SBMA expects more victory in CUSA fee dispute

The Subic Bay Metropolitan Authority (SBMA) is now expecting more success in court after it scored a huge legal victory on the issue of the Common Use Service Area (CUSA) fee, which was opposed by some businessmen and residents here since it was imposed nine years ago.

Atty. Ramon O. Agregado, SBMA Senior Deputy Administrator for Support Services, said the agency is anticipating to claim “victory in all of the other cases” after the Supreme Court (SC) dismissed the petition filed by Philip Morris Philippines Manufacturing Inc. in 2013 to stop the imposition of CUSA.

“We’re very happy that ultimately the Supreme Court decided in SBMA’s favor and sustained the validity of the CUSA fee,” Agregado said.

The Court’s First Division recently issued a 19-page resolution denying the Philip Morris petition to seek the reversal of the decision issued by the Court of Appeals (CA), which affirmed the December 2, 2015 ruling of the Regional Trial Court of Olongapo City dismissing the firm’s plea to stop the CUSA.

The CUSA fee was imposed by the SBMA in October 2012 to defray the cost of municipal services in the Subic Bay Freeport Zone that were being shouldered by the Subic agency. The fee covered law enforcement, fire-fighting, street lighting, and street cleaning.

In upholding the CA, the Supreme Court affirmed the constitutionality of the imposition of CUSA fee by the SBMA, adding that Republic Act 7227, which created the SBMA, “granted it authority to impose reasonable fees and charges for the provision of the municipal services covered by the CUSA Fee.”

Agregado said the SBMA is now waiting for the SC to affirm its decision and make it final and executory.

“Procedurally, Philip Morris can still file a motion for reconsideration. But personally, we feel very confident that ultimately, the Supreme Court will affirm its decision, which was very comprehensive. It covered all of the issues raised by Philip Morris,” Agregado added.

The SBMA senior official also disclosed that other than the complaint filed by Philip Morris, there are about 11 to 12 cases filed by other locators against the CUSA fee. Some of these have already passed the Regional Trial Court and are already in the Court of Appeals.

“Once the Supreme Court’s decision becomes final, we will invoke the decision of the Supreme Court in all of the other cases involving other locators who filed cases against the CUSA fee,” Agregado said.

Agregado recalled that when the Freeport started in 1992 until the imposition of CUSA, the SBMA had shouldered expenses for municipal services, except garbage collection. “This continued until it came to a point that the expenses were already so heavy and so significant that they were draining SBMA’s resources,” he said.

When CUSA was imposed, and some business locators and residents objected and filed court cases, the SBMA continued to provide these services just the same, Agregado explained.

“Once the SC affirms with finality the SBMA’s right to impose CUSA fee, we will have to collect arrears from those who have not paid CUSA,” he added. (MPD-SBMA)

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LOOK: Eisma named new SBMA administrator

LAWYER Wilma T. Eisma, a former executive of Philip Morris Phils. Manufacturing, Inc., has been appointed by President Rodrigo R. Duterte as the new administrator of the Subic Bay Metropolitan Authority (SBMA), replacing Roberto V. Garcia, who resigned as both chairman and administrator in October.

In a letter dated Dec. 21, Executive Secretary Salvador C. Medialdea transmitted Ms. Eisma’s appointment letter to SBMA Chairman Martin D. Diño.

The appointment letter read: “By virtue hereof, you may qualify and enter upon the performance of the duties of the office, furnishing this Office and the Civil Service Commission with copies of your oath of office.”

In a separate letter dated Nov. 28, Deputy Executive Secretary Menardo I. Guevarra clarified that Mr. Diño is not the SBMA administrator, only chairman of the board of directors.

Mr. Guevarra’s letter was in response to Mr. Diño’s letter on Nov. 21 informing the Office of the President that he has “assumed the functions of the Subic Bay Metropolitan Authority (SBMA) Chairman/Administrator pursuant to Republic Act No. 7227.”

“Please be advised that the designation of Atty. Randy B. Escolango as Officer-in-Charge, Office of the Administrator, SBMA, has not been revoked by the Office of the President and thus remains in full force and effect,” Mr. Guevarra said in reply to Mr. Diño.

The SBMA is in charge of the Subic Bay Freeport and Special Economic Zone located inside a former US naval base. (Ian Nicolas P. Cigaral, BusinessWorld)

PHOTO: 
Atty. Wilma Eisma's official appointment signed by President Duterte (as shared on facebook).

http://www.bworldonline.com/content.php?section=Nation&title=eisma-appointed-to-head-sbma&id=138321

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Philip Morris starts medicine supply program for Ayta tribe in Subic Freeport

In a gesture of its commitment to support the community service program of the Subic Bay Metropolitan Authority (SBMA), Philip Morris International (PMI) provided the indigenous Ayta tribe in the Subic Bay Freeport with medicines worth P125,000, the first batch to be given under the firm’s medicine donation program.

Philip Morris, which operates its regional leaf tobacco warehouse in this free port, turned over several boxes of various medicines and vitamins to the Aytas of Pastolan Village here through Atty. Wilma Eisma, manager of local regulatory affairs and community relations of Philip Morris Phils. Manufacturing Inc. (PMPMI).

The donation was received on behalf of the tribesmen by Armina Belleza-Llamas, manager of the SBMA Public Relations Department.

Belleza said that Philip Morris also committed to replenish the medicine supply on a quarterly basis for the next five years.

SBMA Chairman Roberto Garcia said that the PMI medicine donation clearly manifests the continuing commitment of the company, in partnership with local delivery service provider Air21, to help the indigenous people living inside the Freeport area.

“Philip Morris, along with the Air21, has always been a partner of the SBMA in its many community service projects that seek to expand health and educational assistance to the communities around the Subic Bay Freeport,” Garcia noted.

Eisma said meanwhile that the donation “is only part of our commitment to the community in support of the health and wellness program of the SBMA for the Ayta tribal community in Pastolan, especially the children.”

In August 2011, some 200 children and 100 mothers in the Pastolan Ayta village received free medical check-up and medicines during the launching of a medical clinic program initiated by the SBMA, Philip Morris Philippines Inc., Air21 and Jaycees International.

In January 2008, PMPI also donated textbooks and computer sets to public schools in Pastolan, as well as barangay Kalalake in Olongapo City in partnership with the Knowledge Channel .

PMI has established a multi-million dollar PMPMI regional warehouse in the Subic Bay Freeport in an area which is recognized as a part of the Ayta ancestral domain. The warehouse stores 25 million tons of the best-quality tobacco leaf harvests for distribution to other Asian manufacturing facilities in Vietnam, Thailand, and Malaysia, among others. (RAV/MPD-SBMA)

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Philip Morris inaugurates 2nd phase of Subic leaf warehouse

Philip Morris Philippines Manufacturing Inc. (PMPMI) unveiled here on Thursday its new P600-milllion facility, the second phase of its P1-billion tobacco leaf storage hub project for Asia-Pacific operations.

This new facility boosted PMPMI’s leaf storage capacity from 6,100 metric tons to 14,000 metric tons, and would also allow expansion up to 10,000 tons more, said PMPMI managing director Christopher Nelson during the posh inauguration ceremony held at PMPMI’s 50,000 square-meter lot at the Subic Techno Park here.

“This development establishes the Philippines—particularly the Subic Bay Freeport Zone—as a major center for regional tobacco leaf trading and distribution,” said Nelson in his inaugural message.

“As Philip Morris grows its business in the Philippines, we will continue to act as a responsible corporate citizen and to conduct our business with the highest degree of integrity,” he told guests that included former Sen. Richard Gordon, Bureau of Customs deputy commissioner Alexander Arevalo, and Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza.

For his part, Arreza said that PMPMI’s decision to locate its international leaf tobacco warehouse in this free port “is a clear manifestation of Subic Bay’s business advantages—its strategic location, business incentives, support industries, security and skilled workforce.”

“Thank you for your strong belief in our country, in our people, and in Subic Bay. SBMA salutes Philip Morris for its vote of confidence in Subic, and for its commitment to further socio-economic progress in this region,” Arreza added.

According to Nelson, the Subic facility is one of their largest investments in Southeast Asia. The firm has also invested $300 million for a cigarette factory in Tanauan, Batangas in 2003.

He added that Philip Morris International has chosen the Subic Bay Freeport over Singapore, Malaysia, and other Asian sites based on the advantages of location, cost efficiency, as well as support from partner government agency.

The professional attitude of the workforce in the Subic Bay Freeport was also “one of the key factors” in choosing Subic, added Nelson.

Nelson also cited the indigenous Aeta tribe in the Subic Bay Freeport for allowing part of their ancestral domain to be used for development.

The new Philip Morris warehouse features state-of-the-art humidity control, fire suppression equipment, and air conditioning system to better handle tobacco leaf imports from China, Indonesia, Thailand, and India, among others.

“As with other investments of Phillip Morris here in the Philippines, this leaf warehouse further cements our commitment to the economic development of the country,” Nelson concluded. (SBMA Corporate Communications)

PHOTO: PMPMI managing director Christopher Nelson presents a token of appreciation to Subic Aeta elder Bonifacio Florentino during the inauguration of Philip Morris’s leaf tobacco warehouse at the Subic Bay Freeport. Also in photo are Aeta leader Leonardo Abraham, former Sen. Richard Gordon and SBMA Administrator Armand Arreza.

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Philip Morris starts P1-B Asia-Pacific leaf warehouse

Philip Morris International (PMI), one of the largest tobacco companies in the world, formally started on Monday the construction in this free port of its P1-billion tobacco warehouse for the Asia-Pacific region.

Philip Morris Philippines Manufacturing Inc. (PMPI) managing director Chris Nelson, along with Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga and SBMA administrator Armand Arreza, led the groundbreaking ceremony for the project that signaled the start of PMI’s second phase of investment in Subic.

The first phase involved the renovation of an old building inside a 10,000-square meter facility in Subic’s Boton area that PMI turned into a modern leaf warehouse with a capacity of 6,100 metric tons.

Nelson said the new warehouse would occupy 20,000 square meters out of the 50,000-square meter lot that the firm has leased from the SBMA for 50 years. The lot is located at the Subic Techno Park area of this free port.

The new warehouse project would amount to P1 billion over the years, Nelson added.

The new project, Arreza said, gives the Subic Bay Freeport a big boost because it proves that Subic could compete with other locations in the Asia-Pacific region.

In choosing a site for the regional leaf warehouse, Philip Morris had considered other sites like Singapore but eventually settled on Subic, he added.

“The project is actually a vote of confidence for Subic,” Arreza said. “It proves that Subic is an ideal place to establish your hub for the Asia-Pacific regional network.”

The new Philip Morris warehouse is expected to be completed by August this year.

Nelson said the new facility would easily accommodate 14,000 metric tons of imported tobacco leaves from China, Indonesia, Thailand and India, as well as local produce from Pangasinan and the Ilocos region.


This new warehouse will have state-of-the-art features, such as humidity control, fire suppression equipment and air conditioning that will guarantee freshness of tobacco leaf that will be shipped to PMI cigarette manufacturing facilities in the Philippines, Malaysia and Indonesia.

“In the future, we could further expand the warehouse facility to handle 24,000 metric tons of tobacco depending on the region’s demand,” Nelson said.

Nelson also said that PMI chose to build the warehouse in Subic because the company is committed to the Philippines and the local tobacco industry.

“We have a strong belief in this country. We have a strong belief in the manufacturing industry and in the workers,” Nelson said. (SBMA Corporate Communications)

PHOTO: Philip Morris managing director Chris Nelson and SBMA administrator Armand Arreza inspect the site for the P1-billion regional tobacco leaf warehouse at the Subic Bay Freeport. The facility will store tobacco leaf for use in Philip Morris cigarette factories in Malaysia, Indonesia and the Philippines.

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Philip Morris starts phase 2 of P1-B Subic warehouse project

Philip Morris Philippines Manufacturing Inc. (PMPMI) has signed a 50-year lease agreement with the Subic Bay Metropolitan Authority (SBMA), increasing the company’s investment here and paving the way for the construction of a P1-billion tobacco leaf regional warehouse.

In the lease agreement signed by SBMA administrator Armand Arreza and PMPMI managing director Christopher Nelson on Tuesday (Aug 18), PMMPI increased the total land area of its project here to 49,279 square meters, from the current 9,600-square meter warehouse it has refurbished when it started its Subic operation in 2007.

Once completed, the state-of-the-art warehouse will have a capacity to hold some 24,000 metric tons of tobacco. At present, the P30-million peso refurbished warehouse can only accommodate 6,100 metric tons.

Nelson said the new warehouse will boast of features like humidity control, fire suppression equipment, and air conditioning to handle the imported tobacco leaves from foreign suppliers, which will then be shipped and processed in cigarette manufacturing facilities in the Philippines, Malaysia and Indonesia.

According to Arreza, the agreement, which extended PMPMI’s lease agreement to 50 years, "strengthens Subic Bay Freeport’s competitive posture as South East Asia’s logistics hub, as envisioned by President Arroyo."

He added that this free port’s multi-modal transport (air-land-sea) capabilities, world-class infrastructures, modern road networks, and tax incentives might have prompted PMPMI to sign an agreement that spans half a century.

"A global brand such as Phillip Morris would not make hasty decisions, which means the firm has really found Subic an enviable logistics hub," said Arreza.

Just recently, Subic scored another milestone in its thrust to become a leading logistics hub when a major cargo forwarder based in the United States established its North Luzon hub in this free port, Arreza added.

Nelson, for his part, said that PMPMI continued to expand since their establishment here in 2007 at the Subic Technopark, and even posted growth during the global economic slowdown which hit the country in the last quarter of 2008.

Nelson added that the warehouse expansion is "a reflection of our faith in the Philippine government, particularly the SBMA."

The PMPMI managing director also expressed confidence that the company will sustain profitability and competence against its competitors, despite the increasing competition in the tobacco industry.

"If you plan well ahead, and stay committed, this country will reward you in many ways," Nelson said.

He added that the 50-year lease extension is another expression of PMPMI’s gratefulness to the Filipino people.

"It may be difficult to get us, but once you have us, it would be difficult for us to leave you," said Nelson.

Also on Tuesday, Nelson and other PMPMI executives visited the Nellie E. Brown Elementary School in Olongapo City to turn over the PMPMI-sponsored "Proficient Measures for Quality Education" project, which would benefit five local public elementary schools.

This project, which PMPMI said will be replicated in other areas such as Bataan, provides access to curriculum-based TV programs through the Knowledge Channel, in partnership with the Knowledge Channel Foundation Inc. (SBMA Corporate Communications)


PHOTO: SBMA administrator Armand Arreza and PMPMI managing director Christopher Nelson sign an agreement expanding and extending the firm’s regional leaf tobacco warehouse project in the Subic Bay Freeport Zone.

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