SBMA conducts inspection of future Agila Subic facility

The Subic Bay Metropolitan Authority (SBMA), along with local and foreign dignitaries, conducted a site inspection of the future Agila Subic facility last May 15 at the Redondo Peninsula here in this premier Freeport Zone.

SBMA Chairman and Administrator Rolen C. Paulino led the delegation along with Olongapo City Mayor Lenj Paulino, and the Philippine Navy.

Paulino said that one of the mandates given to him by President Rodrigo Duterte is to ensure a smooth transition of the company to the former Hanjin shipyard facility, and bring to fruition what the former administration of the agency had started.

Now called Agila Subic, the former Hanjin shipyard will be housing two tenants.

One tenant Vectrus, will be occupying most of the shipbuilding area of the facility, including the quays.  Meanwhile, the Philippine Navy is currently occupying the former Hanjin administrative office, mess hall, and barracks.

Vectrus is a global service solutions provider to the United States government and across the world, which offers facility and base operations, supply chain and logistics services, information technology (IT) mission support, and engineering and digital integration services.

Former Hanjin workers who have been skills-trained will be hired by the company since it will require skilled workers.

29 workers have already been hired and the company hopes to employ more workers who used to work for the shipbuilding company.

Meanwhile, Mayor Lenj Paulino said that the city government plans to provide skills training to its residents as the re-elected official sees a boom in employment in the ship repair industry in the area. He added that companies, who are looking for skilled workers, would only need to contact the city government.

Recently, the Department of Finance stated that the Fiscal Incentives Review Board (FIRB) has approved the proposed tax perks as endorsed by the SBMA, for the rehabilitation of the ageing shipyard.

The project will be receiving special corporate income tax (SCIT), value-added tax (VAT) exemption from importation, VAT zero-rating on local purchases, and duty exemption on importation.

The total project cost is estimated at Php17 Billion. (MPD-SBMA)

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SBMA resumes P122.7-M perimeter fencing and road rehab projects

The Subic Bay Metropolitan Authority (SBMA) has resumed the implementation of perimeter fencing and perimeter road rehabilitation projects designed to improve the security in this premier free port zone following the easing of Covid-19 restrictions in construction works.

SBMA Chairman and Administrator Wilma T. Eisma said the projects were disrupted by the onset of the Covid-19 pandemic last March, but “are now back in full force.”

Eisma said the P69.7-million perimeter fencing project will cover the entire stretch from the Kalaklan Gate up to the Kalayaan Gate of the Subic Bay Freeport Zone, while the P53-million perimeter road rehabilitation project will run from the 14^th Street Gate to the Kalayaan Gate.

“The two projects are complementary,” Eisma said. “The fencing project will improve the security at the Freeport perimeter, while the road rehabilitation project will improve management of access along the perimeter areas,” she added.

According to the SBMA Engineering Department, the seven-kilometer long perimeter fence project, which started on January 2 of this year, is now 53 percent completed.

It was previously scheduled to be finished by October 28 this year, but the delay caused by the Covid-19 pandemic has moved project completion to April 2021.

The project involves the installation of special load-bearing concrete blocks with the strength of 2,500 psi, SBMA project engineers said.  It also includes clearing and excavation works, column and tie beam installation, block laying, and plastering works.

Meanwhile, the perimeter road rehabilitation project is now 11 percent completed.

Project engineers said it will address the deteriorating condition of the old perimeter road that separates the Subic Bay Freeport Zone from communities in the adjacent city of Olongapo, and improve drainage along the perimeter road as well.

Both the perimeter fence and the perimeter road are remnants of the security network erected by the U.S. Navy around the fenced-in portion of the former military base.

The road rehabilitation project likewise started in January this year, and was previously slated to be finished last August. The new completion date has been set for February 2021.

The project involves the concreting of an area measuring 6,614 square meters with Portland Cement Concrete Pavement (PCCP). The PCCP is specifically used to yield a strong and durable, yet cost effective and workable structure that can take heavy loads like trucks that usually utilized the perimeter road.

Aside from paving works, the project includes clearing and grubbing, levelling and compaction, and installation of forms. (MPD-SBMA)

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Workers install load-bearing concrete blocks to maximize the integrity of the perimeter fence project at the Subic Bay Freeport Zone 

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PH Navy eyes Hanjin's Subic shipyard as submarine base

MANILA -- The Philippine Navy (PN) plans to construct the base of its proposed submarine arm inside the facility of the cash-strapped Hanjin Heavy Industries and Construction (HHIC-Phils) in Subic Bay, Zambales.

Vice Admiral Robert Empedrad, PN flag-officer-in-command, made this remark when asked on possible locations that can house the Navy's submarines once the acquisition of these vessels goes into high gear.

"Once there's a contract, the buyout is completed, then we will (use part of the site of) Hanjin to provide housing for our submarines. We can construct finger pier(s) for our submarines (to tie-up) and the (depth of) water there (is sufficient) to accommodate our submarines," Empedrad said in Filipino.

The PN is looking to acquire two diesel-electric submarine units as part of its efforts to modernize its fleet.

The Scorpene, which is being constructed by French defense manufacturer, Naval Group, is said to be high on the list of preferred submarine platforms of the country and was evaluated by naval and defense officials last year.

"We will also develop Sangley Point (in Cavite City) for alternate housing of our submarines," the PN chief added.

Earlier, Defense Secretary Delfin Lorenzana said the government could use the Hanjin facilities to house and repair large Philippine Navy ships while waiting for interested parties or partners from the shipbuilding sector.

HHIC-Phils earlier revealed that it has a total of USD1.3 billion outstanding loans -- USD400 million from Philippine banks and USD900 million from South Korean lenders.

The Subic Bay Metropolitan Authority (SBMA) said HHIC-Phil filed on Jan. 8, 2019, a petition at the Regional Trial Court in Olongapo City "to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals".

The shipbuilder has sought help from the government to find investors that can take over the operation of its shipyard in Subic, as well as to help its employees, who have taken the brunt of the company's financial woes.

In December 2018, the company laid off more than 7,000 workers. (Priam Nepomuceno, PNA)

PHOTO:

Philippine Navy flag-officer-in-command, Vice Adm. Robert Empedrad. (File photo)


https://www.pna.gov.ph/articles/1091472

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SBMA steps up Subic infra rehab program

The Subic Bay Metropolitan Authority (SBMA) is stepping up the rehabilitation of roads and other public infrastructures in this premier Freeport with a P1.6-billion budget that would be used mostly for the repair of major thoroughfares, key drainage systems, and critical eroded slopes.

According to SBMA Chairman and Administrator Wilma T. Eisma, the Subic agency is now simultaneously undertaking four road repair projects, two slope rehabilitation projects, and one drainage system improvement project to fix ageing facilities constructed when Subic was still an American naval base.

“We have a lot to catch up on because there wasn’t much rehabilitation projects done since Subic became a free port in 1992,” Eisma said. “We are doing several projects concurrently, not only because we are hosting the upcoming Southeast Asian Games, but more so because we need to redevelop Subic and keep it sustainable as an area for investments.”

According to a project status report from the SBMA Engineering Department, there are 13 construction projects worth a total of P733.4 million that are in various stages of implementation. These include the repair of the El Kabayo Road and a slope rehabilitation project in the same area that were completed early this year.

The biggest chunk of the budget went to the 2018 road rehabilitation package which costs a total of P274.54 million and covers areas such as the Malawaan Park parking area, road ramp along Dewey Avenue, Waterfront Road, road to the New Container Terminal, Rizal Highway, Maritan Highway, as well as several roads in residential areas.

Eisma said 2018 road project, which has a completion date of December 21, 2019, is expected to ease the traffic in some of the busiest roads in the Freeport.

Another major undertaking is the implementation of the P225.48-million 2019 Road Rehabilitation Project 2019, which is currently in the mobilization and as-stake survey stage.

Eisma said this project will consist of repairs along main roads like Argonaut Highway, San Bernardino Road, roads to Leyte Wharf and Sattler Pier duct banks, Rizal Highway, Boton Highway, Binictican Drive, and the approaches to Kalaklan Bridge and 14th Street Bridge.

Meanwhile, Naval Supply Depot (NSD) Road Rehabilitation Network Phase 2, which has a budget of P85.26 million, is expected to be completed by December 27 this year. The project consists of repairs of roads leading to the NSD Compound where most of grain and bulk shipments are handled.

“This is an area that has been battered by heavy trucks that carry tons of shipment from ships,” Eisma said, referring to the NSD Compound. “We are now rebuilding the U.S. Navy-era roads to take in more cargo traffic because of the growing transshipment operations here in Subic.”

Other on-going projects included some building renovation, construction of a fitness center and sentry kiosks, and rehabilitation of rubble mound for barrette light at the Subic airport.

Eisma also said that the SBMA has scheduled other upcoming projects worth P908.7 million. These include the P442.7-million Magsaysay Bridge project, which will replace the span leading to the Subic Bay Freeport’s main gate. The contract for the project is about to be issued, she added.

Other upcoming projects still under the agency’s Bids and Awards Committee are the P320-million NSD Road Rehabilitation Network Phase 3 project; a P3.6-million drainage and flood control project near the SBMA Dispensary; slope rehabilitation at Aparri Road worth P81.4 million; the P7-million construction of perimeter fence from Kalaklan to Kalayaan; and the P54-million Perimeter Road rehabilitation project.

Eisma said the SBMA has also engaged consultancy services for detailed engineering designs for various sea port projects and a drainage master plan for a total cost of P23.2 million. (JRR/MPD-SBMA)

PHOTOS:

Workers pour concrete to pave the Waterfront Road under the SBMA’s infrastructure rehabilitation program. (MPD-SBMA)

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Foreign shipbuilders eye Hanjin takeover

MANILA - Shipbuilders from the United States, Japan, South Korean, Indonesia, Australia and Turkey have expressed interest in taking over the operations of cash-strapped Hanjin Heavy Industries and Construction Philippines (HHIC-Phil), Defense Secretary Delfin Lorenzana said Monday.

Lorenzana was reacting to a question regarding the government's plans on HHIC-Philippines during the National Defense College of the Philippines Alumni Forum, "The National Security Outlook for the Philippines in 2019", at the NDCP Compound, Camp Aguinaldo in Quezon City.

"There are several shipyards, ship companies around the world, (which have expressed interest in taking over HHIC-Phil's operations), some US, Japanese, (South) Korean, Indonesian and also Australian, I think lately, I also heard some Turkish or some European shipyards are already interested," Lorenzana said.

But if worse comes to worse, Lorenzana said the government could take over as the Senate has already set aside some money for such eventualities.

"Hanjin shipyard (has) not actually filed for bankruptcy it is just asking for rehabilitation, because the problem is cash flow. It is still building some ships here in the Philippines but it needs money to keep operating (on a) day-to-day basis so it’s still being in the works," he said.

HHIC-Phil earlier revealed that it has a total of USD1.3 billion outstanding loans -- USD400 million from Philippine banks and USD900 million from South Korean lenders.

According to Subic Bay Metropolitan Authority, HHIC-Phil filed on January 8 a petition at the Regional Trial Court in Olongapo City "to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals".

The shipbuilder also sought help from the government to find investors that can take over the operation of its shipyard in Subic, as well as to help its employees, who have taken the brunt of the company's financial woes.

In December 2018, the company laid off more than 7,000 workers. (PNA)

PHOTO:

Large carrier ships being built at Hanjin shipyard in Subic Bay Freeport.

http://www.pna.gov.ph/articles/1060952

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‘Build Build Build’ team sets Subic job fair for displaced Hanjin workers

The “Build Build Build” team composed of various government agencies will gather around 70 employers from different contractors involved in the government’s infrastructure program, and companies within the Subic Bay Freeport Zone for a Jobs Caravan on February 9, Saturday.

To be held at the SBMA Gym in the Subic Bay Freeport, the Build Build Build = Jobs Jobs Jobs Caravan was initiated to provide employment to the displaced workers of Hanjin Heavy Industries and Construction (HHIC) Philippines.

Wilma Eisma, chairperson and administrator of the Subic Bay Metropolitan Authority (SBMA), said the Authority is committed to find jobs for the displaced Hanjin workers.

“Subic is happy to be part of this project to bring greater positive social impact to our people. We are committed to find every opportunity for the SBMA to make more jobs available and catalyse greater growth in Central Luzon and the rest of the country,” Eisma said.

Labor Secretary Silvestre Bello III assured that there will be no job-skill mismatch after DOLE conducted a profiling activity on 2,779 Hanjin workers.

“Around 65 percent or 1,801 of the 2,779 profiled Hanjin workers are skilled in carpentry, 24 percent or 661 on the other hand have skills in vulcanizing and welding, hence there will be no problem with job-skill mismatch if they work in the construction industry,” Bello said.

“We are bringing job opportunities closer to the people. The available jobs guarantee decent domestic employment for our highly skilled workers. They need not sacrifice being away to provide for their families because local productive work abounds,” Bello added.

Finance Secretary Carlos Dominguez III, for his part, urged jobseekers to explore employment opportunities in nearby Clark.

“We believe there are enough jobs available at Clark Ecozone alone for the displaced workers of Hanjin Philippines. According to the Bases Conversion and Development Authority (BCDA), a lot of jobs for skilled workers are needed at Clark as it shifts to high gear its program to transform New Clark City into the country’s first smart and green metropolis,” Dominguez said.

The Jobs Caravan is spearheaded by the Department of Public Works and Highways (DPWH), Department of Transportation (DOTr), Department of Finance (DOF), Department of Budget and Management (DBM), National Economic and Development Authority (NEDA), Department of Labor and Employment (DOLE), Department of Trade and Industry (DTI), BCDA, SBMA, and the Clark Development Corporation.

“This is an opportunity for us to aid those who lost or will lose their jobs in Hanjin, and at the same time complement the manpower requirement of the BBB program of the government,” said DPWH Secretary Mark Villar, noting the need for additional labor force to match the yearly additional budget in infrastructure projects.

“The Build, Build, Build program remains a priority of President Rodrigo Duterte’s government. This program, which is expected to generate thousands, even millions of jobs nationwide will be able to provide options for our displaced workers,” said Villar.

According to DOTr Secretary Arthur Tugade, at least a thousand jobs will be available at the Caravan which include vacancies for construction workers, welders, carpenters, engineers, and administrative staff.

DTI Secretary Ramon Lopez noted that opportunities in the country are booming.

"Tuloy po ang paghandog ng oportunidad, at paggaling ng abilidad, para lahat ay umunlad," Lopez said.

Jobseekers may already pre-register for the Job Caravan at the SBMA Gym. Pre-registration will be open on January 30 to 31, February 4, and February 6 to 7 from 8:30 a.m. to 2:00 p.m. (HEE/MPD-SBMA)

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Former Hanjin workers pre-register with the SBMA Labor Department for a jobs fair on February 8 at the Subic Bay Freeport Zone.

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RTC grants Hanjin petition for rehabilitation

The Olongapo City Regional Trial Court (RTC) Branch 72 on Monday (January 14) granted Hanjin Heavy Industries and Construction-Philippines’ petition for receivership and put the Korean shipbuilding firm under corporate rehabilitation.

On Jan. 8, Hanjin sought relief from the Philippine government, filing a petition with the Olongapo RTC to initiate voluntary rehabilitation under Republic Act 10142 or the “Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals.”

Hanjin, the fifth largest shipbuilder in the world and biggest investor at the Subic Freeport with $2.3 billion, revealed recently it owes some $400 million in outstanding loans from Philippine banks on top of another $900 million in debt with lenders in South Korea.

Stefani Saño, a former member of the Subic Bay Metropolitan Authority (SBMA) board as well former senior deputy administrator for investment and business group of SBMA, was appointed by the court as the rehabilitation receiver.

The financial losses allegedly stemmed from a slump in the shipbuilding industry.

Pursuant to RA 10142, Olongapo RTC Branch 72 Presiding Judge Richard Paradeza declared Hanjin under rehabilitation and asked the company to publish the Jan. 14 commencement order in a newspaper of general circulation for two consecutive weeks.

It also ordered the shipbuilding giant to serve a copy of the petition to its creditors – the Bureau of Internal Revenue, Securities and Exchange Commission, Bangko Sentral ng Pilipinas, Insurance Commission, Department of Labor and Employment (DOLE), Housing and Land Use Regulatory Board, Department of Trade and Industry and SBMA.

The court also tasked the company to serve a copy of the commencement order to its foreign creditors and ensure that they receive a copy within 15 days before the initial hearing set on Feb. 8.

In its order, the court said Hanjin’s creditors must file verified claims within five days before Feb. 8 or they will not be entitled to participate in the proceedings.

But the creditors may be entitled to receive distributions arising from the proceedings if recommended and approved by the rehabilitation receiver and the court itself.

The court also ordered creditors, government agencies and all interested parties to file and serve to Hanjin a verified comment/opposition to the petition, together with their supporting affidavits and documents within 15 days before the initial hearing on Feb. 8.

The court also prohibited the company’s supplier of goods and services from withholding their supplies and services in the ordinary course of business for as long as Hanjin makes payment from the issuance of the commencement order.

The court also authorized the company to pay for its administrative expenses as they become due.

It said contracts not confirmed in writing by Hanjin within 90 days following issuance of the commencement order will be considered terminated. (Bebot Sison Jr. with Sheila Crisostomo, Philippine Star)


https://www.philstar.com/headlines/2019/01/16/1885490/rtc-grants-hanjin-petition-rehabilitation#0ezcQ5IYvTgXVUm0.99

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SBMA ‘saddened’ by Hanjin debt problem

Subic Bay Metropolitan Authority (SBMA) Chairman Wilma T. Eisma said she was saddened to learn that Korean shipbuilder Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) is facing serious financial trouble.

Hanjin, which is currently the biggest foreign investor in the Subic Bay Freeport Zone, filed on Tuesday a petition at the Regional Trial Court in Olongapo City to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as “An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals”.

Hanjin officials, Eisma said, had revealed that the company owes some $400 million in outstanding loans from Philippine banks on top of another $900 million in debts with lenders in South Korea.

Eisma said she was informed that the company still has six pending multi-million new building projects at its Redondo Peninsula shipyard here, and that these may have to be cancelled if a rehabilitation plan does not materialize.

“The bottom line is that the company said it does not have enough cash to repay its loans, and that it cannot continue with its operations under these circumstances,” Eisma said.

“It’s really sad that Hanjin would be in dire financial straits after successfully building some of the world’s biggest ships here and putting the Philippines in the map as the world’s fifth largest shipbuilder,” she added.

HHIC-Phil, which has focused in building high-value vessels, was established in 2006 as a subsidiary of Hanjin Heavy Industries & Construction Co., Ltd., a multi-national company that provides shipbuilding, construction, and plant services in South Korea and internationally.

After frenzied construction of its 300-hectare shipyard began in May 2006, HHIC-Phil rolled out its first ship, the “Argolikos” in July 2008.

With some $2.3 billion in foreign direct investments here, the firm proceeded to manufacture some of the world’s biggest cargo and container ships, bulk carriers, liquefied petroleum gas carriers, very large crude oil carriers (VLCC) and very large ore carriers (VLOC).

According to company records, Hanjin has delivered since 2008 a total of 123 vessels to valued clients across the globe, thus cementing its foothold in the highly competitive shipbuilding market.

In the course of its operation, the Korean firm also became the biggest employer among all registered businesses in the Subic Bay Freeport Zone with some 30,000 employees at peak season, and was recognized by both the Philippine Exporter Foundation (Philexport) and the Department of Trade and Industry (DTI) as top export performer.

However, in the face of recent liquidity problem, Hanjin has laid off more than 7,000 workers last December, Eisma said. The firm is about to lay off another 3,000 early this year until just about 300 local workers and as few as seven Korean supervisors would remain in March to do facility maintenance, she added.

“The SBMA, of course, expressed its concern about the separation of shipyard workers, but we received assurances that those who were laid off were amply compensated. Still, we’re having this aspect checked out,” Eisma said.

She added that the SBMA is now working with Hanjin officials to find some way to keep the shipbuilder, which has helped build Subic’s huge reputation in the global maritime industry.

“I really hope that Hanin’s creditors would agree to some rehabilitation plan, or that the company would find some financial partner to continue with its shipbuilding operations in Subic,” Eisma also said. (HEE/MPD-SBMA)

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Hanjin shipyard at the Subic Bay Freeport Zone

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