SBMA urges LGUs to start developing industrial parks as extension of the Freeport

The Subic Bay Metropolitan Authority (SBMA) has urged local government units (LGUs) surrounding the Subic Bay Freeport Zone (SBFZ) to start developing industrial parks due to increasing demand for bigger land areas from new investors.

In a meeting with municipal mayors and other officials and members of the SBMA Board of Directors, SBMA Administrator Wilma Amy Eisma suggested that each contiguous LGU should start developing industrial parks to accommodate local and foreign investors.

 Eisma said there is practically no more land space available for new investors who are looking for large areas for their new facilities inside the fenced areas, compelling the SBMA to endorse them to other areas in Clark or Bataan and lose supposedly additional revenue for Subic. Fenced areas refer to vicinities formerly occupied by the US Naval Base.

The proposal to extend the fenced area to contiguous LGUs is contained in Executive Order 675 which took effect as early as November 2007, amending EO97-A allowing local government unit officials, through the approval of the Sangguniang Panglungsod or Pambayan, to declare any parts of their jurisdiction as additional secured areas or additional areas of the Subic Bay Special Economic and Freeport Zone (SSEFPZ) which shall be organized, administered, managed and operated directly by the SBMA.

“Unless the LGUs start planning for the extension of the fenced areas now, LGU shares from SBMA may be affected. If we could not accept new investors, the LGU shares from SBMA would not improve and may even diminish,” she noted.

She stated that the extension of the fenced areas may not be implemented during her term, but it would be beneficial if the LGUs start drafting their respective master plans.

The SBMA Administrator urged the local officials not to wait for SBMA to act on it. “Please do not wait for us to act. The initiatives must start from the LGUs and we, in SBMA, are here to help and assist in planning,” she said.

Eisma lauded San Antonio Mayor Estela Antipolo who already started planning for the development of some 10,000 hectares of land and water areas which are to be converted into the San Antonio Economic Development Area that will form part of the extension of the Subic Bay Freeport Zone.

Through the San Antonio Sangguniang Bayan Resolution No. 13-080 which was passed in November 2013, parts of Sitio Silangin, Nagsasa and Talisayin, all located at the Redondo Peninsula will be granted tax and duty free privileges being an extension of the Subic Freeport.

SBMA is also expecting the same initiatives from the city of Olongapo, and the municipalities of Subic, Castillejos and San Marcelino in Zambales, and Morong, Dinalupihan and Hermosa in Bataan.

Earlier, SBMA distributed among the eight contiguous LGUs a total of P150. 47 Million in revenue shares for the second semester of 2016 which is 6.414% higher than the P141.397 million of first semester of 2015.

The LGU shares were derived from the five per cent (5%) of gross revenue paid to SBMA by locators and investors operating inside Subic Freeport. From the five percent GRT, three per cent goes to the national treasury, while the two per cent (2%) are distributed by SBMA among the eight LGUs for their community development projects including health, education, peace and order, and livelihood programs to enable these communities keep pace with developments in the special economic zone.

For the said semester, Olongapo City remains the highest recipient of the revenue share with P35.1 million, followed by the municipality of Subic with P22.96 million and Dinalupihan with P18.73 million.

Other municipalities were San Marcelino, P18.05M; Hermosa, P15.65M; Castillejos, P14M; Morong, P13.07M, and San Antonio, P12.92M. (RAV/MPD-SBMA)

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SBMA reaffirms commitment of cooperation with neighbor LGUs

The top official of the Subic Bay Metropolitan Authority (SBMA) has reaffirmed the agency’s commitment of support and cooperation with neighboring communities and renewed its pledge to help in promoting local development.

The reaffirmations of commitment were made by SBMA chairman Roberto Garcia recently, as he visited Mayor Rolen Paulino of Olongapo City, Mayor Jorge Estanislao of Morong, Bataan, and Mayor Jay Khonghun of Subic, Zambales, in their respective localities.

During his visits, Garcia informed the local chief executives that the SBMA is continuing with its task of generating investments that, in turn, would generate employment opportunities for local residents.

“SBMA is continuously receiving investment proposals, but the Subic Freeport has no land available for industrial parks or expansions,” Garcia told the mayors, adding that this is probably the right time for the LGUs to start discussing the prospect having the Subic Bay Freeport Zone expand into their respective areas.

Garcia explained that by virtue of Executive Order No. 675, local government units can allow SBMA to extend the Freeport beyond the “secured area,” along with the tax- and duty-free privileges as granted by the law, by having their local councils pass an enabling resolution.

In Subic, Garcia was welcomed by Mayor Khonghun, Vice Mayor Lauro Simbol and members of the Sangguniang Bayan.

Khonghun happily informed Garcia that since the shipbuilding company Hanjin Heavy Industries Inc. (HHIC)-Philippines started operations in Subic, most of the able-bodied residents have been employed.

Khonghun added that he would propose to the Sangguniang Bayan the immediate deliberation of the proposed expansion of SBMA in Barangay Cawag at the Redondo Peninsula.

In Morong, Mayor Estanislao thanked Garcia for considering his town to host a Japanese investor who is looking for some 120 hectares of land to be transformed into a commercial-industrial zone.

“We really appreciate your effort to bring investors to our municipality. It’s a big help to our efforts to generate employment and promote economic development here,” Estanislao told Garcia as he promised to open the matter of expansion to the municipal council.

Garcia also agreed to send SBMA disaster management experts to Morong to further train the town’s emergency rescue team on disaster management.

Meanwhile in Olongapo, the SBMA chairman was welcomed by newly elected City Mayor Rolen Paulino, Vice Mayor Rodel Cerezo and some members of the city council at the city hall.

Paulino assured Garcia that his administration is willing to cooperate with the SBMA in promoting tourism and investment in the area, and lauded the SBMA's offer to broaden local cooperation in terms of development, employment generation and tourism.

Garcia also discussed with Paulino a proposed memorandum of agreement between SBMA and a Freeport investor who wants to dredge two rivers in the city for free, in exchange for the right to transport and sell the sand to Singapore.

Based on calculations of CST Bluemax Subic, Inc., about 110,000 cubic meters of lahar/sand could be dredged from the Kalaklan and the Kalalake rivers, which separate the Subic Bay Freeport from Olongapo. The dredging operation would cost about P11 million without the exchange deal.

Paulino and Cerezo lauded Garcia for the proposal and pledged support for the project. (RAV/MPD-SBMA)

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Hermosa hopes for industrialization thru EO 675

HERMOSA, Bataan — Local government officials in this town have expressed enthusiasm in bringing to life Executive Order No. 675, which provides for the development of “additional secured areas” that may be operated as special economic zones under the supervision of the Subic Bay Metropolitan Authority (SBMA).

Hermosa mayor Danilo Malana said in a dialogue with SBMA officials that local community leaders here are amenable to the implementation of EO 675, as they believe this will help realize their vision of an industrialized municipality.

EO 675 was issued in November 2007 to allow the extension of the secured area of the Subic Bay Special Economic and Freeport Zone (SSEFPZ) to areas within the SSEFPZ but outside the presently fenced-in former US Naval Base.

Malana and members of the Hermosa town council received a briefing on EO 675 from SBMA administrator Armand Arreza at the Sangguniang Bayan Conference Room in the town’s municipal hall.

“We are amendable to Executive Order 675,” said Malana. “The only missing link is the exit (from the Subic-Clark-Tarlac Expressway) to Hermosa, and then we can declare an area as extension of the Subic Freeport,” he added.

Malana told Arreza that the municipality has already identified 400 hectares of generally flat land at Sitio Mabiga in Barangay Tipo for the proposed extension area of the Subic Bay Freeport. Mabiga is about 10 minutes drive from Subic Freeport and about 25 minutes from Clark.

“Travel time will be shorter if an SCTEx exit road right in the proposed extension area is opened,” Malana pointed out.

Arreza said that under EO 675, the SBMA may declare areas outside the former US Naval Base as “additional secured areas” that may be operated as a “special economic and freeport zone” to be supervised by the SBMA.

The additional secured areas will be entitled to all tax, fiscal and other investment incentives (except real estate tax for privately-owned property) under Subic’s free port regime. However, only establishments in secured areas may avail of the duty-free
privileges enjoyed by businesses in the free port.

The declaration of an additional secured area may only take effect after a concurrence by a resolution of the concerned town or city council.

Arreza said that many new investment proposals submitted to the SBMA cannot be approved, as the Subic By Freeport has no more space available for industrial parks or even for expansion projects.

“The solution can be found along the stretch of vacant and available spaces along the Subic-Clark-Tarlac Expressway which are agricultural or undeveloped,” he said.

Arreza also noted that Olongapo City, which is near the Subic Freeport, does not have enough flat land and open space for industrial use, while the road going to Subic town is narrow and not suitable for trucks and trailers.

With its more than 400 hectares of available open space and its wider access road, “Hermosa is the ideal expansion site for the Subic Bay Freeport,” Arreza added. (SBMA Corporate Communications)

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