New Subic Freeport Expressway now open

The 8.2-kilometer expansion project for the Subic Freeport Expressway (SFEX) that was designed to provide better, faster and safer access to the Subic Bay Freeport Zone was formally opened on Friday, Feb. 19, by the project developer and high-ranking government officials.

The project, which began in July 2019, was inaugurated by Executive Secretary Salvador Medialdea, Public Works Secretary Mark Villar, Transportation Secretary Arthur Tugade, Presidential Spokesperson Harry Roque, Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma Eisma, Metro Pacific Investment Corporation (MPIC) President Jose Ma. Lim, Metro Pacific Tollways Corporation (MPTC) President Rodrigo Franco, and NLEX Corp President J. Luigi Bautista.

Bataan 2nd District Representative Joet Garcia, Hermosa, Bataan Mayor Jopet Inton, and MPTC spokesperson Romulo Quimbo Jr. were also present in the occasion.

The expressway project, which was touted to further accelerate economic growth in the Subic Bay Freeport and surrounding communities, was built at a cost of P1.6 billion.

Chairman Eisma, who welcomed guests in the inauguration rites, acknowledged the heavy support of the national government in Subic’s development as a premier investment and tourism center and said that the project is another testament of President Duterte’s “strong support and love for the Subic Bay Freeport Zone.”

Eisma thanked Medialdea and the other top officials in the Duterte Cabinet for further pushing development here.

She also requested support for a proposed interchange that will benefit three industrial parks at the Tipo area, pointing out that these industrial projects signal the continued trust of foreign investors in the Philippines under the Duterte administration.

The SFEX capacity expansion project entailed the construction of two additional expressway lanes, two new bridges at Jadjad and Argonaut Road, and a new two-pane tunnel.

NLEX Corporation President Bautista said this will increase road capacity from one lane in each direction to two lanes in each direction, and thus will accelerate business activities and facilitate the flow of goods and services in and out of Subic.

“One of the key drivers of economic growth is a network of high-quality roads. The NLEX Corporation through NLEX, SCTEX, and the soon-to-be expanded SFEX not only intends to accelerate development, but also hopes to encourage travel convenience and road safety,” Bautista added.

Meanwhile, Presidential Spokesperson Harry Roque described the SFEX expansion as one of the key projects under President Duterte’s Build-Build-Build program and a testament that, under the Duterte Administration, the government is working non-stop to provide essential services to the people.

Thanking the MPTC for initiating the project, Roque said the SFEX expansion has significantly hastened travel from Manila to the Subic Freeport and provided motorists an alternative and faster route in and out of the Subic Bay Freeport Zone.

The SFEX, which is also known as the Subic-Tipo Expressway or NLEX Segment 7, connects the Subic Bay Freeport to the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEx), which in turn links with the Tarlac-Pangasinan-La Union Expressway. (MPD-SBMA)

PHOTOS:

[1] An NLEX Corporation bus breaks the ceremonial ribbon during the formal opening of the newly completed 8.2-km Subic Freeport Expressway (SFEX) on Friday, Feb. 19.

[2] Top-ranking government officials led by Executive Secretary Salvador Medialdea, Public Works Secretary Mark Villar, Transportation Secretary Arthur Tugade, Presidential Spokesperson Harry Roque, and SBMA Chairman Wilma Eisma headlined the opening of the newly completed 8.2-km Subic Freeport Expressway (SFEX) on Friday, Feb. 19.

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Globally-renowned Subic food firm thrives after pandemic losses

Difficult times provide new opportunities to those who persevere. This in a gist is the story of Subic Superfood Inc., which manufactures and exports gourmet pili nuts from its factory here in Subic.

During a visit of the factory by Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma on Tuesday, brother-entrepreneurs Steve and James Costello shared how Superfood, which sells products under the Mount Mayon brand, survived the Covid-19 pandemic and now plan to thrive in the years ahead.

“We are looking at possibly having our best year ever in 2021, and again in 2022 by the way the projections look. So, we’re quite excited, we got other things stirring up,” James Costello said.

“This is great news for Subic, which just goes to show that our response to the pandemic—the strict compliance to health and safety protocols, all the relief measures given to business locators, and the cooperation by stakeholders have resulted in a climate that is more favorable to economic recovery,” Eisma said.

“The truth is that even as some companies have been adversely affected by Covid-19, Subic Freeport also recorded new investment projects and even expansion by existing businesses,” she added.

According to the Costello brothers, who are both trained biochemists, the company adopted the motto “Survive and Thrive” last year at the onset of the pandemic. Now they have retained it as theme for 2021.

Steve explained that Superfood’s sales suffered during the pandemic when the firm’s biggest markets—Duty Free Philippines (DFP) in Manila and casinos and hotels in Macau—stopped placing orders. DFP used to account for 30 percent of Superfood’s income, while the Macau importers 20 percent.

Because of plunging sales, their partners in Hong Kong told the brothers to shut the Subic facility down. But they refused, and re-analyzed the market instead.

“James and I said, can we look at some markets that might be opening? And one of the biggest ones was online retailer. So, we talked to Healthy Options in Manila, which was one of our great accounts,” Steve recalled.

At the moment, they noted that Healthy Options was expanding. “We said, ‘Guys, you got to go online.’ They went online and they put us in all their stores. And we realized, boom! We exploded with them,” Steve said.

Aside from this, Subic Superfood also tried other cost-cutting measures upon seeing that there was still a lot of nuts in the warehouse. The brothers sold them at “buy-one-get-one” option, then cut about half of the staff and stayed with the regular team, and then came up with two 40-foot container of nuts going to Oregon.

“What’s important is keeping flexible and finding new ways to do things,” Steve stressed.

Subic Superfood, Inc. began to process pili nuts from Bicol into gourmet snacks in 2008. The firm has five flavors: Himalayan Pink Salt, Kyoto Matcha, Ecuadorian Cocoa, Chiang Mai Chilli Lime, and Kerala Coconut Curry.  

The Subic firm has won multiple awards for these products, including the “Snacking Dior” award in Paris, France in April 2018 for the Himalayan Pink Salt flavor, and a three-star Michelin award and Supreme Taste award from the International Taste and Quality Institute in Brussels, Belgium for the Kyoto Matcha flavor.

In September 2018, Subic Superfood got a two-star Michelin award for the Himalayan Pink Salt flavor, and three stars for the Ecuadorian Cocoa flavor. It also received the Best Foreign Entry and the grand award of Supreme Champion for the Great Taste award out of 12,561 entries.

In 2019, the company again received Great Taste Awards for its Kyoto Matcha Premium Pili Nuts, Kerala Coconut Curry, and Natural Pili Butter. (MPD-SBMA)

PHOTO:

[1] Steve Costello (right) shows SBMA Chairman Wilma T. Eisma and SBMA Senior Deputy Administrator for Business and Investment Renato Lee the company’s pili nut products for market delivery. 

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SBMA earnings dip by 22% under Covid-19 pandemic

Earnings by the Subic Bay Metropolitan Authority (SBMA) decreased by as much as 22 percent in 2020 because of the economic slowdown last year brought about by the Covid-19 pandemic.

SBMA Chairman and Administrator Wilma T. Eisma said the Subic agency posted a total of P1.69-billion in earnings before interest, tax, depreciation and amortization (EBITDA) at the end of 2020, compared to the P2.17 billion figure it recorded at the end of 2019.

The 2020 figure was lower than the 2019 record by P486.73 million, or 22.35 percent.

Eisma said the Covid-19 pandemic affected not only the operations of business locators in the Subic Bay Freeport, but also those of the SBMA, which is a self-sustaining government-owned agency.

“Subic locked down for close to four months early last year because of Covid-19. That means factories were closed, stores were closed, and there was not much source of income to go around. Moreover, the SBMA was forced to forego much of its collections in the meantime, because there was hardly anything to collect,” Eisma recalled.

She added the economic slowdown “critically diminished the income-generating capacity of registered businesses and sent ripples of disruption across the Freeport that affected even the SBMA income.”

According to the 2020 consolidated year-end report from the SBMA Finance Group, the agency lost P530.31 million in operating revenue last year, whereas it raked in a total of P3.73 billion in 2019.

In terms of operating expenses, meanwhile, the agency was able to save P67.74 million in 2020, as it spent only P1.45 billion, which was 4.45 percent lower than its expenses of P1.52 billion in 2019.

The SBMA Finance Group also reported that the agency’s operating income in 2020 hit only P1.75 billion, which was 20.93 percent lower than the P2.21 billion in 2019, or a difference of P462.56 million.

On the other hand, the agency posted higher bad debts last year— from P32.09 million in 2019 to P56.26 million in 2020, or an increase of 75.3 percent.

Eisma said the agency expects its finances to somehow bounce back this year, as more Freeport firms increase operations under strict health safety protocols imposed by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF).

Last month, the SBMA approved the Economic Relief Assistance (ERA) Payment Scheme that gave Subic locators up to 36 months to amortize bills that remained unpaid since the pandemic hit in March 2020.

Eisma said the measure was intended to help Subic businesses get back on their feet.

“We are now trying to open up the economy here little by little to curtail the lingering impact of the pandemic, and we’re giving every opportunity for our locators to normalize operations,” Eisma said. 

“I am wishing for bigger (financial) numbers this year, and we are getting back on track every little step that we can take forward, that’s why we always stress that we maintain safety protocols so we can get more industry sectors up and running,” Eisma pointed out.

The SBMA chief is scheduled to give her State of the Freeport Address next month to provide a more comprehensive report on the 2020 accomplishments of the agency and its plans for this year. (MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma meets with members of the Subic Bay Freeport Chamber of Commerce on Feb. 3 to discuss 2021 plans and programs, as well as business concerns and protocols under the continuing Covid-19 pandemic. 

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Covid-19 saliva test now available at Subic Freeport

The saliva test, a more comfortable and affordable alternative to the nasal swabbing method for Covid-19 testing, is now available at the Subic Bay Freeport under a joint project of the Philippine Red Cross (PRC) and the Subic Bay Metropolitan Authority (SBMA).

SBMA Chairman and Administrator Wilma T. Eisma said the PRC on Monday (Feb. 8) opened a saliva collection facility at the PRC-SBMA Covid-19 Testing Center near the Subic Bay Freeport main gate for its Saliva-Reverse Transcription Polymerase Chain Reaction (Saliva RT-PCR) testing program.

The Red Cross rolled out the saliva testing program in Manila late last month following approval by the Department of Health (DOH) of the use of saliva as an alternative specimen for RT-PCR testing.

“It’s just like the nasopharyngeal swabbing procedure in terms of efficacy because it uses the same system, which is the RT-PCR,” Eisma explained during the project launch.

“But while others find the nasopharyngeal swabbing somewhat painful, this one is not because it’s non-invasive. To top it all, it’s way cheaper than the swab test,” she added.

The saliva test, which is touted to be a quick and safe alternative for diagnosing Covid-19 infections, requires patients to spit through a tube into a small specimen collection container. About 1-2 mL of saliva is needed for testing.

The procedure is also said to be safer because there is less risk of exposure between the patients and the health care workers collecting the samples.

Moreover, processing of the sample in the testing machine takes less time, thus allowing for the release of test results in about 6 to 12 hours, the PRC said.

The PRC also noted that the saliva test costs from P1,500 to P2,000 and has an accuracy rate of 98.23%, while the nasal swab test, which is 99% accurate, costs from P3,800 to P5,000.

To date, only the Red Cross saliva RT-PCR test to date has been approved by the DOH as a saliva-based testing method to detect Covid-19 infections, the PRC added.

SBMA Deputy Administrator for Health and Safety Ronnie Yambao said there are now two booths dedicated for saliva testing at PRC-SBMA Covid-19 Testing Center, although the testing facility would continue to accommodate those who would prefer the nasopharyngeal swabbing procedure.

Those who want to take the saliva test here should deposit a P2,000 payment to the Philippine Red Cross account number 0132062464009 at Security Bank in Mandaluyong EDSA, and then email proof of payment and details of the person who will get tested to saliva.olongapo@redcross.org.ph.

In response, the Red Cross will email an online registration link for the customer to get the Retrieval Code, which must be presented to at the PRC-SBMA Covid-19 Testing Center in order to proceed with the collection of saliva specimen. (MPD-SBMA)

PHOTO:

Emergency Medical Services staff Marcelo Macariola demonstrates the collection of saliva specimen for testing during the launch of the saliva testing facility in Subic on Monday. Also in photo are SBMA Chairman and Administrator Wilma T. Eisma, PRC-Olongapo Administrator Vilma T. Feji, and SBMA Deputy Administrator for Health and Safety Ronnie Yambao.

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SBMA gets 3 top-of-the-line firetrucks

The Subic Bay Metropolitan Authority (SBMA) has acquired Pierce firetrucks to augment the firefighting capability of its Fire Department, becoming the first in the Philippines to own and operate this kind of custom-built fire engines.

The new acquisitions consisted of top-of-the-line Pierce pumper trucks that were bundled with various firefighting equipment, as well as self-contained breathing apparatus, HAZMAT suits, and repair kits for all types of gas leaks.

SBMA Chairman and Administrator Wilma T. Eisma said the procurement of new fire engines for the Fire Department indicated how serious the SBMA is in keeping people and investments safe in Subic.

“This is our legacy; this is something we need to do for Subic, especially now in these times of a pandemic,” Eisma stressed here on Friday during the blessing of the new equipment.

“We would like to showcase Subic as a safe haven for tourists, as a safe haven for investments, and now as a haven safe from fire,” she added.

SBMA Fire Chief Ranny Magno said the brand-new firetrucks were imported directly from Pierce Manufacturing, the Wisconsin, USA-based manufacturer of custom fire and rescue apparatus which is recognized as the largest producer of firefighting apparatus in the world.

Each truck has a capacity of 1,000 gallons (3,785 liters) of water and 60 gallons (227 liters) of foam, and runs with Cummins ISL9 engine at the top speed of 60 MPH (96 KPH).

To complement their pumping capability, each fire truck has Class A Type water pumps that can deliver “waterous” supply of water or foam from 100% rated capacity at 150 psi net pump pressure, to 50% of rated capacity at 250 psi net pump pressure.

The structural-industrial pumper trucks operate on digital technology and meet and comply with international standards set by the National Fire Protection Association (NFPA), Magno added.

The new fire engines arrived from the United States last December 28.

Magno noted that to this day, only the SBMA Fire Department has this kind of custom-built structural/industrial firetruck in the country, a big boost to a firefighting unit that also assists in firefighting operations in communities around the Subic Bay Freeport.

“These would make our job easier and allow us to respond more efficiently and effectively 24/7,” Magno added. (MPD-SBMA)

PHOTOS:

[1] An SBMA fireman demonstrates water delivery from one of the new firetrucks, as SBMA Chairman and Administrator Wilma T. Eisma and other officials look on. 

[2] SBMA Chairman and Administrator Wilma T. Eisma (right) and other SBMA officials inspect firefighting tools that were bundled with the new Pierce firetrucks.

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Subic develops corporate jet maintenance ‘bubble’

Intending to capitalize on Subic’s health safety record as an international gateway, the Subic Bay Metropolitan Authority (SBMA) has developed an end-to-end platform that will deliver corporate jet maintenance service despite the continuing Covid-19 pandemic.

SBMA Chairman and Administrator Wilma T. Eisma said the “Corporate Jet Maintenance Bubble” (CJMB) will be located at the Subic Bay International Airport (SBIA), which also houses a crew-change hub for mariners that is being operated by the Department of Transportation (DOTr).

“The corporate jet maintenance bubble works with roughly the same concept—it will be a complete process that precludes any third-party engagement because the accommodations, amenities and services are all in one place, and everything stays isolated,” Eisma explained.

She said the SBMA recognized the financial pressure faced by the aviation industry and had developed the CJMB to provide a safe, seamless, and efficient mechanism that will enable business jet operators in the Asia-Pacific region to meet their maintenance needs here in the Philippines despite the Covid-19 crisis.

Eisma said the CJMB was developed in accordance with Resolution No. 84 of the Inter-Agency Task Force on Emerging Infectious Diseases (IATF), which authorized the SBMA to set up a corporate jet flight maintenance and crew layover hub at the Subic Freeport under a strict “bubble” concept, as recommended by the DOTr and the Civil Aviation Authority of the Philippines (CAAP).

“With this project, we can also generate income for the Subic airport and once more push its potential as a regional aviation hub,” Eisma added.

Under the bubble concept, business jets may come into Subic for maintenance work without the limiting restrictions currently being implemented at other local airports.

The end-to-end process was carefully tailored to ensure a level of safety that would meet existing guidelines from regulatory agencies like CAAP, International Civil Aviation Organization (ICAO), International Air Transport Association (IATA), as well as the World Health Organization (WHO), Department of Health (DOH), and the IATF.

Significantly, the Bureau of Immigration (BI) announced the lifting of travel restrictions on the 36 countries with reported cases of the new Covid-19 variants starting February 1, following a directive from the IATF.

Eisma said the SBMA “will strive to continuously work with the IATF, BI, DOTr and other stakeholders to ensure transparency and commitment to safety while facilitating the safe positioning of flights and their respective crew to and from Subic.”

The SBMA had approved an aviation maintenance, repair and overhaul (MRO) facility at the Subic airport as early as August 2019, giving services provider Aviation Concepts Technical Services Inc. (ACTSI) its go-ahead for the full development of the local airport as a 24/7 hub for business aviation.

The SBMA had since marketed SBIA for its strategic location, it being only 1.5 hours away from Hong Kong, Macau and Taiwan and just 3 hours away from Singapore and Kuala Lumpur.

The SBMA has also stressed the wealth of manpower talent and cost-effectiveness as some of the major advantages of doing business in Subic over other areas. (MPD-SBMA)

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SBMA extends payment period for Subic locators

The Subic Bay Metropolitan Authority (SBMA) has given business locators in this premier free port more time to pay for their overdue accounts to help them weather the adverse effects of the Covid-19 pandemic.

SBMA Chairman and Administrator Willma T. Eisma said the Subic agency has recently approved the Economic Relief Assistance (ERA) Payment Scheme that would allow longer amortization period for bills that had remained unpaid since the pandemic hit in March last  year.

“With this ERA scheme, Subic locators can amortize their bills for up to 24 months, or ever more than 36 months, at a fraction of the usual interest and at diminishing rates,” Eisma said.

“This is actually just the latest in a series of SBMA board approvals that gave our business community, as well as residents, grace periods and other forms of economic relief to help ease their difficulties during these trying times,” she added.

Under the ERA Payment Scheme, companies without arrears before March 2020 could avail of longer payment amortization for unpaid billings from March 2020 onward under three options: up to 24 months amortization, with just one-fourth of 1% interest and at 3% diminishing rate; over 24 to 26 months amortization, with one-half of 1% interest and at 6% diminishing rate; or over 36 months amortization, with three-fourths of 1% interest and at 9% diminishing rate.

On the other hand, those with arrears before March 2020 could avail of a longer amortization period at the following terms: up to 24 months, with one-half of 1% interest and at 6% diminishing rate; over 24 to 36 months, with three-fourth of 1% interest and at 9% diminishing rate; or over 36 months, with 1% interest and at 12% diminishing rate.

Eisma also said the SBMA further sweetened the deal by offering 10% upfront payment instead of 20%, with 90% payable through equal amortization and with the first month amortization due the following month after the upfront payment.

The scheduled repayments should be covered by post-dated checks or deed of undertaking to be submitted on or before January 31.

Guidelines issued by the SBMA for the ERA Payment Scheme also required locators to submit promissory letters to the Office of the Deputy Administrator (ODA) for Finance, along with their application for the amortization program.

The statement of account (SOA) as of December 31, 2020 shall be considered for application under the ERA Payment Scheme. The SBMA Accounting Department shall provide the SOA balances as of December 31, 2020 of the locators who applied, and identify those who are with or without arrears before March 2020.

Locators who applied under the ERA Payment Scheme shall be allowed to pay only their current January 2021 billings while their request for ERA Payment Scheme is being processed.

Eisma said that aside from the ERA scheme, the SBMA has also temporarily suspended from March to June last year the collection of penalties and other fees from business locators and residents to help ease economic difficulties during the Covid-19 pandemic.

This covered penalties on late payment of billings, fees on deferment of deposit for maturing post-dated checks, and due dates covering payment schemes with deed of undertaking.

In June last year, Subic locators received yet another economic relief when the SBMA board of directors passed a resolution giving a 119-day grace period for the collection of all due accounts that included lease rentals, common use services area fees, port charges, garbage collection fees, sublease shares, and gross revenue shares since March 2020. (MPD-SBMA)

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SBMA to release P123.1-M LGU revenue shares

Staying true to its mandate of spurring development among the eight local government units (LGUs) near the Subic Bay Freeport, the Subic Bay Metropolitan Authority (SBMA) continues to provide revenue shares to neighboring communities despite the Covid-19 pandemic.

SBMA Chairman and Administrator Wilma T. Eisma said the agency will release next week a total of P123.1 million, which came from revenue collections between July and December 2020 and the retained amount from the 2018 second semester LGU share.

“The release for this period is 29.9 percent lower than the shares for the same period last year, which was P175.7 million. And this goes to show how much the Covid-19 health crisis has impacted—and continues to impact—Freeport operations,” Eisma said.

“But it also goes to show that despite Covid-19, the SBMA and business locators in the Freeport have sustained economic growth and that Subic Bay will continue to be a catalyst for development in this part of the country,” she added.

For this period, Olongapo City will receive P28,631,819.10 in LGU share; followed by Subic, Zambales with P18,820,655.14; Dinalupihan, Bataan P15,311,741.98; San Marcelino, Zambales P14,753,996.41; Hermosa, Bataan P12,818,258.50; Castillejos, Zambales P11,522,821.52; Morong, Bataan P10,697,853.76; and San Antonio, Zambales P10,549,471.67.

The SBMA will release the shares to LGU officials in staggered schedules beginning next week.

The LGU share is determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent).  Olongapo, which is a highly urbanized city, always received the biggest chunk of the shares.

The shares constitute 2% of the 5% gross corporate income taxes paid by business enterprises in the Subic Bay Freeport Zone and were intended to augment LGU funds for tourism, infrastructure, education, peace and order, health, and livelihood generation.

With the advent of the Covid-19 pandemic last year, some LGUs said they have rechanneled part of the shares to health and safety programs to combat Covid-19.

The LGU shares are released to LGUs twice a year, with tax collections from January to June released in August, and collections from July to December released in February the following year.

For the entire 2020, the SBMA has released a total of P277.98 million in revenue shares to seven municipalities and one city near the Subic Bay Freeport Zone. (MPD-SBMA)

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4 cops, 1 civilian held in Subic shabu lab bust

Four members of the police force in Olongapo City were arrested here early this morning along with a civilian suspect in connection with the discovery and dismantling of a clandestine laboratory used in the manufacture of illegal drugs.

A report from the Criminal Investigation and Detection Group of the Philippine National Police in the National Capitol Region (PNP CIDG-NCR) identified the policemen as PLt Reynato Basa Jr., PCpl Gino dela Cruz, PCpl Edesyr Victor Alipio, and PCpl Godfrey Duclayan Parentela. All were assigned at Station 2 of the Olongapo City Police Office.

The lone civilian arrested in the operation was Jericho Dabu, a resident of Olongapo, who tried to sell one kilo of methamphetamine hydrochloride or shabu to a poseur-buyer from the Philippine Drug Enforcement Agency (PDEA).

The sting operation was carried out at 336-B Finback Street, Kalayaan, Subic Bay Freeport by the PDEA NCR and Region 3 offices, PNP-CIDG Northern Manila, PNP-CIDG Zambales, PNP Maritime Group, and the Subic Bay Metropolitan Authority’s Intelligence and Investigation Office (SBMA-IIO).

The authorities confiscated from the suspects 300 grams of suspected shabu, various laboratory equipment and chemicals used in the manufacture of drugs, four Glock 17 9mm pistols, five cellular phones, a Honda Civic 1996 sedan with plate number UKM 779, and bundles of boodle money used in the sting operation.

According to the SBMA-IIO, the operation started at about 2 pm on Thursday, January 14, when operatives conducted surveillance in the area.

At past midnight, the authorities proceeded with a buy-bust operation which netted Dabu, who was caught receiving marked money in exchange for one kilo of shabu.

The arrest led to the discovery of the clandestine drug laboratory, which SBMA-IIO described as a “kitchen-type operation,” as well as to the arrest of the alleged policemen-protectors inside the house where the laboratory was located.

Unconfirmed reports from the PNP indicated that the syndicate behind the illegal drugs operation was headed by a foreign national, who is now the subject of follow-up operations.

SBMA Chairman and Administrator Wilma T. Eisma, meanwhile, commended the law enforcement units involved in the operation “for ferreting out this scourge that erodes the very ideals of the Subic Bay Freeport as an investment and economic growth center.”

“The SBMA will always support our law enforcement agencies in ridding our society of elements that degrade our decent and lawful way of life,” Eisma said.

The SBMA chief also called on residents and other stakeholders in the Freeport to be vigilant.

“Let us care for each other in this community. Let us know our neighbors and contribute all we can to keep Subic safe for everybody,” she added. (MPD-SBMA)

PHOTOS:

Operatives make an inventory of evidences seized at the clandestine drug laboratory where four police officers and one civilian were arrested on January 15. (MPD-SBMA)

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SBMA welcomes probe on Grande Island development deal

Directly addressing the reported call by an advocacy group for the Senate to investigate the alleged sell-out to Chinese investors of the Grande and Chiquita Islands here in Subic Bay, the Subic Bay Metropolitan Authority (SBMA) said it looks forward to such an official inquiry to resolve the long-drawn issue over the two tourism islands here.

SBMA Chairman and Administrator Wilma T. Eisma said that the Subic agency would welcome any investigation over the falsely reported “sale” of the islands, which were leased in 2019 to a joint venture between GFTG Property Holdings Corp. and Sanya CEDF Sino-Philippine Tourism Investment Corp., as Chinese company.

“First of all, I would like to point out that Grande and Chiquita have not been sold—they are still the property of the Philippine government,” Eisma said. “But there is an investor-company renting the islands, and which has committed P180 million to build a five-star hotel, restaurant and recreational facilities on these properties.”

“If someone would want an investigation of the Grande Island investment project, then I say, by all means get on with it!” Eisma reacted on Thursday.  “In fact, we are highly encouraging this group calling for an official investigation so that this matter can be resolved once and for all,” Eisma added.

The SBMA chief noted that while the proposed project by the Chinese investor-company has been “in deep-freeze” after the SBMA objected to some of the development plans two years ago, “some people are maliciously using it as an example of ‘creeping Chinese invasion’ in the country.”

“As much as that group, the Pinoy Action for Governance and the Environment (PAGE), says it has had enough of intrusions into our country’s exclusive economic zone, I would say that the SBMA, too, has had enough of speculation over the nature of this tourism project here,” Eisma said.

From the viewpoint of the SBMA, which is one of the country’s top investment promotion agencies, the Grande Island development project is a legitimate investment proposal in a Philippine special economic zone where 100% foreign ownership of business enterprises is allowed.

The SBMA Business and Investment Group said the Grande Island development project started in July 2000 with Silver Dragon Cruises Inc. (SDCI) entering into a lease agreement with the SBMA to rehabilitate Pier 684 on Grande Island and operate a ferry service within Subic Bay.

In June 2002, SDCI entered into a Lease and Development Agreement (LDA) with the SBMA to develop Grande and Chiquita Islands, but soon assigned its leasehold rights to GFTG Holdings Corporation in September 2002.

The SBMA said that over the years, it has approved various amendments to the agreement with GFTG, including escalation of revenue shares, extended leasehold period, special provision for developing and marketing housing units, and changes in ownership of what has become GFTG Property Holdings Corp.

Eisma said the biggest change in GFTG occurred in January 2019 when it brought in Sanya CEDF as its biggest shareholder, with 79.99% ownership of the firm. However, in May 2019, the SBMA Board of Directors withdrew its consent to the change in the control and ownership of GFTG, noting that the changes were made without its approval, thus violating the LDA between SBMA and GFTG.

At that time, the SBMA also noted that the Sanya-controlled GFTG had proposed to build 80 ultra-high end housing units over the water along the coastline of Grande and Chiquita islands. This, Eisma pointed out, was not allowed due to Constitutional limits giving the use and enjoyment of archipelagic waters exclusively to Filipino citizens.

Eisma said that ever since 2019, the Grande project has been in a limbo—for the SBMA, as well as for the investor. “The company continues paying rent for the property, but no new development has taken place—which is sad because Grande is Subic’s tourism jewel and it’s just going to waste,” she stressed.

Eisma added that if there may be some security concern over Grande Island because of its strategic location, then this is the best time to bring out and resolve the issue. “We welcome the call for a Senate investigation, but let me add that let’s take it very seriously. I hope the call was made not only for the purpose of grandstanding,” she added. (MPD-SBMA)

 PHOTOS:

The Grande and Chiquita Islands on Subic Bay; part of the existing resort project 

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Nidec reduces workers to sustain Subic operations

Japanese manufacturing firm Nidec Subic Philippines Corporation has retrenched more than 70 percent of its workers here to maintain the viability of company operations, the Subic Bay Metropolitan Authority (SBMA) said on Wednesday.

The firm, which manufactures precision electronic equipment, direct-drive spindle motors, and specialized digital core parts for multimedia, announced the separation of 784 of its workers on Tuesday and released their separation pay as well.

“It’s sad news for us, but we hope that this will be just a temporary setback that would allow the company to weather the effects of the Covid-19 pandemic on the global economy,” said SBMA Chairman and Administrator Wilma T. Eisma.

“The company will not close down altogether,” Eisma added, pointing out that Nidec has retained 300 workers to maintain the company facilities at the Subic Techno Park here.

As of December 2020, the firm had listed 1,197 direct hires on its rolls, aside from 211 workers sourced out from a manpower provider and 36 from a security firm.

But as early as August last year, Nidec vice president for administration Tetsuya Nakao had announced business difficulties that impacted company operations at the Subic production facility.

In a letter asking the Department of Labor and Employment for exemption to the new minimum wage order, Nakao revealed that “the impact of Covid-19 pandemic has greatly affected our operating expense and doubled our company expenditures on shuttle services.”

Last December, Nidec deputy general manager for administration Daisy Mae Jaucian informed SBMA Labor Department manager Melvin Varias that the firm will cut down on its employees, citing the closure of their base production of spindle motors effective February 5, 2021.

“We find that we must reduce our workforce to ensure the financial stability of the company,” Jaucian said. “We have always valued and continue to value the contributions of all our employees and deeply regret the need for this action.”

Varias said that Nidec had asked assistance from the SBMA for the profiling of the displaced workers for any job opening in the Subic Bay Freeport.

In response, Varias said the SBMA has identified a total of 254 job vacancies among 15 companies in the Freeport as of January 6 for which the retrenched workers may apply.

The available positions included, among others,  150 production operators and 15 quality control personnel in a shoe factory; 21 engineer, operator and inspector positions in a computer manufacturing firm; and production planners in another Japanese firm. (MPD/SBMA)

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Opening of new SFEX lanes to ease traffic in Subic

The temporary opening of the new lanes at the Subic Freeport Expressway (SFEX) will greatly ease heavier-than-normal movement of people and goods at the Subic Bay Freeport before and after the New Year festivities.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma said the Subic agency is expecting more people to visit or pass through Subic for the holidays, at the same time that business locators transport more products in and out of the Freeport.

“The opening of the new lanes, albeit temporarily, is very timely,” Eisma said on Monday after Public Works Secretary Mark Villar led the ceremonial opening of the new SFEX lanes.

“It will ease the movement of people and goods in the Subic Bay Freeport and further develop Subic’s business and tourism prospects,” she added.

Eisma also said the SBMA had opened the Subic Freeport to tourists during the holidays subject to strict health safety protocols, and that tourist volume had increased dramatically to almost the current 50 percent full capacity.

She added that the Subic agency had allowed children to come into the Freeport as long as they stay in open areas or alfresco restaurants and not in malls and other closed spaces.

“There are lots of people coming in and Subic is very much excited, in a way,” Eisma said.

Villar, along with Eisma and NLEX Corp. president and general manager J. Luigi Bautista, graced the ceremonial drive-through at the new 8.2-kilometer expressway lanes to mark the temporary opening on Monday. The new lanes will be open temporarily until January 15, after which more construction activities will resume.

During the expressway drive-through, Villar expressed satisfaction at the expansion project and said the new Subic Freeport Expressway (SFEX) is already 92 percent complete, with the remaining portion being the construction of the Jadjad Bridge.

Villar said the P1.6-billion SFEX Capacity Expansion Project is expected to be fully completed in the first quarter of next year.

It entails the conversion of the Subic Freeport Expressway into a 2x2 divided expressway, with additional two lanes, two new bridges and a tunnel, as well as the installation of expressway-standard LED lights, raising the elevation of Maritan Highway-Rizal Highway-Tipo Road junction, and the enhancement of drainage systems for better flood management in the area.

Villar also noted that the project will enhance accessibility and promote travel efficiency along this key road that connects Bataan and Zambales, as well as boost Subic’s competitiveness as an ideal shipping gateway for Central and North Luzon.

The SFEX, which is operated by NLEX Corp., a toll road subsidiary of Metro Pacific Tollways Corp. (MPTC), connects the Subic Bay Freeport to the 94-kilometer Subic-Clark-Tarlac Expressway, which further links with the Tarlac-Pangasinan-La Union Expressway. (MPD/SBMA)

TOP PHOTO:

Public Works Sec. Mark Villar, flanked by SBMA Chairman and Administrator Wilma T. Eisma and NLEX Corp. president and general manager J. Luigi Bautista, walks along the new lanes of the Subic Freeport Expressway past the new tunnel during the soft opening of the expanded expressway on Monday.

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SBMA sets more measures to curb BPO Covid-19 surge

The Subic Bay Metropolitan Authority (SBMA) has required a business process outsourcing (BPO) firm here to implement additional safety measures like staggered shutdowns and work-from-home arrangements to prevent further transmission of Covid-19 at its offices here.

SBMA Chairman and Administrator Wilma T. Eisma said the measures were deemed necessary after it was learned that 26 employees of Buwelo BPO Solutions, which operates a call center here, had tested positive for Covid-19 infection.

Contact tracing had earlier identified 65 employees of the company who were suspected to have been exposed to positive Covid-19 cases. Their RT-PCR tests had so far turned out 37 negative results and 26 positives as of Dec. 4. Two test results are yet to be released by the Philippine Red Cross.

“We are now working with the Buwelo BPO management to avert further virus transmission and to enhance health safety in the workplace. We asked them to implement partial shutdowns and alternative work schedules and it’s good that the company management was receptive,” Eisma said.

“At our end, we shall be monitoring the implementation of the agreed-upon health protocols and we shall be firm that these measures be carried out because workers’ welfare is paramount,” she added.

Eisma said that during discussions last Thursday, company officials agreed to implement staggered shutdowns at the company facilities, at one floor at a time starting Dec. 4, in the three-story building the firm occupies at the Subic Gateway Park here.

The company also agreed to allow 180 employees to work from home to allow better physical distancing at the offices. The firm employs a total of 729 who work in three shifts.

Eisma added that the company has previously requested for an expansion area and that the SBMA might allow the use of an adjacent building for this purpose.

Aside from these commitments, Eisma said the Buwelo management will immediately proceed with more disinfection at the company premises using ozone generators.

With this development, Eisma also warned workers and other stakeholders in the Subic Bay Freeport to report suspected cases of Covid-19, as required by the inter-Agency Task Force on Eme4rging Contagious Diseases (IATF).

The SBMA health officials said earlier that contact tracing showed the workers who tested positive either attended parties held outside of the Freeport, or were exposed to co-workers who went to the said social gatherings.

Dr. Solomon Jacalne, head of the SBMA Health and Safety Department, also noted that the surge of Covid-19 cases at Buwelo BPO was the result of “unsafe behavior” by some employees who did not honestly declare their health condition.

Jacalne said that some employees still reported for work when they were already exhibiting mild Covid-19 symptoms.  He also noted that contact tracers only learned of the beach and pool parties, which were suspected to have been the source transmission for the original positive clusters, after 16 of the employees have already tested positive.

Eisma had earlier urged companies in the Subic Freeport to forego the traditional company Christmas party this year to avoid the risk of virus transmission.  She pointed out that even the SBMA has cancelled its traditional Christmas party for this reason.  (MPD/SBMA)

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