SBMA padlocks cigarette maker for tax evasion

The Subic Bay Metropolitan Authority (SBMA) closed down a cigarette manufacturer in this Freeport for tax evasion amidst a crackdown on companies here that fail to pay appropriate taxes and follow government regulations.

SBMA Chairman and Administrator Wilma T. Eisma identified the company as Qiu Tobacco Industrial Co. Ltd. Corp., which is engaged in the transshipment, packaging and repacking of tobacco products.

Eisma and Bureau of Internal Revenue (BIR) Region 3 Director Ed Tolentino led a joint SBMA-BIR team on Friday in inspecting the facilities of six cigarette manufacturers at the Gateway Park here to flush out those involved in the circulation of untaxed and fake cigarette products in the country.

During the inspection, it was found out that Qiu Tobacco, which produces cigarette brands like Belmont, Navy and D&B, did not have excise tax stamps on their soft packs.

A Chinese national who was caretaker at the facility said the cigarette brands were sold outside the country. But the joint SBMA-BIR team noted that the cigarettes had markings indicating they were intended for Philippine market.

Tolentino said this was a violation of Sec. 263 of the National Internal Revenue Code, which prohibits the possession or removal of articles subject to excise tax without payment of tax. Excise tax is a duty on manufactured goods which is levied at the moment of manufacture, rather than at sale.

The BIR official added that the lack of stamps meant the firm was not paying the proper tax for each pack that was manufactured and sold.

At the same time, the Qiu representative at the facility was not able to present a copy of the firm’s Certificate of Registration and Tax Exemption (CRTE). Eisma said this was a violation of an SBMA requirement to display the CRTE in company facilities.

A check with the SBMA Business and Investment Group indicated that Qiu Tobacco was issued a CRTE on December 5 last year. The permit was good until May 31, 2021.

Eisma said, however, that because of its failure to pay excise taxes, the company will be closed until further notice from the BIR.

The SBMA chief also reiterated that it was the agency’s mandate to ensure that all companies inside the Subic Bay Freeport Zone are paying their taxes properly.

She added that if a company complies with the law and the rules and regulations of the agency, the SBMA will protect that company. “If not, we will prosecute to the full extent of the law,” Eisma said. (JRR/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma and BIR Regional Investigation team member Gene Bragais (left) through an interpreter question the caretaker of the Qiu Tobacco Industrial Co. Ltd. Corp. (right) during inspection of the firm’s cigarette-manufacturing facility on Sept. 27. (MPD-SBMA)

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SBMA to foreclose Ocean Adventure Park

The Subic Bay Metropolitan Authority (SBMA) is set to repossess the popular marine theme park Ocean Adventure and related facilities due to multiple contract violations and failure to fulfill development commitments.

SBMA Chairman and Administrator Wilma T. Eisma said the agency on Friday served a notice of pre-termination of contract to the Subic Bay Marine Exploratorium Inc. (SBMEI), which operates the marine theme park complex under a lease agreement signed in 2007.

Aside from its failure to comply with its lease contract, the SBMEI also committed violations like illegal subleasing of property, constructing without permits, improper storing of waste, and closing public roads.

The company also has arrears of about P25 million on their payment scheme, as well as P7 million on its current billing, SBMA records showed.

“This is actually sad news for us, because Ocean Adventure Park is the pioneer theme park in the Subic Freeport and is a hugely popular tourist destination. However, its multiple contract violations have been a long-festering problem that must be addressed now,” Eisma said.

She explained that the SBMA has notified SBMEI of its violations as early as July and assiduously provided guidance to cure the problems, but the company did not submit a satisfactory proposal to correct the violations.

“We wanted them to stay, of course, but there was not much concrete action from their side,” Eisma said. “So after months of negotiation and attempts to help SBMEI keep its lease, there is no longer any other recourse but to apply the law and pre-terminate the company’s lease agreement.”

The SBMA official also stressed that SBMEI’s failure to deliver its development commitments not only constituted violations of its contract, “but also prejudiced the SBMA’s financial interest because it curtailed the agency’s earning potential.”

She added that even as the SBMA was willing to reconsider SBMEI's decades-old breach of contract, the park operator along with two other locators came out with a story accusing the Subic agency of not adhering to “ease of doing business” law.

Eisma said that the news report only served as a further irritant between the parties, since the SBMA has already put in place various measures to further ease business in the Freeport, including putting up a one-stop shop for permits and extending the validity of the Certificate of Registration and Tax Exemption (CRTE) from one to three years.

“We’re firm but fair,” Eisma said. “We agree that the SBMA should adhere to the ‘ease of doing business’ law, but that doesn’t mean we’d relax our rules to the detriment of the government.”

Under the pre-termination order, the SBMA will repossess all of the SBMEI’s 493.16 hectares of undeveloped property upon the lapse of the 30-day reckoning period. Then it will give the SBMEI 24 months to slow down its activities at the 11.6-hectare developed area that includes the Ocean Adventure Park, the Camayan Beach, and the newly-opened Adventure Water Park.

“We’re giving them sufficient time to wind down their operations at the marine park, remove all their animals and movable property, and vacate the premises. We are also concerned about the disruption and stress this would cause to the animals, hence the two-year leeway,” Eisma said.

The Ocean Adventure Park started operations in 2000 under a contract that covered only the marine park. In 2007 the SBMEI entered into a new agreement for the lease of a total of 436.89 hectares of land, and 67.87 hectares of bay area with a commitment to develop 101.71 hectares for more tourism.

Eisma said the SBMA has already informed the Office of the President of its decision to foreclose the SBMEI, but added that the agency has not yet closed the door to renegotiation. (MPD/SBMA)

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SBMA: Measures promoting ‘ease of doing business’ already in place

The Subic Bay Metropolitan Authority (SBMA) clarified on Friday that it has put in place significant measures to improve locator services in the Subic Bay Freeport in line with President Duterte’s directive for agencies to simplify business procedures and expedite transactions.

SBMA Chairman and Administrator Wilma T. Eisma said among the measures already implemented by the Subic agency are extending the validity of business permits from one to three years, and establishing one-stop shops to automate the processing of permit renewals.

“We have operationalized these measures last year, which was also the time when President Duterte approved Republic Act 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018,” Eisma pointed out.

“In fact, we established the One-Stop Shop Business Processing Center (OSSBPC) in February 2018 and then released the first batch of the three-year Certificates of Registration and Tax Exemption (CRTEs) in June last year. RA 11032 was approved in May,” she said.

“Then following the issuance this July of the implementing rules and regulations for RA 11032, we formed our anti-red tape unit with key officials as members, and also created three technical working groups to oversee compliance with the law,” she added.

The SBMA official cited these initiatives in the wake of a report that some businessmen here were urging the Subic agency to “adhere to the ‘ease of doing business’ law.” (RAV/MPD-SBMA)

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SBMA honors 161 employees in 5th Loyalty Awards

A total of 161 employees who have rendered continuous service to the Subic Bay Metropolitan Authority (SBMA) from 10 to 25 years received well-deserved honor from the Subic agency recently.

SBMA Chairman and Administrator Wilma T. Eisma led the tribute at the 5th SBMA Loyalty Awards rites held at the Travelers Hotel here on September 13 and expressed gratitude for the workers’ dedication and loyalty.

“Today we honor all of you who have given their dedication, their faithful work, and even devotion to the agency. You have worked so hard for the SBMA, and we recognize that without you, this agency would not be where it is today,” Eisma said.

Twenty-two awardees with 10 years of service to the agency marched down the aisle of the event center, followed by 70 with 15 years of work, and 64 who have served for 20 years.

But those who received a standing ovation from their SBMA colleagues were the five employees who have completed 25 years of service. They were Armila Alviz, Emilia Canonizado, and Leonor Dulcero of Accounting Department, Renato Gayondato of Law Enforcement Department, and Alfredo Planea of Treasury Department.

In her inspirational message, Chairman Eisma defined what the loyalty award is all about, pointing out that the service award was not meant simply as a measure of the years spent with the agency.

“Loyalty should not be measured by just because you showed up for work; it should be measured because you showed up and worked hard. You showed up and showed the world that you are working and making a difference. And we are very lucky you did all that for SBMA,” she told the awardees.

Eisma also said that loyalty meant “looking after each other, looking after the SBMA every time, and making sure that every step we make for SBMA will bring us to a better future.”

In response, 20-year service awardee Severo Pastor Jr., who is manager of the SBMA Labor Department, said that SBMA employees had always been forward-looking workers.

“In my 20 years of service, I served six administrations with different thrusts, survived different economic situations, and welcomed several waves of multi-nationals, but in all these years I can proudly say that we have developed programs that promote relevance among the Subic Freeport work force,” Pastor said.

He added that in the last 10 years, his department has streamlined 16 processes, nine of which are in compliance with the Anti-Red Tape Act, while others are for various frontline services.

Pastor also took the opportunity to bid farewell to the SBMA, ending his speech with a song that he wrote as a parting message to SBMA colleagues.

The SBMA loyalty awards, sanctioned by the Civil Service Commission through the SBMA Human Resource Management Department, is being given to employees with permanent status who have rendered from 10 to 25 years of continuous and satisfactory service in the government.

The accolades given to the service awardees included plaques of recognition, certificates of service, and monetary reward. (RFD/MPD-SBMA)

PHOTO:

SBMA 25-year service awardees, accompanied by family members, receive recognition from senior agency officials led by SBMA Chairman and Administrator Wilma T. Eisma. (AMD/MPD-SBMA)

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Ombudsman dismisses Diño charges vs. SBMA officials

The Office of the Ombudsman has dismissed for lack of merit a complaint filed two years ago by then Subic Bay Metropolitan Authority (SBMA) chairman Martin Diño against five senior officials of the agency.

Diño, who is now undersecretary at the Department of the Interior and Local Government (DILG), filed charges of grave misconduct, serious dishonesty, gross ignorance of the law, and grave abuse of authority/oppression against the officials in connection with his claim for salary as SBMA chairman.

But in a decision approved by Ombudsman Samuel Martires last July 29, the anti-graft body cleared SBMA Senior Deputy Administrator Ramon Agregado, Deputy Administrator for Finance Antonietta Sanqui, Treasury Department manager Myrna Caseja, Accounting Department manager Emilia Canonizado, and Budget Department manager Editha Marzal and ruled that they acted only in accordance with the law.

Records at the Office of the Ombudsman showed that Diño filed the complaint on July 19, 2017 when he was head of the Subic agency, alleging that he “never received his salary/compensation except (for) per diems on regular board meetings he attended.”

Diño also contended that his claims for salary were rejected by the respondents despite several oral requests.

The SBMA officials, however, denied the charges and averred that under the law it was not Diño who was the real plantilla officer, but the SBMA administrator who also serves as chief executive officer.

Under this setup, they added, the SBMA issued salary only to the SBMA administrator and paid out only per diems to the SBMA chairman based on the latter’s attendance at board meetings.

In dismissing the complaint, the Ombudsman observed that Diño’s only basis to justify his demand for salary was Executive Order (EO) 673 signed in 2007, which fixed the salary of the SBMA chairman to be the same as that of the SBMA administrator and amended Section 1 of EO 340, which reorganized the SBMA Board of Directors.

The Ombudsman then pointed out that “when EO 24, series of 2011 was issued, it repealed EO 340 together with EO 673.” It added that under EO 24, the SBMA chairman cannot receive salary equivalent to that of the SBMA administrator because it would be “over the limit for the maximum annual compensation for members of the Board of Directors of GOCCs, such as SBMA.”

“Based on the foregoing, respondents acted only in accordance with EO 24 They did not transgress or violate any law or established rule that would render them administratively liable,” the Ombudsman stated.

“And since no forbidden act or unlawful behavior was exhibited by respondents, all administrative charges against respondents shall fail,” the Ombudsman also said.

The decision was welcomed here by respondents, who collectively expressed relief over the favorable ruling.

“We have long awaited this good news. This only affirmed our innocence,” said one of the SBMA officials who faced Diño’s complaint.

The official added that it was very important for them to be cleared of the charges because it affected their good standing and benefits as employees in government service. z(HEE/MPD-SBMA)

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NLEX starts P1.6 B Subic Freeport Expressway works

Metro Pacific Tollways Corp. unit NLEX Corp. plans to complete in a year’s time the P1.6-billion capacity expansion of the Subic Freeport Expressway (SFEX) as construction activity goes full blast.

NLEX held a groundbreaking ceremony Thursday, September 12 for the 8.2-kilometer project aimed at improving traffic safety and easing travel time to and from the Subic Bay Freeport Zone.

Completion of the SFEX capacity expansion is targeted in September next year.

“One of the key drivers of economic growth is a network of high-quality roads. The NLEX Corp. 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,” NLEX president and general manager Luigi Bautista said.

The project will increase road capacity from one lane in each direction to two lanes each with the construction of two additional expressway lanes, together with two new bridges at Jadjad and Argonaut, and a new tunnel.

NLEX said the new bridges and the tunnel would be constructed parallel to the existing ones.

Also included in the project are the installation of expressway-standard LED lights as part of the tollway company’s efforts to improve motorists’ visibility when driving at night, the raising of Maritan Highway-Rizal Highway-Tipo Road junction, and the enhancement of the drainage system to help alleviate flooding in the area.

Once completed, the project will enhance accessibility and promote travel efficiency on the key road connecting Bataan and Zambales.

Subic Bay Metropolitan Authority (SBMA) chairman and administrator Wilma Eisma said the expansion project is expected to boost Subic’s competitiveness in trade and tourism industries.

“The project will help sustain Subic’s position as a globally competitive trade and tourism hub. This road expansion will complement SBMA’s infrastructure development program and promotion of Subic as an ideal shipping gateway for businesses in Central and North Luzon,” she said.

In line with the ongoing construction, NLEX committed to plant more trees to replace those affected by the road project. (Richmond Mercurio, Philippine Star)

PHOTO:

SBMA Chairman & Administrator Atty. Wilma T. Eisma (far right) along with NLEX and Local Government officials during the groundbreaking ceremony signaling the start of the SFEX expansion. (Photo from SBMA Chair & Administrator Facebook page)

https://www.philstar.com/business/2019/09/13/1951234/nlex-starts-p16-b-sfex-works#K4I02T62E9WSI75X.99

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Subic workers back to 135,000 despite Hanjin closure

A steady growth in investments in the first half of this year has increased the number of workers in this premier free port to 135,224 despite the closure in January of what used to be the single biggest employer here in the past 10 years, the Hanjin shipyard.

Figures from the Subic Bay Metropolitan Authority (SBMA) indicated a slight increase in this year’s first half employment figure of 135,224 over the 133,940 record in the same period last year.

“We’re back to more than P135,000 active workers now, which is just a shade lower than our 2018 yearend record of 135,690. But by the end of this year, we are confident that we would again break this 2018 employment record,” said SBMA Chairman and Administrator Wilma T. Eisma.

“We’re getting a steady increase in the number of new investments, as well as expansion projects, so we’re also expecting a corresponding steady increase in the number of new jobs,” she added.

Among the industries here, the service sector hired the biggest number with a total of 92,453 workers or 68.37% of the total workforce employed by a total of 2,765 companies as of July this year. In June 2018 the record was 76,652 workers (57.23%) hired by 2,470 companies.

In the manufacturing industry, there are now 23,031 employees (17.03%) working for 88 companies here in the first half of this year. Last year, there were 18,197 employees (13.59%) working for 85 companies in this category.

Meanwhile in the construction sector, there were 11,729 workers (8.67%) hired by 199 companies as of the first half of this year. Last year, there were 10,868 employees (8.115) working for 185 companies.

Eisma noted that the rehabilitation of various infrastructure facilities inside the Freeport, including roads, had significantly increased the number of workers hired by construction companies here.

On the other hand, Eisma said that there has been a 450% drop in the number of employees working in shipbuilding and marine-related services after the Korean shipbuilder Hanjin Heavy Industries & Construction Philippines, Inc. filed for bankruptcy last January.

SBMA records indicated a total of 5,901 workers (4.36%) hired by 96 firms as of the first half of 2019, compared to 26,559 (19.83%) hired by 110 companies in the first half of 2018.

Another sector that showed positive gain in the first half was the number of domestic helpers or caretakers employed at residences in the Freeport. This increased to a total of 2,110 (1.57%) from a total of 1,664 in the same period last year.

SBMA data also showed that there are more male employees in the Subic workforce today, with a total of 91,190 (67.44%) compared to 44,034 females (32.56%).

However, the females are catching up considering that there were just 39,079 female workers (29.18%) in Subic last year, compared to 94,861 (70.82%) males.

Among the sources of manpower, Olongapo City remained to be the biggest provider in the frist half of 2019 with a total of 59,107 workers (43.71%), followed by Zambales with 28,855 (21.34%); Bataan, 18,501 (13.68%); National Capital Region, 4,642 (3.43%); Pampanga, 3,574 (2.64%); and Tarlac, 1,679 (1.24%). Other areas contributed a total of 18,866 workers, or 13.95%.

Eisma said the SBMA expects a continuing growth in employment generation with the 45 new investments and 21 expansion projects the agency approved in the first six months this year.

The new investment commitments worth more than P5 billion are projected to generate close to 4,000 new jobs, Eisma added. (JRR/MPD-SBMA)

PHOTO:

Workers enter the Subic Bay Freeport main gate to get to their work places. (MPD-SBMA)

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Subic Bay to become a gateway for 5G services

This Freeport is poised to be a gateway for future 5G services after next-generation broadband satellite operator Kacific tapped ABS' ground infrastructure at the Subic Space Center as it prepares for the launch of its Kacific1 satellite later in the year.

ABS’ teleport in Subic Bay will host, operate and provide first level support for its gateway hub.

Kacific1 will be a pioneering High Throughput Satellite (HTS) to be located over Asia-Pacific using Ka-band spot beams for extremely cost-efficient broadband delivery. Its 56 powerful high throughput beams will cover select areas over the Pacific Islands and South East Asia, with six beams covering The Philippines archipelago and a further 21 beams covering Indonesia, Timor-Leste and Malaysia.

“Kacific chose to locate its ground infrastructure in the Philippines because it is a priority market for us,” says Kacific CEO, Christian Patouraux. “Our beams will reach 100 percent of the nation’s population across its many islands, making affordable connectivity available to all those who are currently unserved or underserved. ABS is an ideal partner as they have a proven track record and, like us, have also made a commitment to the Philippines.”

ABS has its primary space operations center for its entire fleet of six satellites in Subic Bay. Its teleport facilities operate with extremely high availability, with triple redundant power supply and fiber connectivity to Tier-1 IP international peering points.

In keeping with Ka-band operating norms for tropical regions, ABS has arranged a diversity site to be located nearby at the Clark Freeport Zone. The teleports will operate on an active diversity basis using state-of-the-art connectivity via a dedicated fiber route to directly optically connect the two gateway hubs. This ensures that commercial traffic would have a reliable transmission from one of the sites if, for example, rain degradation was impairing the functionality of the other.

ABS’ Philippines teleport is equipped with the latest technologies and platforms. It serves as one of the major satellite hubs over the Asia-Pacific region, hosting more than 50 antennas.

As satellites provide a complementary role to 5G connectivity, the Subic facility is poised to be a gateway for future 5G services, especially to remote areas. The facility is managed by professional personnel and experienced engineers providing round-the-clock services, 24 x 7 customer support and a dedicated customer program management team.

Click here for more information about the Subic Space Center.

https://spacewatch.global/2019/08/kacific-taps-abs-ground-infrastructure-for-its-gateway-services-to-the-philippines-and-the-greater-pacific-region/

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Taiwanese traders bullish on Subic business

Taiwanese investors have expressed confidence on the business outlook at the Subic Bay Freeport with the opening here last week of semi-conductor and electronics trader Yubantec, the latest Taiwanese company to locate in this free port.

Dr. Chin Der Ou, chairman of Subic Bay Development and Management Corporation, Inc. (SBDMC), which manages the Subic Gateway Park here, said the ongoing facilities improvement projects being undertaken by the Subic Bay Metropolitan Authority (SBMA) portend better business in Subic.

“There are many facilities improvement projects now. There are road construction and repairs, drainage improvement, as well as capacity expansion of the Subic Expressway. These are all good for investors,” Dr. Ou said during the Yubantec inauguration.

“I’m confident that Yubantec will do well in such a favorable business environment,” he added.

Taipei Economic and Cultural Office (TECO) representative Michael Hsu, meanwhile, said that more companies from Taiwan will locate in the Philippines, which he described as Taiwan’s “closest neighbor.”

“I assure you, the Taiwanese are willing to come to the Philippines to invest. And we have to find enough land for our locators especially in Subic Bay,” he added.

Yubantec, which is the latest addition to the Subic Gateway park locators, will engage in importing, designing, installing and after-sales services of air-conditioners, cold storage equipment and home appliances, as well as designing and sales of semi-conductors and electronic components.

SBMA Chairman and Administrator Wilma T. Eisma said the 61 Taiwanese firms in Subic now comprise the third biggest number of foreign investors here. Most are engaged in manufacturing and trading.

Taiwanese firms were among the pioneer investors in the Subic Bay Freeport Zone, she added, as the Subic Gateway Park, formerly known as the Subic Bay Industrial Park, was the first industrial park to be established in Subic.

Built in 1994, the Taiwanese-owned industrial park is now home to global names like computer giant Wistron Infocomm (Phils.) Corp., air-con specialist Johnson Controls-Hitachi, lock-maker Tong Lung (Phils.) Metal Industry, and footwear manufacturer Datian Subic Shoes, Inc.

Eisma said the entry of more Taiwanese companies helps Subic drive its momentum in investment and employment generation, pointing out that the SBMA approved 77 new projects in the first six months this year, compared to 45 in the first half of 2018.

The new investments, as well as the 21 expansion projects green-lighted in the first half, are projected to create more than 3,600 additional jobs in the Subic Bay Freeport.

Meanwhile, Senator Richard J. Gordon, who also graced the Yubantec opening, welcomed the entry of more Taiwanese investors here and pledged continued support to the SBMA.

Gordon said the government has a lot of infrastructure projects going on, as well as in the pipeline, for this area of Luzon which should also result in increased investments and business.

Gordon likewise called on the Subic business community to contribute in public discussion of issues that impact the Subic Bay Freeport and urged the Subic Bay Chamber of Commerce to drumbeat the advantages of the Subic Bay Freeport to investors abroad. (CAE/MPD-SBMA)

PHOTOS:

[1] SBDMC Chairman Chin Der Ou: “Improvement projects in Subic are good for investments”

[2] TECO Representative Michael Hsu: “More Taiwanese companies will come to the Philippines”

[3] Sen. Richard J. Gordon: “Drumbeat the advantages of Subic to investors abroad”

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SBMA approves P4.48-billion new investments, P555-million expansion projects in 1st half

The Subic Bay Metropolitan Authority (SBMA) approved new investment projects worth P4.48 billion in the first half of this year, eclipsing by 42% last year’s new investments record of P3.15 billion for the same period.

SBMA Chairman and Administrator Wilma T. Eisma said a total of 77 new investment projects were recorded from January to June 2019, with 41 approvals worth P3.57 billion in the first quarter and 36 projects worth P902.1 million in the second quarter.

In contrast, 45 new investment projects were approved in the Subic Bay Freeport Zone in the first half of 2018, with P1.17 billion worth of projects in January to March and P1.98 billion in April to June.

Meanwhile, the SBMA also green-lighted 21 expansion projects in the first six months this year, generating investment commitments totaling P555.2 million, Eisma said.

These included 9 expansions worth P515.3 million in the first quarter and 12 expansion projects valued at P39.8 million in the second quarter.

The number of expansion projects in Subic increased from 10 in the first half of 2018 to 21 this year, with committed investments growing from P276.2 million in 2018 to P555.2 million in 2019, or a growth of more than 100%.

The continuing entry of investor-companies in Subic, Eisma said, had resulted from the hard work of the agency to draw more business despite stiff global competition for foreign direct investments.

“More investor companies are coming to Subic, but we have to ensure that they get the right environment so that they will continue to bring their business here,” Eisma said in the Subic Labor Congress held here recently.

“The SBMA is working very hard to ensure jobs for local workers, but I challenge you to have the necessary skills,” she also told participants in the assembly.

Figures from the SBMA Business and Investment Group indicated that the 77 new investment projects in the first half of 2019 gave a projected employment total of 2,003, while expansion projects yielded 1,670 new jobs for a total of 3,673.

Following the established trend, leisure projects comprised most of the new investments with 15 approvals in the first quarter and 14 in the second quarter for a total of 29 projects.

Projects under general business had the second most approvals at 16, followed by logistics projects at 15, maritime and manufacturing at 11, and information and communications technology at 6.

Among the new projects, the five biggest in terms of committed investments are those of Sinoinvest Resources, Inc., which pledged P1.2 billion for a leisure project; Smart & Plan Subic Logistics and Development Corp. with P1 billion for another leisure venture; Arjuna Sand Trading, Inc., with P628.9 million for a logistics project; Worldwide Grace, Inc., with P515 million for general business; and Taiyo Subic Philippines Corp., with P392.5 million for a manufacturing project.

For the expansion projects, Datian Subic Shoes, Inc. has the biggest investment commitment at P316.6 million, while servo-motor manufacturer Sanyo Denki Phils., Inc. pledged the second biggest at P119.6 million.

Datian Subic Shoes, Inc.’s expansion project is also expected to turn out the most number of new jobs at 1,500.

The next biggest projection came from Sinoinvest Resources with 500 new jobs; Juan Fong Industrial Corp., 305; and Philippines Easepal Technology with 270. (HEE/MPD-SBMA)

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Subic airport poised for more aviation business

The Subic Bay International Airport (SBIA) is expected to gain the attention of more corporate clients and players in the aviation industry with the opening here on Monday of a facility for aviation maintenance, repair and overhaul (MRO) services.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma said the MRO project by business aviation services provider Aviation Concepts Technical Services Inc. (ACTSI) will boost the agency’s program for the full development of the Subic airport as a 24/7 hub for business aviation.

“We have long dreamed of developing the SBIA into a business and general aviation (BA/GA) airport in the country, and this project is one huge step towards realizing that vision,” Eisma said on Thursday.

“We are banking on the strategic location of Subic in the Asia-Pacific region to boost SBIA’s chances to become a regional player in the MRO business,” she added.

ACTSI, which is the maintenance arm of Falconer Aircraft Management, Inc., an affiliated company of global port management firm International Container Terminal Services, Inc. (ICTSI), has upgraded close to 18,000 square meters of hangar space at SBIA.

Under its 25-year lease agreement with the SBMA, ACTSI intends to provide hangar parking, corporate jet maintenance, repair and overhaul, as well as aircraft corrosion preventive solutions.

ACTSI’s large-sized aircraft users will also be able to enjoy easy take-offs and landings with the extensive 9,000-feet long runway at the SBIA.

In last Monday’s launch, the ACTSI hangar easily accommodated a 2010 Gulfstream Aerospace GIV-X (G450), which is more than 89 feet long and with a wingspan of more than 77 feet. A helicopter was also parked inside the facility.

ACTSI general manager John O'Meara and president and chief executive officer Fernando Gaspar led the soft launch of the Subic hangar with Senator Richard Gordon as guest of honor.

The senator, who initiated the establishment of the SBIA when he was SBMA chairman, welcomed the business venture of ACTSI and pointed out that the airport is one of the strategic advantages of the Subic Bay Freeport Zone.

The Subic airport started out in 1951 as the Naval Air Station Cubi Point of the United States Navy and was converted into a commercial airport under the SBMA in 1992.

The SBMA has 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.

SBMA Chairman Eisma also noted that in a forum sponsored last year by the Hong Kong-based Asian Business Aviation Association (AsBAA), aviation executives expressed enthusiasm about developing Subic into a fully integrated aerospace park and aviation hub.

She added that enthusiasm was further bolstered by the concrete support of the Philippine government which allocated P553 million to help get the Subic airport running by improving its equipment and intensifying the airport marketing campaign.

“Along this line, we are now working to revive domestic and international flight operations at the SBIA; regain the SBIA’s status as an international airport; and settle pending issues to make Subic a 24/7 air terminal,” Eisma also said. (JRR/MPD-SBMA)

PHOTO:

ACTSI general manager John O'Meara (2nd, left) and president and chief executive officer Fernando Gaspar (2nd, right) with guest of honor Sen. Richard Gordon lead the toast during the launch of the Subic hangar project. (MPD-SBMA)

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SBMA police nabs Chinese carnap suspect

Security officers of the Subic Bay Metropolitan Authority (SBMA) arrested a Chinese national here at the Subic Freeport after he and a companion took a vehicle at knifepoint along the Subic Freeport Expressway (SFEX).

Investigators at the SBMA Law Enforcement Department identified the suspect as Bin Zhang, 24 years old, with address at Silver City 4 Condominium in Pasig City.

Bin was arrested by SBMA security officers at 9:05 p.m. on Sunday at the vicinity of the Subic Gateway Hub where the stolen vehicle, a white Hyundai Starex with plate number KOP-347, was recovered earlier.

Investigators said Bin did not speak any English and his companion, who is yet to be identified, still remained at large as of Monday morning.

According to complainant George Villanueva, an on-call driver from Kawit, Cavite, he picked up the two suspects at Ortigas in Manila at about 3:00 p.m. on Sunday upon the instruction of his boss, a certain Mr. Wong.

Villanueva said he was told to bring the passengers to Buma Hotel in the Subic Bay Freeport.

However, upon reaching the Tipo Gate of the SFEX at about 6:00 p.m., the suspects allegedly poked him with a cutter knife. Villanueva escaped and the culprits immediately drove away toward the Subic Bay Freeport.

Villanueva thereafter sought the help of the Subic-Clark-Tarlac Expressway patrol and at 7:53 p.m. found the stolen vehicle parked near a bank along the Rizal Highway here.

Responding SBMA security officers soon apprehended Bin at the Gateway Park area at 9:05 p.m.

The suspect was later turned over to the Philippine National Police office in Hermosa, Bataan for proper filing of the case.

Under Philippine law, carnapping is a crime punishable with imprisonment for not less than thirty (30) years and one (1) day but not more than forty (40) years, when it is committed by means of violence against or intimidation of persons, or force upon things.

Moreover, aliens convicted under the provisions of the New Anti-Carnapping Act of 2016 are to be deported immediately after service of sentence without further proceedings by the Deportation Board. (HEE/MPD-SBMA)

PHOTO: 

Suspect Bin Zhang after his arrest by SBMA security officers (MPD-SBMA)

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4,230 volunteers for SEAG Clark, Subic clusters

At least 4,230 volunteers will serve in the Subic and Clark clusters of the 30th Southeast Asian Games (SEA Games) to be held from November 30 to December 11 this year.

Philippine Southeast Asian Games Organizing Committee (Phisgoc) Deputy Director for Volunteers Program Chris Tiu said Friday that of the number, 2,250 will be detailed in Clark, and the other 1,980 in Subic.

Tiu, who led the SEA Games volunteer program cluster launch, said he is overwhelmed with the spirit of volunteerism and nationalism of the volunteers who signified to serve in the upcoming meet.

“The spirit of volunteerism and nationalism join us together to Win as One. We hope to sustain them during and until the end of the games in December,” he said.

The Phisgoc volunteers totaled 9,000. Apart from those in Clark and Subic, 3,150 volunteers will be stationed in Metro Manila events and 1,620 in other clusters.

Tiu said out of 20,686 who have expressed their interest to join the volunteers' program, 14,683 applied through the official SEA games volunteers’ online portals, which include 2,960 foreign applicants while 6,003 were committed by their respective schools.

The Clark cluster will host aquatics, athletics, obstacle course sports, pentanque, lawn bowls, shooting, archery, rugby 7s, baseball, softball, dancesport, golf, kurash, judo, jiu-jitsu, arnis, sambo, wrestling, and wakeboarding.

Phisgoc’s partner institutions in the Clark cluster include Mabalacat City College, Jocson College, Angeles University Foundation, Philippine State College of Aeronautics, Gentry International School, Our Lady of Fatima University, and Ifugao State University.

Others are the City College of Angeles, Holy Angel University, Tarlac State University, Clark College of Science and Technology, Systems Plus College Foundation, Tarlac city government, Pampanga Chamber of Commerce and Industry, and Colegio de San Sebastian Pampanga.

The partner institutions in Subic include Lyceum of Subic Bay, Subic Bay Colleges, Columban College, Gordon College, Mondriaan Aura College, President Ramon Magsaysay State University, Philippine Merchant Marine Academy, and St. Joseph College-Olongapo.

The Subic event sports are canoe/kayak, traditional dragon boat, chess, muay thai, pencak silat, table tennis, triathlon, duathlon, aquatics-open water swimming 10 km., modern pentathlon, windsurfing, sepak takraw, beach handball, beach volleyball, and rowing. (PNA)

PHOTO:

SPIRIT OF VOLUNTEERISM. Philippine Southeast Asian Games Organizing Committee Deputy Director for Volunteers Program Chris Tiu announces on Friday (August 23, 2019) that at least 4,230 volunteers will serve in the Subic and Clark clusters of the 30th SEA Games. The launch of the Subic-Clark Cluster Volunteer Program was held at the ASEAN Convention Center in Clark Freeport, Pampanga. (Photo by Marna Dagumboy-del Rosario)

https://www.pna.gov.ph/articles/1078660

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SBMA releases P203.14-million shares to LGUs

The Subic Bay Metropolitan Authority (SBMA) distributed checks amounting to a total P203.14 million to adjacent local government units (LGUs) that benefit from the semi-annual revenue shares from the Subic agency.

SBMA Chairman and Administrator Wilma T. Eisma released the shares during a lunch meeting at the Subic Bay Yacht Club on Monday to LGU executives of Olongapo City and the towns of Subic, Castilejos, San Marcelino and San Antonio in Zambales, and Hermosa, Morong and Dinalupihan in Bataan.

The biggest disbursement went to Olongapo City with P47.24 million, followed by Subic with P31.05 million; San Marcelino, P26.34 million; Dinalupihan, P25.26 million; Hermosa, P21.15 million; Castillejos, P19.01 million; Morong, P17.65 million; and San Antonio, P17.41 million.

Monday’s releases brought the total amount received by contiguous LGUs to P2.07 Billion since February 2011 when the SBMA started directly releasing the revenue shares to them.

As 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 given in August are derived from two per cent of the five-percent gross income taxes collected from business locators in the Subic Bay Freeport Zone from January to June each year. Shares from collections in July to December are released in February.

Eisma pointed out that the LGU shares are given to augment local resources and enable stakeholder communities to carry out development projects in health, education, peace and order, and livelihood generation.

“This is another way by which the SBMA promotes inclusive growth in the locality, aside from generating employment opportunities for local workers,” Eisma said.

“While we don’t have any means to determine how the shares are utilized, we hope that these will be used for the communities to keep pace with developments in the Subic Bay Freeport,” she added.

For their part, the mayors gave assurances that the funds would be spent to further develop their respective communities.

Mayor Rolen Paulino Jr. of Olongapo said the shares he received would go for development projects that would benefit the people of the city, while Mayor Jonathan Khonghun of Subic said that their share would provide for scholarship grants to deserving residents of the municipality. Both are neophyte mayors who won in the recent elections.

The SBMA began releasing the shares directly to the LGUs, after a new tax collection scheme was implemented in August 2010. Previously, corporate taxes were remitted first to the national government, which would then distribute the LGU shares. (RAV/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma (center) with local chief executives after releasing LGU shares at the Subic Bay Yacht Club on Monday. Left-right: Mayor Rudy Ruiz (San Antonio); Mayor Elvis Soria (San Marcelino); Mayor Rolen Paulino Jr. (Olongapo City); Mayor Jopet Inton (Hermosa); Chairman Eisma; Mayor Eleanor Dominguez (Castillejos); Mayor Angela Garcia (Dinalupihan); Mayor Cynthia Estanislao (Morong); and Mayor Jon Khonghun (Subic). (MPD-SBMA)

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DENR wants Subic, Clark freeports monitored vs wildlife trade

THE Clark and Subic Freeport zones have become convenient gateways of wildlife violators that the Department of Environment and Natural Resources (DENR) called for the strict monitoring of two freeports against wildlife trade.

DENR enforcement division chief Fred Sadueste said the cooperation and active participation of different enforcement agencies of the government is a big boost to sustain the efforts in wildlife law enforcement.

"Central Luzon is a hub to Subic and Clark Freeport Zones, these have been the convenient gateway of wildlife violators for doing their illegal wildlife activities," he said in a training-seminar held recently.

He said these gateways must be strictly monitored to prevent any wildlife trade activities.

"We need every law enforcement agency not just involved, but trained extensively on how to correctly and efficiently handle wildlife cases," he added.

The call came after the DENR, in a bid to put an end to illegal wildlife trade in Central Luzon, in partnership with the United States Agency for International Development (USAid), recently conducted a one-day training and orientation to some 60 officials and personnel of Philippine Ports Authority (PPA), Philippine Coast Guard (PCG), Bureau of Customs (BOC), Philippine National Police (PNP), PNP Maritime Group, the Subic Bay Ecology Center and Law Enforcement Office and the local government of Subic, which was held in Subic Bay Freeport Zone.

According to Michael Lopez, DENR wildlife officer in Central Luzon, the training aimed to strengthen the knowledge of the participants on various local and international policies governing wildlife trade.

"Our target here is to enhance and upgrade also the skills and competencies of various law enforcement agencies of the government in monitoring illegal wildlife trade on various ports like the Subic Bay area and the Clark International Airport to arrest wildlife criminals," he said.

Some of the topics and policies that were discussed during the training were the Convention on International Trade in Endangered species of Wild Flora and Fauna (Cites) and the Republic Act 9147 or the Philippine Wildlife Act, the illegal ivory and wildlife trade and national and international responses, and the wildlife enforcement protocols in airports and seaports.

DENR records show that seven vulnerable wildlife, including four pangolins and three cobras both under the "red list" of animals threatened with extinction by the international union for the conservation of nature were turned over to the DENR after a successful operation with the National Bureau of Investigation (NBI) in Clark International Airport against a suspected Chinese wildlife smuggler in 2016.

In 2017, the joint wildlife enforcement operation of DENR and NBI in Bulacan resulted in the seizure of more than 100 illegally traded animals, including the blue-naped parrot and Palawan hill myna, both considered as endangered species. (Ian Ocampo Flora, Sun Star)

https://www.sunstar.com.ph/article/1819808

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Subic-Clark cargo rail line construction seen starting in early 2020, DoTr says

THE China-funded Subic-Clark Railway Project is set to begin construction by the first half of 2020, the transportation department said.

Transportation Secretary Arthur P. Tugade said last week the Philippines may receive from China the shortlist of contractors for the cargo train project within the month. From this list, the government will choose, through a competitive bidding process, the firm that will build the project.

Mr. Tugade said the auction may be finished before the year ends.

“We are expected to commence the process wherein we will be able to connect cargo operations between Clark and Subic by rail… by the first quarter next year earliest, or at the latest, second quarter,” he said.

Because the P50.03-billion Subic-Clark railway is financed through a China loan, the Philippines is required to select a contractor from a list of three Chinese nominees.

The Philippines initially targeted to start building the Subic-Clark railway this year, but the delay in receiving the shortlist of contractors from China pushed the project beyond the timeline.

The railway was originally scheduled to be completed by 2022 — the last year of President Rodrigo R. Duterte’s six-year term.

The cargo line is among the government’s 75 flagship infrastructure projects. It will run 71.13 kilometers divided into two sections: a 64.19-kilometer main line connecting Subic Bay Freeport Zone and Clark Freeport Zone, and a 6.94-kilometer link to the Subic Bay Port’s New Container Terminal.

The rail line is part of the Philippine National Railways (PNR) Luzon System Development Framework, which intends to integrate the logistics network in Central Luzon. (Denise A. Valdez, Business World)

https://www.bworldonline.com/subic-clark-cargo-rail-line-construction-seen-starting-in-early-2020-dotr-says/

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SBMA: Chinese project for Subic islands on hold

The Subic Bay Metropolitan Authority (SBMA) has already placed on hold a proposal by a Chinese-owned company to develop and operate two strategically located islands at the mouth of Subic Bay.

Reacting to reports that Chinese investors are targeting strategic islands in the country, including Grande and Chiquita Islands on Subic Bay, SBMA Chairman and Administrator Wilma T. Eisma said on Monday that a project covering the islands had been on standstill since May due to unresolved issues.

“It’s true that a group of Chinese investors wanted to take effective control of the islands to further develop them as tourism destinations, but we saw some problems about the proposed activities,” Eisma said.

She said that Sanya CEDF Sino-Philippine Investment Corp., which recently gained majority shares in the company holding lease and development rights over the two islands, had proposed to put up 80 ultra-high end housing units perched on water along the coastline of Grande Island up to Chiquita Island.

“This cannot be allowed because the Constitution limits the use and enjoyment of archipelagic waters exclusively to Filipino citizens,” Eisma pointed out.

“Moreover, Executive Order No. 65, or the 11th Regular Foreign Investment Negative List, prohibited the presence of any foreign equity in the utilization of marine resources in archipelagic waters,” she added.

Eisma also said that there had been previous changes in the corporate control or ownership of the GFTG Property Holdings Corp., which holds the current lease over Grande and Chiquita, which were made without the consent of the SBMA.

“These violated the Lease and Development Agreements that GFTG had signed with SBMA,” she said. Eisma said that because of these issues, the SBMA Board had passed a resolution on May 19, 2019 that withdrew consent to the change in control and ownership of GFTG.

The Board also noted the need for “further coordination between the SBMA and the Department of Finance with respect to this change in the control/ownership of GFTG, including the payment of appropriate taxes for the transfer of shares of GFTG.”

“The net effect is that the company’s proposal for Grande and Chiquita did not progress, and the project is currently non-operational,” Eisma said.

Information from the SBMA Business and Investment Group indicated that the Grande and Chiquita islands had been leased to various investor groups since 2002. The development plan for the islands included the establishment of hotel accommodations, restaurant, and recreational facilities, as well as the operation of boat service to and from Grande Island.

GFTG had initially committed an investment of P180 million to construct a 3-storey five-star hotel, build a marina parking area, and upgrade recreational facilities on Grande.

In April this year, GFTG brought in Sanya after supposedly signing a deal for partnership at the sidelines of President Duterte’s visit to Beijing for the Belt and Road Initiative Forum.

However, the agreement gave effective control of the project to Sanya, which gained 80% of the shares. Hua Huang Yang, a Chinese investor who joined GFTG as partner in 2012, retained 20% from his previous share of 30%.

The thrust of the new majority shareholders “apparently changed the complexity of the Grande development project,” Eisma noted. As of now, the SBMA is looking for some suitable company that could take over the development of the two islands to help bolster Subic’s tourism program, Eisma added. (HEE/MPD-SBMA)

PHOTO:

Grande Island, formerly Fort Wint during the US Naval Base heydays, and the nearby Chiquita Island strategically sit at the entrance of Subic Bay.

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SBMA joins Arbor Day celebration, volunteers for the environment

Employees and community volunteers of the Subic Bay Metropolitan Authority took part in various environmental programs including tree planting and coastal cleanups.

A total of 150 trees and 2,500 bougainvillea were planted during the Arbor Day celebration at Subic Bay Freeport Zone. The annual event is in compliance with Proclamation No. 643 which seeks to promote a healthier ecosystem through the rehabilitation and re-greening of the environment by planting trees and ornamental plants across the country.

Leading the activity was SBMA chairperson and administrator Wilma Eisma, supported by deputy administrator for engineering Marco Estabillo, DA for business Kenneth Rementilla, DA for administration Ruel John Kabigting, and senior deputy administrator for regulatory services and Ecology Center manager Amethya dela Llana.

Aside from the Arbor Day, the government agency also joined the Dive Heroes Festival-Scubasurero where volunteer scuba divers did underwater cleanup, the International Coastal Cleanup, and the Recyclables Collection event. The latter is a semi-annual activity which encourages stakeholders to help keep the Freeport clean by collecting recyclable materials and bringing them to accredited waste handlers for recovery and upcycling.

Moreover, the SBMA has partnered with the Magbukun Ayta tribe to protect and preserve their indigenous environment and culture under the United Nations Development Programme’s Indigenous Communities Conservation Area, with the support of the municipal government of Morong and the Philippine Association for Intercultural Development. (Manila Standard)

PHOTO:

SBMA chairperson Wilma Eisma leads the agency during the tree planting activity at Subic Bay Freeport Zone.

http://www.manilastandard.net/lifestyle/home-living/301626/sbma-joins-arbor-day-celebration-volunteers-for-the-environment.html

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