SBMA releases ₱218-M revenue shares to contiguous LGUs

The Subic Bay Metropolitan Authority (SBMA) released a total of ₱218,115,671.26 in revenue shares to eight local government units (LGUs) contiguous to this premier freeport zone.

 

SBMA Chairman and Administrator Eduardo Jose L. Aliño said that this amount released on Tuesday, July 21, 2026, represents the revenue shares for the first semester of 2026, which is 10.24 percent higher than that of last year’s comparative period. 

 

The recipient LGUs are Olongapo City, the municipalities of Subic, San Marcelino, Castillejos, and San Antonio in Zambales, and the towns of Dinalupihan, Hermosa, and Morong in Bataan.

 

Taking into account the population and land area, Olongapo was allocated the largest amount of ₱50,420,165.72, received by Olongapo City Mayor Atty. Rolen Paulino, Jr.

This was followed by Subic, Zambales, which received ₱32,871,521.46, accepted on behalf of Mayor Jonathan John Khonghun.

 

The remaining LGUs received their allocations as follows: Dinalupihan, Bataan, with ₱27,438,313.68, accepted on behalf of Mayor German Santos, Jr.; San Marcelino, Zambales, with ₱26,272,445.97, received by Mayor Elvis Soria; Hermosa, Bataan, with ₱23,422,520.27, accepted on behalf of Mayor Atty. Anne Adorable-Inton; Castillejos, Zambales, with ₱19,817,470.23, received on behalf of Mayor Jeffrey Khonghun; Morong, Bataan, with ₱19,340,287.10, received on behalf of Mayor Leila Linao-Muñoz; and San Antonio, Zambales, with ₱18,532,946.83, received by Mayor Dr. Arvin Antipolo.

The LGU shares are sourced from five percent corporate taxes paid by business locators in the Subic Bay Freeport. They are distributed among LGUs based on population (50%), land area (25%), and equal sharing (25%).

OIC-Deputy Administrator for Finance Editha Marzal, along with the finance team, led the distribution of the LGU shares.

 

Marzal noted that the net shares distributed to the LGUs include not only the current collection period’s allocations but also the 10 percent retention withheld during the first semester of the 2024 distribution.

 

According to Republic Act No. 9400, which amends RA 7227 or the Bases Conversion and Development Act of 1992, the SBMA is mandated to allocate two percent out of the five percent of gross income earned to LGU shares. (MPD-SBMA)

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SBMA releases ₱158.9M revenue shares to contiguous LGUs

The Subic Bay Metropolitan Authority (SBMA) is set to release a total of ₱158.9 million to its eight contiguous local government units (LGUs) as their revenue share for the second semester of 2025. 

SBMA Chairman and Administrator Eduardo Jose L. Aliño said that the current amount for release surpassed ₱143.17 million released during the same period last year, by 10.99%. 

The revenue shares, Aliño explained, are determined according to 50% population, 25% land area, and 25% equal sharing. 

Olongapo City remained the LGU with the highest share of ₱36.73 million; followed by Subic, Zambales, with ₱23.95 million; then Dinalupihan, Bataan with ₱19.99 million; San Marcelino, Zambales with ₱19.14 million; Hermosa, Bataan with ₱17.06 million; San Antonio, Zambales with ₱13.5 million; Castillejos, Zambales with ₱14.44 million; and Morong, Bataan with ₱14.09 million. 

Aliño added that these shares are extended to contiguous LGUs to augment their funds for calamities, health and safety, peace and order, livelihood generation, education, tourism, infrastructure, and social services. 

In August 2025, the SBMA released a total of ₱197.85 million as revenue shares for the first semester. In total, the agency released ₱356.74 million for the 2025 LGU shares. 

The LGU shares are derived from the five-percent taxes paid by business locators in the Subic Bay Freeport and are collected from January to June for the first semester, and July to December for the second semester. 

LGU shares are released in August and February the following year, respectively. (MPD-SBMA)

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LGUs contiguous to SBF receive ₱197.85M revenue shares

Local government units (LGUs) contiguous to this premier freeport received their revenue shares worth Php197.85 million.

The Subic Bay Metropolitan Authority (SBMA) released today the revenue shares for the first semester of this year in a simple turnover ceremony at the SBMA Corporate Boardroom.

“Rest assured that we will do our best to make progress in the Freeport so that our neighboring LGU partners will also benefit, including the 166,000 Freeport workers who chose to work here instead of working abroad,” SBMA Chairman and Administrator Eduardo Jose L. Aliño said.

According to Aliño, for the current period, the shares came from revenues collected between January and June this year, and are given to contiguous LGUs to augment funds for their projects in tourism, infrastructure, education, peace and order, health, livelihood generation, and social services that will benefit more than 785,000 individuals from their respective LGUs, especially households who have been severely affected by the recent calamities.

Olongapo City, the lone recipient city, received the largest share due to its population and land area among the seven LGU recipients, which is Php46,270,769.33.

In Zambales, Subic received Php29,683,317.56, the second biggest amount received. Next is San Marcelino with Php23,763,694.31, while Castillejos received Php17,987,887.14, and San Antonio received Php16,824,398.47.

In Bataan, Dinalupihan received Php24,643,508.58, while Hermosa received Php21,186,145.67, and Morong received Php17,489,910.85.

SBMA Senior Deputy Administrator for Support Services Atty. Ramon Agregado said that the LGUs' share distribution came timely since the provinces of Zambales and Bataan were affected by three typhoons that hit the country recently.

“Hermosa has hit a deficit in resources because of the calamity. This LGU share distribution will be a huge boost to augment the resources we lost. As you all know, Hermosa was among the hardest hit municipalities by the heavy rains brought about by the typhoons and the southwest monsoon, as 18 out of 23 barangays got flooded,” newly-elected Hermosa, Bataan mayor Atty. Anne Inton said.

Aliño explained that the LGU share is determined according to 50 percent population, 25 percent land area, and 25 percent equal sharing. Net shares are computed by adding the current base share to the ten percent retention amount from two years prior, but less the ten percent retention amount from the current period.

He also shared that the reduction in the amount of dividends for the same period in 2024 of ₱204.7 million to ₱197.8 million in 2025 was due to the imposition of 25 percent tax by the Department of Finance, which is remitted by the Agency to the Bureau of Internal Revenue (BIR), and the removal of the five percent tax privilege wherein three percent used to be remitted to the BIR, and two percent used to be distributed as dividends among the eight contiguous LGUs.

These revenue shares collected from January to June are released in August, and revenue shares collected from July to December are released in February of the following year. (MPD-SBMA) 

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SBMA releases ₱204.7-M LGU shares to contiguous LGUs for H1 2024

The Subic Bay Metropolitan Authority (SBMA) has released the ₱204.7-million in net revenue shares for the neighboring local government units (LGUs) of this premier Freeport.

The net share received by the eight contiguous localities is part of the five percent corporate taxes paid by Subic Bay Freeport-registered enterprises from January to June 2024.

Spearheading the distribution of LGU shares on behalf of the SBMA Chairman and Administrator was Senior Deputy Administrator for Support Services Atty. Ramon O. Agregado.

The revenue shares for this period is slightly higher than last year’s ₱203 million for the same period.

For shares generated during the first half of 2024, Olongapo City will receive a net share of ₱47.8 million; Subic, Zambales will receive ₱30.7 million; San Marcelino, ₱24.5 million; Castillejos with P18.6 million; and San Antonio, ₱17.4 million

For Bataan, Dinalupihan will receive ₱25.5 million; Hermosa, ₱21.9 million; and Morong, ₱18.1 million.  

Revenue shares are determined according to the following parameters - 50% population, 25% land area, and 25% equal sharing. This makes Olongapo City the frontrunner and top recipient of revenue shares due to its population.

According to the 2020 census, Olongapo pegged its population at 206,317, the biggest among the nearby communities of the SBF. It is also the highest in terms of population density with 1,407.12 resident per square kilometer with a total of 185 sq. km. land area.

Meanwhile, net shares are computed by adding the current base share to the ten per cent retention amount from two years prior, but less ten per cent retention amount from the current period.

Since August 2010, revenue shares were directly released to the LGUs on a bi-annual basis—August for the first semester, and then February the following year for the second semester. (MPD-SBMA) 

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SBMA to release ₱178-M revenue shares to contiguous LGUs

The Subic Bay Metropolitan Authority (SBMA) is set to release a total of ₱178-million revenue shares to a city and seven municipalities contiguous to the country’s premier Freeport. 

SBMA Chairman and Administrator Eduardo Jose L. Aliño said that the shares given to local government units (LGUs) are intended to augment local resources and enable stakeholder communities to benefit from the operations of Freeport businesses by augmenting the LGUs’ funds for development projects in health, education, peace and order, and livelihood generation. 

“These revenue shares that the agency received from the locators’ gross income, are intended to create a parallel development between the Freeport and its nearby LGUs. SBMA is highly committed to support our neighboring localities by helping them improve the living conditions of their residents’,” Aliño explained. 

The LGUs include Olongapo City, which will receive a net share worth ₱41.62 million; while the Zambales towns of Subic will receive ₱26.7 million; Castillejos, ₱16.18 million; San Marcelino, ₱21.37 million; and San Antonio, ₱15.13 million.

Meanwhile, in Bataan, Morong town will receive ₱15.73 million, Hermosa ₱19.06 million, and Dinalupihan ₱22.17 million.

Per the SBMA Accounting department, the shares to be released accounted for two per cent of the five per cent tax on gross income paid for by free port locators for the period July to December 2023. The other three per cent of the taxes paid are remitted directly to the national government. 

The LGU share is determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent). 

Aliño said the shares given by the SBMA to the neighboring communities would benefit almost 750,000 residents in the said areas. 

Over the period of ten years, LGU shares significantly increased by 118.94% from ₱81.3 million in 2014. This is attributed to the growing number of locators who continue to trust in the services accorded to them by the agency. (MPD-SBMA)

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SBMA releases ₱203-M revenue shares; new chief forges strong partnerships with neighboring LGUs

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan and mayors of the eight local government units (LGUs) adjacent to this free port forged strong partnerships as the Subic agency formally turned over revenue shares for localities contiguous to and affected by the operations of this premier freeport.

 

LGU shares are derived from the 2% of the 5% corporate taxes paid by Subic Bay Freeport-registered enterprises from January to June 2023, which amounted to ₱207.65 million.

 

Less net retention amount of Php4.62 million, LGU shares in the amount of ₱203 million were turned over by Tan for the first time during a simple ceremony at the Subic Bay Travelers Hotel.

 

Grateful for the positive turnout of LGU officials, Tan gave a briefing of the future development projects that the agency will be undertaking during the next few years of his term.

 

“These development projects will surely add value to the agency as it makes an effort to attract more investments; and with more investments, more jobs will be created not only for the residents of the neighboring towns of Subic, but also for the residents of neighboring provinces,” Tan assured.

 

With this, Tan also asked the beneficiary-LGUs for their help and cooperation in promoting Subic Bay Freeport to prospective investors.

 

“The more investments we get, the more jobs we create. The more revenues we generate, the more shares the LGUs get,” he added.

 

For the province of Zambales, Olongapo City mayor Rolen Paulino, Jr. received the highest share in the amount of ₱47.46 million; Subic mayor Jon Khonghun received ₱30.5 million; a representative of Castillejos mayor Jeff Khonghun received ₱18.5 million; San Marcelino mayor Elmer Soria received ₱24.38 million; and San Antonio mayor Edzel Lonzanida received ₱17.27 million.

 

Meanwhile, for the province of Bataan, Dinalupihan mayor German Santos, Jr. received ₱25.28 million; Hermosa mayor Joseph Inton received P21.7 million; and last but not the least, Morong mayor Cynthia Estanislao received ₱17.9 million.

 

The ₱207.65-million revenue share covers the first semester of 2023, with ₱16.14 million retention from the first semester 2021 collection, less ₱20.76 million for the current collection’s ten percent retention. 

 

These revenue shares are intended to supplement development projects in health, education, peace and order, and livelihood generation of the contiguous LGUs.

 

The SBMA started releasing the shares directly to LGUs in August 2010 to ensure their prompt remittance to the local communities. The LGU share is determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent), which are then released periodically in August, for the first semester, and February the following year, for the second semester. (MPD-SBMA)

 

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SBMA gives ₱180.67-M revenue shares to neighboring LGUs

Eight neighboring local government units (LGUs) of this premier Freeport recently received its share of revenues from the Subic Bay Metropolitan Authority (SBMA) amounting to ₱180.67 million. 

Derived from the agency’s revenue collection from January to June this year, SBMA chairman and administrator Rolen C. Paulino led the distribution of shares to local government officials in a simple ceremony at the newly opened En Izakaya & Global Cuisine by Sakura restaurant. 

“I am optimistic that under the leadership of our new President Ferdinand Marcos, Jr., our economy will improve and LGU shares will be bigger especially if more investors will invest in Subic,” Paulino said. 

Paulino also urged everyone to help each other like the way the SBMA patronizes businesses in the Freeport by holding meetings and other events in various establishments, rendering their services. This way, he said, businesses here are able to earn and pay their rent and the salaries of their employees.

He said that this practice would also be beneficial to potential investors who would want to make it happen in the Philippines when they invest in Subic Freeport. 

During the turnover ceremony, Olongapo City mayor Lenj Paulino received the biggest at ₱42.02- million; while, Subic, Zambales municipal treasurer Rosemarie Custodio received ₱24.62-million; Dinalupihan, Bataan mayor Herman Santos received ₱22.47-million; San Marcelino, Zambales municipal treasurer Eleanor Damasco received ₱21.65-million; on behalf of Hermosa, Bataan mayor, Atty. Anne Inton received ₱19.3- million; Castillejos, Zambales mayor Jeff Khonghun received ₱16.47-million; Morong, Bataan assistant municipal treasurer Ma. Teresita Reyes received ₱15.95-million, and San Antonio, Zambales mayor Edzel Lonzanida received ₱15.48-million.

Meanwhile, SBMA Deputy Administrator for Finance Antonietta Sanqui said that the LGU shares are determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent).

“The revenue shares being released by the SBMA every semester are derived from the corporate tax, which is two percent of the five-percent special tax it collects from business locators in the Subic Bay Freeport Zone,” she explained. 

Sanqui added that the SBMA has been releasing revenue shares directly to the LGUs since August 2010.  Previously, corporate taxes were remitted first to the national government, which would then distribute the shares to the concerned LGUs. (MPD-SBMA)

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SBMA turns over P175.7-M revenue share to LGUs

The Subic Bay Metropolitan Authority (SBMA) turned over revenue shares amounting to P175.73 million to eight neighboring local government units (LGUs) on Wednesday.

This amount, which was derived from revenue collections here from July to December last year, was released by SBMA Chairman and Administrator Wilma T. Eisma over a luncheon meeting with local government officials at the Fortune Seafood Restaurant here.

“The purpose of this money is to help us—the SBMA and its neighbor communities—develop together. Like what I always say, we share the same home and, consequently, the same future. But I hope we can be transparent about how we spend it,” she asked the LGU officials.

She explained that sharing revenues to develop contiguous communities actually helps the SBMA fulfil its mandate, which is to attract investments, generate employment, and create more opportunities for everyone.

“The funds don’t have to be spent on infrastructure like roads or bridges,” Eisma added. “Right now I’m thinking of language training, or any similar people investment, so that Subic locators would not need to hire workers from faraway places like Manila.”

“It would be great if locals could speak Korean, or Japanese, or Chinese so that they can be hired in better positions that used to be dominated by candidates from Manila,” she also said.

Out of the P175.73 million LGU shares distributed last Wednesday, Olongapo City received the biggest at P40.87 million. The rest went to Subic, Zambales at P26.86 million; Dinalupihan, Bataan P21.86 million; San Marcelino, Zambales P21.06 million; Hermosa, Bataan P18.29 million; Castillejos, Zambales P16.45 million; Morong, Bataan P15.27 million, and San Antonio, Zambales P15.06 million.

In response, the LGU executives expressed gratitude to the SBMA for the development funds.

“It’s a big help for us, of course. We are receiving a huge amount, which goes to the general fund, and it helps us pay for for road construction, scholarships, and tourism,” said San Marcelino mayor Elvis Soria.

He said the town has allotted P5 million for the town’s annual tourism budget. “And that will come from our share from SBMA,” Soria pointed out.

Meanwhile, Subic mayor Jonathan Khonghun said that the revenue share for his municipality is being used mostly for health care, education and infrastructure.

“This revenue share is really a big help; it lightens our load,” Khonghun said. “Part of it we spend for medicines and hospitalization assistance, and the others in maintaining Kolehiyo ng Subic, sustaining our scholars, and helping poor people graduate,” Khonghun said.

The revenue shares distributed by the SBMA every semester are derived from two percent of the five-percent gross income tax it collects from business locators in the Subic Bay Freeport Zone. The shares were set according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent).

Last year, the SBMA released a total of P378.87 million in revenue shares: Olongapo City got P88.12 million, Subic P57.92 million, Dinalupihan P47.12 million, San Marcelino P45.41 million, Hermosa P39.45 million, Castillejos P35.46 million, Morong P32.92 million, and San Antonio P32.46 million.

Eisma said the SBMA has been releasing revenue shares directly to the LGUs for 10 years now starting in August 2010. Previously, corporate taxes were remitted first to the national government, which would then distribute the shares to the concerned LGUs. (RFD/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma (center) hands over cheques for LGU shares to (left-right): Mayor Preciliano Ruiz (San Antonio), Mayor Elvis Soria (San Marcelino), Vice Mayor Rizal Salih Jr. (Castillejos), Mayor Jonathan Khonghun (Subic), Mayor Rolen C. Paulino Jr. (Olongapo), and Vice Mayor Renato Matawaran (Dinalupihan).

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SBMA releases P203.14-million shares to LGUs

The Subic Bay Metropolitan Authority (SBMA) distributed checks amounting to a total P203.14 million to adjacent local government units (LGUs) that benefit from the semi-annual revenue shares from the Subic agency.

SBMA Chairman and Administrator Wilma T. Eisma released the shares during a lunch meeting at the Subic Bay Yacht Club on Monday to LGU executives of Olongapo City and the towns of Subic, Castilejos, San Marcelino and San Antonio in Zambales, and Hermosa, Morong and Dinalupihan in Bataan.

The biggest disbursement went to Olongapo City with P47.24 million, followed by Subic with P31.05 million; San Marcelino, P26.34 million; Dinalupihan, P25.26 million; Hermosa, P21.15 million; Castillejos, P19.01 million; Morong, P17.65 million; and San Antonio, P17.41 million.

Monday’s releases brought the total amount received by contiguous LGUs to P2.07 Billion since February 2011 when the SBMA started directly releasing the revenue shares to them.

As the LGU share is determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent), Olongapo, which is a highly urbanized city, always received the biggest chunk of the shares.

The shares given in August are derived from two per cent of the five-percent gross income taxes collected from business locators in the Subic Bay Freeport Zone from January to June each year. Shares from collections in July to December are released in February.

Eisma pointed out that the LGU shares are given to augment local resources and enable stakeholder communities to carry out development projects in health, education, peace and order, and livelihood generation.

“This is another way by which the SBMA promotes inclusive growth in the locality, aside from generating employment opportunities for local workers,” Eisma said.

“While we don’t have any means to determine how the shares are utilized, we hope that these will be used for the communities to keep pace with developments in the Subic Bay Freeport,” she added.

For their part, the mayors gave assurances that the funds would be spent to further develop their respective communities.

Mayor Rolen Paulino Jr. of Olongapo said the shares he received would go for development projects that would benefit the people of the city, while Mayor Jonathan Khonghun of Subic said that their share would provide for scholarship grants to deserving residents of the municipality. Both are neophyte mayors who won in the recent elections.

The SBMA began releasing the shares directly to the LGUs, after a new tax collection scheme was implemented in August 2010. Previously, corporate taxes were remitted first to the national government, which would then distribute the LGU shares. (RAV/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma (center) with local chief executives after releasing LGU shares at the Subic Bay Yacht Club on Monday. Left-right: Mayor Rudy Ruiz (San Antonio); Mayor Elvis Soria (San Marcelino); Mayor Rolen Paulino Jr. (Olongapo City); Mayor Jopet Inton (Hermosa); Chairman Eisma; Mayor Eleanor Dominguez (Castillejos); Mayor Angela Garcia (Dinalupihan); Mayor Cynthia Estanislao (Morong); and Mayor Jon Khonghun (Subic). (MPD-SBMA)

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LOOK: SBMA, farmers and barangay leaders celebrate World Water Day

The Subic Bay Metropolitan Authority (SBMA), in cooperation with barangay officials and local farmers celebrated the annual World Water Day on Wednesday, March 22 with a river clean-up and a water project for the people of Bangal in Dinalupihan, Bataan.

This year's celebration carries the theme "Why Waste Water?" which focuses on taking action for issues in saving and reusing water which is vital resource for millions of people worldwide.

Barangay officials, members of the Bangal Farmers Association and SBMA Ecology Center Social Development Division staff conduct a clean-up drive along the river banks of Bangal, Dinalupihan, Bataan.

Leaders of the local farmers association, barangay officials and SBMA Ecology Center Social Development Division staff applaud after inaugurating a community water project in Barangay Bangal, Dinalupihan, Bataan, coinciding with World Water Day.

Barangay Councilor Arthur Quarto gives a thumbs up sign as leaders of the local farmers association and residents fill up their water containers from the newly inaugurated community water project in Barangay Bangal, Dinalupihan, Bataan.

(AMD/MPD-SBMA)

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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 expresses keen interest in extending the Freeport fence to contiguous towns

The Subic Bay Metropolitan Authority (SBMA) has expressed its interest in extending the present fenced area to contiguous municipalities based on the provisions of the law.

This was announced to members of the Subic Bay Freeport Chamber of Commerce (SBFCC) in a meeting Wednesday (Jan 25) sponsored by the SBMA Labor Department in celebration of the 4th year anniversary of its SBMA-run radio program “Paggawa at iba pa” over 89.5 FM Subic Bay Radio.

SBMA Administrator Atty. Wilma Eisma told Subic-based businessmen that according to the provisions of Republic Act 7227, the law that created the Subic Bay Freeport Zone, “the fenced areas should be extended.”

Section 12 of RA 7227 states Subic Special Economic and Freeport Zone consist of the City of Olongapo and the municipality of Subic in Zambales, the lands occupied by the former US Naval Base and its contiguous extensions and within the territorial jurisdiction of the municipalities of Morong and Hermosa in Bataan.

Related to this, in November 2007, Executive Order 675 was issued by then President Gloria Macapagal Arroyo amending EO 97-A allowing the extension of the secured area of the Subic Bay Special Economic and Freeport Zone (SSEFPZ) to areas within the SSEFPZ but are outside the presently fenced-in former US Naval Base.

Under EO 675, SBMA may declare areas outside the former US Naval Base as “Additional Secured Areas” or “Additional Areas” which may be operated as “Special Economic and Freeport Zone” supervised by SBMA.

Additional Secured Areas and Additional Areas are entitled to all tax, fiscal and other investment incentives (except real estate tax for privately-owned property). However, only secured areas may avail the duty-free privileges.

The declaration may only take effect after a concurrence by a resolution of the concerned Sangguniang Bayan or Panglungsod.

“That’s the dream. Fencing outside the existing fenced areas is difficult but I think it can be done and it should be done,” Eisma said, adding that at the very least, the privileges provided to investors and locators inside the Freeport should be extended.

Eisma encouraged the locators and investors to share inputs or ideas with local government officials in the contiguous municipalities and city in a bid to expand their businesses in their areas. “Because at the end of the day, based on the provisions of the law, those areas or parts of those areas are actually part of the Freeport, she continued.

“It is very important to work with the local government units within the contiguous zone. So, we are now working on that,” she said.

Meanwhile, SBMA Chairman Martin Diño said the SBMA Board of Directors is now doing all the necessary steps to shorten the documentation process for new and renewing businesses in an effort to make Subic “investor and locator friendly.”

In response, SBFCC president Rose Baldeo said the member-locators and investors are with the new management team of SBMA saying the SBFCC is fully supporting the dream of the SBMA officials. (RAV/MPD-SBMA)

PHOTO:
SBMA Chairman Martin B. Dino and Administrator Wilma T. Eisma answer queries from Freeport locators, residents and business organizations in an impromptu forum during the anniversary celebration of Paggawa Atbp. radio program of the SBMA Labor Department held at the Grand Harbor Hotel in Subic Bay Freeport. (AMD/MPD-SBMA)

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Bataan town gearing up for Subic investments expansion

Hermosa, Bataan – To accommodate the growing needs of investors at the Subic Bay Freeport, local officials led by Mayor Jopet Inton are planning to develop industrial zones in parts of the fast growing municipality.

“We need conversion immediately so we can accommodate the growing number of investors including those who are coming in,” Inton told the members of the municipal council during a recent session.

The municipal hall of Hermosa, Bataan

The council, headed by Vice Mayor Chris Vitug and opposition councilor Danilo Blade vowed to support the mayor’s economic program.

According to Inton, a major investor is now working on its Philippine Economic Zone Authority accreditation before setting up shop in Hermosa.

Inton said that a possible site for the industrial zone is a 200-hectare tract of land in Sitio Mabiga in Barangay Tipo in the western part of town.

The area is just a 10-minute drive away from Subic Freeport and 25 minutes away from Clark Freeport.

Subic Bay Metropolitan Authority (SBMA) officials earlier said they are planning to expand the Freeport’s industrial area to Hermosa.

A large part of Subic Freeport is actually under the political jurisdiction of Hermosa, which has been receiving a part of the SBMA’s annual income. (Mar T. Supnad, Manila Bulletin)

http://www.mb.com.ph/bataan-town-gearing-up-for-subic-investments-expansion/

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SBMA to release 41% higher LGU revenue shares

The Subic Bay Metropolitan Authority (SBMA) is set to release next week some P105 million in revenue shares to local government units (LGUs) adjacent to and affected by the operation of the Subic Bay Freeport Zone.

SBMA Chairman Roberto Garcia announced on Monday that the funds will be made available to the LGUs starting February 6.

The amount consists of P98 million in total revenue shares culled from July to December 2014, and P7 million in refunds of the 10-per cent retention withheld in the second semester of 2012.

According to the SBMA Accounting Department, the P98-milion figure exceeds by 41 per cent the P74.5-million shares given for the same period last year.

Garcia said the distribution of the revenue shares is aimed at spurring development in the eight neighboring LGUs and helping achieve President Aquino's goal of inclusive growth.

In August 2014, the SBMA released a total of P93.7 million in revenue shares for the first half of 2014, for a total LGU share of P199 million last year.

For this period, Olongapo City will receive the biggest share at P25.5 million, while Subic, Zambales will get P15.7 million; Dinalupihan, Bataan, P13.2 million; San Marcelino, Zambales, P12.7 million; Hermosa, Bataan, P10.8 million; San Antonio, Zambales, P9.3 million; Morong, Bataan, P9.1 million; and Castillejos, Zambales, P9 million.

The LGU share is determined according to 50 per cent population, 25 per cent land area, and 25 per cent equal sharing.

The LGU shares come from part of the five per cent corporate taxes paid by Subic Bay Freeport-registered enterprises, of which two per cent goes directly to the SBMA treasury while the other three goes to the national coffers through the Bureau of Internal Revenue (BIR).

The direct payment scheme was initiated by the SBMA some four years ago to hasten the release of LGU shares, which augment LGU funds for developments projects in health, education, peace and order, and livelihood generation. (RFD/MPD-SBMA)

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‘Hanjin town’ bracing for impact of development

CASTILLEJOS, Zambales—This third-class municipality is now expecting more benefits from business investments that accompany the growth of Hanjin, the South Korean company that has established a successful shipbuilding operation at the Subic Bay Freeport’s Redondo Peninsula.

While the Hanjin shipyard is geographically in Subic town, it is Castillejos, Subic’s next-door neighbor, that has experienced the most dramatic development impact from the growth of the Hanjin shipyard over the years.

“Since Hanjin started building its facility in 2006, Castillejos has experienced its biggest economic boom ever,” remarked Mayor Jose Angelo Dominguez last week, as he appeared at a dental and medical outreach project conducted by the shipbuilding company at the Hanjin Village here.

He said that, in particular, the influx of Hanjin workers—about 25,000 at last count—had resulted in the booming of businesses here in Castillejos, which is now easily the biggest “bedroom community” for shipyard workers.

Dominguez said most of the workers at Hanjin came to settle at Castillejos because the main road they take to their job site passes through the town’s Barangay Balaybay. The number of settlers increased faster in 2012 when Hanjin built its low-cost housing project here at Barangay Nagbunga.

“Balaybay and Nagbunga are now the biggest barangays in our town in terms of population,” Dominguez said. “The workers sleep here, so houses, apartments and rooms for rent flourished. Then, they also buy their food and other household needs here, so local businesses are growing,” the mayor added.

According to town records, Castillejos has experienced the biggest population growth spurt after Hanjin started operation.

In 2000 the town, which has the smallest land area among the 13 towns in Zambales, had a population of only 33,108. In 2007 when the Hanjin shipyard opened, the population of Castillejos rose to 42,910, with a growth rate of 3.64 percent yearly.

Just three years after, in 2010, the town’s population was already 48,845, with the growth rate now registering 4.83 percent.

The coming of Hanjin also coincided with the establishment here of the town’s first automatic teller machine booths, first mini-shopping mall, first restaurant franchise and first 7-Eleven convenience store, said Bernie Chiong, the mayor’s secretary.

In areas where most Hanjin workers rent their rooms, food stalls and videoke bars have also sprung up, adding to the income of local entrepreneurs, Chiong noted. He also said that, with more Hanjin workers in town, the shops in Castillejos now remain open until midnight, when these used to close at 5 p.m. owing to slow business.

Aside from providing economic benefits, Hanjin also regularly undertakes health and education outreach projects, Dominguez said, adding that the company even put up a new public elementary school at the Hanjin Village in time for the opening of classes this year.

“If this economic boom continues, Castillejos may eventually grow to become a city, thanks to Hanjin,” Dominguez added. (Henry Empeño, BusinessMirror)

http://www.businessmirror.com.ph/hanjin-town-bracing-for-impact-of-development/

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SBMA releases P72-million revenue share to neighbor LGUs

The Subic Bay Metropolitan Authority (SBMA) will release this month a total of P72 million in revenue shares to the seven municipalities and one city that are located near this premier free port.

According to SBMA chairman and administrator Roberto Garcia, the funds to be given to neighboring local government units (LGUs) were derived from two percent of the corporate taxes paid by registered Subic Freeport enterprises from June to December 2012.

Since August 2010, the SBMA, under a new tax collection scheme, began directly receiving two percent of the five percent corporate taxes paid by Subic firms to help ensure the prompt release of these shares to neighboring LGUs.

The rest of the five percent, whichis three percent, goes to the national treasury through the Bureau of Internal Revenue (BIR).

For the second semester, Olongapo City has been allotted a total P17.5 million. In Zambales, the town of Subic will receive P10.69, while San Marcelino will get P8.7 million, San Antonio P6.35 million, and Castillejos P6.15 million.

In the province of Bataan, meanwhile, Dinalupihan will have P9.04 million, Hermosa P7.34 million, and Morong will get P6.22.

Garcia said the LGU revenue shares, which are given to communities that are contiguous to and affected by the Freeport, “are intended to augment local resources and enable stakeholder communities to undertake development projects in health, education, peace and order, and livelihood generation.”

The SBMA funds benefit an estimated 600,000 residents in the contiguous municipalities, Garcia added.

According to the SBMA Treasury Department, the allocation of the LGU revenue shares is determined according to population, which is accorded a 50 percent weight, land area for 25 percent, and equal sharing for another 25 percent.

A retention share of 10 percent is deducted from the actual allocations, but is refunded to the LGUs after a certain period.

Chairman Garcia said that the 10 percent retained amount from May to December 2010 amounted to P6.21 million and was included in the fund released this month.

The LGU shares are regularly released twice a year - the first semester share in August, and the second semester share in February of the following year.

For 2012, the SBMA released a total of P129.4 million in LGU shares, while it distributed a total of P132.96 million in 2011. (RFD/MPD-SBMA)

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LGUs get P57.4-million tax share from SBMA

Seven municipalities and a city adjacent to this premier free port received a total of P57.4 million in revenue shares as their portion in the taxes paid by Subic Bay Freeport-registered enterprises in the first half of this year.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said that the shares given to local government units (LGUs) are intended to augment local resources and enable stakeholder communities to benefit from Freeport businesses by augmenting the funds of nearby LGUs for development projects in health, education, peace and order, and livelihood generation.

The LGUs included Olongapo City, which received P13.88 million; and the Zambales towns of Subic, with P8.55 million; Castillejos, P4.92 million; San Marcelino, P6.95 million; and San Antonio, P5.06 million.

In Bataan, Morong town received P4.95 million, Hermosa P5.87 million, and Dinalupihan P7.21 million.

“This is basically the SBMA’s contribution to help improve the living conditions of residents in contiguous and affected communities,” Garcia explained.

“The intention is to create parallel development between the Subic Bay Freeport and its neighbors,” he added.

According to the SBMA Treasury Department, the shares released accounted for two per cent of the five per cent tax on gross income paid for by free port locators for the period January to June 2012. The other three per cent of the taxes paid are remitted directly to the national government.

The SBMA began releasing the shares directly to the LGUs, after a new tax collection scheme was implemented in August 2010 by the agency to ensure the prompt release of shares to the local government units.

Previously, corporate taxes were remitted straight to the Bureau of Internal Revenue (BIR), which remitted the same to the National Treasury. Thereafter, the Department of Budget and Management would release the two per cent share to the concerned LGUs.

The LGU share is determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent).

Garcia said the shares given by the SBMA to the neighboring communities would benefit almost 600,000 residents in the said areas. (RFD/MPD-SBMA)

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SBMA, LGUs take part in open space technology workshop

Taking up the challenge of President Aquino in forging a social contract with the local community, the Subic Bay Metropolitan Authority (SBMA) met with neighboring local government units (LGUs) in an Open Space Technology Workshop held on May 19-20 at the Subic Bay International Hotel.

The workshop was an open-type of seminar wherein the participants themselves determined the agenda that would be up for discussion the following day. It was facilitated by Greg Forbes, a consultant at the Office of the President-Adviser on Peace Process.

According to SBMA director Bienvenido Benitez, the workshop aims for transformational leadership, institutional reform, economic stability and inclusive growth in the province of Zambales and Bataan, the municipalities of Subic, Hermosa and Morong, and Olongapo City. These are the communities that will be greatly affected by the current developments in the Freeport.

“Hopefully we will find a common denominator amongst us, and we will pursue that common denominator. It could be about environmental issues, industrial issues, eco-tourism, housing, or education. Maraming mga field ang maaring lumabas,” Benitez said.

Benitez also mentioned that the SBMA board of directors had recently created a community program aptly named Project Unity, which endeavors to create synergy and development and promote investment projects that have larger multiplier effects on local economies.

“Its underlying goal is promoting inclusive growth and progress that will ultimately lead to poverty reduction and translate into a stronger platform for sustainable sub-regional development,” Benitez further noted, adding that the committee has already met with the LGUs to discuss issues concerning their respective communities.

For his part, SBMA chairman and administrator Roberto Garcia said that the Open Space Technology Workshop is an opportunity to create rapport with the communities surrounding the Subic Freeport.

“’Yung SBMA at ‘yung mga LGUs, hindi naman tayo magkaiba ng layunin,” Garcia pointed out. “Dapat sama-sama tayo dito. Kaya ‘yung kaunlarang mangyayari dito sa loob ng SBMA, ang gusto namin kasama kayo.”

Garcia then stressed the importance of letting the LGUs be aware of developments inside the Freeport.
“Importanteng malaman ninyo ang direksyon ng SBMA para sa ganun, kayo naman sa inyong pag-paplano tignan ninyo kung saan tayo pupuwedeng magkapit-bisig at gumawa ng hakbang,” he said.

Garcia said that he had already talked with some of the LGUs regarding projects that will benefit both the Freeport and the local communities. (FMD/MPD-SBMA)

 PHOTO:
SBMA chairman and administrator Roberto Garcia asks for support from neighboring local government units during the Open Space Technology Workshop at the Subic Bay Freeport.

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SBMA links up with LGUs for ‘inclusive growth’ in Subic Bay area

Aiming to put in motion a program of shared growth in the Subic Bay area, directors of the Subic Bay Metropolitan Authority (SBMA) have devised a special project to link up with local government units and coordinate planning and implementation of development projects at neighboring communities.

SBMA chairman Roberto Garcia said the special program, dubbed as “Project Unity,” takes after the concept of “inclusive growth” which is one of the four commitments of President Benigno Aquino under his “Social Contract with the Filipino People.”

To implement this program, the SBMA board of directors recently created a special committee headed by director Bienvenido Benitez as chairman, with director Philip Camara as vice chairman. The committee also includes Garcia and directors John Philip Chua Chiaco, Ramon Diez Sesdoryo, and Alfonso Siapno.

Garcia said the project was especially designed to create synergy in development and investment projects that have large multiplier effects on local economies and the areas contiguous to the Subic Bay Freeport Zone.

To push for the implementation of “inclusive growth” in the area, Garcia said that Project Unity would also make use of Executive Order No. 675 as vehicle to undertake the SBMA program.

EO 675, which was issued in November 2007, extended the secured area of the Subic Special Economic and Free Port Zone (SSEFPZ), as defined by Proclamation No. 532 dated February 1, 1995. Subic’s secured area enjoys tax- and duty-free privileges under Republic Act 7227.

Garcia said that Project Unity aims for a synergistic approach to sub-regional development, “which is why we are planning various initiatives that are geared toward pro-active stakeholders, and among the SBMA and the concerned local government units.”

He also said that Project Unity will be especially useful in deciding environmentally-sensitive projects (ESPs) that may possibly impact on local communities, the pooling of scarce resources toward better and more efficient project development and implementation, and the coordination of investment plans in the area.

Garcia said the SBMA has already made initial discussions with LGU officials of the provinces of Zambales and Bataan to get the program going.

Recently, the project’s vice chairman, SBMA director Philip Camara, introduced the project concept to officials of the provincial government of Zambales, including Gov. Hermogenes Ebdane Jr. and Vice Gov. Ramon Lacbain II, during a session of the Sangguniang Panlalawigan at the Iba capitol.

Camara also invited the officials to a workshop to be hosted by the SBMA to provide a staging ground to flesh out the framework and concept of “inclusive growth,” as applied to sustainable sub-regional development. This will be the initial activity of Project Unity.

The workshop will be a participative and democratic process during which participants will identify possible areas or points of synergy, as far as planning and development are concerned, and hopefully arrive at a common vision for sustainable development, Camara said. (SBMA Corporate Communications)

PHOTO:
SBMA Chairman Roberto Garcia (right) meets with Zambales Gov. Hermogenes Ebdane Jr. during a recent convention of municipal mayors in Central Luzon at the Subic Bay Freeport Zone.

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SBMA adopts new scheme for release of LGU share from corporate taxes

The Subic Bay Metropolitan Authority (SBMA) will soon be collecting the two percent share of contiguous local government units (LGUs) from corporate taxes paid by business locators in this free port, instead of the Bureau of Internal Revenue (BIR).

This was announced by Subic authorities during a forum held under the auspices of the Department of Finance (DOF) for some 300 representatives of companies in the Subic Bay Freeport Zone.

“We are doing this to make sure that the LGU shares are distributed quickly,” SBMA administrator and CEO Armand Arreza explained.

He said that previously, Subic locators forward their corporate tax, or five percent of their gross income earned, straight to the BIR, which automatically remits payments to the national treasury.

Thereafter, the Department of Budget Management (DBM) releases the two percent share to the LGUs concerned.

Arreza also said that since the creation of the SBMA, the 2 percent share was only distributed for a few years, resulting to a lot of complaints from LGUs.

“The funds could have been used to finance LGU development projects and provide for basic support services in health, education, and peace and order,” Arreza noted.

“So it is but right and lawful that the LGUs receive their share on a regular basis,” he stressed.

According to Republic Act No. 9400, which amended RA 7227 or the Bases Conversion and Development Act of 1992, no national and local taxes shall be imposed within the Subic Special Economic Zone except for a five percent tax on gross income earned by business enterprises within the zone.

Accordingly, the corporate tax shall be remitted as follows: three percent to the National Government, and two percent to the SBMA for distribution to LGUs affected by the declaration of, and contiguous to the zone.

The two percent share is divided according to population (50%), land area (25%), and equal sharing (25%).

The contiguous communities include the City of Olongapo and the municipalities of Subic, San Antonio, San Marcelino and Castillejos in Zambales, and Morong, Hermosa and Dinalupihan in Bataan.

In the forum, Arreza said that there will be no other changes in the computation of the corporate taxes, except for splitting the check into two: 60 percent to be forwarded to the BIR and 40 percent to the SBMA Treasury Department.

Aside from Arreza, BIR assistant revenue district officer Maglangit Dicampong was present to address concerns raised by business locators. The forum speakers also included SBMA senior deputy administrator for internal services Ramon Agregado, SBMA deputy administrator for finance Cristina Millan, and SBMA treasury department manager Paulita Yee.

For her part, Millan assured the locators that the SBMA will issue guidelines to address matters regarding the new collection scheme for corporate taxes.

The new scheme will be implemented starting with the locators’ second quarter tax payments. (SBMA Corporate Communications)

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