SBMA chief graces opening of ₱36.7M Starbucks Coffee Shop in Subic

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Eduardo Jose L. Aliño led the opening of the first two-storey Starbucks Coffee Shop with drive-thru facility here on March 6, 2026.

According to Aliño, the opening of the two-storey Starbucks Coffee Shop indicates Subic Bay Freeport’s status as a popular tourist destination, anticipating a year-round influx of customers.

The Starbucks Coffee Shop invested ₱36.75Million in a 1,700-square-meter area at the portion of Lot 75-A, Rizal Highway, Central Business District, Subic Bay Freeport Zone.

The inauguration was attended by Engr. and Mrs. Rhammeth Paras, Arch. and Mrs. Adonis Co, Mr. and Mrs. Timothy Tang, and Engr. Aries Tanglao, owners of Pandabest Realty and Trading, Inc. 

The two-storey Starbucks locations usually offer enhanced, often scenic, spaces with increased seating, frequently housed in restored, architecturally unique, or heritage buildings.

Notable examples include the heritage shophouse in Singapore's Chinatown, the sprawling Reserve Hiraya in Tagaytay, and a colonial-style bungalow in Rochester.

“Now we have one here, with the building designed to be ‘work and study-friendly,’ providing more intimate, quiet spaces on the upper level compared to the busy ground floor,” Aliño said.

The SBMA Board of Directors, SBMA officials, and officials from the Rustan Coffee Corporation and Pandabest Realty and Trading were present during the inauguration ceremony. (MPD-SBMA)

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SBMA, Leechiu Property Consultants strengthen partnership to advance investments in SBF

Subic Bay Metropolitan Authority (SBMA) officials met with executives of Leechiu Property Consultants (LPC) to explore collaborative initiatives to accelerate tourism growth and investment promotion here.

Led by SBMA Business and Investment Group’s Senior Deputy Administrator (SDA) Renato Lee III, discussions focused on expanding high-impact tourism segments including cruise ship tourism, wreck diving, forest trails, and Meetings, Incentives, Conferences, and Exhibitions (MICE) activities.

David Lee-Chiu, CEO of Leechiu Property Consultants highlighted Subic Bay’s deep-water port and strategic location as key advantages in positioning the Freeport as a competitive cruise ship destination in Luzon. 

Lee-Chiu also noted that increased cruise calls would drive growth across hospitality, retail, transport, and local enterprises.

Meanwhile, SBMA Chairman and Administrator Eduardo Jose L. Alino also mentioned “wreck diving” as a strong niche market, with Subic Bay’s historic shipwrecks that continue to attract both domestic and international divers. 

Also discussed was the development and promotion of forest trails and eco-tourism experiences, recognizing Subic Bay Freeport’s protected forest areas as prime assets for sustainable tourism, nature-based recreation, and eco-adventure activities.

Both parties underscored the need to enhance MICE capabilities through investments in convention facilities, hotels, and integrated developments to capture corporate and international events. (MPD-SBMA)

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SBMA to build ₱1B residential complex for its employees

The Subic Bay Metropolitan Authority (SBMA) is set to build a ₱1-billion residential complex featuring four condominium buildings, which will be constructed within this premier Freeport zone, offering affordable housing for its employees.

 

To be called Subic Bay Residencias, the housing project was made official during the signing of the lease agreement between the SBMA and the Philippine Community Housing Corporation. (PCHC) CSE Builders Joint Venture Company Ltd. held at the administration building on June 4, 2025.

 

SBMA Chairman and Administrator Eduardo Jose L. Aliño and PCHC General Manager Mary Grace Ocampo signed the lease before top government officials, including Department of Human Settlements and Urban Development (DHSUD) Undersecretaries Emmanuel D. Pineda and Eduardo P. Robles Jr., the SBMA Board of Directors, and officials from PAG-IBIG Fund led by Finance and Utilities Department Manager Brenda T. Cao.

 

According to Chairman Aliño, Subic Bay Residencias will be built at Lot 70-B, Rizal Highway Extension, Central Business District, Subic Bay Freeport Zone, with a total of 20,762 square meters.

 

“The development and construction of Subic Bay Residencias will consist of four condominium buildings and other auxiliary uses such as parks, a swimming pool, a clubhouse, a tennis court, a daycare center, and retail area/commercial areas,” Aliño said.

 

He said that the four buildings will have a total of 1,600 to 1,920 units, with a selling price of ₱1.8 million per unit, which may be reduced to ₱1.6 million, depending on the availability and area preference, and the financial capability of the beneficiary.

 

He added that the total minimum development commitment is ₱1 billion, within a maximum period of five years from the commencement of the LA, citing that this is just the first phase of the many housing projects inside the Freeport.

 

A thrust under the Marcos administration’s 4PH Program, the socialized housing for workers inside the SBFZ like the Subic Bay Residencias is geared towards providing housing for the employees of the agency.

 

Back in May 2024, SBMA signed a memorandum of understanding with the DHSUD to construct socialized housing under the 4PH Program within the SBFZ. The housing project aims to provide affordable yet sustainable houses to Freeport zone workers who fall under the low-income bracket.

“Its advantage is that it is close to their workplace. Because what we want to happen is that after you work, we want you to be able to just walk from your work to home to save time and save money,” Aliño said. (MPD-SBMA) 

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SBMA repossess 3 more properties of erring locators

True to its mandate of utilizing land areas efficiently, the Subic Bay Metropolitan Authority (SBMA) has taken over three more properties inside this premier Freeport on Tuesday.

According to SBMA Chairman and Administrator Jonathan D. Tan, the agency took over two buildings from Parabion, Inc. at the Cubi Triboa District within the Subic Bay Freeport Zone, adding that the area has a size of 1,176 square meters.

“The company has committed contractual defaults that prompted the SBMA to take over their properties. One is failure to comply with development commitments, and two for non-payment of lease rentals and Common Use of Service Area (CUSA) fees,” he said.

The company has amassed a debt in CUSA close to 10 million pesos as of July 28 of this year.

“We already sent them a final notice of default with demand to pay on November 22, 2022, then we sent them a notice of pre-termination and repossession on July 28 that was served on August 10. This is pursuant to SBMA Board Resolution No. 23-07-0173 that was approved last July 4,” Tan added.

Tan also pointed out that the agency took over Bldg. 8321 along Zambales Highway, Cubi Triboa District, and Bldg. 8359 along Bataan Road, also in the Cubi Triboa District.

The third property that was taken over by the agency was owned by Ramphos Corporation, a company that manufactures and sells amphibious ultralight aircraft.

The property is a 966-square-meter portion of Bldg. 8045-C at the Subic Bay International Airport (SBIA).

The company has an expired lease agreement with the SBMA since September 11, 2020, prompting the eventual take over by the SBMA last September 5, 2023.

The chairman confirmed that the company has contractual defaults such as non-payment of lease rentals (building spaces), CUSA fees, ACC and SOA fees amounting nearly PhP10 Million as of July 28 of this year.

The SBMA chief urged companies inside the Subic Bay Freeport to pay their dues diligently to ensure their seamless business operations inside this premier Freeport. (MPD-SBMA)

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Erring company in Subic Freeport closed by SBMA

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan led the repossession of a 1,500-square meter land area from an erring company as part of the agency’s thrust to regain areas for reutilization for other investors.

“We are repossessing leased areas of companies that do not comply with the agreement between them and the SBMA, and offer these areas to other investors,” Tan said.

The repossession of property transpired today at the Silver Arrow Import and Export Services, Inc. located at Lot 1, Boton Area, Argonaut Highway. The 1,500-sqm. land area of the company was repossessed due to contractual defaults.

According to Tan, the company failed to comply with its Investment and Development Commitment as provided in Section 7, Article II of the Lease Agreement between the company and the SBMA. Part of the said default is the failure of the company to develop the area with a funding allocation of at least US$1,000,000.

He added that the development commitment on the Leased Property should have a minimum cost of US$500,000 which includes the construction of a warehouse within two years from the issuance of its building permit.

“Aside from the Investment and Development Commitment, the company’s contractual default also includes non-compliance with the Omnibus Policy on Performance Bond, and failure to submit documents for the issuance of a building permit,” he said.

The said building permit is for the construction of a warehouse as stated under the company’s Development Commitment. Tan added that this is so despite the unreasonable length of time that had already lapsed since the execution of the lease agreement last July 28, 2015.

The SBMA had already served two notices before executing the repossession, with the Final Notice of Default with Demand to Pay dated June 19, 2023 that was served on June 26, 2023; and the Notice of Pre-termination and Repossession dated July 28, 2023.

“We are following President Ferdinand Marcos Jr.’s mandate to streamline operations within the Subic Bay Freeport Zone, and fully utilize land areas that are not being developed. But we are leaving space on the table for negotiations with the erring company so that they may continue with their operations efficiently,” Chairman Tan said.

The official said that this is the first of many repossessions that the SBMA will conduct as the agency clamps down on erring companies who have skimped on their obligations to the SBMA. (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: 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 sees rosy prospects for Subic investments, employment

The Subic Bay Metropolitan Authority (SBMA) expects to continue attracting foreign direct investments and to generate more jobs this year, as it plans to expand into surrounding communities to accommodate major development projects.

SBMA Chairman and Administrator Wilma T. Eisma said in a presentation at the recent Subic Labor Congress here that the agency is looking into some 21,000 hectares of land in nearby communities that could be developed for more business ventures.

“We continue to fulfill our mission of attracting investments and generating jobs, even as we are now practically running out of space in the Subic Bay Freeport,” Eisma said.

“We are now in consultation with officials of local government units nearby, so that we can develop more areas for trade and business operations,” she added.

Eisma said that foreign direct investments (FDIs) continue to pour into Subic because of the SBMA’s investment promotion program. The latest in the pipeline, she said, include at least four FDI projects worth $10 million from Taiwan, which are separate from the P866-million committed investments approved by the SBMA in the first quarter of this year.

“These companies, which are into manufacturing and recycling, will initially employ at least 260 workers, and these workers would come from our neighbor communities,” Eisma pointed out.

She added that more employment opportunities will be opened with the big-ticket investments that were approved this year. These are the redevelopment of the Binictican Golf Course by a Japanese firm for at least $30 million; redevelopment of the Triboa Clubhouse and facilities by a Taiwanese company for P2 billion; construction of a 400-room five-star hotel and resort for $20 million; and development of the Subic Bay International Airport (SBIA) into a world-class business aviation center for $8 million.

Eisma explained that there are now 1,587 business locators with more than 134,000 workers in the Subic Bay Freeport, and with development largely suitable only within the fenced-in portion of the former Subic Naval Base, the SBMA has to expand into nearby areas to sustain local economic growth.

“It’s a good thing that the neighboring towns have pledged about 21,000 hectares for these future projects,” Eisma revealed.

She said these include 9,000 hectares in San Antonio, Zambales, which are ideal for resort development and leisure businesses; 10,000 hectares in San Marcelino, Zambales, for agriculture, mining and quarrying; 500-600 hectares in Subic, Zambales for factories, agriculture, and energy; and 500 hectares in Castillejos, Zambales for light to medium industry, and warehousing.

Meanwhile, the city of Olongapo pledged 900 hectares for housing, light industry and tourism, while Hermosa, Bataan allotted 505 hectares for light to heavy industry, renewable energy, metal industry, and vehicle assembly/auction.

SBMA records indicate that the Subic Bay Freeport Zone recorded a 14% increase in employment last year when its active workforce reached a total of 128,200, compared to 112,600 in 2016.

Most of the workers in the Subic Freeport come from the neighboring areas of Olongapo City, which accounts for 36%; Zambales, 27%; and Bataan, 12%. (RFD/MPD-SBMA)

PHOTOS:

[1-2] SBMA Chairman Wilma T. Eisma makes a pitch for Subic Freeport expansion in San Antonio, Zambales. The proposal earned the approval of local officials headed by Mayor Estela Antipolo and Vice Mayor Lugil Ragadio. (AMD/MPD-SBMA)

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SBMA eyes Zambales coves for cruise-ship holidays

The growing number of international cruise ships arriving in this premier Freeport is now spurring the growth of the local economy and opening up opportunities for other communities.

On Tuesday, Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma met with Mayor Estela Antipolo and other officials of San Antonio, Zambales to discuss plans to utilize certain coastal areas of the municipality as high-end cruise-ship holiday destinations.

“Our plan is to make the area the next Amalfi or the next Turks and Caicos,” Eisma said, referring to the popular coastal destinations in Italy and the Bahamas.

“The project would make the area accessible to cruise ships, attract passengers who would spend a day or two in local resorts, and hence would provide viable economic opportunities to local communities and residents,” Eisma told the municipal officials.

Eisma said the SBMA is now talking with several private investors who are considering the development of the area, particularly the Nagsasa and Silanguin coves, which are located southwest of the Subic Bay Freeport Zone.

According to the development plan formulated by the SBMA, what are now essentially the fishing villages of Nagsasa and Silanguin will both become port destinations with world-class resort attractions that can cater to passengers of cruise liners.

Meanwhile, a coastal road will be built to connect the coves of San Antonio without having to cut through the hills in the area.

“The winding coastal road will have a great view of the coves, just like that at the Amalfi Coast along Italy’s Sorrentine Peninsula,” Eisma said.

The Amalfi Coast is a popular holiday destination with sheer cliffs and a rugged shoreline dotted with small beaches and pastel-colored fishing villages, grand villas, terraced vineyards and cliff-side lemon groves.

Eisma said the rugged coastline of San Antonio could be developed into a similar attraction that would complement its clear, aquamarine water.

At least 20 cruise ship arrivals have been scheduled in the Subic Bay Freeport this year, with bigger vessels like the MS Ovation of the Seas, the biggest cruise ship in operation in the whole of Asia, promising more port calls. More are coming in 2019, Eisma said.

She added that cruise ship passengers have already visited local attractions to as far as the heritage site of Las Casas Filipinas de Acuzar in Bagac, Bataan. “So we are really in need of more attractions to sustain the demand,” Eisma explained.

Town officials of San Antonio have reportedly welcomed the proposal for the development of the local coves into high-end tourist destinations. Prior to this, the local government of San Antonio passed a resolution setting aside some 9,000 hectares of land in the municipality for development under the SBMA’s expansion program.

Other communities nearby have also allotted areas for the expansion of the Subic Bay Freeport Zone. These include the towns of Subic, Castillejos, San Marcelino and Olongapo City in Zambales, and Hermosa in Bataan. (HEE/MPD-SBMA)

PHOTOS:

[1] Tourists marvel at the beauty of mountain and sea at a cove in San Antonio, Zambales

[2] SBMA Chairman Wilma T. Eisma presents the development plan for the Nagsasa and Silanguin coves in San Antonio, Zambales

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Subic Freeport gets new areas to host more investors

Subic Bay Freeport is getting additional 24,725 hectares, majority of which come from neighboring towns, to expand the former American naval base which has been running out of space it can offer to new investors and expanding existing locators.

Of this expansion area, five neighboring towns have initially allotted a total of 21,495 hectares of land to the Subic Bay Freeport, which has been running out of property to lease to more investors in the former American naval base.

Bird's eye view of the Subic Bay Freeport Zone

Data showed that six local government units have initially allotted these properties for Subic expansion. The biggest lot contributor is San Marcelino with 10,000-hectare allocation followed by San Antonio with 9,000, Olongapo with 900 hectares, Subic with 500-600 hectares, Hermosa 505 hectares, and Catillejos with 500 hectares.

Usually, Subic Bay Metropolitan Authority (SBMA) leases out properties to investors at certain rates. Under the plan, the San Marcelino lot would be used for mining, quarry and agriculture projects while San Antonio has been reserved for resort development and leisure industry.

The Olongapo LGU allocation would be used for housing, light industry and tourism projects while the 500-600 hectares in Subic could be offered for factories, agriculture and energy facilities.

Hermosa may be developed to house light to heavy industry, renewable energy, metal industry and staging of trucks auctions. The Castillejos land allocation can also be used for light to medium industry warehousing.

The remaining properties would come from the Redondo Peninsula with 3,000 hectares; infill development of 150 hectares and reclamation of 20 hectares. (Bernie Cahiles -Magkilat, Manila Bulletin)

Read more --> https://business.mb.com.ph/2018/07/02/subic-freeport-gets-new-areas-to-host-more-investors/

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Comteq’s unpaid P19-M debt ‘indisputable’; SBMA clarifies issue

The Subic Bay Metropolitan Authority (SBMA) has clarified misinformation about the ejection of the defaulting Comteq Computer and Business College from the building it previously occupied here, pointing out that the P19.97 million the school owed in terms of unpaid rentals was indisputable.

In a statement issued over the weekend, the SBMA said that Comteq has occupied Bldg. Q-8131 since 2011 and collected tuition fees from students studying in the premises, but “has not paid even a single cent” from the use of the building.

“Bldg. Q-8131 is government property and rent is due for such use,” the SBMA said, reacting to a statement attributed to Comteq president Danny Piano that the P19.97-million back rentals they owed the SBMA was “debatable.”

It added that the need to pay rent for property used and profited from was not debatable, as there was nothing in writing between the parties that said the use of the facility was “rent-free.”

The Subic agency peacefully took control of Bldg. Q-8131 on November 25 after the Comteq management failed to settle its hefty financial obligation with the SBMA.

As early as April this year, the SBMA Legal Department already sent Comteq a “Notice to Vacate with Demand to Pay” because the school administration has been operating without securing any lease agreement or business registration for the school.

Following the takeover, officials of the debt-ridden school blamed the SBMA for not issuing a lease agreement and a Certificate of Registration and Tax Exemption (CRTE), and claimed this prevented them from paying rent over the years.

However, the SBMA said it cannot issue any lease agreement and CRTE then because the Comteq management “did not submit the required payment scheme proposal for it to be able to settle its accounts” and instead asked the SBMA to give them a “rent-free period” from 2011 to 2015.

The SBMA Board, however, disapproved the said request because it was disadvantageous to the government and was not allowed by the Commission on Audit (COA).

The SBMA also noted that the statement of account purportedly showing zero balance in Comteq ’s record only reflected payment for utilities and other billings that were automatically charged for buildings occupied by business locators.

However, a validated computation from the agency’s Accounting Department showed the school management’s unpaid rental dues at P19,971,435.68 as of November 30, 2017.

Comteq officials had also taken the SBMA to task for being “insensitive” to the fate of students, whose studies were disrupted by the takeover. But the SBMA pointed out that the continued occupation by Comteq of Bldg. Q-8131 since 2011 without any rental, as well as the six-month extension it granted the Comteq administration last April, happened “precisely because SBMA is concerned about its students.”

It added that while it had allowed Comteq to operate for years despite the lack of a lease agreement or a CRTE because it was an educational institution, it can no longer tolerate the “blatant abuse and profiteering” by the Comteq management, which disregarded the repercussion of its growing debt on its students from whom they collected tuition and other school fees.

The SBMA added that in ejecting the defaulting business locator, it was just doing its job as estate administrator of the Subic Bay Freeport Zone. “It is not about money,” the agency made it clear. “It is about the obligation to collect rental dues for the use of the property of the government.”

It also said that it cannot be faulted for taking over Bldg. Q-8131 as it did, because it was school president Danny Piano who assured the SBMA Board in a letter that they would vacate the premises by October 31 this year, after the six-month extension given by the SBMA last April. (HEE/RBB/MPD-SBMA)

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SBMA shelves Redondo industrial estate project

The Subic Bay Metropolitan Authority (SBMA) has temporarily set aside the development program for the Redondo Peninsula following the collapse of an agreement with a firm that proposed the construction of an industrial estate and solar farm in the area.

SBMA Chairman and Administrator Wilma T. Eisma said the agency’s Board of Directors has decided to take a step back and called for the development of a master plan for the entire Redondo Peninsula before opening it up again to investors.

“We’re basically back to square one, because the project proponent was not able to honor the commitments under its very own proposal,” Eisma said.

“The SBMA is still open to receiving proposals though, should these be consistent with the SBMA’s objective of developing Redondo into an industrial and maritime hub,” she added.

The SBMA Board of Directors had earlier revoked the lease and development agreement (LDA) with Dynamic Konstruk International Eco Builders Corp. (DKIEBC), invoking an automatic revocation clause under the agreement in case the proponent did not meet its obligations.

Eisma said that despite several extensions given by SBMA, DKIEBC still failed to deliver the required advance rentals and security deposit, thus leaving the Subic agency with no other recourse but to revoke the contract.

According to SBMA records, Dynamic Konstruk initially proposed in May 2016 to develop 982 hectares of land at the Redondo Peninsula, which also hosts the Hanjin shipyard and the coal-fired thermal plant project of Redondo Peninsula Energy Inc.

Calling the project “Redondo 200MW Solar Farm and Eco Dynamic Industrial City”, DKIEBC said it will devote 400 hectares of the project site to a solar-power generation farm and 582 hectares to an industrial hub.

During negotiations for the project’s 50-year lease, however, it became apparent that DKIEBC, a certified “A” PCAB licensee, as well as its partners, lacked adequate experience in solar power generation. It also seemed not to have enough funding to back up its US$798-million investment commitment.

Eisma said the SBMA Board required a P2.2-billion paid-up capital, and DKIEBC made a counter-offer to pay upfront the amount of P472 million, which is equivalent to 50 percent of its rental and security deposits.

“When DKIEBC also failed to honor this commitment, the project was considered revoked pursuant to a resolution of the SBMA Board,” Eisma added.

As of now, the SBMA has stopped dealing with the company on the aborted project. It had also warned the public on reports that some parties are still seeking investors to fund the project despite official revocation by the agency.

“This is already a closed issue. Anybody seeking funds for the Redondo industrial city and solar farm project is probably doing some scam operation, so we urge everyone to beware,” Eisma concluded. (HEE/MPD-SBMA)

PHOTO:

Perspective of the supposed development project proposed by Dynamic Konstruct at the Redondo Peninsula in Subic Bay Freport.

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P3.6-B golf course-leisure park to rise in Subic Freeport

The Subic Bay Metropolitan Authority (SBMA) has approved the proposal of a Korean-led company for the development of a P3.6-billion golf course and hotel and leisure facilities complex in the Subic Bay Freeport.

SBMA Administrator and CEO Wilma Eisma on Tuesday signed a 20-page lease and development agreement for the project, along with Suyong Kim, president of the proponent-company DMLeisure Corp.

Eisma said the proposed leisure complex that will be built in a 200-hectare portion of the Tipo Area here is expected to further boost eco-tourism in Subic, bolster investment, and increase livelihood opportunities in the area.

“We expect it to be another grand tourist destination in the region, another magnet for more down-line businesses and employment, as well as another distinctive landmark for the evolving Subic Freeport Zone,” Eisma said.

She noted that the project will be most accessible because it is to be located near the Subic-Clark-Tarlac Expressway (SCTEx) and would be about a two-hour drive from Manila via the North Luzon Expressway, and about 45 minutes from the Clark Freeport via SCTEx.

According to the approved project proposal, DMLeisure Corp. will infuse a minimum investment of P3.6 billion, of which P2.6 billion would be allotted as development commitment. The project is scheduled to be completed in three phases within an eight-year period or in 2025.

For the first phase, the company will build an 18-hole golf course and clubhouse in a 120-hectare area. This will be finished within two years, or by 2019.

On the third year, DMLeisure Corp. will start the second phase of the project with the construction of hotel villas and commercial complex in a 67-hectare area. This phase is expected to be finished before the end of 2022.

The last stage of the project will be the construction of indoor and outdoor water theme parks, other tourism and leisure facilities, as well as condominium units within a 13-hectare area. The final phase is expected to be operating by 2025.

Another bit of good news for local residents, Eisma said, is DMLeisure’s commitment to generate a significant number of jobs. She said the company will be needing about 1,000 workers during the construction period and, upon project completion, will also be hiring a minimum of 1,000 employees for its various operations.

“DMLeisure is among the positive results of our intensified marketing and promotion campaign to convince investors and business communities from our neighbor countries to invest in Subic,” said Eisma, who recently spoke in Philippine investment roadshows in Taiwan and Australia.

Eisma said that with the entry of more investors, the SBMA will be working with the surrounding local government units (LGUs) to start developing light industrial parks and tourism and commercial areas, as demands for bigger spaces rise along with the influx of investments.

The SBMA official said that the new investment areas to be created within the nearby communities will become an extension of the Subic Bay Freeport as stipulated under Executive Order 675, which took effect in November 2007. This allowed LGUs, through the approval of the local council, to declare any part of their jurisdiction as additional secured area of the Subic Bay Special Economic and Freeport Zone (SSEFPZ) which shall be organized, administered, managed and operated directly by the SBMA. (RAV/MPD-SBMA)

PHOTO:

SBMA administrator and CEO Wilma Eisma and DMLeisure president Suyong Kim (second from left) sign a lease and development agreement for a P3.6-billion leisure development project in the Subic Bay Freeport. Signing as witnesses are a senior DMLeisure official and SBMA director Tomas Lahom III (right). (AMD/MPD-SBMA)

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SBMA okays ‘win-win’ deal for Subic school takeover

The Subic Bay Metropolitan Authority (SBMA) has greenlighted the takeover by a new company of the debt-ridden property previously leased out to the Lyceum of Subic Bay, Inc. (LSBI), saying the agreement provided for a “win-win” solution for the Subic agency to collect more than P31 million in overdue rent payments and other arrears.

SBMA Administrator & CEO Wilma T. Eisma said a resolution approved by the SBMA Board of Directors last Thursday, Aug. 10, allowed the LSBI to assign its leasehold rights to Premium Technical Training and Facilities, Inc. (PTTFI), which shall assume its financial obligations and continue with the development commitments under its lease.

Lyceum of Subic Bay (photo c/o lyceumsubicbay.com.ph)

This was made possible by the withdrawal of the company from coverage of the SBMA policy granting educational institutions a 75% discount in rentals, which are supposed to be plowed back by the schools to scholarship programs and facilities improvement.

The reassignment covered the 34,196 sqm Lyceum campus at Subic’s Cubi-Triboa District, which had P23 million in rentals and utility fees arrears, as well as some P16.68 million in unpaid accounts left by its previous operator, Global Daeil Subic, Inc.

The agreement also required LSBI to pay its debts for another school campus it operates at Subic’s Central Business District (CBD).

Initially, the company paid the SBMA P31 million for its arrears on Thursday, and issued checks to cover outstanding obligations for both the Cubic and CBD campuses.

“As far as we can see, this is a win-win solution to a problem which has been hounding the SBMA since October 2015 when it pre-terminated the contract of Global Daeil over the Cubi property,” Administrator Eisma said.

“The SBMA repossessed the property in January last year and later awarded it to Lyceum, which had the best business model. But unfortunately, Lyceum was not able to operate immediately and market the business properly because of some issue with the previous occupant, so we had a problem that compounded itself over time,” Eisma added.

“But now, with this amendment to the lease and development agreement for Lyceum’s Cubi campus, we finally have a solution that is favorable to all the parties involved,” the SBMA official also said.

According to Beatrix Anagaran, manager of the SBMA General Business and Investment Department, the approved amendment to Lyceum’s lease and development agreement was “overwhelmingly beneficial to the SBMA” because it called for an increase in monthly rent from the discounted rate of P1.22 million to the appraised-value rate of P4 million.

Moreover, the agreement also provided for an increase in escalation rate from 2% per annum starting on the third year to 6% per annum starting on the second year, Anagaran pointed out.

“With Premium Technical taking over the Cubi property, the company will also pay an assignment share to the SBMA, undertake Lyceum’s development commitments, provide additional employment, and continue to honor the scholarship commitments made by Lyceum, with the number of scholars remaining the same,” Anagaran said.

She added that the new operator has also committed to put up a business process outsourcing (BPO) facility at the Cubi campus, as well as a modern training laboratory.

Premium Technical, which is 30% owned by LSBI, has also committed to honor the payment of arrears of Global Daeil with a three-year amortization schedule for the P16-million debt of the previous operator.

It has likewise retained LSBI’s committed investment of P50 million to P100 million, a committed employment of 180 workers, and a development commitment of P10 million to P20 million, and the provision of 36 scholarship grants per year. (HEE/MPD-SBMA)

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SBMA okays US$798-M solar farm and industrial city project

More manufacturing companies and light to heavy industries are expected to locate in this premier Freeport, as the Subic Bay Metropolitan Authority (SBMA) approved the development of a 982-hectare industrial estate at Subic’s Redondo Peninsula.

SBMA Chairman Martin B. Diño and SBMA Administrator Wilma T. Eisma announced the approval of the US$798-milion project proposed by Dynamic Konstruct International ECO Builders Corp. (DKIEBC), a duly-registered enterprise inside the Subic Bay Freeport Zone.

The proposed project site for the solar farm and industrial city at the Redondo Peninsula

“This project is our answer to the inquiry of investors looking for thousands of hectares of flat land for manufacturing and light to heavy industries inside the Subic Bay Freeport Zone,” Chairman Diño said during the State of the Freeport Address (SOFA) hosted by the Subic Bay Freeport Chamber of Commerce (SBFCC) last Monday.

He added that the SBMA has been conferring with nearby local government units to identify more areas suitable for the development of industrial estates that will be under the Subic Bay Freeport’s tax- and duty-free regime.

Administrator Eisma meanwhile pointed out that the proposed solar farm and industrial city, when fully realized, will generate about 50,000 new jobs.

“When the Subic Naval Base closed down in 1992, we were all so depressed to be losing the 35,000 jobs generated by the US Navy. But under the SBMA we have long surpassed those numbers— as of February 2017 our active workforce within the Freeport is 115,272—and we keep on working to bring about more employment,” she added.

The SBMA officials also clarified that out of the $798-million investment commitment, the DKIEBC will spend about $300 million for the proposed 402-hectare solar farm, which is designed to produce 200 megawatts of green energy to primarily supply the proposed 580-hectare industrial city.

The industrial city project will include commercial buildings, factories, warehouses, utilities for water and electricity, fire and law enforcement facilities, and sanitation and landfill facilities.

According to DKIEBC, the solar farm shall primarily benefit the investors and locators of the industrial city with green and low-cost energy supply and reduce the risk of exposure from the spot market. (NBM/MPD-SBMA)

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Global property portal lists Subic Bay among best PHL places for foreign retirees

This premier Freeport again made it to the list of top destinations in the Philippines for foreign retirees, as gathered by an online global real estate marketplace.

Online global property portal Lamudi issued its “Best Places in the Philippines for Foreign Retirees” where Subic Bay Freeport is listed among 15 locations offering the best retirement options in the country.

Sunset at Subic Bay (RFV via Commons)

Subic Bay Freeport is the only special economic zone in Lamudi’s list, as most of the areas that are in the roster are highly-urbanized cities. It is listed at number 7 by the portal.

“Renowned for being a former overseas U.S. military installation, the Subic Freeport Zone is perfect for foreign retirees who want to continue their American suburban lifestyle in the Philippines. Along with its duty-free shopping, there are also a number of great schools, hospitals, and hotels and resorts in the city,” Lamudi said.

“While there is plenty to do and see in the Freeport Zone, probably one of its biggest draws as a retirement area, is the location’s cleanliness and orderliness,” it added.

According to the portal, choosing from among the Philippines’ 7,107 islands can be challenging for foreign retirees, but taking into “consideration cost of living, the presence of basic necessities, and the overall retirement atmosphere in an area, it becomes just a little bit easier to narrow the list down.”

Other areas that made it to Lamudi’s list are Imus and Bacoor in Cavite; Santa Rosa and Calamba in Laguna; and the cities of Tagaytay, Cebu, Dumaguete, Bacolod, Cagayan de Oro, Davao, Baguio, Tagum, Lipa, and Batangas.

In 2015, Forbes Magazine, also well known for its lists and rankings, cited Subic Bay as a top retirement destination in the Philippines.

Forbes' list of 20 best foreign retirement havens in 2015 includes the Philippines, particularly mentioning Subic Bay as one of only two locations in the country that are popular retirement spots, the other one being Tagaytay.

Lamudi is a global property portal focusing exclusively on emerging markets. It is a real estate marketplace which offers sellers, buyers, landlords and renters a secure and easy-to-use platform to find or list properties online.

This fast-growing platform is available in more than 30 other countries in Asia, the Middle East, Africa and Latin America, with more than 800,000 real estate listings across its global network. (RBB/MPD-SBMA)

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SCADC renews push for Clark, Subic expansion

The Subic-Clark Alliance for Development Council (SCADC) is pursuing plans to expand the areas of the neighboring Subic Bay and Clark free ports to attract more investors and help solve the problem of congestion in Metro Manila.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, who is also chairman of SCADC, said on Monday that council members have agreed to develop new industrial estates within the corridor between Subic and Clark.

“Accordingly, there are about 100,000 hectares of land suitable for development on both sides of the Subic-Clark-Tarlac Expressway [SCTEx],” Garcia said in a media briefing here.

“Initially, we’re looking for a 1,000-hectare pilot area. We’d allow Japanese or Korean investors to construct facilities there at their own expense to convince others that it’s beneficial to locate along the Subic-Clark corridor,” he added.

Garcia said that plans for the expansion of the Subic and Clark free ports have been in existence since the administration of former SBMA Chairman Felicito Payumo and former Bases Conversion and Development Authority President Rufo Colayco, but these did not push through.

The integrated development of Subic and Clark, as well as the vast corridor of flat lands between them, had been set as the objective of SCADC, which also seeks to harmonize programs and policies pertaining to Clark and Subic.

SCADC is composed of representatives from the BCDA, SBMA, Clark Development Corp., Department of Trade and Industry, Clark International Airport Corp. and, lately, North Luzon Railways Corp.

Subic, which has a total land area of 67,852 hectares, and Clark, which has 4,500 hectares, had since been developed into separate but complementary economic zones connected by the 94-kilometer SCTEx.

However, Subic, in particular, increasingly suffered from lack of space, as most of its mountainous territory is designated as a nature preserve and only less than 3,000 hectares have been put up for lease to business locators.

Garcia said that with the worsening traffic situation in Manila, as well as the diminishing space for industrial and commercial use in Subic, there is a need to find alternative investment sites to sustain economic growth.

“Foreign investors no longer find Manila attractive because of the traffic congestion,” Garcia pointed out. “But there’s no congestion, no truck ban and no flood in Clark and Subic.”

Garcia said it would be ideal for new investors to locate near Subic and Clark to make use of the distinct advantages the two free ports can offer.

“If investors need to deliver materials fast, there is Clark with its airport; and if they need to bring in heavy machinery, then there is the port of Subic,” he added. (Henry Empeño, Business Mirror)

http://www.businessmirror.com.ph/scadc-renews-push-for-clark-subic-expansion/

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Subic Freeport land row far from over

A TRIAL court judge in Olongapo City is now in hot water after criminal and administrative complaints had been filed against him for stopping a construction project on a disputed 1-hectare property inside the Subic Freeport Zone.

Charged for violation of the Anti-graft and Corrupt Practices Act before the Ombudsman is Judge Richard Paradeza of the Regional Trial Court (RTC) in Olongapo City.

An administrative complaint was also filed against Paradeza before the Supreme Court (SC) for allegedly “knowingly rendering an unjust decision” based on Article 204 of the Revised Penal Code.

The cases were filed by Marianito B. Fernandez of the Subic Coastal Development Corp. (SCDC), through his legal counsel, Bonifacio Alentajan.

Fernandez also sought the immediate inhibition of Paradeza from handling the land-dispute case.

The cases were filed after Paradeza issued a temporary restraining order (TRO) on the construction of a manufacturing facility on the 1-hectare property by Japanese Cresc Inc., based on a petition by a former Zambales governor Vicente Magsaysay.

In filing the motion for inhibition, Fernandez said Paradeza had lost the “cold neutrality” of a judge, since he could no longer achieve justice from the court.

Fernandez asked that civil case 119-0-2014 and the case should be re-raffled to another branch of the RTC in Olongapo City for disposition.

The Japanese company had also echoed SCDC’s position, saying the TRO should not have been issued at all as it lacked merit and Magsaysay had no legal personality to file the case.

“We invested in Subic Freeport in response to the Aquino administration’s efforts to attract foreign investments to the country. But we are now having second thoughts about our investments here as we now find ourselves in a legal dispute that has jeopardized our business expansion and impaired our capability to meet global demand for our ink products,” Cresc said.

“This is not only a legal and business dispute. It will also have an adverse impact on the Aquino administration’s drive to attract more foreign investments,” Cresc added.

The case started in 2002, when the Subic Bay Metropolitan Authority (SBMA) leased 16.5 hectares to SCDC, a private firm.

Magsaysay offered to assist SCDC in clearing the leased property, where it built the Moonbay Marina Resort.

In 2008 SCDC was shocked when Magsaysay demanded that he be given control of 1 hectare of the 16.5-hectare property as “payment” for his unsolicited help in clearing the leased property.

Since it doubted the legality of Magsaysay’s demand, SCDC referred the case to SBMA.

A memorandum of agreement (MOA) was later signed by the SBMA, SCDC and Magsaysay’s Mobi, and Red Enterprises (MRE).

The 2008 MOA stipulated that SBMA would allow MRE to sublease the 1-hectare property if the Magsaysay-owned company would meet all of the SBMA’s terms and conditions within 30 days of the MOA signing.

The 2008 MOA also clearly provided that, at the event of the MRE’s failure to meet the MOA’s terms and conditions, and failure to secure a sublease from SBMA, the 1-hectare property would remain as a leasehold of SCDC.

As confirmed by SBMA Deputy Administrator for Legal Affairs Randy Escolango, the 2008 MOA did not take effect because MRE failed to meet the MOA’s terms and it failed to secure a sublease from the SBMA for the property.

Not only did SBMA not issue MRE a sublease, SBMA also affirmed that legal control of the subject property never left SCDC, as SBMA continued collecting from SCDC all pertinent fees on it, such as base rent, sublease share and monthly billings.

Likewise, SBMA confirmed SCDC’s right over the disputed property and approved the survey plan, covering the one-hectare subleased by SCDC to Cresc in 2013.

The sublease between SCDC and Cresc was also deemed approved by SBMA when the latter approved Cresc’s development plans on the area, which allowed the Japanese company to undertake business expansion. (Joel R. San Juan, BusinessMirror)

http://www.businessmirror.com.ph/subic-freeport-land-row-far-from-over/

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APO to operate ecozone in Subic

ANGLO Philippine Holdings Corp. (APO) will operate an economic zone from its property inside the Subic Bay Freeport Zone in Bataan.

Adrian Arias, Anglo Philippine executive vice president, said necessary paperwork and representations have already been made with the Philippine Economic Zone Authority to accredit the property, with a size of about 300 hectares. When completed, the development will be the country’s newest ecozone.

He said the company expects to secure the necessary approvals within the year. Arias said APO acquired the said property, situated in Tipo Valley in Bataan, from the Subic Bay Metropolitan Authority for about P250 million to P290 million. The company may spend the same amount to develop the area.

The said project is expected to attract locators from the Subic Bay Freeport, which is a favored destination of logistics and manufacturing companies as the area has a sea and air gateways, and direct access to the Subic-Clark-Tarlac Expressway.

Arias said many locators in Subic wanted to expand operations, while many more want to come in but the free port’s developed area is already full. “All of the available spaces in Subic are already [parceled in] smaller cuts. So we thought, why not develop since the land is already there,” Arias said.

“If we ever get into it, we will probably [develop the property in] phases,” Arias said, adding that it may take 10 to 15 years before the company will realize gains from the said project.

APO has a huge stack of cash in its coffers after the private placement of majority shareholder, the Ramos family’s Alakor Corp., resulted in about P4.2 billion in fresh funds.

The bulk of this amount—or about P1.6 billion—will be spent to buy additional shares in The Philodrill Corp. to increase shareholding to 34.3 percent from 11.8 percent.

The remaining cash will be used to pay maturing debts, acquire more dividend-yielding asset and boost other assets, such as APO’s economic interest in the TriNoma shopping mall in Quezon City.

The company has investments in United Paragon Mining Corp., Atlas Consolidated Mining and Development Corp., Philodrill, North Triangle Depot Commercial Corp., MRT Development Corp., MRT Holdings Inc., Brightnote Asset Corp. and Filipinas Energy Corp. (VG Cabuag, Business Mirror)

http://businessmirror.com.ph/index.php/en/business/companies/32495-apo-to-operate-ecozone-in-subic

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SBMA, San Antonio to jointly develop 10,000-ha. ecozone

SUBIC BAY FREEPORT – The municipal council of San Antonio, Zambales formally turned over to the Subic Bay Metropolitan Authority (SBMA) an area covering 10,000 hectares for development into an economic zone.

The turnover was made possible by virtue of Sangguniang Bayan Resolution No. 13-080, which declared over 10,000 hectares of land and water as the San Antonio Economic Development Area, and allowing it for conversion as an additional secured area of the Subic Bay Freeport Zone.

The resolution further declared that the areas of Sitio Silangin, Nagsasa and Talisayin in the Redondo Peninsula be included within the additional area and entitled to the tax- and duty-free privileges of the Subic Freeport.

The resolution was passed by the San Antonio town council on November 19, 2013.

SBMA Chairman Roberto V. Garcia formally received a copy of the resolution from San Antonio municipal mayor Estela Antipolo during a turnover ceremony here on Monday, December 2.

Garcia said that he was pleasantly surprised by the swift action of the San Antonio municipal council in passing the resolution.

He added that the decision is very timely, since the Freeport is already lacking available land area for development.

“Many foreign investors are inquiring, and we are having a hard time to respond to them due to the lack of available land,” Garcia said, pointing out that there are only less than 300 hectares of land available within Subic’s fenced area.

The SBMA official, who just returned from an investment mission in Japan to promote the Subic-Clark Corridor, related that Japanese investors are very interested in doing business in the country.

“So the resolution comes at a very good time because of the high interest of foreign investors in the Philippines in spite of the difficulties that we are having right now because of Yolanda. We should take advantage of this,” Garcia said, stressing that investor confidence in the country remains strong.

Antipolo, for her part, said that the town council came up with the resolution to ensure the progress of San Antonio.

“We are doing this for the welfare of the people, to ensure economic prosperity, increase revenue for the local government, and provide employment opportunities for the people of San Antonio,” she said.

Antipolo assured everyone that the local government of San Antonio will do its part in attracting investors through programs that will promote transparency in government and cut red tape in business transactions.

“On behalf of the people of San Antonio, I look forward to an enhanced cooperation between our offices,” Antipolo told Garcia and other SBMA officials. (FMD/MPD-SBMA)

PHOTO:
Mayor Estela Antipolo of San Antonio, Zambales hands over to SBMA Chairman Roberto V. Garcia a copy of the resolution declaring a portion of the town's southern coastal tip as economic development zone. The area is being eyed for development by the Subic Bay Metropolitan Authority under its expansion program. Also in photo are members of the San Antonio town council led by Vice-Mayor Lugil Ragadio and other SBMA officers.

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