remained bright despite the worst financial crisis in the United States, which accounts for 30 percent of its exports.

The group designs, manufactures and distributes a wide range of resin-bonded abrasive
products, such as cut-off and grinding discs, coated abrasives, flap disc, mounted points and conventional grinding discs. It sells its products through industrial distributors, original equipment manufacturers and hardware private label programs.

“The recession will have little impact on our exports since we produce highly specialized industrial products. Our production for 2009 is already paid for. We are also looking at tapping other export markets to ease the impact of the slowdown in the US market,” said Wu.

The company also exports 30 percent of total production to Asia, 25 percent to Australia and 10 percent to the European Union. Taiwan accounts for 5 percent of the output. (Elaine Ramos Alanguilan, Manila Standard Today)

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Sights and Sounds of New Year Celebration 09 in Subic Bay (link)

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SBMA approves new investments worth $87.6-M

While financial slowdown has affected the global economy, this free port continues to welcome into its fold both foreign and local investors bullish about business potentials in this premier commercial, industrial and tourism center.

The Subic Bay Metropolitan Authority (SBMA) signed contracts with 34 locator companies that committed a total of US$87.63 million in fresh investments.

SBMA Chairman Feliciano Salonga and Administrator Armand Arreza, who signed the new business contracts at the Subic Bay Gateway Park here, said the fresh capital infusions were for 28 new projects and four expansion programs.

The newly-approved investments will generate about 1,000 new jobs once operational.

"This is a very challenging time that we face, but despite negative news in the financial market, the SBMA continues to be optimistic as it continues to make the entire Subic Freeport more competitive," Arreza said.

"By continuously upgrading our facilities and infrastructure, which are very critical in the growth of every business, we make Subic a better and more effective investment haven," he added.

Leading the new batch of investors in terms of committed investments is Puregold Duty Free, which will start a $50-million expansion program for its duty-free retailing business in Subic.

Next are Sultan Ahmed Lootah Enterprise Corp., which is infusing $6.72 million for its corrugated cartons and duplex boards manufacturing plant; Pacific Ocean Underwater Solutions, Corp. ($5 million), which will provide various underwater services like repair and construction, salvaging and photography, as well as purifying and maintaining fishing fields; and Samahophir Corp. (also $5 million) for the manufacture, fabrication, installation, and repair of big doors for Hanjin projects.

Other new players in the manufacturing area are: Cheongwa Subic, Corp., which is investing $4.312 million in the manufacturing, import/export, assembly and fabrication of steel frames related to shipbuilding; Australasia Marine Alliance Corp. ($2.32 million), manufacturing of boats and other marine–related products and components; TECO Phils 3C and Appliances, Inc. ($1 million), for the importation and exportation of home appliances; and Ixion Corp., $800,000, for the importation and distribution of petroleum products.

In the tourism-related sector, several companies have signed in to engage in the operation and construction of leisure and recreational establishments: Magspeak, Inc., $1.1 million; World HDGD, $1.1 million; Janburlai Corp., $800,000; Freeport Skyworld, Inc., $640,000; and Molawinville Corp., $500,000.

In the warehousing and storage sector, the MSK Group Work Inc. will infuse $2.85 million, while Ocean Coast Shipping, Inc, will bring in $350,000 for a business in bunkering, brokerage, and other port services.

Arreza said the Subic Bay Freeport is now home to about 1,200 companies employing more than 85,000 workers. Total committed investments by these businesses have reached $6 billion.

"We are hoping to further increase these figures by the end of this year. With these new investments, we are very confident that Subic will reach new record levels," he said.

Meanwhile, Lawrence Lusung of the Bank of Commerce, which has also signed in as a new locator, said Subic is "one of the most dynamic places for business in the country."

"Bank of Commerce believes that for a bank to become one of the top financial institutions in the country, it must have a place here in Subic where great opportunities await every investor," Lusung said.

Pateek Tiwari of ED & F Commodities Phils., Inc., which will engage in the warehousing and storage of bio-fuels and other liquid products, meanwhile said the investor-friendly policies of the SBMA remains to be the main attraction of Subic. (SBMA Corporate Communications)

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Environmentalism in action, not words: Subic locator turns over 'Adopt-a-Forest' project

A Japanese business locator in this free port has turned over to the Subic Bay Metropolitan Authority (SBMA) another reforestation project planted mostly with mahogany and narra trees, proving again the continuing commitment to the environment of members of the Subic community.

NIdec Subic Phils., a manufacturer of micro-motors and computer peripherals, "adopted" the 1,000-square meter grassland in 2005, planted it with various trees, and maintained the forest for the past three years under the SBMA's "Adopt-a-Forest" program.

The turnover last Thursday marked the end of Nidec's "adoption" contract, when the trees planted by company employees are deemed to be old enough to be able to survive.

"Three years ago, I was here with my co-workers to plant these trees," recalled Renz Victoria, Nidec plant section manager.

"The time had passed so quickly and now you can see that the seedlings we planted have grown healthy and strong," he proudly noted.

"You can be assured that Nidec will always support and participate in this kind of program that guarantees a better future for our children," Victoria told SBMA Chairman Feliciano Salonga and SBMA Ecology Center manager Amethy dela Llana-Koval during the turnover.

Nidec, which is among the most environment-conscious companies in the Subic Bay Freeport, was among the first investor-companies that joined the "Adopt-a-Forest" program in 2005.

Its adopted forest lies about a kilometer's walk away from the road going to the Aeta village of Pastolan, which is located on the slopes of Mt. Sta.. Rita.

Scattered in nearby slopes are the reforestation areas being maintained by other Subic locators like Subic Power, Subic Bay Press Corp, Wimpy's, Morong Jeepney, and Vision Air.

Community groups and civic organizations like the Rotary club of Olongapo City and the Subic Bay Press Corps also have adopted reforestation projects, which are to be turned over soon to the SBMA.

Like the other adoptive groups, Nidec planted and maintained the area using its own manpower and resources, assisted only by the Pastolan Forest Conservation Group. The Pastolan group is composed of Aeta workers from the SBMA Ecology Center, who help out with reforestation projects near their upland community.

Some members of the Pastolan group had intercropped papaya and banana with trees like mango, thus also providing income to the Subic natives.

Chairman Salonga said during the turnover that the participation of various locators and community groups in the SBMA reforestation program is a concrete example of the environmental commitment of various stakeholders in the Subic Bay Freeport.

"You probably have heard recent accusations that the SBMA and the Subic community in general don't care much about trees," Salonga told Nidec employees and Aeta tribesmen present in the simple turnover rites.

"Well, here is our response. Here is our concrete response to all the criticisms — that Subic's brand of environmentalism consists of actions, and not words alone," Salonga added.

Ecology Center's Koval, meanwhile, said that some 20,000 seedlings are planted each year in the Subic Bay Freeport Zone through the "Adopt-a-Forest" program and the agency's annual tree-planting projects.

Moreover, Koval said, the SBMA is "exporting" tree seedlings to various groups in the nearby communities who undertake reforestation projects. (SBMA Corporate Communications)

Photo Caption: BOUNTY FROM THE LAND: NIdec plant manager Renz Victoria (left) presents fruits harvested from the company's reforestation site to (left-right): SBMA Chairman Feliciano Salonga, Pastolan Aeta leader Florentino Bonifacio, and SBMA Ecology Center manager Amethya dela Llana-Koval.

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NGO says reforestation a better option for Subic trees

An environmental group said it would be "wiser" to opt for reforestation and other environmental protection activities instead of spending too much for the relocation of the "mostly diseased trees" that will be affected by the US$120-million hotel-casino project here of Korean firm Grand Utopia, Inc.

Kanlungan Development Association of Innovators, Inc., a non-government organization composed mostly of professors from the University of the Philippines in Los Baños (UPLB), stressed during a media tour of the project site that reforestation would be the better option.

This conclusion was reached, said professor Pastor Malabrigo who is Kanlungan team leader, after a three-week study of the project site for the proposed Ocean 9 Casino and Hotel Resort in this free port's central business district.

"Kanlungan's Initial Environmental Examination Report (IEER) for the hotel-casino project recommended the replacement of 161 diseased trees, the relocation of 70 healthy ones, and the retention of 51 others, which will not be affected by the development," said Malabrigo.

"Using a replacement ratio of 50 seedlings for every tree to be replaced, Grand Utopia should produce a total of 8,050 seedlings, which is enough to reforest an eight-hectare area with the recommended spacing of 3 meters x 3 meters," he added.

The SBMA Ecology Center has already identified the Pastolan area at the east side of the Subic Bay Freeport as a viable reforestation area, it was learned.

Malabrigo said people should look at the prospects of an eight-hectare reforested land "versus the pitiful condition of the mostly defective trees in the project site."

He added that the area, which served as a mini-golf course during the US Navy days, has become unsuitable for tree growth, with the concreted gold links causing the development of "very disturbed root systems."

The trees, as a result, eventually developed various diseases such as rotting. He added, however, that "these are very common species" like atis, langka, and guava, among others, which can be easily replaced with prime, even endangered, ones.

"Our company policy is to protect the environment, but we should also balance this with development and economic gains," Malabrigo said.

He also explained that the cost of tree-balling ranges from P100,000 to P200,000 per tree, depending on its size, while reforestation costs about P70,000 per hectare per year.

"Considering the very tedious process of balling and transplanting, the relocation will subject the trees to a lot of stress that unhealthy trees won't be able to withstand," Malabrigo said.

"Rather than spending too much for relocation of trees whose survival is really uncertain, the SBMA Ecology Center might as well ask the proponent to allocate resources for other environmental restoration and restoration activities," he said.

Kanlungan has identified 235 trees and 47 palms in the project site, as opposed to 336 trees (including palm species) as inventoried by the SBMA Ecology Center.

The discrepancy in the figures, Malabrigo explained, was due to the fact that each sprouting pole of the palm specie Palmera was counted as an individual tree, when they should have been counted as individual clusters.

"Palms are not trees, and should be differentiated in reports," Malabrigo pointed out.

He said that of the 48 tree species found in the area, only two are classified as "endangered" — ipil and narra, and one palm specie is "endangered" — the Manila palm..

Malabrigo, however, clarified that the term "endangered" means the population is threatened "in the wilds only."

"This does not necessarily mean that they are in the brink of extinction," he said.

Malabrigo said the two ipil trees will not be affected by the development and will be retained, along with five of the 18 Manila palms, while only one of the 13 narra trees is set to be transplanted. The rest will find their way into urban landscaping for the hotel-casino project.

Malabrigo also corrected the notion that the project site is densely stocked with trees, as previously described in previous media reports.


He said the project site has a tree density of less than three trees per 200 sq. meters, and thus "cannot be considered as dense since it falls short of the standard of one tree per 2 sq. meters."

Kanlungan, which has been tapped by Grand Utopia to undertake an environmental assessment of the project site, is registered with the Securities and Exchange Commission (SEC) and holds office inside the UP Los Baños campus. (SBMA Corporate Communications)

Photo Caption: Prof. Pastor Malabrigo (center), of the University of the Philippines in Los Baños (UPLB), explains to the media that replacement is the better option for trees affected by a proposed hotel-casino project in the Subic Bay Freeport. The conclusion is based on findings of a tree-week study by the non-government organization.

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ICTSI Subic terminal rolls out new gate system

International Container Terminal Services Inc. (ICTSI), subsidiary Subic Bay International Terminal Corp. (SBITC) rolled out recently a new software that would boost operational efficiency at the gates of the Subic Bay Freeport’s new container terminal.

ICTSI developed in-house the GTSGates gate module, which is part of the terminal’s existing Graphical Tracking System (GTS) for SBITC.

It automatically generates container yard locations for trucks entering the terminal and can process multiple movements of containers, both import and export, during any truck visit and is linked to GTS’ yard allocation module.

The gate module also allows SBITC to utilize multiple lanes of the terminal gate, which can be switched functionally at anytime according to the flow of traffic.

A truck instruction document (TID), which has the container yard location, may be printed and issued to a truck driver as well as an equipment interchange receipt (EIR), a document containing the transfer of container from one carrier to another, upon gate out.

GTS is an application suite for container terminals. GTS planning uses high resolution color graphic workstations with Windows interface to support interactive, real-time modules for planning and monitoring of container terminal movements.

All planning and control functions for the yard or vessel operations are carried out on the GTS graphical planning screen. Ancillary support programs are used for gate processing, movement updates and master data updates.

These modules, when used together, facilitate management of vessel and yard planning and controller functions in the terminalAside from procuring the best terminal operations systems and software available in the market, ICTSI develops in-house software and systems tailor-fit to the specifications and requirements of its Philippine and international terminals.

ICTSI is a leading developer of international ports and terminals with a global port network spanning 13 countries. It is on its 20th year of operation and continues to pursue container terminal opportunities around the world. (scs/PFN - PNA)

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NGO backs $120-million hotel-casino in Subic

Out of 282 trees at the site where the $120-million casino-hotel will be located there is one Narra tree, said Kanlungan, a nongovernment organization based in Los Baños.

Kanlungan composed of professors from University of the Philippines- Los Baños (UPLB) was tapped by Grand Utopia to conduct an initial environmental examination report for the casino hotel project in Subic.

“In our report we only found 282 trees most of them fruit bearing trees which are common,” Professor Pastor Malabrigo told The Manila Times in an interview during the site visit with media.

Contrary to the claims of Urban Planner Felino Palafox that century old trees would be cut to make way for casino-hotel project, Malabrigo said that “mahirap masabi na century old tree dahil wala tayo basihan [it would be difficult to say century old trees since there is no basis for the statement].”

He added that in their recommendation to the Subic Bay Metropolitan Authority (SBMA)ecology center, 51 trees would be retained, 70 trees would be bowled and 161 would be replaced or cut.He said that their decision to cut the trees is based on their health.

“Eight hectares of reforestation against the area is definitely much better,” Malabrigo said.“Only one Narra would be bowled and the rest are mostly common trees, it would cost around P100, 000.00 to P200, 000.00 depending on the size of the tree,” he added.

He explained that they have identified an area in Pastolan for the location of the reforestation; the ratio according to Malabrigo is 50 seedlings for each tree that would be cut. “We have already submitted the report to the ecology center for their review,” Malabrigo said.

Grand Utopia Inc., Executive Managing Director Louis Jong-Moon Choi in an interview with The Manila Times said that they are still waiting for the recommendation from the ecology center of SBMA before they can move and start operation on the site.

We will follow the decision of the Ecology Center, we don’t want to destroy the environment and we will follow Philippine laws,” Choi said.“I consider Palafox as one of the best architects in the Philippines and that is why we are surprise and curious why he is making such statements,” he added. (Anthony Bayarong, Manila Times)

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Construction of $1.1-B Power plant to start

Aboitiz Power Corp. and Taiwan Cogeneration Corp. (TCC) will start construction of their $1.1-billion power plant in Subic, Zambales, by the middle of next year as the proponents believe the global crisis has actually made the project more viable.

Brian Hsu, president of TCC, said the economic slowdown has started to pull down both the financing rates and the cost of raw materials like coal, thus creating more opportunities for projects like this if the proponents could raise the capital.

"The costs are now going down, whereas a few years ago they were so high. So we are thinking of starting construction by the second half of next year," Hsu told Manila-based reporters in TCC€'s office here.

Aboitiz and TCC are now working on the contract for a 50-50 partnership for the RP Energy Redondo Peninsula Energy Inc. project in Subic.

Hsu said commercial operation is expected to start by 2012. The plant's output will be sold to the Wholesale Electricity Spot Market.

The first phase of the project involves the investment of $550 million in the construction of a plant with a rated capacity of 300 megawatts. The second phase will also entail the same amount of investments and power output.

Hsu said the partners are now working on the government licenses required, as well as the financing agreements with Philippine and Taiwanese banks.

He said the target is to secure $200 million in loans from Philippine banks and another $200 million from the financial institutions in Taiwan. The rest of the capital requirements will come from the coffers of the two proponents.

Hsu said more investors may be admitted in the future, probably after the start of the commercial operation, and there are already several companies that have expressed interest to come in.

"Right now we are going into the construction stage, and it would be easier if there are only two companies involved,"he said.

Hsu said the circulating fluidized bed technology they will use for the power plant would make the generation cost cheaper because they can use low-grade coal and even waste materials as fuel.

Another opportunity that Aboitiz and TCC are looking at, he said, is to develop a pool of talents that will undertake similar projects in other countries using the expertise that they will gain in the Subic Bay venture.

"We know that there are lots of Filipino engineers that are good, and their rates are very competitive," he said. (Max de Leon, Business Mirror)

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Civil Service cites 17 SBMA law enforcers

Employees of the Subic Bay Metropolitan Authority (SBMA) again proved that they are a breed apart, as the Civil Service Commission (CSC) honored 17 SBMA law enforcement officers who played a part in the discovery and seizure of more than P2-billion worth of contrabands inside the free port recently.

Three SBMA security officers received the CSC's "Gantimpala Agad" Award, while 14 others were given commendations on Monday by Director Cristina Gonzales of the CSC Zambales Provincial Field Office.

Wilfredo Agnazata Sr., Ariel Arabe, and Diosdado Ednave, all employed as security guard 3 by the SBMA Law Enforcement Department, received the "Gantimpala Award" — the reward component of the "Mamamayan Muna, Hindi Mamaya Na" program of the CSC.

SBMA deputy administrators Robert Martinez (administration) and Raul Marcelo (tourism) assisted Gonzales in handing out to the security officers the special "Gantimpala Agad" pins, Philippine Flag pins, and certificates of recognition from the CSC.

In the same occasion, 14 other security officers and guards received letters of commendation for their efforts in follow-up operations leading to the seizure of contrabands.

They are: Security Officer 5 (SO5) Vicente Tolentino and SO5 Fernando Aquino; SO4 Rolando Cepe; SO3s Alfred Jose, Aris Atienza, Benjamin Macanas; SG3s Mario Sigua, Jaime Jimenez, Romeo Agato Jr., and Romeo Reyes; SG2 Ronel Salvador, and SO1 Ceferino Abadia.

CSC's Gonzales also noted the important role played by SBMA security guards Ricardo Malig and Edwin Penticostes in the said police operation, but added that the CSC could not give them the "Gantimpala Agad" award since they are hired under contract of service.

"Malig and Penticostes are outside the coverage of the said award, but have played important roles in the said police operation. They would have earned the same recognition or award if not for the constraint brought by their employment status," Gonzales explained.

The 17 SBMA personnel received the CSC citations through the recommendation of SBMA Administrator Armand Arreza.

In a letter to CSC-Region 3 director Karin Litz-Zerna, Arreza said the SBMA law enforcement officers "sufficiently demonstrated the honesty and dedication to their duty, as well as the high esteem accorded to them by our locators."

Last Monday's awarding marked the second time this year that SBMA employees received citations from the Civil Service Commission.

On September 19, SBMA SO3 Joel Viray became one of the recipients of the CSC's "Pagasa Award", which was handed out by President Glorai Macapagal-Arroyo during the celebration of the 108th foundation day of the Civil Service Commission.

The Pagasa award is given by the CSC to government employees or group of employees, who have contributed an exceptional idea or excellent performance that significantly benefited their respective government agency. (SBMA Corporate Communications)

Photo Caption: GANTIMPALA AGAD AWARDEES: Zambales CSC Director Cristina Gonzales presents the 17 SBMA security officers who were instrumental in the recent discovery and seizure of contrabands inside the Subic Bay Freeport. Three of the officers were given the CSC "Gantimpala Agad" award, while 14 others were commended by the agency.

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Subic Freeport eyes incentive travel market, hosts 8th confab on incentive marketing

The Subic Bay Metropolitan Authority (SBMA) is clearly on the move to capture a larger share of the growing outbound tourist market worldwide with its aggressive tourism promotion program and the continuous development of tourism facilities in this free port.

SBMA Administrator Armand Arreza said Subic's tourism thrust will be boosted further when the free port hosts the 8th Philippine Incentive Marketing Conference (PIMC) this April.

"This is an event institutionalized in 1994 by the Department of Tourism (DOT), the Philippine Convention and Visitors Corporation (PCVC), and the Movement of Incentive Travel Executives (MITE) to continually upgrade the standards and quality of services of existing tourism facilities and services in the country," explained Arreza.

"We intend to leverage our hosting of this event to broaden our networking with tour operators, incentive travel organizers, and other stakeholders in the tourism industry, which continues to display strength despite global economic slowdown," he said.

Arreza added that the Subic Bay Freeport also continues to make headway in tourism due to the increasing number of facilities here for leisure, entertainment, adventure and sports tourism, as well as convention and exhibition.

Figures from the SBMA Tourism Department indicate that the number of foreign and local tourists increased considerably over the last two years.

Foreign visitors numbered 41,366 in 2007, but the total as of November this year already reached 52,277. The number of local tourists, meanwhile, grew from 1,009,609 last year to 2,225,540 as of this November.

Arreza said that with the hosting of the coming conference on incentive travel, "Subic hopes to solidify its position in the growing meetings, incentives, convention and exhibition (MICE) market."

SBMA deputy administrator for tourism Raul Marcelo, meanwhile, said that the PIMC could provide a big difference in marketing Philippine tourism attractions to catch up with major players in the business.

He said that while Singapore has recorded 33 million tourists as of October 2008 and Dubai is looking at 200 million before the year ends, the Philippines has only recorded 3.3 million so far this year.

"It is evident that the Philippines has much more to offer compared to these countries, and yet, we are lagging behind. It is hoped that the PIMC would help advance Philippine tourism to beter standing," said Marcelo.

Marcelo pointed out that the PIMC strives to promote the country as an ideal tourism, convention and incentive destination through educational programs aimed at professionalizing the local incentive travel industry. This involves providing comprehensive information, technical assistance, and guidance to meeting planners and incentive travel organizers, who seek an ideal venue for their meetings and incentive groups.

He added that PICM organizers "have chosen the right venue for the next conference, as they could learn much here in Subic."

About 300 participants will be invited to the 8th PMIC, which is an immediate follow-up event to the 7th PMIC held in Batangas on November 27-30.

Marcelo said participants in the recent conference "got a good taste of Subic" when the SBMA hosted a safari-themed farewell lunch to cap the event.

"Food was served in bamboo — the Subic Aeta way— and that has got everyone excited," said Marcelo. (SBMA Corporate Communications)

Photo Caption: Foreign tourists try out indigenous Aeta dance steps during a visit to the Subic Bay Freeport.

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Subic container terminal bidding set for February

The Subic Bay Metropolitan Authority (SBMA) is all set to bid out the second phase of the New Container Terminal (NCT-2) in this free port in February next year, pending the completion of advertising requirements to formally start the bidding process.

The agency announced earlier that it is inviting shipping lines and port operators to bid for the operation and management of NCT-2, which has a cargo-handling capacity of 300,000 twenty-foot equivalent units (TEUs).

However, SBMA Administrator Armand Arreza clarified on Friday that the Port Commercialization project would have to wait until after formal bidding notices are published in international and national publications.

"This requirement somewhat deferred the bidding process, but this is necessary because we want to ensure that international players are duly informed so that they could participate," Arreza said.

"We're going to announce as soon as possible when bid documents would be available. Most probably, that will be by February next year," he added.

According to the SBMA Project Management Office, which was supposed to hand out bid documents to interested parties starting December 9, it has received a lot of inquiries from foreign embassies and global port operators after news on the NCT-2 bidding came out.

"This is very good news to the SBMA, but regrettably the bidders would have to wait awhile until the Special Bids and Awards Committee (SBAC) for Port Commercialization completes this particular requirement," Arreza said.

The NCT-2 has 14 hectares of newly constructed container yard, a 280-meter long newly constructed wharf, two units of 53-ton quay gantry cranes, as well as related buildings and equipment.

The contract for the NCT-2 operation and management (O&M) would be effective for a period of 25 years, with an option to renew the agreement for another 25 years. (SBMA Corporate Communications)

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Solon urges congress to probe US$120-M hotel-casino project in Subic

QUEZON CITY-- A party list representative urged congress to fully investigate the "irresponsible accusations" made by renowned architect and urban planner Felino Palafox, Jr. against the Subic Bay Metropolitan Authority, even as she questioned Palafox' motives in "raising hell and high water" over the Grand Utopia project vis-a-vis his recommendation to transfer it to another project he designed in the Freeport.

In a privilege speech, Rep. Carissa Coscolluela called for a thorough congressional inquiry to clear the issues muddled in the "web of lies conveniently spun around a completely unrelated issue - an environmental advocacy campaign to save some trees in order to attract media attention and generate political and public support for the transfer of the resort project."

The congresswoman said she was "perplexed by the indiscriminate, arbitrary and irresponsible way that accusations have been hurled against the SBMA," - starting from the alleged cutting of trees at the site of the $120 million hotel casino project to accusations of extortion that Palafox alleged to have led to his disqualification from an earlier project - the redesign of the master plan for the Freeport's development.

"Since an outstanding member of the business community has made accusations against a government agency and its agents, let us fully investigate the matter so that truth may come out and those who might be found guilty can be punished and the innocent be spared," Coscolluela said in her privilege speech on Tuesday.

She cited the ever-changing statements Palafox and his spokespersons have been feeding to members of the media, which she said was unfair to SBMA.

"The reputation of the SBMA and its agents, including a nine-year old boy, was besmirched. They have been unfairly crucified in the court of public opinion in this trial by innuendo," said Coscolluela.

Palafox first claimed that his firm was disqualified from the master plan project's bidding since he did not come up with the 18% (of the contract price) allegedly demanded by a member of the SBMA Bids and Awards Committee (BAC).

Yet, Coscolluela stressed, records of the SBMA BAC clearly show that Palafox Associates was never disqualified from the bidding process as reported in the news, but was in fact among the final three firms short listed, added Coscolluela.

"Palafox Associates lost after all respective proposals of all qualified bidders were ranked in accordance with the set of criteria formulated under the Terms of Reference governing the bidding of the project," she revealed.

Coscolluela noted that Palafox subsequently said that his associate told him it was the son of SBMA Administrator Armand Arreza who was behind the extortion attempt - who was only nine years old at that time.

She added that Palafox later backtracked and said it could not have been instigated by Arreza or his son.

"Their (Palafox's camp) stories change everyday," said Coscolluela.

On Tuesday, she said a radio commentator revealed that sources close to Palafox identified the person behind the extortion attempt as a member of the SBMA Board of Directors named Boy Coscolluela.

"There is only one Coscolluela on the SBMA Board-- my father. He never spoke to Palafox or his associates about this project, and his name is not even 'Boy'," she said.

"Palafox and his cohorts cannot even get their lies straight," she added.

"To this day, Palafox hides behind all these people who speak for him and has not been man enough to name the alleged extortionist," she said.

The congresswoman reiterated that the matter must be brought to congress to set the record straight once and for all.

Meanwhile, Arreza said Palafox cannot accuse him of any environmental violations.

"We have made it clear that not one tree has been, or will be cut," said Arreza, explaining that the SBMA directive to project proponent Grand Utopia Inc. is to either incorporate the trees in the development plan, or ball and then relocate them.

Arreza wonders how Palafox has come up with the idea that centuries-old and heritage trees are in the area which, during the 50's until the early 60's, was reclaimed by the US Navy for leisure purposes, particularly as a mini-golf course.

Of the 336 trees in the area, 118 are considered as ornamental. More than half of the total have diameters less than 20 centimeters and are considered as saplings, Arreza said.

He clarified that the term 'urban jungle' is inappropriate, since the area, which was zoned for resort development as early as 1996, lies in the Central Business District, and is actually adjacent to SBMA offices.

"The Central Business District is where you would normally find entertainment structures like the proposed Ocean 9 Resort-Hotel," Arreza said. (SBMA Corporate Communications)

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SBMA prefers shipping lines to operate NCT-2

SHIPPING lines are the players preferred in the privatization of the second container terminal in Subic as cargo volume would be an issue that needs to be addressed at the earliest possible time, according to the Subic Bay Metropolitan Authority (SBMA).

SBMA Administrator Armand Arreza said his office is looking for a shipping line that would make Subic’s New Container Terminal 2 (NCT-2) its operations hub than award it to International Container Terminal Services Inc. (ICTSI), for example, a company that already operates the first terminal.

Arreza said a shipping line could guarantee to a large extent volume through the port it has cargo vessels, unlike a port operator that could only market the facilities to shipping firms.

“We hope that big liners participate and make NCT-2 its Southeast Asian hub where they will consolidate cargo rather than go elsewhere like Hong Kong, which is so expensive,” Arreza said.

He added, however, the SBMA would not prevent ICTSI from joining the bidding for NCT-2. ICTSI subsidiary Subic Bay International Terminal Corp. won the management and operations contract for NCT-1.

The facility could handle up to 350,000 TEUs (twenty-foot equivalent units) of cargo per year.

Even if ICTSI should win and monopolize Subic’s container terminals, the company still needs to create volume to recoup the expenses it would incur in operating and managing the new container terminal.

The Razon-controlled firm pays SBMA about P100 million a year to manage and operate NCT-1. Should ICTSI win in the NCT-2 bidding, it would have to pay P200 million a year, Arreza said.

NCT-2 is being eyed as a transshipment hub for shipping lines and has a handling capacity of 300,000 TEUs a year expandable to 600,000 TEUs. It has a potential revenue of about $6 million a year, including wharfage fees.

The management and operations contract for NCT-2 is 25 years, renewable for another 25 years.The government has invested $80 million for NCT-2 in the form of a loan from the Japan Bank for International Cooperation. (VG Cabuag, Business Mirror)

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Hanjin launches 2 more vessels in Subic Freeport

South Korean shipbuilder Hanjin Heavy Industries and Construction Co.-Philippines (HHIC-Phil) announced that it has launched two new vessels last week, the third and the fourth container ships it has built at its $1.6-billion shipyard here.

Pyeong Jong Yu, deputy managing director of HHIC-Phil, said the two vessels were launched from HHIC-Phil's dry dock # 5 on December 4.

The ships will be named Opal and Topaz, respectively, and will be delivered also to the Greek shipping firm Dioryx Maritime Corp., which has ordered the first six vessels scheduled for production at Hanjin's Subic shipyard.

The launching of Opal and Topaz at one time "is the first event not only for HHIC-Phil but for the Philippine shipbuilding history," Yu said in statement.

"True to our word, we have finished building these two 4,300-TEU container vessels within six-and-a-half months without compromising required high quality, starting from their keel laying works done last May 15, 2008," Yu added.

He also said that the achievement was made possible with the use of "up-to-date technology, state-of–the-art equipment, weather-proof dock shelter that enables working during rainy season, hardworking attitudes of our employees, systematic training at Skill Development Center that is deemed largest in the world, actual work-training in the shipyard thereafter, and the size of dry dock # 5, where four vessels can be simultaneously built together."

Yu also said that the company's "real secret in the successful completion of the ships is the ever-increasing number of skilled Filipino workers employed at our shipyard."

He said that more than 15,000 workers are now employed at the Hanjin shipyard in Subic's Redondo Peninsula.

"Certainly, our company expects to achieve its goal of launching more than 15 vessels next year as the workers will surely become better familiarized with shipbuilding works due to continuous training and enhanced work experience," Yu also said.

"This is revolutionary, not only for HHIC-Phil but also for the Philippine shipbuilding industry. In the middle of the world-wide recession, it could be expected that this would greatly contribute to the Philippine economy," he added.

HHIC-Phil has launched two other container vessels built in its Subic shipyard early this year. These are the MV Argolikos, which was delivered to the Dioryx Maritime Corp. on July 4, and the CMA CGM Turquoise, which was launched last August 30.

All the four vessels produced in Subic were 4,300-TEU container vessels that were each worth about $60 million.

According to HHIC-Phil officials, the company expects to produce more ships in Subic as the productivity in its shipyard here is fast catching up with Hanjin's shipyard in South Korea.

"Filipinos learn fast— now they are experts," said Hanjin quality assurance director Yoonha Kim during the launching of the MV Turquoise in August.

Kim also praised Filipino workers for their "world-class efficiency" when hull construction and engine installation for the Turquoise was undertaken within the standard Hanjin timetable of 13 months.

He added that HHIC-Phil's goal "is to be at par with our South Korean counterparts in terms of efficiency and quality of work." (SBMA Corporate Communications)

Photo Caption:
PROUDLY SUBIC-MADE: Two more container vessels, the CMA CGM Opal and the CMA CGM Topaz, were launched by Hanjin Heavy Industries Co.-Philippines last week at its shipyard in the Subic Bay Freeport.

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Subic Aetas venture into farm project

A nine-hectare vegetable farm is now thriving at the hilly village of Pastolan in this freeport after members of the indigenous Aeta tribe converted part of their land into a green garden and demonstration farm with the assistance of the Subic Bay Metropolitan Authority (SBMA).

The green garden project, which was launched under the SBMA’s Corporate Social Responsibility (CSR) program, was aimed at increasing the household income of some 200 Aeta families living in Pastolan.

Kenette Fernando, SBMA Deputy Administrator for Corporate Communications, said the Aeta community had recently planted the farm with sweet potato, cassava, gabi tubers and black pepper.

“Now, they are looking forward to harvesting their first crop in March,” she said.

Pastolan village chieftain Conrado Frenilla said the green garden project started as a concept of the SBMA Public Relations Department and was implemented jointly by the Aeta tribal council and the department’s community relations officers.

“A few months ago, the SBMA brought us to a Taiwanese green garden and demo farm in Castillejos, Zambales and it was where we got some ideas on vegetable farming and marketing techniques that we hope to apply in our area,” Frenilla said.

He said clearing the nine-hectare project site was quite difficult because it was rocky and full of hardy grass, and they lacked suitable farming equipment. “But little by little, we coped and cleared the area using only jungle bolos, rakes and our albino carabao named Tisoy,” he added.

Frenilla also expressed appreciation to the SBMA “for its continuous support to various Aeta communities in Subic” in terms of employment, scholarship grants, livelihood skill trainings and infrastructure projects.

Aside from Pastolan, four other Aeta villages are located in the Subic Bay Freeport, most of them in remote hills and jungles where the natives used to forage for food.

Gigi Estalilla, an SBMA community relations’ officer who oversees the Pastolan green garden project, said work in the Aeta communities is hard but very rewarding.“Twice or thrice a week, we hike several kilometers from the main road up to the farm to check on the progress of the crops,” he said.

To start the project, 10 workers were hired through the SBMA Ecology Center, said Estalilla. “But soon, the villagers came to volunteer in clearing the land, tilling the soil, and planting the crops.”

The Aeta villagers also helped put up an irrigation system that used a network of bamboo tubes to bring in water from a nearby stream. The farm uses organic fertilizers made from composted leaves, tree bark and animal manure.

With the vegetable farm project now underway, Frenilla said, Pastolan villagers are now planning to develop another five hectares of land for a similar venture.

“We plan to plant this with fruit-bearing trees, and maybe put up a herbal garden, too,” Frenilla said, adding that the SBMA has promised to help them with marketing their farm produce. (SBMA Corporate Communications)

Photo Caption: Aeta tribesmen at the Pastolan village in the Subic Bay Freeport tend a vegetable farm, which was launched under the corporate social responsibility program of the SBMA.

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Subic hotel-casino to create 5,000 jobs

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza has expressed optimism that at least 5,000 new jobs will be created with the completion of the $120-million hotel-casino along the Waterfront Drive in this free port.

According to Arreza, the 15-story integrated resort-hotel, complete with convention center and casino, is expected to be completed within two years.

Arreza said the landmark development project, which will be known as Ocean 9 Casino and Hotel Resort, is designed to be the most beautiful hotel in the Subic Bay Freeport.

“This promises to be a significant landmark that will create meaningful jobs for Filipinos and transform the face of Subic Bay, making it the pride of Olongapo and Zambales,” the SBMA administrator added.

Arreza also emphasized that the Ocean 9 Casino and Hotel Resort project is considered to be a critical infrastructure in Subic’s bid to attract more foreign tourists to the growing number of holiday destinations in this free port.

The hotel will be located near Subic’s Alava Pier, which is being developed by another firm as a passenger terminal for cruise ships, he said.

Alava is also being used for berthing by visiting US Navy ships that regularly dock in Subic during military exercises between the Philippines and the United States, he added.

Earlier, Arreza, together with Moon-Sung Choi, chairman of the proponent-firm Grand Utopia, Inc., led the groundbreaking ceremonies. The event was witnessed by Philippine Amusement and Gaming Corp. (PAGCOR) chairman and CEO Efraim Genuino, Olongapo City Mayor James Gordon Jr., Zambales Vice-Gov. Anne Gordon and representatives of the Korean business community in Subic. (PhilStar)

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