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

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

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

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

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Subic sees modest growth despite global recession

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


PHOTO CAPTION:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PHOTO CAPTION:

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

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Tailin of Taiwan shrugs off crisis, eyes Subic expansion

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

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

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

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

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

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

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SBMA approves new investments worth $87.6-M

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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NGO says reforestation a better option for Subic trees

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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ICTSI Subic terminal rolls out new gate system

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

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

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

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

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

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

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

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

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

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NGO backs $120-million hotel-casino in Subic

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

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

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

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

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

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

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

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

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

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Construction of $1.1-B Power plant to start

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

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

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

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

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

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

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

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

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

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

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

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

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

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Civil Service cites 17 SBMA law enforcers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Subic container terminal bidding set for February

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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