$125-M renewable energy projects approved in Subic

The Subic Bay Metropolitan Authority (SBMA) has given the green light for the establishment of renewable energy projects in its freeport amounting to a total of $125 million (P5.59 billion), officials said over the weekend.

SBMA Chairman Feliciano Salonga announced that the request of Subic Wind Power Generation, Inc. (SWPGI) to expand its business and include the establishment and operation of a solar energy project on top of its original proposal to establish and operate a wind farm has been approved.

SWPGI, a subsidiary of the China-based Sunnew Investments Ltd., had committed $75 million last year for the establishment of a 25-wind turbine farm that would generate some 50 megawatts of power here.

However, after ocular surveys and initial data gathering in Subic, the firm decided to also build a solar energy project that would yield from 100 to 200 megawatts of energy, Salonga said.

The expanded project will be worth $125 million, covering some 300 hectares of land at Subic’s Mount Sta. Rita and Redondo Peninsula, and will generate from 150 to 200 megawatts of power.

Salonga said this is in line with the government thrust to accelerate the development of indigenous and renewable power generation systems in the country.

It is also expected to employ about 150 workers, and earn the SBMA some $816,000 in annual lease rentals, he said.

Salonga said that SWPGI’s renewable energy project will not only bring the Subic Freeport at the forefront of the green energy movement, but will also help stabilize power supply in the Luzon grid.

“Subic has long been a net power consumer, but with this project we’re now entertaining the prospect of Subic as a net power producer,” Salonga said. (Franco Regala, Jonas Reyes, Manila Bulletin)

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One-stop facility for business jet services arises in Subic

Aviation Concepts (ACI) announced that it has leased the former FedEx hangar located in Subic Bay, Philippines, and that the hangar is currently in the final stages of refurbishment.

This 100,000 square foot facility is scheduled to be fully operational by this month, and will serve as the company’s second functional base in Asia-Pacific.

The center will offer FBO services to transient aircraft, seeking to market itself as a low cost alternative to popular locations in Hong Kong, Singapore and Kuala Lumpur. In a memo released to the public, the company emphasized its desire to allow for quick technical stops, with inexpensive fueling and minimal handling fees.

ACI is expecting the convenience of a full service aviation facility centrally positioned in Asia to attract significant air traffic to the Subic Bay airport.

According to President and CEO Terry Habeck, “Subic Bay is poised to become one of the busier business aviation hubs in Asia as more owners and operators seek low cost solutions in the region.”

In addition to FBO services, the center will house factory-trained technicians available 24/7 to accommodate the maintenance needs of most long and medium range business jets.

Because of its special economic status as a Freeport Zone, Subic Bay has the advantage of eliminating duties imposed on inbound aircraft parts, thereby avoiding custom holds.

As soon as fully operational, Gulfstream, Challenger and Westwind aircraft will be available for charter, and ACI will begin offering aircraft management and air ambulance services from the new base. (aviationprofessionals.org)

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P15-M fire hits 'Gapo

OLONGAPO City – Some P15 million worth of property and grocery items were reduced to ashes when a fire hit the Pent House building and a nearby grocery store at the corner of 21st Street and Rizal Avenue in Barangay West Bajac-Bajac at dawn Saturday.

City Fire Marshall Maj. Jonas Silvano said a fireman, SFO2 Gerry Anonas, of the Olongapo City Fire Department, was wounded.

Silvano said the three-hour fire which started at 5 a.m. at the Pent House owned by Aboy Lim was caused by an LPG tank exploded. The fire quickly spread to Happy Valley Grocery store.

Firefighters from the city, SBMA, Subic and Castillejos helped put out the fire. (Mamer Bañez, Journal Online)

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SBMA assures investors of adequate power supply

The Subic Bay Metropolitan Authority (SBMA) has assured investors here that electric power supply in this free port will be sufficient this year, even as the rest of the country may possibly face outages in summer when power demand will be at its peak.

SBMA Administrator and CEO Armand Arreza gave this assurance, citing that Subic’s power generation capacity has been boosted by the re-commissioning in late December of the 116-megawatt diesel power plant here.

“There is a lot of fear and apprehensions that within two years, the country as a whole would face energy shortage starting 2011,” Arreza said. “But as always, the SBMA has taken the necessary steps ahead of whatever problem that may disrupt the robust economy in the Subic Bay Freeport.”

“Now, with the upgraded diesel power plant, the growth of businesses here will surely remain unhampered,” Arreza added.

According to the SBMA chief, the five-year lease contract for the 10-hectare property where the Subic diesel power plant is located, was auctioned and later awarded to One Subic Power Generation Corp. (OSPGC), as the contract among the SBMA, National Power Corp. (Napocor), and former plant operator Enron Power Corp. expired in 2009.

OSPGC then entered into a Power Administration and Management Agreement with Trans-Asia Oil and Energy Development Corp. (Trans-Asia), which will be responsible for the administration and management of the entire generation output of the leased diesel power plant.

The Subic power plant was built in 1994 by the Napocor through a build-operate-transfer (BOT) contract with Enron.

OSPGC and its partners held the ceremonial start-up of the power plant in December, with Arreza as guest of honor. The event was also graced by OSPGC chief Dennis Uy, who is also president of Phoenix Petroleum Corp. of the Udenna group; OSPGC chief operating officer Jose Manuel Quimson; Trans-Asia vice president Ritz Santos; and National Grid Corp. of the Philippines chief engineer Wilson Martin.

During the start-up ceremonies, Arreza also expressed satisfaction over the partnership among the SBMA, OSPGC and Trans-Asia, saying that it would ensure that the facility “is run smoothly, profitably, but at the same time responsibly.”

OSGPC’s Uy meanwhile said the ceremonial start-up marks another milestone for the Udenna Group of Companies.

“We thank the SBMA for trusting us and awarding us the rights to operate the power plant,” Uy added. (SBMA Corporate Communications)

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Subic banks on ‘open skies’ to revive airport business

Business leaders in this freeport are banking on the reportedly impending "pocket open skies" policy -- which will further ease restrictions on foreign airlines in select international airports outside Metro Manila -- to help boost growth, starting with foreign visitor arrivals here.

Executive Secretary Paquito N. Ochoa, Jr. said that a new executive order will "probably" be issued, providing such policy for secondary gateways.

These are international airports outside Metro Manila equipped with Customs, Immigration, Quarantine and Security facilities.

The Civil Aviation Authority of the Philippines lists nine such airports outside Metro Manila, namely: Laoag International Airport in Ilocos Norte, Diosdado Macapagal International Airport in Clark, Puerto Princesa International Airport in Palawan, Subic Bay International Airport (SBIA), Kalibo International Airport in Aklan, Mactan International Airport in Cebu, as well as Davao, General Santos and Zamboanga international airports in Mindanao.

Officials said the policy will enable foreign airlines to apply directly with the Civil Aeronautics Board to increase their flights without having to go through bilateral government-to-government air service talks. But they will still not be allowed to bring passengers from one point to another in the country.

Subic Bay Freeport Chamber of Commerce (SBFCC) President Danny J. Piano said in a recent letter to Malacañang that SBIA would need such a policy to revive business.

Mr. Piano explained that since Federal Express transferred its overnight delivery hub from this freeport to China almost two years ago, SBIA had become underutilized and almost dormant.

"Even while the SBFCC formed the Subic Airport Revival Committee and collaborated with the Subic Bay Metropolitan Authority and many other organizations, our progress has been slow partly because of limited rights of budget carriers," Mr. Piano said in his letter.

"By providing for a more liberalized air space, we would undoubtedly reinvigorate the SBIA faster," he added.

"Liberalizing our air space will enhance access to Subic Bay and surrounding destinations. We are a freeport, after all."

Subic Bay Gateway Park (SBGP) Senior Manager Roland P. Addun said in a phone interview that the policy should encourage foreign budget carriers like Kuala Lumpur-based AirAsia Berhad to use this freeport as a hub.

SBGP, a 300-hectare industrial park, now hosts 500 sublessees and 150 direct locators, including some Taiwanese export firms.

AirAsia Philippines, Inc. said during its launch last month that it will start commercial flights in the country, using either Clark or Subic as its base.

"It would be a welcome development for all of us if AirAsia would consider Subic as soon as it has been entitled to pocket open skies policy," Mr. Addun said.

Mr. Addun said reports that businessman Antonio "Tony Boy" O. Cojuangco, who had led local investors in partnering with AirAsia Group Chief Executive Officer Tony Fernandes to put up AirAsia Philippines, is firming up investments in various facilities here "all...point to Subic as the next hub of AirAsia after the granting [sic] of pocket open skies policy." (RMG, BusinessWorld)

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