Subic business wants billboards banned along SCTEx

Businessmen in this free port are now advocating for a ban on commercial billboards along the scenic Subic-Clark-Tarlac Expressway (SCTEx), pointing out that an unsullied view of the natural landscape would be a better come-on for tourists.

Danny Piano, president of the Subic Bay Freeport Chamber of Commerce (SBFCC), said tourists have expressed appreciation of the billboard-free view along the SCTEx, adding that a lack of clear-cut policies on commercial billboards might spur the proliferation of giant outdoor advertisements along the 94-kilometer expressway.

“The scenery along SCTEx, when blocked by giant billboards, could also seriously harm tourism in the area,” Piano warned.

“[Billboards] will destroy the beautiful landscape, which is the foundation of the tourism industry,” Piano said during the recent taping here of The Freeport Forum, a new television show covering developments in Subic and the Clark Free Port.

He added that concerned government agencies should come up with clear and strict policies against the erection of billboards along the SCTEx, which was built to hasten the flow of goods and services between economic centers in the Central Luzon region.

Piano said Subic businessmen, who consider tourism as a major industry in this free port, believe it is in the best interest of the public to prohibit billboard advertisements along the SCTEx.

“There is a growing movement to make this so,” Piano said, adding that his group’s position is backed by several organizations and local government units (LGUs).

Piano said the SBFCC has sent a position paper on the proposed billboards ban to Bases Conversion and Development Authority (BCDA) president Narciso Abaya, who reportedly committed his agency’s full support to protect beautiful sceneries along the SCTEx.

However, Piano said the BCDA hedged on its jurisdiction over billboards erected outside the right-of-way (ROW) limits of the SCTEx, saying that outside the ROW, the rights of owners of the private properties will prevail.

Because of this, Piano said the national government must integrate policies related to the construction of billboards and place the responsibility of implementation under a single agency.

“In the meantime, agreements between [concerned] agencies and LGUs could be employed [to effect the billboards ban],” Piano said.

He added that Olongapo City has already passed a resolution for the abatement and dismantling of billboards along the SCTEx.

Last year a Pampanga board member voiced the same sentiment, and recently CDC director Maximo Sangil asked the same from Abaya, according to Piano.

Piano also pointed out that one reason why European countries like Great Britain, Germany, France, Ireland and Austria retained their appeal to visitors despite rapid development in their respective countryside was the prohibition of billboards along highways.

“Business people in these countries recognize that an unmarred landscape promotes tourism and benefits them in the long run,” Piano said.

In the United States, he added, the state of Vermont, likewise, recorded a 50-percent rise in tourism in the first two years that its highways became billboard-free.

Meanwhile, the move to ban commercial billboards along the SCTEx is gaining support from users of Facebook, a popular social-networking site online. To date, 149 Facebook users have joined the cause to preserve the scenery along the SCTEx and “save the virgin countryside from commercialism.” (Henry Empeño, Business Mirror Online)

PHOTO CAPTION
If the Subic Bay Freeport Chamber of Commerce could have its way, billboard advertising would be banned along the Subic-Clark-Tarlac Expressway for an unimpeded view of the landscape during the drive over the mountains of Zambales. (Nonie Reyes)

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Court junks case vs. Hanafil, SBMA

The forcible entry charge filed by the former operator of the Subic Bay golf course against its successor, the Hanafil Golf and Tour Inc. (Hanafil), and the Subic Bay Metropolitan Authority (SBMA) has been dismissed by a court in Olongapo City.

Judge Rosemary Bautista, presiding judge of Branch 3 of the Municipal Trial Court in Cities (MTCC-3), threw out the case filed by the Universal International Group Development Corp. (UIGDC) after concluding that the Taiwanese-owned firm has engaged in forum shopping.

Bautista signed the order clearing Hanafil and the SBMA of charges of forcible entry on June 18, according to Hanafil president and CEO Benjamin John Defensor III.

In effect, the court “recognized the right of the SBMA to terminate its lease development agreement [LDA] with the UIGDC, thereby making it clear that Hanafil is the new rightful lessee of the property,” Defensor explained.

In dismissing the case filed by the UIGDC, the court noted that the complainant had filed different cases in different courts against the SBMA and Hanafil.

According to Judge Bautista, evidence submitted by the parties indicated that the UIGDC has initiated three separate actions before different courts.

These included a petition for certiorari with prayer for preliminary mandatory injunction and temporary restraining order (TRO) filed in April 2008 before the Court of Appeals (CA); the forcible entry case filed in May 2008 before the MTCC-3 in Olongapo; and the case for breach of contract and damages, annulment of lease development agreement with prayer for TRO and preliminary mandatory injunction filed in January 2009 before Branch 72 of the Regional Trial Court in Olongapo City.

Proving the presence of these cases filed before various courts, Bautista ruled that the UIGDC is guilty of forum shopping and all the elements of litis pendentia.

Hanafil, a Filipino-Korean joint venture backed by Hanatour, Korea’s biggest tour operator, took over the management of the 19-hole Subic golf course last year after winning in a public bidding for the operation of the facility.

The SBMA itself took over the facility in June 2007 after the UIGDC failed to settle financial obligations to the SBMA that have ballooned to some $150 million, as well as to honor its development commitments under its lease development agreement.

Among the unfulfilled commitments in UIGDC’s 1995 agreement with the SBMA were the construction of world-class facilities like a new clubhouse, a 100-room condominium, 30 VIP villas and a five-star hotel and resort prior to the Asia-Pacific Economic Conference summit meeting in Subic in November 1996.

Meanwhile, SBMA Administrator Armand Arreza clarified that because the LDA between SBMA and UIGDC was rescinded on June 8, 2007, by the SBMA board, a lessor-lessee relationship no longer exists between the two parties.

He added that the SBMA validly pre-terminated the LDA because the lessee committed contractual breaches.

“As a consequence of the valid pre-termination, SBMA has repossessed the golf course without any court order,” Arreza also explained.

Arreza said that no less than the Supreme Court has upheld the validity of the provisions in the LDA between UIGDC and SBMA, including the pre-termination and repossession of the property by UIGDC in case of violations by the company.

For its part, Hanafil has complied with all the requirements of the SBMA, Defensor averred.

He added that the firm has started the reconstruction of the Subic golf course into a world-class, all-weather championship golfing facility with 27 holes.

Hanafil is also completing plans to build a five-star hotel and luxury villas near the golf facility, Defensor said. (Henry Empeño, Business Mirror Online)

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Firm runs Subic casino, hotel ‘illegally’ - SBMA

The Subic Bay Metropolitan Authority has asked the public to avoid conducting business with a gaming and leisure company that used to run the premier group of hotels and a casino in this freeport, saying the firm is occupying land and conducting business illegally.

In an advisory, SBMA Administrator Armand Arreza said Legend International Resorts Limited (LIRL), a Hong Kong-registered company that ran hotels and a casino here until 2006 when its gaming license was revoked, is “illegally occupying the land and improvements that constitute the Main Legenda, El Centro and Grand Legenda, and is illegally doing business [inside the freeport zone] since LIRL does not have a valid and subsisting lease agreement with SBMA.”

Arreza said the SBMA cancelled LIRL’s certificate of registration and tax exemption (CRTE) and permit to operate (PTO).

LIRL side

In a statement, LIRL accused SBMA of denying it due process.

LIRL said it has appealed the SBMA decision to the Office of the President.

It said SBMA “does not have any legal or factual basis to terminate [LIRL’s] lease.”

“Since October 2006, we are current in the payment due to the SBMA. SBMA continues to accept our rental payments,” it said.

Arreza said the firm owes the government some P850 million in unpaid rent.

“The SBMA shall proceed to take the appropriate legal action to address LIRL’s illegal occupation of its former lease premises and its illegal conduct of business,” Arreza said.

LIRL has been in a state of financial turmoil and has failed to pay its debts to creditors, including the SBMA, its officials said.

Arreza said from 2004, SBMA could not collect unpaid rent from LIRL because of pending corporate rehabilitation proceedings and an order issued by the regional trial court of Olongapo City.

Gambling woes

LIRL’s troubles worsened in 2006 when the Philippine Amusement and Gaming Corp. revoked its license to operate a casino when it failed to remit 15 percent of its revenues, or more than P1 billion a year, to Pagcor.

Also in 2006, a Hong Kong court appointed a liquidator for LIRL, whose task was to regain the company’s profitability and save the jobs of more than 1,000 employees, it was learned.

An Olongapo court in 2004 issued a stay ordered that prevented SBMA from collecting from LIRL, Arreza said.

“All of the company’s other creditors were put in the same situation,” he said.

Last February, however, the court granted SBMA’s motion to dismiss the rehabilitation proceedings and lift the stay order, Arreza said. (Robert Gonzaga, Inquirer Central Luzon)

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SBMA asks firm to suspend Korean foreman

A top official of the Subic Bay Metropolitan Authority (SBMA) sought the suspension of a Korean foreman at the Hanjin shipyard who was held by company officials after he hit a Filipino worker with a steel flashlight in the face and head on Tuesday.

Arceo Malit, a deputy foreman at Unit 25 of Hanjin’s pre-outfitting section, said Lee Cheon Sik, a foreman at the assembly part, hit him for no reason.

Lee was held for investigation by Hanjin safety officials, said Taek Kyun Yoo, general manager of the Hanjin Heavy Industries & Construction Philippines Inc.

Malit, 26, was taken to the St. Jude Hospital in Olongapo City where he was treated for wounds and placed under observation.

Frustrated murder

He said he would file a frustrated murder case against Lee. Melchor Remedios, president of the workers union at Hanjin, said Lee was looking for a foreman at the fit-up section to ask why the pipes had not been installed yet at about noon Tuesday.

Malit was in the same area and Lee asked him to come with him to an office. It was on their way to the office when Lee attacked Malit, the union report said.

Armand Arreza, administrator of the Subic Bay Metropolitan Authority, asked its labor and law enforcement departments to look into the incident.

“If Lee is found guilty, we will not hesitate to turn him over to the Bureau of Immigration for appropriate action,” Arreza said in a statement.

He also asked Lee’s employer, Greenbeach, a Hanjin subcontractor, to suspend Lee pending the result of the investigation.

“We will definitely not tolerate or condone any form of violence at the workplace or any such incident that may compromise the safety and welfare of workers in the freeport,” he said.

Arreza, in his statement, said a team from the SBMA’s labor department checked on Malit’s condition at the St. Jude Hospital in Olongapo City where the worker was brought.

A CT scan, the statement said, showed that Malit did not suffer any serious head injury as a result of the blow. (Tonette Orejas, Inquirer Central Luzon Desk)

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Subic Freeport reinvents itself amidst global recession

May de los Santos used to make laptops and mobile phones at a high-tech Taiwanese electronics factory in Subic Bay free port, near Manila.

She joined the ranks of the laid off as the global financial crisis kicked in, but the 31-year-old has since been training to work as a chambermaid in a local hotel.

"I don't mind going to these classes. I am used to hard work and the hotel industry is the one with demand for workers," she told AFP.

She is one of an army of laid-off workers who are being retrained to meet the demands of the free port, said Severo Pastor, an official of the Subic Bay Metropolitan Authority, the government agency that oversees the enclave.

And these days, he said, that demand is coming from tourism.

Like de los Santos, the port is adapting to the times--transforming from a light industrial zone to a tourism zone and regional logistics hub.

Free port administrator Armand Arreza says Subic's manufacturing future had been in question even before the crisis hit its electronics companies.

For years, low-wage competition from China and Vietnam has been luring companies away and a recent upgrade of Clark, just 75 kilometres (47 miles) from here rendered many of Subic's facilities redundant.

Both Subic and Clark were once US military bases that employed thousands of Filipinos. But a 1992 US military pullout left the Philippines scrambling to find alternative uses for the facilities and jobs for the locals.

Amazingly, Subic adapted swiftly and efficiently, transforming from a naval base into a 13,600-hectare (33,600-acre) free port with an international airport and factories that turned out electronics, garments, shoes, armoured vehicles and medical equipment.

Special "techno-parks" were set up for Taiwanese and Japanese manufacturers.

Federal Express (FedEx) established its Asian courier hub in 1996, using the former base's military airport while South Korea's Hanjin Heavy Industries built a shipyard in 2006 that is now the world's fourth largest.

This year however low-wage rivals abroad and the economic crisis have forced Subic factories to retrench more than 4,000 workers or place them on "forced leave," said Arreza.

FedEx shut its Subic hub in February, moving to China with its larger market and attractive perks.

Arreza said the situation is improving and some workers may be re-hired but he doubts that Subic will ever return to the days of the 1990s.

"Low-cost manufacturing is not the area where Subic is competitive," he said. "Most of our land area is protected forests and protected seas. We don't have any space to accommodate large industrial parks."

Only 4,000 hectares of Subic can be developed compared to 30,000 hectares in nearby Clark.

The future lies in tourism, medical care, ship building and logistics, using the ample space still available for warehouses especially around the largely unused Subic airport, said Arreza.

Hanjin is staying put and companies that require skilled labour may also find it more economical to remain in Subic, he said.

For displaced workers, the government is offering re-training for positions in Subic's tourism industry or even abroad.

Its well-preserved forests, wide seafront and recreational facilities and hotels have always made it popular with tourists and a new highway has made the area even more accessible to day-trippers.

There are no figures on Subic tourist arrivals but Arreza notes that between 8,000 and 10,000 cars of non-free port workers enter Subic everyday, presumably many of them carrying tourists.

Zenaida Pineda, 40, a former electronics worker here, said she now earns as much working as a chambermaid in a Subic hotel as she did at her factory job.

"I like housekeeping more because you can move around, not just stay at your work station. Besides, working on electronics hurt my eyes," she said.

Danny Piano, president of the local chamber of commerce, said, "Subic manufacturers can survive. The Philippines has the capability to do good high-end work," due to workers' better education, communication and English skills.

Subic exported $977.8 million worth of goods last year.

"There needs to be a balance between industry and tourism. After all, this is a free port," Piano said. (Mynardo Macaraig, AFP)

PHOTO: Armand Arreza, administrator of the Subic Bay free port, points to a photo of the Bay and explains his plans to convert the sprawling enclave from a light industrial zone into a tourism and logistics hub. Photo courtesy: AFP.

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SBMA continues to tighten port security, taps Navy assistance

A Philippine Navy detachment equipped with fast watercraft for “hot pursuit” operations will be stationed here to complement the round-the-clock maritime surveillance system being set up in this free port, Subic officials said.

According to Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza, the Navy’s flag officer in command Vice Admiral Ferdinand Golez has already approved in principle the inter-agency cooperation to further tighten port security in Subic.

He added that an official agreement between SBMA and the Navy will be formulated and signed soon.

Arreza added that this development was an offshoot of recommendations by Rep. Roquito Ablan, chairman of the House Committee on Dangerous Drugs that conducted a series of hearings on the attempted smuggling of illegal drugs into the Subic Freeport last year.

Arreza pointed out that the lead agency in cases of smuggling, illegal fishing, drug trafficking and piracy would normally be the Philippine Coast Guard (PCG), but given PCG’s limitations in terms of manpower and vessels, he said the SBMA had to turn to the Navy for help.

“The Philipine Navy has available personnel, and a wider range of patrol ships to assist SBMA in the enforcement of maritime laws,” Arreza said.

“This partnership between SBMA and the Navy would allow us to go after fleeing vessels even when they are beyond Subic’s port limits, where the Navy has jurisdiction,” he added.

Nevertheless, the SBMA would continue to coordinate with the PCG, which has recently established an auxiliary squadron of volunteers in Subic, Arreza said.

According to Capt. Perfecto Pascual, SBMA seaport department manager, it has been agreed in initial talks with Golez that SBMA will provide an area in Subic to station Navy personnel, including a berthing area for their fast craft.

Pascual also said that it is “just proper” that a naval station be put up in Subic Freeport, which is the emerging maritime center in the Philippines, because the nearest naval detachment to Subic Bay today is in Poro Point, a long way off in the northern Luzon province of La Union.

He also said that the cooperation agreement “greatly increases our response capability, which, together with our modern maritime surveillance equipment mandated by the International Maritime Organization (IMO) and highly trained personnel, would make it impossible for crooks to use the Subic Freeport as a jumping board for smuggling.”

Still, Pascual clarified that the Navy will act independently on its mandated task of territorial defense, which includes enforcement of maritime laws, hot pursuit operations, patrolling the country’s exclusive economic zone (EEZ), and immediate response to maritime emergencies.

As of now, Pascual said the SBMA seaport department is working on an inter-agency team-building workshop that would help smooth out coordination problems encountered in the handling of the drug smuggling case here last year.

The conduct of this workshop was also recommended by the House Committee on Dangerous Drugs, Pascual said. (SBMA Corporate Communications)

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JICA study shows SBMA as most resilient IPA

Investment generation figures collated by a leading Japanese think tank have shown that the Subic Bay Metropolitan Authority (SBMA) is the only Investment Promotion agency (IPA) in the Philippines that turned out a positive output based on year-on-year figures in the first quarter.

According to the Nomura Research Institute (NRI), which prepared a study on the ongoing impact of the global financial crisis on foreign direct investment (FDI) in Asia, the Philippines is also reeling from a decrease in foreign investments due to the current economic slowdown.

However, the NRI study indicated that despite a generally negative record among IPAs in the Philippines, the SBMA, which manages the Subic Bay Free-Port Zone, has reported a 13.6-percent increase in committed investments based on year-on-year figures for the first quarter of 2009.

The NRI, which is reputedly Japan’s largest firm in consulting and system solutions services, prepared the study for the Japan International Cooperation Agency (Jica).

The study, the SBMA said in reaction, only indicated the “apparent resiliency of the Subic Bay Free Port as an investment location.”

According to the first version of the NRI report, which was dated June 2009, FDI commitments secured by the SBMA in the first quarter of 2009 totaled P1.5 billion.

Meanwhile, all of the other Philippine IPAs reported a year-on-year decrease in commitments for the same period, the NRI said.

These included the Board of Investments, which recorded a 57-percent decrease to P4.3 billion; the Philippine Economic Zone Authority (Peza), with a 50.8-percent decrease to P13.6 billion; and the Clark Development Corp., with a 72.5- percent decrease in commitment basis.

Documents gathered by the BusinessMirror showed the NRI prepared the report on FDI commitments in the Philippines for Jica in connection with a proposal for the development of the Philippine Investments Promotion Plan (PIPP).

The PIPP seeks, among others, the creation of an interagency body “to oversee the implementation and monitoring of all programs, activities and projects to improve investment climate” in the country.

The network of IPAs, including the SBMA, “is tasked with formulating and developing strategies to position the Philippines as among the prime investment destinations in Asia,” the NRI said.

In the same report, the NRI mentioned that FDI generation also fell in other Asian countries as a result of the global financial crisis.

These included Thailand, which posted a 26-percent decrease in capital commitments; Vietnam, with a 67-percent decrease in capital realization; India, with a 28-percent decrease in FDI realization; and even China, which suffered a 21-percent decrease in FDI realization.

However, the NRI particularly noted that the Philippines “has attracted far less FDI than its peer Asean countries.”

The SBMA, however, had somewhat bucked the downtrend in investment commitments when it signed up a total of 30 new projects worth P1.5 billion in the first quarter, bringing to 966 the total number of registered investors here.

SBMA Administrator Armand Arreza said the uptrend in Subic was due to a self-sustaining business environment created by the SBMA in Subic over the years “that was directed toward various industries that require less dependence on foreign markets.”

Arreza added Subic’s 2009 investment generation was recently boosted further by new investment pledges worth $86 million by South Korean shipbuilder Hanjin Heavy Industries & Construction Corp., a firm that has already set up a $1.7-shipyard in Subic.

Hanjin officials said the new investments would be for the production of ship components at the Subic facility and would be committed in two parts: $29 million starting September this year, and $57 million next year and onward. (Henry Empeño, Business Mirror Online)

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Subic golf course partially open despite $48M facelift

Hanafil Golf and Tour Inc. said that the Subic golf course will remain open amid its re-development costing $48 million.

Hanafil Golf chief executive and president Benjamin John Defensor III said the management had decided to open facility after a clamor by members of the Subic Bay Golf and Country Club and local players to at least open nine holes of the 18-hole golf course.

“We want them [members] to enjoy their game even during the rainy season. It is our pleasure to give our utmost services to them,” Defensor said.

“The renovation of the Subic Golf Course into a world-class golf course would be done by phases. We will open holes 1 to 9 but would close the remaining holes for us to renovate the old US Navy golf course,” he added.

He said the massive development project of Subic Golf was part of the agreement between Hanafil and the Subic Bay Metropolitan Authority.

“We have scheduled the reconstruction of the Subic Golf Course during the rainy season to take advantage of the minimal number of golfers playing here,” Defensor said.

He said the golf course was just one of the many attractions that Hanafil will build inside this premier Freeport. The company also plans to build a five-star hotel and luxury villas.

“The nursery and the irrigation system are almost completed. These were created in preparation for the reconstruction of the golf course. The nursery is necessary because the greens and fairways of the whole golf course will be replaced,” he said.

Defensor said the new irrigation system was designed to supply water to the golf course, stressing that the system is eco-friendly and uses wastewater for the greens and fairways. (Cecille Garcia, Manila Standard Today)

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US naval ship, crew checked for A-H1N1 in Subic

A US naval surveillance ship and its crew were quarantined and tested for flu-like symptoms upon arrival at the Subic Bay Freeport Zone in Zambales province, Saturday morning.

Information gathered by ABS-CBN News said USNS Impeccable, an ocean surveillance ship, arrived at the freeport zone around 10:30 a.m. It arrived at the freeport from Japan for bunkering and change of crew.

The ship was scheduled to leave the freeport on Monday morning.

Health workers at the freeport, led by Dr. Solomon Jacalne, subjected the vessel to quarantine, and each crew was screened for flu-like
symptoms. The US navy crewmen, however, have been cleared.

Officials at the freeport said the screening was in accordance with the protocol ordered by the Subic Bay Metropolitan Authority as a precautionary measure against the influenza A(H1N1) virus.

The United States remains the most infected country with nearly 18,000 cases. (c/o abs-cbnNEWS.com)

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SBMA awaits court order for Legend Resorts closure

A court order is the only thing keeping a group of hotels in this free port from being closed down due to accumulated debts, according to the Subic Bay Metropolitan Authority (SBMA).

Administrator Armand Arreza said the SBMA has not yet stopped the operations of Legend International Resorts Ltd., which owns and operates three hotels—Legenda Hotel, Grand Seasons Hotel, and Legenda Suites.

But Arreza said Legend, a Hong Kong-registered company, has accumulated debts amounting to about P877 million.

He said the SBMA was pushing the closure for “nonpayment of lease and casino fees.”

In 2006, the Philippine Amusement and Gaming Corp., the government agency responsible for regulating casino operations in the country, closed the Legenda Casino and cancelled its gaming license after its operator failed to pay the government more than P365 million in gaming franchise, it was learned.

The closure came after a Pagcor special audit team discovered that Legend was charging expenses of its hotels to the casino operations, “thus, causing artificial net loss,” a Pagcor statement said.

About 200 casino personnel were affected by the closure, but the hotels remain operational.

Arreza said the firm had not been paying the lease and casino fees since 2000. “The company is already under liquidation,” he said.

A Hong Kong court in 2006 appointed a liquidator, Kevin Flynn, for the Legend group at the Subic Bay Freeport. Flynn announced in July 2006 the termination of the services of Khoo Boo Boon as chief executive officer of Legenda Hotel.

Flynn, who was tasked with helping the Legend group regain its profitability and save the jobs of more than 1,500 employees, appointed a new management and operations team.

Since then, the company has been the subject of “suits and countersuits, which merely delayed the inevitable,” an SBMA source said. (Robert Gonzaga, Inquirer Central Luzon Desk)

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Subic golf course rehab begins

A $48-million project to renovate the 18-hole golf course in this free port and turn it into an all-weather facility has begun this month.

But instead of closing the whole facility as announced last month, management has left nine holes open for avid golfers.

According to Benjamin John Defensor III, president and CEO of Hanafil Golf and Tour Inc., which operates the facility, the programmed rehabilitation “will go on as scheduled.”

“We have already renovated some parts of the course, and we have to close half of the facility so that we can fully reconstruct the whole area for the additional nine holes,” Defensor said during the recent awarding ceremony for Hanafil’s “employee versus caddy” tournament, an event that kicked off the rehabilitation project.

However, because the rehabilitation will be undertaken in several phases, Defensor said Holes 1 to 9 will be left open because of an overwhelming demand by members.

“We want them [members] to enjoy their game—and some really want to play even during the rainy season. It is always our pleasure to give our utmost services to them,” he added.

Defensor said earlier the $48-million rehabilitation project will commence during the rainy season to take advantage of the period when there are less players.

The major rehabilitation, he added, would cover a six-year period. It includes an additional nine holes, as well as improvement of the driving range.

The project, Defensor said, is part of Hanafil’s agreement with the Subic Bay Metropolitan Authority (SBMA), which has taken over the facility in 2007 after the former operator reportedly failed to honor its development commitments.

Hanafil is getting ready for the total replacement of several greens and fairways after completing major portions of the nursery and irrigation system projects.

Defensor also said the project is just one of the many attractions Hanafil will build in the Subic Bay Free Port. The company also plans to build a five-star hotel and luxury villas.

As part of its commitment to Subic tourism, the Korean-Filipino joint venture has also initiated early this year a “golf junket” program that has so far brought a total of 18 planeloads of golfers from South Korea for a three-day tour in the free port.

Hanafil, a Philippine corporation registered under the Securities and Exchange Commission, is backed by Hanatour, the biggest tourist agency in South Korea. (Henry Empeno, Business Mirror Online)

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SBMA: Improved traffic system crucial for Subic-Clark growth

Wondering how to make responsible motorists out of the usually errant Filipino drivers? Bring them to Subic, a top official of the Subic Bay Metropolitan Authority (SBMA) says.

Proudly citing the world-class traffic management system in the Subic Bay Freeport, SBMA administrator Armand Arreza said that global-competitiveness could start with a most unlikely economic pursuit: traffic discipline.

“If we want to lure more investors and tourists into the country, we should create world-class facilities and support systems for investments, including the fast and orderly transfer of goods and other resources through efficient traffic management,” said Arreza, speaking at the sidelines of the pilot taping here of “The Freeport Forum”, a new television show covering the Subic and Clark free ports.

“The state of vehicular traffic says a lot about a certain place, and investors take first notice of that when scouting for possible locations for their businesses,” Arreza explained.

The SBMA official also called on concerned agencies and government units to step up the traffic management system in the areas between Subic and Clark, which are target areas for expansion of the neighboring free ports, and pledged SBMA’s support in laying down the groundwork for an internationally-competitive investment environment in the area.

“Improvements in the traffic management sector are a major component of Subic’s expansion program to the nearby communities,” Arreza said, mentioning Olongapo City, Subic town in Zambales, and Morong, Hermosa and Dinalupihan in Bataan as target areas for expansion.

He added that to help bring about better traffic management in nearby areas, the SBMA now invites traffic enforcement officers to study and adopt the orderly traffic scheme in the Subic Bay Freeport.

Aside from Arreza, the other guests in the forum were Sec. Edgardo Pamintuan, chairman of the Subic-Clark Alliance Development Council (SCADC), and Benigno Ricafort, president of Clark Development Corporation (CDC).

According to Arreza, Subic Bay’s traffic enforcement scheme, along with the American traffic system, has served as a model for the University of the Philippines’ (UP) Traffic Safety Model Zone — a test bed for a new road order designed to be replicated everywhere in the Philippines.

Likewise, officials from the Subic-Clark-Tarlac Expressway (SCTEx), the Clark Freeport, Bataan, and even Cebu have also studied the Subic system while developing their own traffic management systems, he said.

“Filipinos are basically law-abiding citizens. We just have to get them inside the Subic Bay Freeport first so that this innate discipline would show,” Arreza said with a laugh.

Meanwhile, Lt. Benjamin Evia, SBMA traffic branch chief, explained that the Subic Bay Freeport has basically the same traffic laws as in other areas.

“Subic simply makes a difference because of its strict enforcement policy and a corruption-free standard operating procedure,” Evia said.

“But we are willing to share the success of the SBMA in the field of traffic enforcement. If it can be done in Subic, there’s no question it can be applied to just anywhere in the country,” he added.

Evia said corruption in traffic enforcement could be greatly reduced, if not totally eliminated, when traffic enforcement agencies employ the “minimum interaction with violators” policy, which he said could be traced back to the US Navy days here.

To illustrate, Evia said that Subic traffic enforcers must first radio their headquarters upon flagging a vehicle, and only then could the officer approach the driver and read the traffic violation citations.

The driver ticketed for violation, meanwhile, is not allowed to speak unless questioned during the whole procedure, which is monitored by closed-circuit television cameras at key areas in the Subic Bay Freeport.

“We also have hotlines where motorists could seek help, or even report traffic violators— 9111 for cellphones and 911 for landlines,” said Evia.

The SBMA traffic chief said that besides strict enforcement and smooth communication lines, the Subic system adheres to international standards of road engineering, which includes signage.

This also improves better understanding by both motorists and pedestrians of traffic rules and regulations within the free port, Evia said. (SBMA Corporate Communications)

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Hanjin safety compliance cited

Efforts by South Korean firm Hanjin Heavy Industries and Construction Corp. Philippines (HHIC-Phil) to improve health and safety conditions at its shipyard in this free port has resulted in a safer workplace for its more than 16,000 workers.

According to officials of the Department of Labor and Employment (DOLE) and the Subic Bay Metropolitan Authority (SBMA), who have been monitoring work safety at the Hanjin facility, the ship manufacturer has started complying with local labor laws on safety standards.

“I think much have been done since (the Congressional Committee on Labor and Employment) started its investigation, because safety awareness of all concerned at the shipyard has been raised already to a certain level,” said Nathaniel Lacambra, DOLE director for Region 3.

Lacambra noted these observations during a recent hearing of the congressional committee chaired by Rep. Magtanggol Guinigundo, which has started an investigation on labor safety at the Hanijn shipyard in Subic following complaints of unsafe working conditions that have resulted in several fatal accidents since 2007.

The committee has so far invited officials from DOLE-Region 3, SBMA, and HHIC-Phil, as well as engineers from the Professional Regulatory Commission, among others, to shed light on safety issues and other labor concerns.

But Lacambra said that the DOLE, along with representatives from professional health and safety organizations, has already conducted labor standard inspections at the Hanjin shipyard and found that some of the hazards at the work place have been already eliminated.

“The DOLE, SBMA, Hanjin and other concerned agencies and organizations, have been doing their share in making Hanjin a safer work place,” Lacambra added.

In the same forum, Ramon Agregado, SBMA deputy administrator for support services, informed the committee that based on partial reports, Hanjin is already 44 percent compliant in terms of Occupational Health and Safety Standards (OHHS) as of June 2009.

The current rating marks an improvement from the 42 percent recorded in March, Agregado added.

The SBMA official also noted that aside from gradually undergoing the compliance process for OHSS as required by DOLE, Hanjin has already began maintaining doctors at its clinic in the shipyard.

Meanwhile, Rep. Monico Pontevela (Bacolod City) commended Guinigundo’s committee for the positive effect that its investigation has had on the working conditions of employees at the Hanjin shipyard.

“I have to commend the Chair (Guinigundo) of this committee, because since the investigation started, there has been no more news about fatal accidents at the shipyard. This could only mean that there has been some improvement in the safety situation at the Hanjin facility,” Pontevela said.

The latest fatality was recorded on Saturday last week when the body of Teodoro Alvior Jr. was fished out of the sea at Hanjin’s Quay No. 3. Initial investigations pointed, however, to a case of suicide.

SBMA Administrator Armand Arreza had earlier urged investigators to exhaust all means in determining the exact cause of Alvior’s death and ascertain whether the victim’s death “was not caused by any negligence on the part of his employer or the shipyard management”. (SBMA Corporate Communications)

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Asean execs meet in Subic on climate change

Representatives of Southeast Asian countries are meeting here in Subic Bay Freeport to draw up measures to mitigate the effects of climate change during the 3rd Association of Southeast Asian Nations Social Forestry Network (ASFN) conference.

“While there have been programs to address these issues on the national level, this is actually the first time that these efforts are focused
at the regional level. Our hope is that the member countries learn from each other’s experiences in dealing with this important issue of climate change,” said Sagita Arhidani, ASFN secretariat officer from Indonesia.

“Taken together, the policies of Asean nations will have a dramatic impact on climate change all over the world,” she said.

The conference ends on Saturday.

The United Nations’ Food and Agriculture Organization said Asean countries have approximately 283.2 million hectares of forests, covering 33.4 percent of these countries’ land area and accounts for 16 percent of the world’s tropical forests.

Neria Andin, assistant director of the Forest Management Bureau of the Department of Environment and Natural Resources, said social forestry can improve the socio-economic situation of upland farmers while taking care of the environment.

Dr. Rodel Lasco of the World Agro Forestry Center analyzed the potential benefits of agro-forestry farms. (Robert Gonzaga, Inquirer Central Luzon Desk)

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Hanjin's new projects hikes investments

An expansion project of Korean shipbuilder Hanjin Heavy Industries and Construction Corp. in this free port will raise the total investments committed by locators here to more than $6 billion this year.

Hanjin Heavy’s expansion will also reinforce the firm’s status as the single-biggest locator in the free port today.

Subic Bay Metropolitan Authority (SBMA) administrator and chief executive officer Armand Arreza said Hanjin Heavy’s new investment pledge of $86 million would raise the firm’s total investments in Subic to $2.54 billion.

The shipbuilder’s new investment is in the production of ship components in the free port.

Hanjin Heavy, which had so far built four container vessels here in the last two years, announced its new funding commitment during the recent visit of President Arroyo in Korea.

Hanjin officials said the new investments will be placed in two schedules: $29 million starting September this year, and $57 million next year.

Arreza said Hanjin Heavy’s $86-million project raises the total investments in Subic to $6.64 billion, topping the previous record of $5.78 billion in the first quarter of 2009.

“With just the first $29 million, our investment commitments will breach the $6-billion mark this year,” Arreza said.

“With the succeeding $57 million, we will be hitting close to the $7.5-billion enhanced target that we have set for 2010,” he added.

Hanjin Heavy’s new investments would also allow it to maintain its position as Subic’s top employer. Its officials announced that the new project would create some 4,000 new positions on top of the 16,000 jobs that now exist at the firm’s Redondo Peninsula shipyard.

Arreza cited Hanjin Heavy’s new project for its huge potentials in helping ease unemployment in Central Luzon and spur growth in terms of raw materials and other production inputs.

“Best of all, with ship components produced locally, we shall have the right to claim that ships produced by Hanjin in Subic are entirely Philippine-made,” Arreza added.

Despite what critics say as its poor safety record, with several fatal accidents occurring at its Subic facility in the past two years, Hanjin is credited for putting the Philippines on the world’s maritime map by producing the first Philippine-made container ships.

In the first quarter of this year, Hanjin set a new record with the twin-launch of its third and fourth container ships and became Subic’s biggest exporter for the first time after posting $179.36 million in freight-on-board value.

The shipbuilder initially committed $1 billion in investment when it located in Subic in 2006. It increased its exposure by $68 million a year later.

Hanjin Heavy’s current expansion is also expected to bolster the job-creation program in Subic, which now employs 85,000 workers.

Arreza said Subic’s employment “could easily jump to double the current figures once projects proposed by several Korean firms are realized in the next two years.”

These include a plan by M Castle Inc. to construct a $1-billion resort complex in a 615-hectare property. Around 7,000 direct and 16,000 indirect jobs are projected to materialize when construction starts, according to reports quoting M Castle chairman Sang Soo Shin.

“These [are] major employment boosters,” Arreza said. “Aside from the jobs that would be directly created by these projects, there will be thousands of employment opportunities to be generated downstream.”

Hanjin Heavy’s expansion and M Castle’s planned project will further boost Korean business exposure in Subic, which had grown to $2.85 billion since 2003, the highest value of foreign direct investment here.

According to SBMA figures, Korean firms put up 234 investment projects in the free port. Philippine firms come in second with $513.5 million in investment value. Filipinos remain first with 533 projects.

The third-biggest investors here are Taiwanese companies, with 41 projects worth $256.4 million. Indian firms are the fourth with three projects worth $101.1 million. (HENRY EMPEÑO, Business Mirror Online)

PHOTO: Workers at the Hanjin Heavy shipyard in the Subic Bay Free Port install components to a container vessel. Hanjin Heavy now plans to produce ship components in its facility here with an $86-million expansion project.

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SBMA says over 85,000 workers now in Freeport

Subic Bay Metropolitan Authority (SBMA) officials said that more than 85,200 workers are now employed in different companies in this Freeport.

SBMA Administrator Armand Arreza said the continued confidence by foreign investors, particularly Korean companies, in the business competitiveness in the Freeport led to the doubling in the number of workers here in just two years.

Arreza said the number of workers could easily jump to double the current figure once projects proposed by several Korean firms are realized in the next two years.

He cited in particular the planned construction of a $1-billion resort complex here by M Castle Inc., a Korean developer of environment- friendly luxury resorts, and the scheduled $86-million project by Hanjin Heavy Industries and Construction Corp. to locally produce ship components.

“These will be major employment-boosters ,” Arreza said.

He said aside from the jobs that would be directly created by these projects, there will be thousands of employment opportunities to be generated downstream.

Reports indicated earlier that M Castle Inc. will invest in a 615-hectare property in Subic, aside from another property development project in Palawan to be undertaken with the Philippine Economic Zone Authority (PEZA).

Around 7,000 direct and 16,000 indirect jobs are said to be made available when the construction of the billion-dollar luxury resort starts, according to M Castle chairman Sang Soo Shin.

Arreza said the planned investment “would not only boost the tourism market in the country, but would also up the ante for Subic in terms of income.”

The M Castle proposal reportedly includes the development of beach and forest condominiums, a beach hotel, a casino-hotel and villas with 2,400 rooms, a 36-hole golf course, a marina club for 50 yachts, a medical center for oriental and western medicine, a water park, a shopping mall, and an English-language learning house.

The SBMA administrator said that from the planned resort complex in Subic, the local production by Hanjin of ship components will increase Subic’s active workforce by 4,000 positions.

He said the projected increase in Hanjin labor requirements was announced by company officials when they met with President Arroyo in Korea recently. (Ric Sapnu, PhilStar)

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Koreans plan $1-b, 615-hectare resort complex in Subic, Zambales

JEJU ISLAND, South Korea — President Arroyo has secured a commitment from a Korean company to invest $1 billion in a resort complex in Subic, Zambales, that is expected to create 144,000 jobs during its construction.

Mrs. Arroyo met representatives from M Castle Inc., a Korean developer of environment- friendly luxury resorts, at the Shilla Hotel Tuesday afternoon to discuss the company’s plan to develop a 615-hectare property in Subic.

M Castle chairman Sang Soo Shin told Mrs. Arroyo that the company also planned to develop a piece of property in Palawan with the help of the Philippine Economic Zone Authority.

“I welcome M Castle’s potential investments in the Philippines and I am glad that it considered the Philippines, specifically Subic and Palawan, as the choice destinations for your business projects,” Mrs. Arroyo said.

The resort complex in Subic is expected to generate 7,000 direct and 16,000 indirect jobs once it starts operations.

Earlier, Mrs. Arroyo received assurances from Hanjin Heavy Industries and Construction Co. Inc. that it would start producing ship components worth $29 million at its Subic shipyard starting in September.

The President agreed to a request from Hanjin President Nam Ho Cho for discounted power rates for its shipyards in Subic and Misamis Oriental for the next 10 years.

Cho called on the President Monday at the Shilla Hotel with former Hanjin Philippines president Jeong Sup Shim.

The Subic Bay Metropolitan Authority has approved in principle the business plan that M Castle submitted on March 10.

In that plan, M Castle said the Subic-based facilities would include beach and forest condominiums, a beach hotel, and a casino hotel and villas with 2,400 rooms; a 36-hole golf course; a Marina club for 50 yachts; a medical center for oriental and western medicine; a water park; a shopping mall, and an academy house for English-language training.

The membership fees would range from $25,000 to $700,000, would assure clients 30 days of time share per year.

The Philippines has been experiencing a boom in the hotel and tourism industry, with a total of 1,231 additional rooms being opened during the first quarter at a cost of more than P8 billion.

Tourist arrivals grew 10.33 percent to 1.3 million in the same period, and of which Subic accounted for 7 percent.

Meanwhile, Mrs. Arroyo left Tuesday for Moscow, where she is to meet representatives from the Russian travel industry and members of the Filipino community.

From Moscow, she will proceed to St. Petersburg where she will deliver a talk on the lessons learned from the global economic crisis during the two-day St. Petersburg Economic Forum.

Mrs. Arroyo will also meet Russian President Dmitri Medvedev before returning to Manila on Saturday. [Joyce Pangco Pañares, Manila Standard Today (Via PLDT)]

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Hanjin to hire 24,000 more workers for Subic & Misamis Oriental plants

MANILA - Hanjin Heavy Industries and Construction Corp. will hire 24,000 more Filipino workers for its Subic and Misamis Oriental plants, the government announced on Tuesday.

At present, Hanjin Philippines Inc., the corporation´s main office in the Philippines, employs 16,000 workers.

During a meeting with Hanjin Philippines President Jong Shup Shim, President Gloria Arroyo lauded the company´s billion-dollar investment in its Subic shipyard, and the additional multi-billion investment in a new facility in Misamis Oriental, which would make the Philippines the fourth-largest shipbuilder in the world.

Jong later told reporters that starting September, Hanjin would begin local production of ship components that they normally import from South Korea for the assembly of work at Subic.

Jong estimated that the company would be able to manufacture $29-million worth of locally produced components for the first year, and he expressed confidence that this amount would increase to $57 million next year.

Jong said the company would make the ships produced at the Hanjin shipyard in Subic, entirely and proudly, Philippine-made.

Medal of Merit

As this developed, President Arroyo conferred the Presidential Medal of Merit on the former president Hanjin Philippines Inc., Jong Shup Shim, for making that firm one of the world´s largest shipbuilding conglomerates and for his contribution to the shipbuilding industry in the Philippines.

Jong was also credited for influencing Hanjin Heavy Industries and Construction Corp., to put up a shipbuilding facility in the Subic Freeport Zone in Zambales.

The ceremony was held on Jeju Island, South Korea, at the sidelines of the 20th Anniversary of Asean and Republic of Korea Commemorative Summit. Asean is the Association of Southeast Asian Nations, a regional bloc of 10 countries that includes the Philippines.

More hirings

Some 600 Filipino seamen were hired daily, despite the global economic crisis, Giovanni Lopez, vice president of the Luneta Seafarer´s Center (LSC), said also on Tuesday. He added that the demand for Filipinos seafarers even increased, and if there were layoffs, they would normally be the last to go -after other foreign workers.

On average, some 1,000 jobs were available daily at the popular seamen´s hub on Kalaw Street, Manila, where 112 manning agencies offer jobs to the thousands of Filipino seafarers who troop to the center everyday.

"Over the last two years, the global maritime industry´s choice for Filipino seafarers continues, and it will never face a bleak future if you look into the official running count of available jobs being offered to them everyday," he said.

Lopez also said the Philippines was the biggest source of maritime workers in the world, and he believed that the demand for Filipino seafarers would "not be dampened in a big way."

He added that until 2012-when more modern vessels would be set to sail-the international maritime industry would be needing ship captains, marine deck officers, chief engineers, cooks, stewards and other maritime crew.

Filipino seafarers comprise 35 percent to 40 percent of the global maritime manpower. (Angelo S. Samonte nad Bernice Camille V. Bauzon, Manila Times)

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SCADC completes consultations for Subic-Clark corridor land use plan

The Subic-Clark Alliance for Development Council (SCADC) has concluded its three-part consultative meetings with local government units (LGUs) and other stakeholders with a forum held at the SBDMC Conference Hall in this free port recently.

SCADC chairman Edgardo Pamintuan, who led participants in discussing various concerns on the Subic-Clark growth corridor, said the consultations were aimed at updating stakeholders on the ongoing developments at the SCAD corridor, particularly on how LGU development plans were incorporated into the SCAD Corridor Conceptual Land Use Plan (SCoLUP).

In particular, SCADC officials and planners discussed various concerns in the development plan for the corridor, including environmental and ecological issues, waste management, the accessibility of the Subic-Clark-Tarlac Expressway (SCTEx), as well as flood control and drainage systems.

Pamintuan, who is also the development champion for the Luzon Urban Beltway Super Region, said several development projects already in the pipeline are expected to have the greatest impact on the SCAD corridor.

These include the Tarlac-Zambales Tollway, Tarlac-Nueva Ecija-Pampanga Circumferential Tollway, Tarlac-Nueva Ecija-Pampanga-Bulacan Radial Road, and, possibly, the Zambales-Pampanga-Bulacan Coastal Viaduct, said Pamintuan.

He added that the final version of the conceptual land use plan for the 98,020-hectare SCAD corridor will be presented during the LGU Summit in July, which will also serve as the culminating activity for the series of stakeholder consultations.

In his speech during the Subic consultation, Pamintuan emphasized that President Arroyo’s multibillion-peso infrastructure development program has helped save the day for the Philippine economy by creating millions of jobs and opening more areas for investments.

As a result, “while the world economy is suffering from the impact of the global economic crisis — with the United States, Japan, Hong Kong and Singapore registering negative growth outlook, the Philippines still registered a 1 percent growth in the first quarter of this year,” Pamintuan added.

The SCADC executive also said that his agency’s concern has lately expanded from infrastructure projects to “programs that would result in more efficient production, multi-modal product delivery system, industrial and agricultural projects, and better tourism facilities.”

The SCADC is also concerned with education and manpower training, human development centers, human settlements and retirement villages, and green corridors, Pamintuan said.

“One of the features of the SCAD corridor framework is the production-oriented logistics corridor with three equidistant hubs,” Pamintuan explained, referring to Subic, with its sea ports as the sea hub; Clark, with the Diosdado Macapagal International Airport as the air hub; and Tarlac, with its vast agricultural and industrial areas as the land hub.

“Connecting these three hubs is the 94-kilometer SCTEx that would serve as the backbone in the transformation of the area into the SCAD Mega-Logistics Hub,” he said.

“This is where the role of the provinces of Bataan and Zambales come into play, as they are the LGUs which will greatly benefit from the developments within the corridor,” Pamintuan added.

SCADC held the first stakeholders forum in Clark on May 15, and followed it up with the Tarlac consultation on May 22. The Subic forum, which was the last leg in the series of meetings with stakeholders, will be followed by the LGU Summit next month. (SBMA Corporate Communications)

PHOTO: Sec. Edgardo Pamintuan explains the benefits of high-impact infrastructure development projects for the SCAD Growth Corridor during a stakeholders meeting in the Subic Bay Freeport.

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Olongapo welcomes SBMA move to grant business incentives to adjacent areas

OLONGAPO CITY — Officials of this city welcomed the initiative of Subic Bay Freeport authorities to grant incentives to investors willing to locate outside of the fenced-in area of the freeport, particularly in this city.

Olongapo Mayor James “Bong” Gordon Jr. described the planned incentives package as “a big boost to Olongapo” as the city undertakes its program to improve the local economy and provide sustainable income opportunities to residents, said senior executive sssistant for public relations Mike Pusing.

“Of course, we welcome this plan by the Subic Bay Metropolitan Authority (SBMA),” Pusing said in an interview. “This is good news for us,” he added.

Earlier, the SBMA announced that it is working out a scheme whereby qualified investments based in Olongapo City may receive some incentives enjoyed by companies registered in the Subic Bay Freeport.

According to SBMA administrator/ chief executive officer Armand Arreza, the perks may include fiscal incentives like sales tax and five-percent gross income tax.

Arreza said his agency is now coordinating with Olongapo officials in formulating the implementing rules that would allow businesses located in Olongapo to qualify for some incentives under Executive Order 675, which expanded the area where tax- and duty-free privileges for freeport zones would apply.

Under EO 675, the tax- and duty-free privileges within the Subic Special Economic and Free Port Zone (SSEFPZ) “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured or declared as additional secured area by the SBMA.”

However, Arreza said that because the planned expansion area in Olongapo is not yet fenced in, duty-free privileges cannot be applied due to concerns on merchandise control.

Arreza said under the planned set-up, businesses wanting to avail of the perks would have to be endorsed by the Olongapo city government to the SBMA.

The system would be similar to that employed by the Philippine Economic Zone Authority (PEZA) which registers and grants perks to investors in privately-owned economic zones, Arreza added.

As of now, among the incentives the SBMA offers to investors registering in the Subic Bay Freeport are tax- and duty-free importation; exemption from all local and national taxes, with only a five percent corporate tax on gross income; unrestricted entry of foreign investments; no foreign exchange control; visas for foreign nationals; and expanded allowable deduction and higher percentage of income allowable from sources within the Customs territory for regional enterprises. (Bebot Sison Jr., Philippine Star)

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Medical and wellness center in Amorosa, Subic Freeport, serves patients, retirees from Northern Luzon and abroad

The George Dewey Medical and Wellness Center is a tertiary private hospital located in Amorosa.

Amorosa is a 12-hectare community composed of the George Dewey Medical College, living and recreation spaces for retirees and the general public, and the George Dewey Medical and Wellness Center.

The environment of Amorosa is a preserved rainforest, providing an ambiance of healing and rejuvenation. Amorosa is located in the Subic Freeport Zone, an area of business, entertainment, outdoor activities, schools, hotels and restaurants, and homes.

The George Dewey Medical and Wellness Center sprawls among the gardens of Amorosa, consisting of nine buildings, surrounding the main hospital
and separated from it by grasslined driveways. This unique arrangement provides specialized areas for privacy, proper ambiance and infection control.

The main hospital is a single-story structure with access doors to the buildings of specialty, and areas for parking and emergency.

Essentially, the building arrangement follows a logical flow for the medical process, general services, privacy and safety.

The Medical and Surgical Services are provided by doctors who are leaders in their fields.

The medical organization follows global standards of healthcare, enhanced by a hospital information system which provides an integrated holistic approach to the individual patient.

Excellence in medical and surgical service is supported by latest equipment.

The Nursing and Ancillary Services Teams are specialized, with regular training programs in coordination with the George Dewey Medical College.

The Human Resource Department goes beyond its scope of responsibility to encourage personal growth and develop the core values of the institution. Quality Assurance Programs involve the Medical, Administrative, Finance, Marketing and Business Development groups, encouraging a culture in the community for excellence in health
services and continuing education.

The patients of the George Dewey Medical and Wellness Center are residents of Amorosa, the day and night populations of Subic, residents of nearby communities and retirement villages, as well as patients from other countries and the general public.

The residents of Amorosa benefit from the assurance of a tertiary hospital on stand by and the wellness programs to enhance their lifestyle.

The George Dewey Medical and Wellness Center is the only tertiary hospital inside the Subic Freeport Zone, with access to the Subic and Clark International airports and the provinces of Northern Luzon. Its vision of excellence in continuing medical education also encourages medical and paramedical specialty training sessions and conferences.

The Phases of Operation allow for the development of specialized centers of diagnosis and treatment, many of which will be firsts in the underserved population of Northern Luzon.

The potential for growth in the medical and wellness services is large, inside and outside of Amorosa. The standard of care, employment opportunity and empowerment of people the business provides is a significant contribution to society. (c/o Manila Times)

Photo: SBMA Administrator Armand Arreza visits the facilities at George Dewey Medical and Wellness Center.

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Subic company completes first-ever luxury yacht

Australasia Marine Alliance Corp. (AMAC), a unit of Mustang Marine Australia Services Pty. Ltd., said it has completed the first-ever leisure yacht to be built in Subic Bay Freeport.

The 28-feet Mustang Marine 2800 Sports Cruiser worth A$120,000 was built by Filipino boat craftsmen. It is one of the smallest boats under the Mustang brand name.

AMAC is an "alternative manufacturer" of recreational boats of Mustang Marine Australia Services Pty. Ltd., the flagship company of Australasia Alliance Corp., the oldest and second-largest boat builder in Australia.

The leisure yacht is powered by a MerCruiser 5.0L MPI Bravo 3 260-horsepower, 300-liter gasoline engine. It went as fast as 30.4 knots or 35 miles an hour during sea trials in Subic Bay.

With technical assistance from Mustang Australia, it took five months to finish the first boat, which is now ready to be shipped to a Thai buyer, Mr. Co said.

"We have to train people step by step, so production of the first boat took quite long. But by the end of the year, we will gear up to about two to three units a month of this size," he added.

"[This] is practically a livable boat with superb craftsmanship and elegant designs found in its kitchen, toilet, bedroom and lounge," Mr. Co. said. (Rey Garcia, Businessworld Online)

Photo Caption: The first Filipino-made Mustang 2800 Sports Cruiser maneuvers in Subic Bay. The boat clocked 30.4 knots per hour during recent trials.

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SBMA cited for timely action on drug case

Two government agencies cited the Subic Bay Metropolitan Authority (SBMA) vigilance in the seizure of over 700 kilos of shabu from a locator and now suspected drug trafficker Anthony “Anton” Ang, even as freeport industry leaders described the SBMA officials’ conduct in the seizure as an example of integrity in government service.

In the latest hearing by the Congressional committee investigating the attempted smuggling of over 700 kilos of shabu through the Subic freeport, the chief of Philippine Drug Enforcement Agency (PDEA) Director General Dionisio Santiago cited SBMA’s vigilance resulting in the seizure of the illegal drugs.

“Had the SBMA personnel relaxed their guard in this case, billions of pesos worth of shabu would have flooded the streets,” Santiago said.

Earlier in the same hearing, Presidential Anti- Smuggling Group (PASG) chief Undersecretary Antonio Villar Jr. expressed the same recognition of SBMA success in thwarting the smuggling attempt. The seizure is the biggest haul ever in the illegal drug trade.

Armand Arreza, SBMA administrator, gave the credit to SBMA personnel, saying their dedication and honesty in their job paid off, adding that “our boys did not waver in the face of deceit even as they exercised determined caution in giving locators the respect they deserve.”

“Our boys stood their ground, insisting on getting the shipping documents on the boxes that later turned out to contain shabu,” Arreza said, adding that “no inch was given in the demand for the shipping documents. They were protecting the interest of government after they were told by Ang the boxes contained sensitive computer parts.”

Ang, then being a known locator in SBMA, claimed that the cargo contained sensitive computer parts and requested it should not be opened while he promised to bring to the SBMA the required shipping document even when the boxes passed the dog sniffing screening to detect contraband.

Ang failed to return with the shipping documents on the promised time. The SBMA law enforcement team then called PASG, the government’s anti-smuggling group to open the boxes. It was only then that they found out the boxes contained crystalline substance that was suspected to be shabu.

The PDEA later confirmed the substance is shabu. The packaging of the shabu in boxes was intended to deceive sniffing dogs.

According to Arreza, three employees in the team that led the seizure of shabu boxes earned the “Gantimpala Agad” Awards of the Civil Service Commission while the rest were given commendations. This award is the reward component of the CSC’s “Mamamayan Muna, Hindi Mamaya Na” program. (Franco Regala, Manila Bulletin)

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Independent panel starts investigation of Ang disappearance in Subic drug bust

Manila - The three-man independent panel that investigated the Alabang Boys has started its investigation into the questionable disappearance of suspected international drug-lord Anthony Anton Ang after he was caught in possession with some P5-billion worth of high-grade shabu at the Subic Freeport Zone.

The panel, headed by retired Supreme Court Justice Carolina Grino-Aquino with San Beda Graduate College of Law Dean Fr. Ranhilio Aquino and retired Sandiganbayan Justice Raoul Victorino as members, would look into the circumstances surrounding the disappearance of the drug suspect and determine possible liabilities of prosecutors and agents of the Philippine Drug Enforcement Agency (PDEA) and the Presidential Anti-Smuggling Group (PASG) and of the Subic Freeport authorities.

Solicitor General Agnes Deva-nadera, whose office is providing legal assistance to the probe panel, said the investigation would zero in on the administrative aspect of the case and as well as on the alleged bribery angle.

Bribery may come in, but the focus is whats going to be the accountability of the public officials, the solicitor general said.

She said the objective of the investigation is to establish some facts, and to inquire on the reaction of the officials when all things happened.

It could be lapses. It could overt act. It could be intentional acts. It could be none. It could be regular action, she added.

A congressional committee is also investigating the drug case. In its latest hearing, both the PDEA and PASG have virtually exonerated the Subic Freeport authorities, saying that Had the SBMA [Subic Bay Metropolitan Authority] personnel relaxed their guards in this case, billions worth of shabu would have flooded the streets.

Armand Arreza, SBMA administrator, gave the credit to SBMA personnel, saying their dedication to and honesty in their job paid off, adding, "Our boys did not waiver in the face of deceit even as they exercised determined caution in giving locators the respect they deserve."

Ang, then being a known locator in SBMA, claimed that the cargo contained sensitive computer parts and requested it should not be opened while he promised to bring to the SBMA the required shipping documents even when the boxes passed the dog sniffing screening to detect contraband.

Ang failed to return with the shipping documents on the promised time. The SBMA law enforcement team, then called PASG, the governments anti smuggling group to open the boxes. It was only then that they found out the boxes contained crystalline substance that was suspected to be shabu.

The PDEA later confirmed the substance-contained shabu. The packaging of the shabu in boxes was intended to deceive sniffing dogs. (William B. Depasupil, Manila Times)

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Antonio is solo leader in Subic chessfest

Grandmaster Rogelio "Joey" Antonio Jr. outsmarted Le Quang Liem of Vietnam in 59 moves of the Sicilian to vault into the solo lead after the ninth round of the 2009 Asian Continental individual chess championship Thursday at the Subic Exhibition and Convention Center in Subic Bay Freeport.

Flashing the form that made him the country's top player only several years ago, the 47-year-old pride of Calapan, Oriental Mindoro finished off his sixth-seeded Vietnamese rival to claim his fourth win in the last five rounds.

The win enabled the 28th-seeded Filipino to grab the solo lead with seven points on five wins and four draws with only two rounds remaining in this prestigious, 11-round tournament organized by the National Chess Federation of the Philippines (NCFP) in cooperation with the Subic Bay Metropolitan Authority (SBMA).

Half a point behind Antonio are two Indian and two Chinese player – Grandmasters Chanda Sandipan and Surya Shekhar Ganguly and Grandmasters Hou Yifan and Zhou Weiqi.

Sandipan drew with Hou, while Ganguly and Zhou halved the point in 39 moves of the Sicilian to remain within striking distance.

Grandmaster Wesley So also made his presence felt, beating Elshan Moradiabadi of Iran in only 33 moves of the Ruy Lopez to keep his hopes alive.

The 15-year-old So capitalized on a blunder by his Iranian rival – a queen push to h4 on the 26th move – to turn a difficult, middle game struggle into a resounding victory with the white pieces.

When the end came, So is threatening to mate Moradiabadi’s king with either his queen on g8 or his knight on d6.

Overall, So has a nine-round total of six points on four wins, four draws and only one loss. (c/o Manila Bulletin)

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Young Chinese GM stamps class in Subic chessfest

THIS 15-year-old girl is competing, as she puts it, “for the experience” in the open division of the 8th Asian Continental Championship at the Subic Bay Free Port.

But grandmaster Hou Yifan of China is in a group of 12 players—which includes Filipino GM Joey Antonio and international master Richard Bitoon—just half-a-point behind the four leaders after Sunday’s fifth round.

That could mean trouble for the men’s against Hou, who was second in the 2008 world’s women’s chess championship, as Bitoon found out Sunday.

Bitoon, playing black in a Sicilian Defense, was on the ropes against Hou, but in time trouble the advantage shifted to Bitoon’s side. Hou dug in despite having a bishop against a rook in a queen endgame and the game ended in a draw in 80 moves.

“She is friendly, with a smile on her face,” said Bitoon of his 5’5” rival in a phone interview with Standard Today. “But she is malupit [accurate] and has an all-around style.”

Her first Filipino victim was national master Edgardo Garma who did not survive the opening. “He [Garma] made a mistake and it was exploited quickly,” said Bitoon.

In answers to e-mailed questions given to her by Standard Today through FIDE deputy president for Asia Toti Abundo, Hou said the tournament has made a good impression on her. “Fresh air, good environment. This has been an excellent tournament. Hopefully chess will have a bright future in the Philippines.”

The tournament selects the Top 10 regional qualifiers to the next stage of the championship. Hou, having finished second in the 2008 women’s championship, has earned her ticket and is playing in the open division for experience.

Chinese chess officials are pinning her hopes that Hou will be a superstar. The daughter of a magistrate and a former nurse, Hou became the youngest woman to become a grandmaster at 14 years and six months in 2008.

Hou said she goes to a regular school, but stays with the national team in Beijing.

One of her coaches said Hou has all the qualities to become the world’s top woman chessplayer, a distinction held by Judit Polgar of Hungary for nearly a decade (c/o Manila Standard Today)

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SBMA backs free port perks for Olongapo businesses

The Subic Bay Metropolitan Authority (SBMA) is now working out a scheme whereby qualified investments based in the neighboring city of Olongapo may receive some incentives enjoyed by companies registered in the Subic Bay Freeport.

According to SBMA Administrator Armand Arreza, the perks may include fiscal incentives like sales tax and five-percent gross income tax.

“We are now in the process of formulating the implementing rules,” Arreza said.

“We are working it out with Olongapo City officials so that businesses located in Olongapo would qualify for some incentives under Executive Order 675,” Arreza added, referring to the order signed by President Arroyo that expanded the area where tax- and duty-free privileges for free port zones would apply.

Under EO 675, the tax- and duty-free privileges within the Subic Special Economic and Free Port Zone (SSEFPZ) “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured or declared as additional secured area by the SBMA.”

But Arreza said that because the planned expansion area in Olongapo is not yet fenced in, duty-free privileges cannot be applied.

“Our main concern is merchandise control,” Arreza said. “That is why we’re initially thinking of giving incentives on sales tax and the five-percent gross income tax.”

He added that under the planned set-up, businesses wanting to avail of the perks would have to be endorsed by the Olongapo city government to the SBMA.

The system would be similar to that employed by the Philippine Economic Zone Authority (PEZA) which registers and grants perks to investors in privately-owned economic zones, Arreza said.

Among the incentives the SBMA offers to investors registering in the Subic Bay Freeport are tax- and duty-free importation; exemption from all local and national taxes, with only a 5 percent corporate tax on gross income; unrestricted entry of foreign investments; no foreign exchange control; visas for foreign nationals; and

expanded allowable deduction and higher percentage of income allowable from sources within the Customs territory for regional enterprises.

The SBMA official revealed the planned incentives for Olongapo companies after calling for the further development of the Subic-Clark growth corridor and pushing for the creation of additional industrial estates to sustain Central Luzon’s economic momentum.

Arreza said earlier that if the areas between Subic and Clark were developed into industrial estates, the SBMA could push through with its expansion program that is projected to create 150,000 new jobs.

He also said that the SBMA’s expansion plan likewise considers the development of areas in the nearby communities of Olongapo City, Subic town in Zambales, and Morong, Hermosa and Dinalupihan in Bataan.

According to Arreza, new investors who will locate beyond the fenced-in area of Subic, but still within the Subic Special Economic and Free Port Zone (SSEFPZ), will nevertheless enjoy certain privileges as provided for under EO 675, signed by President Arroyo on November 5, 2007.

He added that one investor, the Subic Neocove Corp., which is putting up a golf resort complex in Subic, Zambales, will be the first major investor to locate outside the former base land.

The development project, which will be financed by the Heung-A Property Group (HAPG) of Korea in partnership with Westgate Resorts Asia Ltd. and the Trump Organization, will incorporate hotel and vacation complexes, a 54-hole golf course and leisure-sports facilities, an eco-park, spa and therapy centers, as well as an international hospital and an international school in a 457-hectare beachfront property in Subic town.

The project, Arreza said, received the SBMA’s full incentive package upon endorsement from the governments of Subic town and the Zambales province.

As of now, the SBMA is finalizing its master plan that would increase connections between the Subic Bay Freeport and outlying areas, particularly Olongapo City, its nearest neighbor.

The plan also calls for the widening of bridges linking the free port to Olongapo, Arreza said. (SBMA Corporate Communications)

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Lessons from shabu-smuggling incident: Modern surveillance system to heighten Subic security

With last year’s Subic drug-smuggling case under investigation for possible administrative lapses by law enforcers and other concerned parties, authorities in this free port allayed fears of more smuggling attempts and said remedies are now in the offing.

In particular, the Subic Bay Metropolitan Authority (SBMA) will be relying on modern surveillance equipment like radars and closed-circuit television (CCTV) systems to build a virtual security cloak around Subic’s 14 piers and docks, said SBMA Administrator Armand Arreza.

“Whatever administrative lapses may have been in the shabu smuggling case, these are being addressed already,” Arreza said in a media interview on Friday.

“Even policies, like those on the classification of cargoes, are being looked into,” he added.

The SBMA executive said the close monitoring of Subic’s port “is basically our key requirement.” “That’s why we want a modern maritime surveillance setup,” he explained, adding that the SBMA would like to acquire a complete system of monitoring equipment as mandated by the International Maritime Organization (IMO).

Arreza disclosed the SBMA’s initiative to upgrade security in Subic’s maritime port as an independent investigating panel created by President Arroyo began last week, looking into the foiled attempt to smuggle some P5 billion worth of methamphetamine hydrochloride, or shabu, into the Subic Bay Free Port in May.

The suspected mastermind, a business locator in Subic named Anthony Ang, managed to escape after promising to secure documents for his yet-undocumented cargo that later turned out to be shabu.

Arreza said a similar scenario is unlikely in Subic today as the SBMA begins streamlining the maritime traffic-management system in this free port and subjecting its seaport personnel to an exhaustive training in port operations.

The primary objective, he added, is to prevent the undetected entry or exit of small watercraft like yachts, rubber boats and bancas that could be used in smuggling activities.

“Unlike ships, tankers and other vessels which are equipped with an automatic identification system that registers their presence in port control stations, small vessels are harder to monitor since they only appear as small dots on radar screens,” said Arreza.

Arreza explained that once a vessel is suspected to have departed without notice, the protocol is to immediately contact the SBMA Harbor Patrol or the Philippine Coast Guard to intercept the boat.

“When all else fails and the craft escapes interception, our safety net is we can go after the ship’s agent,” he added.

Arreza said, however, that the projected installation of modern radars and CCTV systems would make the port of Subic safer and less prone to smuggling attempts.

“Once the closed-circuit cameras are installed, all vessels berthed in Subic Bay Free Port’s 14 piers and wharves can be monitored 24/7 in one control room,” Arreza said.

Arreza said the upgrading of Subic’s port security system was actually contained in the $215-million Subic port-modernization program that includes the construction in two phases of Subic’s new container terminal. (Henry Empeño, Business Mirror)

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Woo dominates Subic triathlon but local bet Catiil also shines

Hong Kong’s Daniel Lee Chi Woo won his fifth Subic Bay International Triathlon Championship title with another dominating show in the men’s elite of the 2009 edition on Sunday from Dungree Beach to Waterfront Street inside Subic Bay Freeport.

But local bet Neil Catiil also got his share of the spotlight as he gave the Philippines its first Top 5 finish in the tough competition in a long while.

The 32-year old Woo, a two-time Olympian who also won the gold at the 1st Asian Beach Games last year, leaned on strong a showing in the three disciplines to retain his crown.

Prior to these back-to-back titles, Woo emerged champion in the 2000, 2001 and 2006 editions.

“I have been racing for the past three weeks and I’m in my best shape and really expected to win," said Woo, who clocked in at one hour 58 minutes and 30 seconds in the 1.5k swim, 40k bike and 10k run.

Woo was actually a distant second to China’s Zheng Yi Ming in the swim but gained much headway in the bike stage, joining hands with Zheng and Australian Dane Robinson to maintain their lead against the chase group.

With running as his best asset, Woo started to pull away after the first of four loops for a solo finish in the event organized by Triathlon Association of the Philippines.

Playing in his first tournament this year, China’s top triathlete Zhang took the silver medal with 1:59:55 while teammate Li Wei Sun outsprinted Robinson for the bronze medal with 2:00:26.

“It was a tough race especially in the bike where half of the course was done in hilly portion. But I worked hand in hand with Zheng and Dane to keep our lead against the chase group before I made my move in the run which is my strength," Woo said.

Robinson clocked in at 2:00.58 for fourth place, ahead of Catiil, who crossed the finish line in 2:03.57 for fifth place.

This is the first time in the past years of the Subic meet that a Filipino landed inside the top five of the men’s elite.

Catiil made heads turn with a blazing show in the bike as he emerged as the fastest among the participants with 1:04:32 time.

“Naiwan ako sa swim pero tinuhog ko sila sa bike. Kung mahaba-haba pa nga sana ang karera ay naabutan ko yung Australiyano (Robinson). Pero masaya ako dahil ito na ang best time ko sa standard distance," said the 23-year old, Cagayan de Oro native who was the champion in the Under-23 division last year.

Woo, Zhang and Li netted P30,000, P20,000 and P10,000, respectively, for topping the race.

Woo and Zhang also joined Catiil in receiving a bonus prize of $100 for submitting the best time in splits. Woo was the fastest in the run with 1:58:00 while Zhang finished ahead of everybody in the swim at 20 minutes and 38 seconds.

The other Filipino participants, George Vilog and Fil-Am Arland Macasieb, settled for 9th and 10th spot with 2:08:25 and 2:13:52, respectively.


Hong Kong’s triathletes also swept the top three places in the Under-23 with Ivan Lo Ching Hin winning the gold with 2:07:26, Jam Joe Dickson getting the silver with 2:11:46 and Ricco Chan ye Ko bagging the bronze with 2:15:46.

Rowel Odonio was the best Filipino participant in this category at fourth place with 2:17:17 before another Hong Kong entry Fun Ho Kong took fifth with 2:19:21. (c/o GMANews.TV)

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Yun leads China’s 1-2 finish in Subic triathlon (Women's)

China’s Yun Lu would forever remember the year 2009.

Competing for the first time in the Philippines, Lu out-sprinted teammate Zhang Yi to claim her inaugural title in Saturday’s 2009 ITU Subic Bay International Triathlon female elite which started at Dungeree Beach and finished at the Waterfront Road inside the former American Naval Base in Olongapo City.

A total of 13 triathletes saw action in the Triathlon Association of the Philippines (TRAP)-organized race, which is also sanctioned by the International Triathlon Union (ITU).

Lu proved to be the best conditioned triathlete in the 1.5-kilometer swim, 40-k bike and 10-k run race submitting the fastest time of two hours, 10 minutes and 34 seconds. She struck hard in the third of four loops in the run event to leave behind Yi, a Beijing Olympian and is China’s top ranked female triathlete.

Yi fell short by 23 seconds at 2:10:57 for the silver medal.

“This is my first win after six years in triathlon and it came in my first race this year and I’m very happy with my performance," said Lu, ranked third in China, thru an interpreter.

She admitted to have struggled especially in the bike course as she and Yi wound up fourth and fifth into the second transition behind Japan’s Hideko Kikuchi, Australia’s Michelle Wu and the country’s top bet Lea Coline Langit.

All three ladies however faltered in the run event with Langit suffering the most as she had bouts with stomach cramps that slowed her down.

“I was well within my game plan since I went along well with my rivals in the swim and bike. But stomach cramps started affecting me in the first loop and I had to walk-run in the next loops," said a dejected Langit who settled for fifth place (2:20:13).

Langit’s mark was way off her 2:08:09 national record she established at the I-Lan Blossom Lake Triathlon in Taipei last year.

Wu took the bronze medal with 2:11:59 while Kikuchi finished fourth at 2:12:04.

The top three finishers in the race received P30,000, P20,000 and P10,000 respectively.
Marion Kim Mangrobang, 18, gave the country something to cheer about after finishing third in the Under 23 (2:32:45).

Mangrobang, competing in her second Olympic distance race, was in a good position to take the top spot after coming out of the water second to Beijing Olympian Tania Mak So Ning of Hong Kong and was still within striking distance after the bike leg.

She however lost steam in the run leg allowing Mak the gold (2:24:27) while another Hong Kong bet Joyce Cheung Ting Yan bagged the silver (2:28:53).

Competitions were also held in the mini-sprint, junior sprint elite and adult sprint where top three finishers also went home with medals.

John Rommel Uy (38:23) and Singapore’s Joy Phan Young Ting (52:58) topped the mini-sprint, Johannah Pe Benito (1:34:18) and Hong Kong’s Tsz Hei Cheung (1:16:04) ruled the jr. sprint elite while Malaysia’s Stephanie Chok (1:36:22) and Jon Jon Rufino (1:25:21) took the Adult Sprint titles.

Competition ends Sunday with action in the male elite, junior elite, age groups and Inter-Club championships.

Doha Asian silver medalist Daniel Lee Chi Wu of Hong Kong leads 30 athletes including 24 foreigners, who will see action in the male elite.

The Philippines will be bannered by Fil-Am Arland Macasieb, Geroge Vilog, Neil Catiil, Rowel Odoion, Carlo Pedregosa and Brian Borling.

A total of nine countries are competing this year and joining host Philippines are China, Hong Kong, Japan, Australia, New Zealand, Republic of South Africa, Macau and Iran. (c/o GMANews.TV)

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