Paulino reports banner year for Subic in State of the Freeport Address (SOFA)

“New investments, increase in revenues, new infrastructures, and influx of tourists highlighted 2022.”

This was the statement made by Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Rolen C. Paulino during his State of the Freeport Address (SOFA) held at the Subic Bay Exhibition and Convention Center (SBECC) on Tuesday.

Paulino cited, “2022 was a banner year for the SBMA despite the challenges during the past year. All revenue collections of the Trade Facilitation and Compliance Department, Business and Investment Departments, Seaport, Airport, Labor and Tourism Departments have increased compared to 2021 figures. And even surpassed pre-pandemic performance.”

Paulino reported that from these revenues, the SBMA has turned over P1.33-billion worth of dividends to the National Treasury in 2022. He added that this is higher by 20.21 percent to 2021’s P1.11-billion worth of dividends.

The SBMA was also able to help provide revenue shares to the contiguous communities of the Subic Bay Freeport Zone as stated in Republic Act 7227 as part of their revenue shares.

Paulino said that in Zambales, Olongapo City received P74.88 million, followed by Subic Town with P48.77 million, Castillejos with P29.74 million, San Marcelino with P38.54 million and San Antonio with P27.45 million.

He added that in Bataan, the town of Morong received a revenue share of P28.1 million, Hermosa with P33.81 million, and Dinalupihan with P39.98 million. Paulino said that the total revenues that the SBMA shared for the contiguous communities here amounted to P321.27 million for 2022.

“Back in July, Subic Bay Freeport was conferred as the Number 1 Tourist Destination in Central Luzon, and Number 5 in the Philippines in 2021 despite the Covid-19 Pandemic. We are determined to keep that reputation as by the end of 2022, we recorded 9.4 million same-day visitor arrivals in the Freeport,” he said.

The official also cited that his Fast, Friendly, and Flexible business practice has increased the number of approved new investment projects inside the Subic Bay Freeport Zone.

“As an indicator of investor confidence, 38 Subic Freeport locators will be implementing their expansion projects amounting to P36.34 billion. That is a significant jump from P591 million in 2021, let alone P160 million in 2020, which were still during the pandemic,” he cited.

He added that during the same year, 133 new investment projects with committed investments amounting to ₱14.06 billion.

Paulino added  that the top new projects in terms of committed investments are Northern Palawan Power Generation Corporation with P7 billion, followed by UNCO United Oil and Gas Philippines, Inc. with P1.9 billion, then Tawi Tawian Petroleum Trading Corporation with P1.5 billion, and Agila Subic Compass, Inc. with P1.1 billion.

“For the expansion projects, Vectrus topped in terms of committed investments, committing an additional P14.52 billion, followed by Agila South, Inc. with P10.74 billion, and Agila NY Naval Inc. with P6.28 billion, and of course, Nidec Subic Philippines Corporation with P4.2 billion,” Paulino said.

Meanwhile, the current workforce of the Subic Bay Freeport recorded 149,681 employees in 2022 and is expected to augment another 4,700 workers as new approved projects commence operations and current investors start implementing their expansion projects.

For this, he acknowledged the neighboring local government units for augmenting the manpower requirements of the Freeport investors.

The SOFA is an annual event of the Subic Bay Freeport Chamber of Commerce (SBFCC) where members are given a heads-up on the accomplishments of the SBMA from the previous year as well as a glimpse of the plans and programs for implementation by the Agency. (MPD-SBMA)

Read More

SBMA releases ₱178.7-M revenue shares to neighboring LGUs

The Subic Bay Metropolitan Authority (SBMA) officials met with the local chief executives and representatives of this premier Freeport’s neighboring local government units (LGUs) to distribute a total of ₱178.7-million revenue shares due them.

During the event, SBMA Chairman and Administrator Rolen C. Paulino welcomed the mayors and their finance officials at the Terrace Hotel for a short program.

“This is the second time we are doing it face to face since restrictions of the Covid-19 pandemic eased up. And as we slowly go back to our usual activities, I hope that these revenue shares would greatly help augment developments in their respective communities,” Paulino said.

“Because the SBMA and LGUs support one another, extending to them their share of our revenue is just appropriate. After all, we all are committed to protect the Freeport for our future generations,” Paulino stressed.

Meanwhile, SBMA Senior Deputy Administrator Atty. Ramon Agregado disclosed that the SBMA performance has improved in 2022—with higher revenues generated, and more business projects in the pipeline.

“The higher the revenue, the higher the tax payments, and that will be good for the LGUs,” Agregado assured as he mentioned a few projects in the pipeline that will generate a better outlook for the Freeport for the rest of the year.

Periodical figures show that the second semester revenue shares increased from ₱140,602,568.18 to ₱178,705,824.54 for the second semester of 2021 and 2022, respectively, by 27.1 percent. 

Paulino explained that the increase may have been largely attributed to the Fast, Friendly, Flexible service implemented when he assumed his post as chairman and administrator.

He further said that the shares are derived from the five-percent corporate taxes paid by business locators in the Freeport,  to promote parallel development in our neighboring communities and enhance LGU projects in tourism, infrastructure, education, peace and order, health, and livelihood generation.

All the mayors and finance officials expressed gratitude for the revenue shares, especially since they received larger amounts for their first tranche this year.

“Castillejos, Zambales is a third class municipality. A very small community and the revenue we generate is not enough. I am grateful to the SBMA for this revenue share, which is a big help for our finances, and more so because of the ₱4-million increase from last year,” Mayor Jeffrey Khonghun said.

“Our youth, our students in Dinalupihan, Bataan are thankful to the Freeport workers for their benefit from the tax they pay. We pray for good health for everyone so we can all serve our constituents,” Mayor Herman Santos, Jr. said.

During the pandemic, distribution of LGU shares was done on appointment basis to avoid crowding, in compliance with health protocols being enforced in the SBF.

For the collection period of January to December 2022, the SBMA has released a total of ₱319.3 million revenue shares, which is computed according to population (50%), land area (25%), and equal sharing (25%).

As such, the biggest LGU beneficiary for this period is Olongapo City, which received a total of ₱41,779,273.37. It is followed by Subic, Zambales with ₱26,842,905.77; Dinalupihan, Bataan with ₱22,257,027.69; San Marcelino, Zambales with ₱21,461,412.26; Hermosa, Bataan with ₱19,103,262.77; Castillejos, Zambales with ₱16,277,249.93; Morong, Bataan with ₱15,780,896.32; and San Antonio, Zambales with ₱15,203,796.43.

Revenue shares are released twice a year—August for the first semester, and February of the following year for second semester. (MPD-SBMA)

Read More

SBMA posts historic P387-M income in January

Boosted by a resurging seaport trade, the Subic Bay Metropolitan Authority (SBMA) recorded an income of P387 million last January, the highest monthly revenue ever recorded in the Subic agency’s almost 30 years of history.

SBMA Chairman and Administrator Wilma T. Eisma said the operating revenue posted in January 2022 was higher by 92 million, or 31%, compared to that in the same period last year.

The highest monthly revenue previously recorded by the SBMA was P358 million in “pre-pandemic” June 2019. The other record highs were P343 million in December 2021; P337 million in October 2020; P324 million in October 2018; and P298 million in July 2017.

This record-breaking income in January, Eisma said, was accompanied by other positive indicators: an 11% increase in operating expense that was higher by P10 million; a 41% growth in earnings before interest, taxes, depreciation and amortization (EBITDA); and a 20% increase in net income before tax with subsidy, which at P222 million was higher by P38 million.

Eisma pointed out that SBMA’s seaport operations alone contributed P221.4 million, with P91.62 million from cargo charges; P75.32 million in SBMA share from terminal income; P34.17 million in leases and rentals; and P12.28 million in vessel charges.

“We are hoping that this January record will be a foretaste of what’s to come in the succeeding months, as we ease down into normalcy with the waning Covid-19 pandemic,” said Eisma.

The SBMA, she added, “has really set its sights higher this year, especially with seaborne trade, after realizing an actual increase in container cargo traffic even at the height of the pandemic in 2021.”

According to a profit and loss statement from the SBMA Financial Planning and Budget Department, other than the P221 million from seaport operations, the agency’s January 2022 revenue of P387 million was enhanced by P111 million in land and building leases; P28 million in regulatory income; P8 million in housing leases; P6 million in airport operations; P.67 million in tourism collections; and P12 million in miscellaneous income.

Although land and building leases suffered a 1.8% decrease from its 2020 level of P113 million, it still contributed P64.73 million in land leases and P45.98 million in building leases this year, said SBMA budget officer Edith Marzal.

The slight decline in land and building leases was easily offset by a 65% increase in seaport income, a 35% rise in housing leases, and a 20% growth in miscellaneous income, Marzal added. 

She also said that SBMA airport operations income likewise showed a 6% increase in January 2022 compared to last year’s record, while regulatory fees grew by 8%, and tourism income by 48%.

Meanwhile, the SBMA reported an aggregate 11% increase in its expense accounts with P67 million in manpower payroll services; P12 million in debt servicing; P10 million in occupancy costs; P1 million in repair and maintenance; P.07 million in advertising and promotion; and P14 million in various services.

The single biggest item in SBMA expenses was manpower cost for regular employees, which stood at P64.7 million, followed by contractual services at P14 million. (MPD-SBMA)

Read More