Udenna wins bid for Subic power plant

MANILA - Udenna Corp., the investment arm of Phoenix Petroleum Philippines Inc., owner Dennis Uy, won in the bidding yesterday for the 116-megawatt (MW) Subic diesel power plant (SDPP).

Informed sources said among the four pre-qualified companies, only Udenna submitted financial and technical proposals, prompting Subic Bay Metropolitan Authority (SBMA) to enter into a negotiated sale with Udenna.

The sources declined to give the identities of the other bidders but earlier reports indicated that Aboitiz Power Corp. and Pacifica Inc. had signified interest to join the SDPP bidding.

SBMA auctioned off the SDPP after it was turned over by the Power Sector Assets and Liabilities Management Corp. (PSALM) last year.

The plant was commissioned in 1994 through a build-operate-transfer (BOT) agreement between National Power Corp. (Napocor) and Enron Corp.

It was also learned that the SBMA board has ordered management “to enter into a consortium agreement with R-II Builders Inc. for purposes of the bidding or submission of the pre-qualification requirements and proposal for the SDPP project.”

Udenna owns minority shares at publicly-listed Phoenix Petroleum one of the most aggressive independent oil companies in the country.

Formerly known as Davao Oil Terminal Services Corp., Phoenix Petroleum is 68 percent-owned by Phoenix Petroleum Holdings Inc. The rest of the company’s shares are owned by Udenna Corp., Udenna Management and Resources Corp., Udenco Corp., and certain individuals.

The company is engaged in trading refined petroleum products, lubricants and other chemical products on wholesale basis operation of oil depots and storage facilities; and allied services mainly in Mindanao. ((Donnabelle L. Gatdula, Philippine Star)

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Subic locator begins export of ‘E-scooter’

A Japanese-Filipino joint-venture company has begun exporting battery-powered electric scooters, riding the crest of the popularity of “green” products designed to help mitigate climate change.

World Green Inc. (WGI), which began operations here only last year, has already delivered 240 units of its “E-scooter” to Japan after only six months of operation, said Gemma Villaseñor, the firm’s general manager.

“Now, we have an outstanding order for 600 units more,” Villaseñor added.

WGI has invested $208,000 for its factory here at the Subic Gateway Park, engaging in the importation, assembly, warehousing and exportation of rechargeable scooters to various Asian countries.
Villaseñor said the company also hopes to capture the Philippine market before the year ends, as well as penetrate other Asian markets like China and Korea, where the popularity of the so-called green products is fast catching on.

“The E-scooter is very earth-friendly because it has zero-smoke emission. It is powered by rechargeable batteries and does not emit carbon dioxide into the air,” Villaseñor said.

She added that the E-scooter, which has a top speed of up to 60 kilometers per hour (kph), is “very ideal for short-distance travel” because of its maneuverability.

“With the size of a domestic bicycle, the E-Scooter also provides you hassle-free parking,” she added.

The company’s E-scooter weighs about 120 kilograms and comes in four colors—blue, red, orange and black. It is powered by eight pieces of 12-volt battery, which could be fully charged in just four hours. Parts used in the assembly of the units are manufactured in China and Taiwan.

Villaseñor said they are selling the E-scooter at a plan retail price of ¥238,000 (about P125,800), which includes tax and registration fee. (Henry Empeño, Business Mirror)

In Photo: A prospective buyer checks out an E-Scooter on display during the opening of World Green Inc.’s assembly plant at the Subic Bay Free Port.

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SBMA, Korean university launch cultural exchange program

The Subic Bay Metropolitan Authority (SBMA) and Youngsan University of South Korea (YSU) have signed a memorandum of understanding to enhance cultural cooperation between the two institutions.

SBMA chairman Feliciano Salonga said the MOU aimed to promote mutual understanding, collaboration and cooperation between SBMA and YSU through exchange programs that will mutually benefit YSU students and SBMA staff.

Salonga and university president Gu Wuck Bu signed the agreement recently after a YSU delegation composed of 27 students and three officials arrived here on June 30 for five days of community immersion under the university’s Global Overseas Volunteers (GOV) program.

The signing was witnessed by Sung Sim School chairperson Ro Chan Young and other officials from both the SBMA and YSU.

“This is another door of opportunity being opened for SBMA employees,” Salonga said, noting that under the MOU, the Korean school shall give scholarship grants to two SBMA nominees for one year, inclusive of tuition and application fees. On the other hand, SBMA will accept two YSU students each year for an internship program.

Salonga said that payments for board and lodging, book allowances, medical insurance and international travel fare shall be separately negotiated and approved by both parties when the exchange program is implemented.

Aside from the cultural exchange, the YSU delegation conducted community outreach projects at the Pastolan Aeta village in the Subic Bay Freeport.

A day before the MOU was signed, Salonga, Bu and Young inaugurated a basketball court in Pastolan, an Aeta village inside the Subic Freeport Zone.

The court was funded by the Korean group and constructed by the 27 student-volunteers in five days.

Won-Cheol Choi, project manager of the YSU GOV, said the volunteers also participated in community projects like the construction of playground, and the repair and remodeling of the day care center in Pastolan.

Choi said the five-day immersion activity has made Subic “a very special place for us now.”

“The volunteers enjoyed being with the members of the community,” Choi said. “They taught the Aeta children taekwondo, music and art, and beauty care and acupuncture to adults.”

On the other hand, Young said the agreement signified a better future for both the SBMA and YSU.

“We are delighted to mark the beginning of our new relationship with your beautiful community and the SBMA,” said Young. “We hope that this project will bring better opportunity and much joy, especially for the younger generation.” (SBMA Corporate Communications)

PHOTO:
SBMA Chairman Feliciano Salonga (right) and Youngsan University president Gu Wuck Bu conclude an agreement for a cultural exchange program.

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SBMA’s manpower subsidiary suspends operations

“We’ve exhausted all possible means to keep it operating,” this was how Atty. Ed Tamondong described efforts to resuscitate the manpower subsidiary of the Subic Bay Metropolitan Authority which he heads, the Freeport Service Corp. (FSC).

“(FSC has) no more source of revenue, we can no longer sustain the expenses for salaries and operations,” Tamondong said as he confirmed the decision of the board to mothball the company.

The FSC Board, which he has chaired since July last year, also decided last Friday (June 25) to give the remaining 240 employees separation pay equivalent to one month for every year of service.

The remaining FSC assets – two gasoline stations and a couple of beach facilities - have to be leased or put under private management to earn the amount needed to pay separation benefits and other obligations.

“Until we are ready to pay, we will not serve the retrenchment notice,” Tamondong added. FSC employees will be given 30 days notice before their separation from service takes effect.

Meanwhile, SBMA Administrator Armand Arreza directed Labor Department Manager Atty. Severo Pastor, Jr. to prepare a program to assist the workers who will be retrenched.

FSC was created in 1995 to provide manpower services needed by the SBMA. The SBMA leased out to its subsidiary several tourism facilities under a revenue sharing arrangement, with the SBMA share fixed at only 5 percent .

According to Tamondong, however, the FSC has never remitted any share to SBMA, prompting the agency to get back most of its assets over the past two or three years.
Since 2000, the SBMA has been subsidizing FSC to the tune of P 6 million monthly or P 72 million a year to cover salary and operating expenses.

The FSC’s financial problem was aggravated by its “bloated” manpower. More than 800 personnel were listed in its payroll before the first manpower reduction was undertaken in 2008.

“For the size of its business operations, 200 would have been enough,” Tamondong said.

In the first manpower reduction, some 652 FSC employees were absorbed by the SBMA. The SBMA also advanced some P 40 million for the partial payment of their separation benefits.

With the company’s manpower down to 240, the SBMA reduced its monthly subsidy to the FSC to P 4 million a month until it was totally scrapped by January this year.

With the revenues from its remaining assets barely enough to keep it afloat, the FSC borrowed another P 4 million from SBMA in January for personnel salaries. In the summer months, which was peak season for tourism, the beleaguered SBMA subsidiary survived from revenues from its gasoline stations and beach facilities.

“Now it’s the lean season again, walang kita,” Tamondong said, adding, “Rather than pile up debts, the board decided to implement its decision last February or March to mothball the company.” (SBMA Corporate Communications)

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SBMA to track down blue-plate vehicles

SUBIC Bay Metropolitan Authority (SBMA) is set to roll out its third major automation project for the year, which aims to create a system that will track the whereabouts of the shipments of blue-plate vehicles, among others, that will enter and exit the free port.

SBMA Administrator Armand Arreza in an interview said the agency will launch a system that will track all types of vehicles that will enter the country through the free port, which has been accused by other government agencies of being a haven of smugglers.

Arreza said SBMA and E-Konek Pilipinas are devising a way to place a global-positioning system tracking device on all vehicles that will be shipped through the free port.

E-Konek, which is headed by former Customs and Internal Revenue commissioner Guillermo Parayno, is one of the value-added service providers of the Bureau of Customs (BOC).

The Subic management, Arreza said, is trying to curb smuggling, because it is trying to promote the free port as a place that is investor-friendly but, at the same time, transparent and clean.

“Finally, we will know where the vehicles are being used,” he added.

When finally launched, the said system will be the third major automation project of SBMA this year.

By July 15, SBMA and the BOC will implement a gate-management system, under which no loaded cargo truck will be allowed to go out if the duties taxes due its cargo have not been paid to the BOC or the port and wharfage charges of the ship that brought the cargo are still unpaid.

The system has already been pilot- tested in May with PTT Philippines, an oil company, and Microbase Transport and Equipment Inc., which both used electronic-gate passes.

During the past years, BOC officials have been accusing Subic as one of the places where smuggling of goods, including oil products and other second-hand vehicles is rampant.

Earlier this year, Customs Commissioner Napoleon Morales ordered a crackdown on all unaccounted Subic blue-plate vehicle that were brought in through the free port but later sold outside Subic.

Morales created Task Force “Oplan Subic Blue Plates” to recover at least 184 motor vehicles that are subject to seizure and forfeiture pursuant to Customs Special Order 6-2010. (VG Cabuag, Business Mirror)

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Inaugural Speech of President Benigno S. Aquino III (Official English Translation)

His Excellency Jose Ramos Horta, Former President Fidel V. Ramos, Former President Joseph Estrada, Senate President Juan Ponce Enrile and members of the Senate, House Speaker Prospero Nograles and members of the House, justices of the Supreme Court, members of the foreign delegations,Your Excellencies of the diplomatic corps, fellow colleagues in government, aking mga kababayan.

My presence here today is proof that you are my true strength. I never expected that I will be here taking my oath of office before you, as your president. I never imagined that I would be tasked with continuing the mission of my parents. I never entertained the ambition to be the symbol of hope, and to inherit the problems of our nation.

I had a simple goal in life: to be true to my parents and our country as an honorable son, a caring brother, and a good citizen.

My father offered his life so our democracy could live. My mother devoted her life to nurturing that democracy. I will dedicate my life to making our democracy reach its fullest potential: that of ensuring equality for all. My family has sacrificed much and I am willing to do this again if necessary.

Although I was born to famous parents, I know and feel the problems of ordinary citizens. We all know what it is like to have a government that plays deaf and dumb. We know what it is like to be denied justice, to be ignored by those in whom we placed our trust and tasked to become our advocates.

Have you ever been ignored by the very government you helped put in power? I have. Have you had to endure being rudely shoved aside by the siren-blaring escorts of those who love to display their position and power over you? I have, too. Have you experienced exasperation and anger at a government that instead of serving you, needs to be endured by you? So have I.

I am like you. Many of our countrymen have already voted with their feet - migrating to other countries in search of change or tranquility. They have endured hardship, risked their lives because they believe that compared to their current state here, there is more hope for them in another country, no matter how bleak it may be. In moments when I thought of only my own welfare, I also wondered - is it possible that I can find the peace and quiet that I crave in another country? Is our government beyond redemption? Has it been written that the Filipino’s lot is merely to suffer?

Today marks the end of a regime indifferent to the appeals of the people. It is not Noynoy who found a way. You are the reason why the silent suffering of the nation is about to end. This is the beginning of my burden, but if many of us will bear the cross we will lift it, no matter how heavy it is.

Through good governance in the coming years, we will lessen our problems. The destiny of the Filipino will return to its rightful place, and as each year passes, the Filipino’s problems will continue to lessen with the assurance of progress in their lives.

We are here to serve and not to lord over you. The mandate given to me was one of change. I accept your marching orders to transform our government from one that is self-serving to one that works for the welfare of the nation.

This mandate is the social contract that we agreed upon. It is the promise I made during the campaign, which you accepted on election day.

During the campaign we said, “If no one is corrupt, no one will be poor.” That is no mere slogan for posters -- it is the defining principle that will serve as the foundation of our administration.

Our foremost duty is to lift the nation from poverty through honest and effective governance.

The first step is to have leaders who are ethical, honest, and true public servants. I will set the example. I will strive to be a good model. I will not break the trust you have placed in me. I will ensure that this, too, will be the advocacy of my Cabinet and those who will join our government.

I do not believe that all of those who serve in our government are corrupt. In truth, the majority of them are honest. They joined government to serve and do good. Starting today, they will have the opportunity to show that they have what it takes. I am counting on them to help fight corruption within the bureaucracy.

To those who have been put in positions by unlawful means, this is my warning: we will begin earning back the trust of our people by reviewing midnight appointments. Let this serve as a warning to those who intend to continue the crooked ways that have become the norm for too long.

To our impoverished countrymen, starting today, your government will be your champion.

We will not disregard the needs of our students. We will begin by addressing the glaring shortage in classrooms and educational facilities.

Gradually, we will lessen the lack of infrastructures for transportation, tourism and trade. From now on, mediocre work will not be good enough when it comes to roads, bridges, and buildings because we will hold contractors responsible for maintaining their projects in good condition.

We will revive the emergency employment program established by former President Corazon Aquino. This will provide jobs for local communities and will help in the development of their and our economy.

We will not be the cause of your suffering or hardship. We will strengthen collections by the Bureau of Internal Revenue and we will fight corruption in the Bureau of Customs in order to fund our objectives for the public welfare, such as:

· Quality education, including vocational education, so that those who choose not to attend college or those who cannot afford it can find dignified livelihood;

· Improved public health services such as PhilHealth for all within three years;

· A home for every family, within safe communities.

We will strengthen the armed forces and the police, not to serve the interests of those who want to wield power with impunity, but to give added protection for ordinary folk. The armed forces and the police risk their lives daily so that the nation can live in peace and security. The population has doubled and yet their numbers remain unchanged. It is not right that those who make sacrifices are treated pitifully.

If there was a fertilizer scam in the past, today there will be security for farmers. We will help them with irrigation, extension services, and marketing their products at the best possible prices.

We are directing Secretary Alcala to set up trading centers that will directly link farmers and consumers thereby eliminating middlemen and opportunities for corruption. In this way, funds can be shared by farmers and consumers. We will make our country attractive to investors. We will cut red tape dramatically and implement stable economic policies. We will level the playing field for investors and make government an enabler, not a hindrance to business. This is the only means by which we can provide jobs for our people.

Our goal is to create jobs at home so that there will be no need to look for employment abroad. However, as we work towards that end, I am ordering the DFA, POEA, OWWA, and other relevant agencies to be even more responsive to the needs and welfare of our overseas Filipino workers.

We will strengthen the process of consultation and feedback. We will strive to uphold the constitutional right of citizens to information on matters of public concern.

We relived the spirit of people power during the campaign. Let it take us to good and effective governance. Those who believe in people power put the welfare of others before their own.

I can forgive those who did me wrong but I have no right to forgive those who abused our people.

To those who talk about reconciliation, if they mean that they would like us to simply forget about the wrongs that they have committed in the past, we have this to say: there can be no reconciliation without justice. When we allow crimes to go unpunished, we give consent to their occurring over and over again. Secretary de Lima, you have your marching orders. Begin the process of providing true and complete justice for all.

We are also happy to inform you the acceptance of Chief Justice Hilario Davide of the challenge of strengthening and heading a Truth Commission that will shed light on many unanswered issues that continue to haunt our country.

My government will be sincere in dealing with all the peoples of Mindanao. We are committed to a peaceful and just settlement of conflict, inclusive of the interests of all -- may they be Lumads, Bangsamoro or Christian.

We shalI defeat the enemy by wielding the tools of justice, social reform, and equitable governance leading to a better life. With proper governance life will improve for all. When we are all living well, who will want to go back to living under oppression?

If I have all of you by my side, we will be able to build a nation in which there will be equality of opportunity, because each of us fulfilled our duties and responsibilities equally.

After the elections, you proved that it is the people who wield power in this country.

This is what democracy means. It is the foundation of our unity. We campaigned for change. Because of this, the Filipino stands tall once more. We are all part of a nation that can begin to dream again.

To our friends and neighbors around the world, we are ready to take our place as a reliable member of the community of nations, a nation serious about its commitments and which harmonizes its national interests with its international responsibilities.

We will be a predictable and consistent place for investment, a nation where everyone will say, “it all works.”

Today, I am inviting you to pledge to yourselves and to our people. No one shall be left behind.

No more junkets, no more senseless spending. No more turning back on pledges made during the campaign, whether today or in the coming challenges that will confront us over the next six years. No more influence-peddling, no more patronage politics, no more stealing. No more sirens, no more short cuts, no more bribes. It is time for us to work together once more.

We are here today because we stood together and believed in hope. We had no resources to campaign other than our common faith in the inherent goodness of the Filipino.

The people who are behind us dared to dream. Today, the dream starts to become a reality. To those among you who are still undecided about sharing the common burden I have only one question: Are you going to quit now that we have won?

You are the boss so I cannot ignore your orders. We will design and implement an interaction and feedback mechanism that can effectively respond to your needs and aspirations.

You are the ones who brought me here - our volunteers - old, young, celebrity, ordinary folks who went around the country to campaign for change; my household help who provided for all my personal needs; my family, friends, colleagues at work, who shared, cared, and gave their support; my lawyers who stayed all hours to guard my votes and make sure they were counted; and the millions of Filipinos who prevailed, kept faith, and never lost hope - I offer my heartfelt gratitude.

I will not be able to face my parents and you who have brought me here if do not fulfill the promises I made.

My parents sought nothing less, died for nothing less, than democracy and peace. I am blessed by this legacy. I shall carry the torch forward.

My hope is that when I leave office, everyone can say that we have traveled far on the right path, and that we are able to bequeath a better future to the next generation. Join me in continuing this fight for change.

Thank you and long live the Filipino people!

June 30, 2010
Quirino Grandstand

Thanks to the NoyNoy Media Bureau

photo c/o Yahoo! Philippines

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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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SBMA seeks legal advice on award to HCPTI

THE Subic Bay Metropolitan Authority (SBMA) is making sure its award of contract to the Harbour Centre Port Terminals Inc. (HCPTI) for the operations of the international port is legal in every way by asking for a legal opinion from the Office of the Government Corporate Counsel (OGCC).

Armand Arreza, chief executive officer and administrator of the SBMA, said the SBMA is also reviewing all the documents submitted by HCPTI. “I expect the OGCC opinion to come out by mid-July, and then we will have to wait for their notice to proceed before we award the contract.”  

He said they made the move so future administrations will not try to overturn or question the decision to award the contract to the private port operator, or at least make it difficult to do so.

SBMA is forming a joint venture with Harbour Centre for the operation of the entire Naval Supply Depot (NSD), a port that currently handles mostly general cargo such as fertilizers and grains.

He is convinced the joint venture can operate the port smoothly because of Harbour Centre’s experience in both Manila Harbour Centre and the Manila North Harbor.

“We have made our due diligence, and we found out that Manila Harbour Centre is almost full, and we expect that we can handle their spillover volume,” added Arreza.

Earlier, Harbour Centre chief executive officer Michael Romero said the company will spend about P6 billion to P8 billion over the 25 years of the contract for improvements.

Romero said their winning the award for the Subic port is just in time to complement the operations of their private Manila container port, since the facility has already reached 95 percent of its capacity.

The terms of reference of the deal with SBMA show the Romero-owned company assures the government of fixed fees of $500,000, or P23 million, for the first year of operation, with the contribution gradually rising to $600,000 in the second year and so on, with yearly rises to a final $1.5 million in the 25th year.

Romero said that if the cargo volumes shoot up to more than 2 million tons in the NSD, Harbour Centre will pay the SBMA an additional 20 percent of the gross revenues. In total, the SBMA said Harbour Centre committed $32 million, or about P1.53 billion, for fixed and guaranteed revenue share of government over the 25-year joint-venture period.

According to the SBMA figures, the nine other port handlers managed 2.21 million tons of noncontainerized cargo in 2009, some 1.8 million tons of bulk and break-bulk cargo with the rest being transshipments, heavy equipment and roll-on/roll-off goods.

Last year the SBMA earned P30.1 million from the nine cargo handlers in handling fees and P8.5 million from warehouse rental and storage fees. (VG Cabuag, Business Mirror)

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Forum to help Noynoy set economic blueprint

A new economic forum which aims to help presumptive president-elect, Senator Benigno “Noynoy” Aquino III, achieve the country’s much needed economic progress once he assumes the presidency is being organized in coordination with foreign business chambers.

The American Chamber of Commerce (Amcham) and the Joint Foreign Chambers of the Philippines (JFC), together with businessman Mike Macapagal, have agreed to put together a conference where businessmen will help create a blueprint for the country’s economic progress under the Aquino administration.

“In organizing an economic forum for foreign and local businessmen, we hope to provide a venue where all businessmen are welcome to pitch in their ideas on what policies, programs and issues that the incoming administration needs to prioritize,” said Macapagal, who secured the support of US-based Filipinos for the Aquino presidency.

As the lead organizer, Macapagal, who owns and manages the largest and the only Filipino-owned escrow company in Northern California, is now laying down the groundwork for the economic forum tentatively scheduled to be held in September of this year at the Subic Bay Convention Center in Olongapo City.

The forum will tackle what the foreign chambers consider the “Big Seven” industries. These are agribusiness, business process outsourcing, creative industries, infrastructure, manufacturing and logistics, mining, and tourism which have the aggregate potential to bring in US$75 billion in foreign direct investments (FDI) and 10 million jobs over the next 10 years.

(Macapagal, who hails from Subic, said the forum plans to open a dialogue between local locators and the Subic Bay Metropolitan Authority (SBMA) to address concerns, especially ridding SBMA of graft and corruption.)

“All local and foreign business groups that have a stake in the Philippines should make their presence felt at the forum. The synergy of ideas that they could bring to the table would truly be invaluable,” said Macapagal. (Freddie C. Velez, Manila Bulletin)

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Int’l, domestic flight operations at NAIA return to normal (Subic Airport related story)

All international and domestic flight operations at the Ninoy Aquino International Airport (NAIA) returned to normal operations after the airport’s navigational system that conked out last Saturday morning were repaired.

But the Civil Aviation Authority of the Philippines (CAAP) extended the Notice to Airmen about the limited operations of the Manila runways until 8 a.m. Monday as the system still needs to undergo reconfiguring and recalibration.

The airport’s Very High Frequency Omni Radio Range (VOR) station, used to guide pilots to land their aircraft during low visibility and bad weather, conked out last Saturday, forcing aviation authorities to limit night time operations at the Manila runways.

NAIA general manager Melvin Matibag said a replacement part was borrowed from the Subic airport and that it arrived in Manila around 3 a.m. yesterday.

The installation of the power supply took a couple of hours but technicians from the CAAP started to power-up the navigation system yesterday morning.

CAAP technical assistant Lito Casaul explained the power supply came from a similar but different navigation system.

“The technicians cannot just power-up the system and go. They have to slowly power-up each of the system’s component to check if everything is working properly. If and when the system proves to be okay, they can then begin to reconfigure the unit,” Casaul said.

“Hopefully, we can have the system up before sundown so we can resume with normal operations at the two runways,” Casaul said.

With the VOR inoperable, pilots have to rely on Visual Flight Rules (VFR) and the radar and other visual aids such as the runway lights to see where to land.

The pilots could have done easily even without VOR and rely on the airport’s Instrument Landing System (ILS) for guidance but, unfortunately, the ILS at the NAIA is currently being replaced.

With both the VOR and ILS navigational systems down, the CAAP was forced to implement stricter rules on night landing and made the separations between airplanes much longer apart.

During normal operations, with all the systems running, flight separation between aircraft is less than one minute. However, with the limited operations Saturday night, airplanes had to be separated by a minimum of five minutes to assure their safety.

At the same time, the CAAP gave the airline companies
the discretion if they would allow their pilots to proceed to land at the airport even with the limited navigational aids. Matibag, however, said should bad weather come into play, the Manila Control Tower will be forced to deny pilots permission to land.

According to Matibag, should zero visibility blanket the airport vicinity, pilots can easily divert to either the Cebu, Clark or Subic airports. (Conrado Ching, Daily Tribune)

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PLDT units shift to new digital network (in Subic, Clark)

PHILIPPINE Long Distance Telephone Co. (PLDT) said its units at the Clark and Subic economic zones have completed their migration to a new network technology and fiber optics so they could offer converged voice, data and multimedia services.

“The shift to NGN [next generation network] is in line with our efforts to offer our customers high-capacity broadband data services via fixed lines,” Napoleon Nazareno, PLDT president and chief executive, said.

NGN pertains to a network architecture and technology that encompasses voice, video and data communications. With NGN, all information is transmitted as packets of data, just like over the Internet.

That means an NGN line is already a high capacity conduit that can offer traditional telephone services, broadband internet, Internet Protocol TV and video streaming.

PLDT had spent P70 million for the network upgrade of its subsidiaries, PLDT Clark Telecom Inc. and PLDT Subic Telecom Inc.

PLDT ClarkTel now has 21 NGN nodes equipped with 6,336 ports, while PLDT SubicTel now has 20 NGN nodes equipped with 5,688 ports.

PLDT ClarkTel will complete its P25-million, 42-kilometer fiber optic network within Clark by September. This is on top of the P70-million network upgrade cited earlier.

PLDT SubicTel has already completed laying down its P19-million, 36-kilometer fiber optic cables.

The fiber optics component of the upgrade is part of PLDT’s Domestic Fiber Optic Network (DFON). The technologies used for DFON include Recon-figurable Optical Add/Drop Mul-tiplexing, Dense Wavelength Division Multiplexing, Synchronous Digital Hierarchy and Multi Service Provisioning Platform.

Nazareno said this upgrade capitalizes on PLDT’s DFON, which now has a capacity of 1,200 gigabits per second or double that of other networks.

“Last year, we completed our P3-billion [DFON] expansion when we laid down additional 2,000 kilometers of fiber optic cables in key cities around the country,” he said.

“Now we are able to equip our subsidiaries with the capacity and the robustness of a world-class network. Locators in Subic and Clark as well as residential customers can now enjoy the innovations that the PLDT froup offers,” he added. (Darwin G. Amojelar, Manila Times)

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Subic investors vow support for Noynoy

Subic Bay Freeport investors vowed Thursday to support incoming President Benigno Simeon “Noynoy” Aquino III as they banked on him to follow through on all his major campaign promises with emphasis on the reduction of corruption and the enforcement of stricter policies on duties and taxes.

“We know that he is strict on human rights, against graft and corruption and will try to lower taxes. He also promised to go after smugglers and tax evaders. So all of those will be good for the Freeport,” said Subic Bay Freeport Chamber of Commerce (SBFCC) President Danny Piano.

The SBFCC is the largest and most influential business group inside the 67,000-hectare Freeport, where some 1,258 companies are located as of February this year.

Piano, who runs a US firm creating digital content for clients, said that they hope Aquino will enhance business policies, but also "generally leave business alone."

“Subic Bay will grow in the next 5 to 10 years whoever is the president," Piano explained. But a better policy regime, he noted, would mean "faster growth compared to a regular incline."

The SBFCC supports Aquino’s plan to stamp out corruption and Subic Bay can easily be a model for the rest of the country.

“Graft and corruption also exists here but not comparable to other areas. I am hoping that it can be totally eliminated here,” Piano explained.

Piano said businessmen at the Subic Bay freeport are very willing to give Aquino a "free hand" as they also want a smooth and orderly transition of leadership.

Records of the Subic Bay Metropolitan Authority, the government agency in charge of the freeport zone, showed that over the last five years, investment generation has been on a roller coaster ride.

Freeport chief Armand Arreza said that investment growth was 20% annually from 2006 to 2008, but this slowed down to 2.5% in 2009.

The zone’s total workforce grew to 87,000 workers but fell short of SBMA’s target of 100,000 workers by 2010. Exports were also lackluster, amounting to only $1.079 billion, some $400 million short of the $1.5-billion target.

South Koreans have been the single-biggest contributor to new money inside the zone with the entry of shipbuilding giant Hanjin Heavy Industry Corporation (HHIC), which poured in some $1.6 billion during the last 4 years.

But Aquino, who promised more transparency, better government service and a serious fight against corruption, may be challenged by a full plate of controversial projects beginning with the $130-million Harbor Center project and a mall project of Ayala Land Inc.

Several locators here accused SBMA of virtually creating a cargo handling monopoly with the Harbor Center agreement, something that Arreza denied. Cases have already been filed in courts. (Jonas Reyes, Manila Bulletin)

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Freeport schools to get more subsidy from SBMA

The Subic Bay Metropolitan Authority (SBMA) has increased its subsidy to schools operating in this free port under a program designed to continuously improve the skills of Subic’s growing workforce and enable them to meet future requirements of various industries here.

SBMA administrator Armand Arreza said the program, “Producing a More Globally-Competitive Workforce in the Subic Bay Freeport”, which was approved by the SBMA board in January, would raise SBMA’s grants to schools here by up to P30 million annually, from the current annual subsidy of P16.3 million through discounts on property leases.

Under the program, the SBMA will offer a 100 percent “no lease consideration” to, initially, six of the 11 schools operating inside the Subic Bay Freeport.

The supposed SBMA income from these leases will be translated to scholarship grants through the SBMA Scholarship Foundation, which will formulate the program’s guidelines and policies, Arreza explained.

Instead of going to SBMA coffers, the waived leases will instead go back to the schools, which are only required to maximize their commitment to improve their faculty and facilities in order to avail of the program.

“We shall only ask the schools to develop initiatives to use the additional income to continually improve their students’ academic excellence, and to support the SBMA in its socio-civic undertakings in the Subic Bay Freeport,” Arreza said.

“In the long run, we hope to see a constant increase in enrolment at all levels,” Arreza added. “We also want to see the enhancement and inclusion of courses and fields of studies that are required in this free port,” he said.

Arreza said a memorandum of agreement is being drafted to specify the commitments needed from both parties in order for the program to push through.

For this project, he added, the SBMA would be building on the gains achieved by the Subic Bay Workforce Development Foundation Inc. (SBWDFI), which was established by the SBMA to promote workforce development among public and private entities here.

“It’s hitting multiple birds with one stone — the academe gets its much-needed financial support; the various industries here are assured of a globally-competitive workforce; and the community reaps the resulting benefits,” Arreza further explained.

For starters, SBMA has offered the 100 percent “no lease consideration” to the following schools: Casa Kalayaan International School, FIRST School of SBFZ, Subic Montessori School, Lyceum Subic Bay, Comteq Computer and Business College, and Mondriaan Aura College.

The said schools are now being audited in accordance with the criteria for the SBMA program.

Beatrix Anagaran , head of the SBMA General Business and Investment Department, said the program to produce globally-competitive workforce sprung from the SBMA strategic planning session held last October, wherein Arreza took note of the “very sad statistics of Philippine education.”

Anagaran said that Arreza then directed her department to come up with a study on Subic’s educational institutions, all the while emphasizing the role SBMA has to play in the advancement of education within the Subic Bay area and the neighboring communities of Olongapo, Zambales and Bataan.

“This is a manifestation of the SBMA’s walking its talk,” she added. (SBMA Corporate Communications)

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STATEMENT OF P/GEN. ORLANDO MADDELA (RET) SBMA LAW ENFORCEMENT DEPARTMENT HEAD

The SBMA Law Enforcement Department (LED) is extending its full support to the Olongapo PNP in the investigation of the killing of a Japanese national at the Subic Techno Park (STEP).

On or about 2:00 P.M. of June 08, 2010 (Tuesday), Subic GS Auto, Inc. President ALLAN VALENCIA reported to the SBMA LED that he found his brother-in-law lying dead inside the company compound at STEP.

A team from the SBMA LED proceeded to the area and found the body of the victim lying face down beside his car. The victim was identified as KAZUYA IMOTO, 49 years old, a Japanese national, and Chief Executive Officer of Subic GS Auto, Inc.

Scene of the Crime Operatives (SOCO) personnel led by P/Col. Rolando Chua conducted crime scene investigation and processing.

Based on the initial investigation, we gathered the following information:

- The victim is married to Mr. Valencia’s sister, Veneranda, who is in Japan. Mr. Valencia said he last saw his brother-in-law in the morning of June 4, 2010, at the victim’s residence in San Fernando, Pampanga.

- The victim was last seen alive at the STEP Admin Office at about 12:45 P.M., June 7 (Monday).

- The victim died from multiple hack and stab wounds.

- Reddish brown stains suspected to be human blood were found on the rear compartment of his car, a gray-colored Lucida Estima with plate number BDD 135, and a nearby 40-footer container van

- Recovered from the crime scene were a 35-cm dagger with reddish brown stains, a pair of red-framed sunglasses, one Bulgari wristwatch, one mobile phone unit, a P20-bill and some coins. The victim’s wallet was not found in his possession.
Subic GS Auto, Inc. is a new company that is just starting to set up its operations in an area at STEP that is near the forest.

- STEP is a controlled area manned round-the-clock by a private security agency.

SBMA forest rangers were dispatched to scan the forest at the back of Subic GS Auto, Inc. but there were no signs of fresh tracks in the area.

We wish to assure the family of the victim and the public that we are working closely with the police investigators so that whoever is responsible for this crime may be identified and brought before the bar of justice.

END OF STATEMENT

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SBMA postpones Kalaklan bridge closure anew

Giving in to yet another request from the local community, the Subic Bay Metropolitan Authority (SBMA) has further delayed the closure of the Kalaklan bridge, a 50-year old span linking this free port to tourism spots in Olongapo City and the province of Zambales.

SBMA administrator Armand Arreza said that Olongapo mayor James Gordon Jr. has personally interceded on behalf of local businessmen for the SBMA to postpone the bridge closure so that local tourism establishments may maximize their earnings during the summer season.

At the same time, Gordon had pledged the support of the city for this project that was designed to improve access to the Subic Freeport from Olongapo and extend the ecozone boundaries to contiguous communities.

“Mayor Gordon wants this project to go on smoothly, because he really wants to improve the existing links between Olongapo and the Freeport,” Arreza revealed.

“So in deference to the mayor, we thought it best to give local businessmen a longer breathing spell, and keep the bridge open while the summer season lasts,” he said.

Arreza added that keeping the bridge open will also be a gesture of goodwill to local traders “whom we count on to be our partners when the SBMA eventually extends the boundaries of the free port into the surrounding communities.”

The SBMA had originally scheduled the closure of the Kalaklan bridge to vehicles in February, and to pedestrians in March, to make way for the construction of a replacement for the 50-year old span built by the U.S. Navy in the early ‘50s.

These schedules were moved, however, upon the request of Gordon who asked that local traders be allowed to cash in on the peak tourism season this summer.

Despite the delay in bridge closure, Arreza said that work continues in the preparation of the foundation for the replacement span, as well as other project components, including a security plaza and a Customs office.

The SBMA announced earlier that the Kalaklan bridge had to be replaced because the 50-year old span was already classified as “structurally weakened.”

The P200-million bridge project is scheduled to be completed within a year.

Arreza said the construction of a replacement bridge will also jumpstart the SBMA program to expand the physical boundaries of the Subic Bay Freeport Zone, and extend the development to nearby areas in Olongapo, as well as Subic, Zambales and Morong, Bataan.

According to Joselito Bakuteza, head of the SBMA Project Management Office, about 2,500 light vehicles and some 300 pedestrians, mostly workers, pass through the Kalaklan bridge everyday.

In the course of the construction and bridge closure, traffic had to be re-routed through Olongapo City, and access to the free port will have to be made via the Rizal Avenue and 14th Street bridges in the city.

To help ease the anticipated heavy traffic in Olongapo as a result of the re-routing, Gordon had pledged the support of the city government by effecting a truck ban in the city during the construction period, from 7:00 a.m. to 9:00 a.m and from 11:00 a.m. until 7:00 p.m from Monday to Friday.

Gordon also announced that the city will declare the busy 14th Street as a tow-away zone to prevent gridlock at the alternative route to the Subic Bay Freeport. (SBMA Corporate Communications)

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Taiwanese investors keen on keeping Subic — SBMA

There is no mass pull-out of Taiwanese firms in Subic because most of them are content with doing business here, the Subic Bay Metropolitan Authority (SBMA) assured Thursday.

“We strongly believe that Taiwanese businessmen here are complacent with the working conditions.

They have also given us the assurance that they are not prepared to relocate to China,” SBMA Administrator Armand Arreza said.

Arreza issued the statement to dispute a prediction made by an official of the National Economic and Development Authority (NEDA) that Taiwanese firms based in Subic are preparing to leave this premier freeport.

Recently, NEDA Director General Augusto Santos said most of the Taiwanese investors that are located inside the Subic Bay Freeport will relocate to China once Taiwan and China signs a proposed framework trade deal.

The imminent deal, Santos added, would leave thousands of Filipinos working inside the Subic Bay Freeport Zone unemployed.

But Subic Bay Development Management Corp. (SBDMC) President Jeff Lin also refuted the claim, asying that Subic Freeport is one of the most sought-after economic zones in the Asian market for Taiwanese. (Jonas Reyes, Manila Bulletin)

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Romero-led Pacifica plans to bid for Subic diesel plant

Publicly-listed Pacifica Inc. said yesterday it plans to bid for the Subic diesel-fired power plant project.

In a disclosure to the Philippine Stock Exchange (PSE), Pacifica said its board approved “to bid or submit proposal for the lease, operation and maintenance of the Subic diesel power plant (SDPP) project.”

Pacifica, however, did not provide other details of the plan.

Subic Bay Metropolitan Authority (SBMA) is bidding out the 116-megawatt SDPP after it was turned over to it by the government last year.

The plant was commissioned in 1994 through a build-operate-transfer (BOT) agreement between National Power Corp. (Napocor) and US-based Enron Corp.


The bidding will likely be held early next month.

But Pacifica said the board also approved the company’s move “to enter into a consortium agreement with R-II Builders Inc. for purposes of the bidding or submission of the pre-qualification requirements and proposal for the SDPP project.”

The company has been participating in various auctions of the government-run Power Sector Assets and Liabilities Management Corp. (PSALM).

Earlier, Pacifica, led by port operator Michael Romero, also expressed interest in the contracted capacity of the 1,200-MW Ilijan combined cycle power plant but did not submit any bid during the auction.

It also participated in the bidding of the contracted capacities of the San Roque, Bakun and Benguet hydroelectric power plants but failed to win during the bidding.

The company was incorporated on Sept. 2, 1957 to engage in exploration, drilling and exploitation of oil, gas and other volatile substances. The Securities and Exchange Commission approved its conversion into a holding company in 2000. (Donnabelle L. Gatdula, Philippine Star)

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SBMA readies expansion outside secured areas

The Subic Bay Metropolitan Authority (SBMA) is now ready to implement its expansion program, following the release of the Implementing Rules and Regulation (IRR) covering the extension of the boundaries of secured areas of the Subic Bay Freeport.

The IRR was drafted after a series of consultations between the SBMA, Bureau of Customs (BoC) and local government units within the Subic Special Economic and Freeport Zone (SSEFPZ), which may be declared as additional secured areas, or additional areas, as provided under Executive Order No. 675.

These areas include the municipalities of Subic and San Antonio in Zambales; Morong, Dinalupihan and Hermosa in Bataan; and Olongapo City.

Under EO 675, areas within the LGUs may be developed through local government or private sector initiative and become part of the SSEFPZ. These may then avail of appropriate tax, duty-free, and fiscal investment incentives and privileges, upon application and after approval by the SBMA.

SBMA administrator Armand Arreza said that the expansion of the secured areas of SSEFPZ is necessary in order to address the shortage of space for lease to investors.

“This is necessary to push development into communities outside Subic’s ‘secured area’, and also to guarantee the realization of the Subic-Clark economic corridor as a world-class logistics and service hub,” Arreza said.

Under the IRR, areas contiguous to the Subic Bay Freeport may be declared by the SBMA for inclusion as additional secured area after proper consultation with local officials and approval of a resolution by the concerned city or town council.

In addition, any business individual or organization may also apply with the SBMA for inclusion within the SSEFPZ as privately-owned additional secured area or additional area, provided that they submit pertinent documents, clearances and registration certificates.

Meanwhile, lands and buildings in the additional secured areas, whether privately owned or not, may only be leased to SBMA-registered enterprises, subject to the approval or ratification of the SBMA Board of Directors.

Once declared as additional secured areas by SBMA, the areas concerned will be classified either as industrial, tourism, recreational, investment or financial center, or a mix of these developments.

These areas shall be organized, administered, managed and operated directly by the SBMA through an area manager, appointed by the SBMA administrator.

The IRR also provides that privately owned areas shall be managed by a Property Management Board composed of the president of the association of investors, representative of the municipality concerned, two independent private sector representatives chosen by SBMA and LGU, and an official of SBMA.

To prevent smuggling and abuse of duty-free privileges, the SBMA shall establish secured fence-in perimeters for the additional areas within which tax- and duty-free articles and merchandise shall be limited.

According to Arreza, duty-free shop operators shall be allowed within the additional secured areas, provided that they establish their own control system in coordination with the SBMA and the Bureau of Customs.

“In addition, if the LGU concerned agrees, the SBMA Law Enforcement Department shall also provide and establish security forces for the additional secured areas to police and maintain law and order there,” Arreza said.

Arreza also disclosed that as the SBMA seeks to spread development outside the controlled area of the Freeport towards Olongapo, Zambales and Bataan, it will also put in place significant infrastructure investments like roads, schools and bridges that are considered essential in convincing investors to establish operation in these areas. (SBMA Corporate Communications)

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‘Holy Land’ theme park to rise in Subic Freeport

A non-stock, non-profit organization will be building in this free port a religious theme park, the first of its kind in Asia.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said the SBMA board of directors has approved the project proposal of Holy Land Subic Foundation Inc. for the development of the “Holy Land” theme park at a 20-hectare land adjacent to the Subic-Tipo security plaza.

The approved project will offer “a new Jerusalem experience, right here in Central Luzon,” Arreza said.

“With Holy Land Subic, the free port will serve not only as an eco-tourism and recreation center, but also as a place for pilgrimage and spiritual rejuvenation,” he added.

Arreza also pointed out that like the other theme parks in Subic Bay, Holy Land Subic will bank on the inherent advantages of the free port by land, sea and air.

“The free port’s security is one of the best in the country, and the well-preserved environs create a relaxing mood that is fit for a tourist facility,” he added.

According to Maribi Garcia, founder of the Bethesda Healing Ministry, the theme park will be divided into a rest and recreation center and a prayer and reflection sanctuary.

Among the attractions to be offered by Holy Land Subic are: a “Bible Museum”, an amphitheater for various spiritual productions, and a separate theater for children called ‘Noah’s Ark and Jonah and the Whale’, where cartoon shows, storytelling, and puppet shows will be held.

Garcia also said that a ‘David and Goliath’ rock-climbing course, and a ‘Trip to Heaven’ obstacle run, will be set up for teenagers and young adults.

Meanwhile, replica models depicting biblical stories will be built all over the place, like ‘Moses and the Ten Commandments in Mount Sinai’, a ‘Tower of Babel’, as well as sculptures portraying Jesus Christ’s life, death and resurrection.

Aside from these, a temple for prayer and worship, a chapel, and a healing and wellness center will also rise in the site.

Garcia said that Holy Land Subic will train Aetas to serve as forest rangers, jungle guides, and foot massage therapists, among others.

Groundbreaking rites for the Holy Land Subic project is expected to be held in June. (SBMA Corporate Communications)

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Omni Aviation opens pilot school in Subic

Omni Aviation Corporation, the country’s premier pilot school, has opened its facilities in this free port, as the Subic Bay International Airport (SBIA) expanded its thrust in providing aviation services.

From its home-base at the Clark Freeport in Pampanga, Omni Aviation expanded into Subic and renovated Hangar 8128, which was used by US Navy war planes until 1992.

Captain Ben Hur Gomez, Omni chairman and chief executive, said the Subic facility is part of his company’s vision to become the premier pilot school and fixed-base operator in the Southeast Asian region.

Investing P33 million for its start-up operations here, Omni will use the facility for its instruction room, flight demonstration room, administration office, and conference room.

Six aircrafts, including four for the flying school and two for chartering services, will be dedicated for the Subic operation.

“The reason why we chose Subic as our extension facility is because of its very natural environment which is very essential and inspiring to students,” Gomez said, adding that their students, many of whom are foreigners, are delighted upon seeing the Subic facility.

“Look around Subic. All you can see is the blue bay, the green mountains and clear skies. I believe all these things will make Omni more popular” Gomez said.

Aside from the flying school, Omni’s Subic operation will include air taxi service, fun flights, and Pinatubo and other air tours flights, which are expected to boost Subic as a tourist destination in the region.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza, meanwhile, expressed optimism that Subic would regain some its commercial flights once the casino and hotel projects in the free port build up.

“This is also a good thing for Omni,” he added.

According to Arreza, Omni Aviation is just one of the many air companies that have shown interest in leasing some of the facilities inside Subic’s airport complex.

He said these include two companies that will utilize the facilities previously leased by Federal Express (FedEx). One of the two companies is engaged in providing corporate jet service, while the other is into maintenance and repair.

Omni Aviation is a registered domestic corporation established in 1993 at the Clark Freeport Zone. It operates a flying school, serves as a fixed-base operator, and provides services like charter flights, aircraft moorage, aircraft management, maintenance and repair, overhaul and pilot shop operation.

Gomez said the company started only as a one-plane, one-pilot, one-mechanic and one-staff operation, but has grown over the years and now owns and operates 22 aircraft: 15 Cessna 152, five Cessna 172, a Cessna 172X, and a Seneca Piper 34-200.

Omni’s staff has also grown to 30 personnel, while its student population has grown to 135.

“We continue to expand and upgrade our fleet, slowly but surely,” Gomez added. (SBMA Corporate Communications)

PHOTO:
Omni Aviation’s aircraft fleet at the Subic Bay International Airport complex.

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Subic-Clark logistics hub targets $1-trillion industry

CLARK FREEPORT, Pampanga – Investors in two of the biggest freeports in the country declared recently that the next president should maintain the existing business structure and policies implemented in Subic and Clark in order to capture a share of the $1-trillion Asia-Pacific international logistics industry.

This was the consensus of some 500 public and private sector stakeholders involved in the recent forum attended by President Gloria Arroyo and officials of the Subic-Clark Alliance for Development (SCAD).

Subic-Clark Alliance Secretary Nestor S. Mangio revealed that the activity highlighted the Subic-Clark Logistics Corridor aim to grab the possible market share in the growing $1-trillion Asia-Pacific international logistics industry.

The groups of multi-businesssectors led by Dennis Wright, Chief Executive Officer of the Peregrine/Global Gateway Logistics Center, cited Ar royo for transforming Subic and Clark from “a shadow of decadence” to a vibrant activity center.

She was cited for the creation of the SCAD, the Bases Conversion Development Authority (BCDA), the Subic Bay Metropolitan Authority (SBMA), and the Clark Development Corp. (CDC), which “have worked hard with a vision that has brought about this wonderful story.”

However, the optimism among SBMA, CDC and SCADC officials, representatives from the business sector was also coupled with “a bit concerned” about the coming transition in government leadership.

“As in business, when there is a change in management, there would be some disruptions. Hopefully, the next administration would implement existing policies, and leave alone business so business will thrive,” said Subic Bay Freeport Chamber of Commerce president Danny Piano.

They also cited investments in vital infrastructure projects such as the Subic-Clark-Tarlac Expressway (SCTEX), Diosdado Macapagal International Airport (DMIA), Port of Subic Bay, Dingalan Road, among others, have created a seamless movement of goods and people to and from Subic and Clark.

It will be recalled that it was during the President’s 2004 inauguration when she articulated her vision of a Subic-Clark Corridor emerging as a world-class logistics hub, Mangio said. (Franco Regala, Jonas Reyes, Manila Bulletin)

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Subic locators now able to process shipment declarations online

Locators in Subic Special Economic and Freeport Zone (SSEFZ) can now process their export declarations online, thus sparing them from the time-consuming process of doing this physically at the local district of the Customs bureau.

This, as the Bureau of Customs (BoC) and the Subic Bay Metropolitan Authority signed a joint memorandum order to implement that same day the automated processing of export documents for SSEFZ-based companies.

"The implementation of the automated export documentation system will reduce the cost of doing business, as well as [save] time for the locators," Customs Commissioner Napoleon L. Morales told reporters at the signing event.

He noted that locators have had to go through the time-consuming manual system for processing their export documents, which could lead to delays in releasing the shipments.

Mr. Morales said this latest move is part of current efforts to harmonize export procedures among economic zones and ports.

Under the new system, a bar code will be placed on the export declaration submitted online once the processing is completed and the application approved.

Once the bar code is placed on the export declaration, it can then be printed to accompany the shipment from SSEFZ to either the Diosdado Macapagal International Airport (DMIA) in Clark Freeport or the Ninoy Aquino International Airport (NAIA) in Manila.

The shutdown last year of the Federal Express hub in Subic had forced exporters there to course their shipments through either DMIA or NAIA, thus adding to their costs.

The bar code of the export declaration will then be scanned at the SSEFZ gate and the receiving counters of airline companies at DMIA or NAIA, enabling both the sender in Subic and the intended receiver to track the departure, status and arrival of the shipments.

Alexander M. Arevalo, Customs deputy commissioner for management information systems, told reporters on the sidelines of the signing ceremony yesterday that the bureau plans to replicate the system in at least two other major ports by June.

"We are looking at Davao and Cagayan de Oro [next]," he said. (L. D. Desiderio, BusinessWorld)

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Subic, Clark stakeholders urge ‘consistency’ after polls

CLARK FREEPORT — Whoever wins the upcoming presidential elections on May 10 must maintain the existing business structure and policies already at work in the Subic-Clark economic corridor.

This was the call made by business and community leaders from the Subic Bay Freeport and the Clark Freeport at the recent “Subic-Clark Logistics Corridor: Milestones and Prospects” forum, which was held at Clark’s Holiday Inn with President Gloria Macapagal-Arroyo as guest of honor.

The stakeholders also expressed concern that the “impressive” economic momentum in the former US military bases, which managed to post economic gains despite the devastation wrought by the Mt. Pinatubo eruption, the major financial crises in 1997 and the recent recession, “might be halted if the next administration will enact major changes in governance, particularly in business policies.”

About 500 persons attended the forum, mostly from the Subic Bay Metropolitan Authority (SBMA), Clark Development Corp. (CDC), North Luzon Railways Corp. (Northrail), and chambers of commerce in both the Subic and Clark free ports.

They were joined by key officials from the national and local governments, who presented the achievements of the Arroyo administration in Subic and Clark, and plans for the development of the region.

In the forum, SBMA administrator Armand Arreza and CDC executive vice-president Philip Panlilio both expressed optimism that “consistency in governance and business policies” will be maintained in the aftermath of the May 10 polls.

They also expressed confidence that both the SBMA’s five-year strategic plan for the Subic Bay Freeport (2010-2015), and CDC’s comprehensive master plan for Clark Freeport would sustain the development momentum in the two economic zones.

“The next administration will surely see the gains and benefits that was made during our term,” said Arreza, whose five-year strategic plan for Subic emphasizes development expansion into the surrounding areas of Olongapo City, Subic town in Zambales, and Morong in Bataan.

Edgardo Pamintuan, former chair of the Subic-Clark Alliance for Development Council, meanwhile reported on the body’s achievements in pursuit of President Arroyo’s vision to develop the Subic-Clark corridor into a highly-competitive international services and logistics center in the Asia-Pacific region.

“I believe that we have laid the foundation on which future public servants can build with the assurance of strength and the stability,” Pamintuan also said.

Despite the optimism among SBMA, CDC and SCADC officials, representatives from the business sector said they were “a bit concerned” about the coming transition.

“As in business, when there is a change in management, there would be some disruptions. Hopefully, the next administration would implement existing policies, and leave alone business so business will thrive,” said Subic Bay Freeport Chamber of Commerce president Danny Piano.

To ensure the steady growth of trade in the Subic-Clark corridor beyond the elections, the stakeholders signed a “Declaration of Cooperation Between the Public and Private Sectors of Subic and Clark” and presented it to President Arroyo.

Signatories of the document represented the SCADC, Department of Trade and Industry (DTI), Bases Conversion and Development Authority (BCDA), SBMA, CDC, Clark International Airport Corp. (CIAC), and Northrail.

Officials of business organizations SBFCC and the Clark Investors and Locators Association (CILA) also signed the accord. (SBMA Corporate Communications)

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Wesley So settles for 2nd, earns World Cup slot

Filipino Grandmaster (GM) Wesley So made a quick draw over Chinese GM Zhou Jianchao in the final round of the 9th Asian Individual Chess Championships on Thursday to secure a seat in the 2011 Chess World Cup in Khanty-Mansiyk, Russia.

So split the point with Zhou in 14 moves of the Berlin Opening or less than 10 minutes of play to finish in a tie for 2nd to 5th places at the Subic Exhibition and Convention Center in Subic, Olongapo City.

“I’m happy to make it to the World Cup again,” said So. “I really wanted to finish the tournament unbeaten, but I committed a slight mistake and he (Ni) was quick to capitalize.”

So finished with 6.5 points on 5 wins, 3 draws and 1 loss in the 9-round tournament organized by the National Chess Federation of the Philippines (NCFP). He, thus, earned one of the 5 slots for the World Chess Cup.

GM Ni Hua of China, who dealt So his only defeat during the 7th round on Tuesday, topped the tournament with 7 points. He took home the top prize of $6,000.

Ni also quickly drew with GM Abhijit Gupta of India in the final round.

Joining Ni and So in the Chess World Cup are Gupta, Zhou and GM Le Quang Liem of Vietnam, who also tallied 6.5 points. So, Gupta, Zhou and Le each received $3,625.

Le clinched the 5th and last berth to the World Chess Cup by defeating GM Liren Ding of China.

Biggest revelation

The biggest revelation in the Asian Chess event was national junior standout Jan Emmanuel Garcia, who beat GM Saleh Salem of the United Arab Emirates to finish as the second best Filipino performer with 5.5 points.

The incoming 3rd year Ateneo de Manila high school student finished 17th overall.

The 14-year-old Garcia, a mainstay of the V. Luna Chess Club, also earned an International Master (IM) norm for his showing in the tough, 95-player tournament which had 32 Filipino participants.

GM Rogelio Antonio, Jr., meantime, settled for a draw with Xiu Deshun of China to finish with 5.5 points just like Garcia.

Antonio finished with 2 wins and 7 draws and wound up 21st after the tiebreak. He and Garcia pocketed $820 each.

IM Oliver Dimakiling trounced GM Eugene Torre, GM Darwin Laylo drew with Chinese Wang Li, GM John Paul Gomez halved the point with Vietnamese GM Dao Thien Hai, and IM Oliver Barbosa downed Chinese Chen Wang to lead a big group of players with 5 points.

Women’s game

In the women’s division, woman Grandmaster (WGM) Atousa Pourkashiyan bagged the title with a nine-round total of 7 points. She earned $3,000.

Pourkashiyan, seeded 12th in the 24-player field, drew with 2nd seed WGM Zyongyi Tan of China.

IM Wang Yu of China and woman FIDE Master (WFM) Ding Yixin of China shared 2nd to 3rd places with 6.5 points.

Top seed Wenjun Ju of China, meanwhile, finished with 5 points.

Dresden Olympiad veteran Christy Lamiel Bernales toppled compatriot woman International Master (WIM) Beverly Mendoza to emerge as the top Filipina scorer with 4.5 points. She received $367.

Aices Salvador bowed to WIM Thi Nhu Hoang of Vietnam to finish with 4 points. She took home $300.

Akiko Charmaine Suede finished with 2 points while Mendoiza made 1.5 points.

FIDE General Secretary Ignatius Leong and NCFP president Prospero “Butch” Pichay, Jr. awarded the trophies and cash prizes to the top finishers. They were assisted by SBMA administrator Armand Arreza, FIDE delegate Toti Abundo, NCFP executive/events director Willie Abalos and chief arbiter Merhdad Pahlevanzadeh.

The 2010 Asian Individual Chess Championships was also supported by the Philippine Sports Commission, Department of Tourism, PCSO, PAGCOR and the Subic Bay Metropolitan Authority. (Marlon Bernardino, Philippine Daily Inquirer)

Final standings:

7 points – H. Ni (China)

6.5 points – W. So (RP), A, Gupta (India), J. Zhou (China), L.Q. Liem (Vietnam)

6 points – Y. Yu (China), C. Zeng (China), L. Ding (China), C. Li (China), Y. Wan (China), P. Sethuraman (India), W. Zhou (China)

5.5 points – R. Yu (China), A. Golizadeh (Iran), T. Bakre (India), K. Sasikiran (India), J. Garcia (RP), S. Megaranto (Indonesia), E. Ghaemmaghami (Iran), N.N. Truong Son (Vietnam), R. Antonio (RP), D. Harika (India) , P. Harikirshna (India), D, Xiu (China), Z. Zhang (Singapore), D. Khamrakulov (Uzbekistan), Y. Wen (China)

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So regains tie for lead, nears World Cup slot

Filipino Grandmaster Wesley So quickly got back on track Wednesday night, subduing Chinese upstart Yu Ruiyuan in the eighth and penultimate round to gain a share of the lead in the 9th Asian Individual Chess Championship at the Subic Bay Exhibition and Convention Center.

Derailed by a loss to former China national team captain Ni Hua late Tuesday, So played aggressively with black and went on to post his fifth victory after 58 moves of a Sicilian-Rossolimo variation.

The 16-year-old So climbed to 6.0 points in the company of Chinese GM Ding Liren and Indian GM Abhijeet Gupta, who opted for a quick draw in their board two tussle.

So only needs a draw on Thursday to earn one of the five 2011 World Chess Cup slots being dangled in the $50,000 tournament organized by the National Chess Federation of the Philippines.

Co-leaders Ni and fellow Chinese GM Li Chao, both with 5.5 points, are still locked in a tight battle at presstime.

Top seed Le Quang Liem of Vietnam continued his surge with a victory over Mongolian Bayatsaikhan Gundavaa.

The 19-year-old Le, the reigning Moscow Open and Aeroflot Open Group B titlist who boasts an ELO rating of 2689, improved to 5.5 points following his third win in the last four rounds.

Filipino GM Rogelio “Joey” Antonio was forced to halve the point with Chinese Wan Yanguo and virtually dropped his bid for a second straight World Cup stint.

Antonio, an 11-time Olympian, was at 5.0 points and even if he wins on Thursday the best probable outcome for him will be a playoff for the fifth and last World Cup seat. (Roy Luarca, Philippine Daily Inquirer)

Standings after 8 rounds:

6 – W. So (RP), J. Zhou (Chuna), L. Ding (China), A., Gupta (India) 5.5 – L.Q. Liem (Vietnam), S. Sethuraman (India), L. Chao (Chin)*, N. Hua (China)* 5 – R. Antonio (RP), K. Sasikiran (India), E. Ghaemmaghami (Iran), X. Deshun (China), S. Megaranto (Indonesia), A. Golizadeh (Iran), T. Bakre (India), B. Adhiban (India), Y. Yu (China), Y. Wan (China), N.T. Son (Vietnam), Z. Weiqi (China), R. Yu (China)

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SBMA approves Chinese firm’s $75-M wind energy project

Amid intermittent power shortages, rising power rates and the quest for viable alternative energy sources, the Subic Bay Metropolitan Authority (SBMA) approved a $75-million wind energy project proposed by China-based Sunnew Investments Ltd.

“This is the answer to our energy problem,” said SBMA administrator Armand Arreza. “This will definitely lower the cost of power in the Freeport, and we could even help neighboring communities with surplus power from wind energy.”

Arreza disclosed that Sunnew-Subic has proposed to construct a total of 25 wind turbines in the Subic Bay Freeport, with the project covering a total area of 50,000 square meters at both the Mt. Sta. Rita and the Redondo Peninsula sites.

The sites, which both face the South China Sea, have strong wind currents all year round, “so the wind harvest is expected to be abundant,” Arreza added.

The project will produce about 50 megawatts (MW) of power by 2012, and will initially employ 103 workers.

Arreza and Sunnew Investments chairman Lee Yin Hung signed a 50-year lease contract for the proposed investment just days after the SBMA board of directors approved the wind energy project.

According to Lee, Sunnew’s investment in Subic Bay “would not only release the pressure of the power demand in this region, but also help realize the era of renewable energy in the Philippines.”

“In terms of economical efficiency, it is better than gas-fired power station,” Lee pointed out. “And it’s getting close to oil-fired power generation, so the cost of wind power generation is actually less than gas-fired power.”

Lee also said that his company is already operating similar wind energy facilities in Taiwan and China, and plans to expand to Australia, United States, and Vietnam.

Arreza said the Subic wind farm project is in line with the national government’s effort to tap alternative energy resources, as stipulated in Republic Act 9513, otherwise known as the Renewable Energy Act of 2008.

He added that renewable energy projects are included in the 2009 Investment Priorities Plan (IPP) issued by the national government to generate more jobs and attract more quality investments to the country.

Charles Chen of PRA Marketing Services Corp., which facilitated the entry of Sunnew in Subic, said that the Philippines “has a lot of potentials, especially business and employment opportunities” under the renewable energy sector.

“Not too many people realize that,” Chen added.

Sunnew Investments Ltd. is a subsidiary of Red Blades Windtek Holdings Ltd. and handles investments outside China for its mother company.

Red Blades Windtek Holdings Ltd. is said to be the only manufacturer of high-performance wind-turbine blades in China. The firm utilizes leading technology and advanced composites for multi-megawatt turbines in domestic and global markets. (SBMA Corporate Communications)

PHOTO: SBMA Administrator Armand Arreza (2nd from left) and Sunnew Investments chairman Lee Yin Hung (2nd from right) prepare to sign a lease contract for Sunnew’s $75-M wind farm project in the Subic Bay Freeport. With them are SBMA senior deputy administrator for business Stefani Saño, and Sunnew-Subic representative Robin Tan.

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PLDT to interconnect Clark, Subic telecoms

The country’s biggest telecommunication firm has recently approved the interconnection of its two service areas in the Clark and Subic Bay free-port zones.

Lito Mercado, general manager of Clarktel, a subsidiary of Philippine Long Distance Telephone Co. (PLDT), said the approval of the interconnection of telecommunication between the two free-port zones is in conformity with the mandate of Subic and Clark as the country’s two best investment destinations that provide world-class infrastructure and utilities.

Although investors and locators from the two zones are expected to save on their long-distance telephone calls, Mercado said the Clark and Subic telecom firms will be losing about P2.5 million to P3 million per annum once the interconnection project is implemented.

The interconnection is expected to take effect by the middle of next month based on information provided to Mercado by Subic and Clark Telecom president Dennis Magbatoc.

However, despite the toll-free calls, Mercado said Clark and Subic will still have to use their respective area codes—045 for Clark (Pampanga) and 047 for Subic (Zambales).

“But definitely, calls for both free ports will be free of charge,” he said.

Mercado said Magbatoc was instrumental in the realization of the interconnection project through the initiative of the Subic Clark Alliance for Development Council, the influential Metro Clark Advisory Council, the Clark Development Corp. (CDC) and the Subic Bay Metropolitan Authority (SBMA).

“Doing business in Clark will be made easier with the toll-free calls between Clark and Subic, considering its impact on the day-to-day operations of the investors in both free-port zones,” he said.

He pointed out that the integration earlier of the telephone infrastructure in Pampanga has given Clark a competitive edge and with the same integration of the service lines between Subic and Clark, the competitiveness of both investment destinations is expected to improve further.

Although PLDT will shoulder the interconnection fees, including the losses in long-distance calls, investors in Clark expressed elation over the integration and interconnection of Clark and Subic because it will open more “windows of opportunities” not only for the two free-port zones, but for Central Luzon as well.

With the integration of Clarktel with all telecom providers in Pampanga in 2004, CDC was able to save about P100,000 a month (or P1.2 million annually) on long-distance calls since the interconnection was implemented.

The amount saved on local long-distance calls through the interconnection project will instead be used to finance other CDC projects as part of the social corporate responsibility of the state-owned firm. (Jacob Cunanan, Business Mirror)

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Wesley So falls, Antonio gains in Subic Chess

While Grandmaster (GM) Wesley So suffered his first defeat on Tuesday, GM Rogelio Antonio, Jr. kept the Philippine pride alive in the 7th round of 2010 Asian Individual Chess Championships in Subic, Olongapo City.

Antonio defeated Iranian Pouria Darini after 33 moves of the Sicilian Alapin at the Subic Exhibition and Convention Center. He improved his score to 4.5 points.

“I still have a good chance of making it with two more rounds left,” said Antonio, who is aiming to get another crack at the World Chess Cup.

Slots to the 2011 World Chess Cup await the top 5 finishers of the 9-round tournament organized by the National Chess Federation of the Philippines (NCFP).

However, leading RP bet So was defeated by GM Ni Hua of China.

So dropped his solo leadership and settled for a tie for 5th to 8th places with 5 points going into the final 2 rounds.

The 16-year-old chess whiz kid tried hard to squeeze out a win before yielding to Ni in marathon 74 moves of the Slav.

Several moves earlier, So even held a slight initiative against Ni but made several passive moves against Ni’s 2 connected rooks that turned the tide in the Chinese’s favor.

Other results

In other matches, GM Li Chao of China crushed compatriot GM Yu Yangyi, GM Abhijeet Gupta of India humbled countryman GM Gopal Narayanan Geetha and GM Ling Direng of China outclassed Bayarsaikhan Gundavaa of Mongolia to vault into a 4-way tie for the lead with Ni with 5.5 points.

GM John Paul Gomez, however, also suffered a loss on Tuesday to GM Zhou Jianchao of China. Gomez now has 4 points.

Filipino International Master (IM) Rolando Nolte, meantime, toppled GM Ziaur Rahman of Bangladesh in 43 moves of the Sicilian to improve to 4 points.

IM Ronald Dableo drew with GM Zhou Weiqi of China, IM Dronavalli Harika of India downed IM Barlo Nadera, GM Wen Yang bested Allan Macala, and IM Oliver Dimakiling beat Paulo James Florendo.

Rapid chess tilt

Meanwhile, Christian Arroyo emerged as the solo winner in the National Amateur Rapid chess championship, a side event of the Asian Championships, which was held over the weekend.

A mainstay of Far Eastern University under GM Jayson Gonzales, Arroyo finished with 5 wins and 2 draws to pocket the top prize of P10,000.

Sharing 2nd to 3rd places were Allan Cantonjos and Ryan Dungca, who finished with 5.5 points. They took home P7,000 each.

Merben Roque and Jerry Areque finished 4th and 5th, respectively. Completing the top 10 were Marlon Ricafort (6th), Sheider Nebato (7th), Ritchie Evangelista (8th), Joey Albert Florendo (9th) and Jerad Docena (10th).

The other awardees were Lourecel Hernandez (top unrated), Vince Angelo Medina (top kiddie) and Judith Pineda (top female). (Marlon Bernardino, ABSCBNnews.com)

Standings after 7 rounds:

5.5 points – H. Ni (China), C. Li (China), A. Gupta (India), L. Ding (China)

5 points – W. So (RP), K. Sasikiran (India), J. Zhou (China), R. Yu (China)

4.5 points – R. Antonio (RP), L.Q. Liem (Vietnam), E. Ghaemmaghami ( Iran), P. Harikrishna (India), T. Bakre (India), Y. Yu (China), G. Geetha (India), B. Gundavaa (Mongolia), Y. Wan (China), C. Zheng (China), D. Xiu (China), P. Sethuranan (India), D. Harika (India)

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SBMA opens bidding for Subic power-plant construction

The Subic Bay Metropolitan Authority (SBMA) is now inviting companies to prequalify and bid for the operation of the Subic Diesel Power Plant (SDPP), a 116-megawatt diesel facility that is the sole power-generating plant in this free port.

The SBMA said in an announcement issued recently that it will lease out on an “as-is, where-is” basis the land and the facilities within the compound of the SDPP, a 10-hectare area located near the Sattler Pier.

Duly prequalified proponents are invited to submit proposals for the lease, operation and maintenance of the land and facilities at the SDPP, which was previously occupied by the state-owned National Power Corp. (Napocor).

The SBMA announced it shall “pursue the short-term operation and maintenance of this existing power plant while the reclassification of the land use of the area from utilities to mixed use or commercial/residential/leisure status takes off.”

In bidding for the operation of the power plant, local or foreign companies or joint ventures will be required to submit proposals that will be subjected to competitive evaluation, the SBMA said.

For local firms, the Subic authority will require, among others, a letter of intent duly signed by the authorized representative of the proponent; the proponent’s business profile stating its corporate structure and current business activities; registration with the Department of Trade and Industry; and article of incorporation or articles of partnership from the Securities and Exchange Commission.

If the proponent is a local corporation, the SBMA would also require that its authorized capital stock “must not be less than P200 million or its equivalent in foreign currency” and that at least 70 percent of its stock is fully paid up.

In addition, the SBMA would call for valid and current mayor’s permit or municipal license; tax-information number and tax-clearance certificate from the Bureau of Internal Revenue; statement under oath that the proponent is not blacklisted or barred from bidding by the government; clearances from the Social Security System and the Department of Labor and Employment; and a statement under oath or audited financial statement certifying/evidencing that the proponent has net assets of not less than $10 million.

The SBMA added that if the proponent or any of its members, management or shareholders are registered in the Subic Bay Free Port, it should not have a record of arrears or has not defaulted with its financial obligations with the SBMA.

Foreign bidders will be asked to submit “all the equivalent of all the required eligibility documents for local firms, insofar as may be applicable, duly authenticated by the appropriate official of the Embassy/Consulate of the Philippines in the bidder’s country.”

Parties interested in bidding for the power plant may obtain terms of reference for the submission of proposals at the office of the SBMA administrator, Building 229, Waterfront Road, Subic Bay Free Port. Bidders have until May 7 to submit their proposals, the SBMA said.

SBMA Administrator Armand Arreza said earlier the location of the Subic power plant is part of a parcel of land scheduled for development into a commercial and leisure complex. (Henry Empeño, Business Mirror)

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Asian Chess Championships: So settles for draw, stays on top

Filipino Grandmaster Wesley So settled for a draw with GM Narayanan Gopal Geetha of India in the top board Monday but remained the solo leader in the 9th Asian Individual Chess Championship at the Subic Bay Exhibition and Convention Center.

Unable to find a winning line with black, the 16-year-old So agreed to split the point with Geetha after 32 moves of a Sicilian-Nadjorf variation.

After six rounds, So stayed at the helm of the 89-strong Open division with 5.0 points, boosting his chances for one of the five slots at stake for the 2011 World Chess Cup.

Tied for second with 4.5 points were Geetha, Mongolian Bayarsaikhan Gundavaa and Chinese GMs Ni Hua and Yu Yangyi, who also drew their board 2 encounter. The untitled Gundavaa stunned Chinese GM Zhou Weiqi.

So, the country’s top player with an ELO rating of 2665, needs only to draw his last three games to earn his second straight World Cup stint. He needs at least two victories to secure the title and the $6,000 that goes with it.

“I’ll play my game and see what happens,” said So, who is skipping college this school year to concentrate on chess so he can break into the elite 2700 club.

With the position unclear, So first offered the draw in the 30th move, which Gopal, ninth placer in the 2007 edition held in Mandaue City, declined.

Two moves, later, it was Gopal’s turn to seek a truce and So relented.

Still battling at presstime were Chinese GMs Ding Liren and Ni Hua, who both tote 4.0 points.

Top seed GM Le Quang Liem beat compatriot GM Tu Hoang Thong and vaulted to 4.0 in the company of GM John Paul Gomez and Indian GM Krishnan Sasikiran, who drew their match, as well as Vietnamese IM Nguyen Than Son, who bested GM Darwin Laylo.

Also with 4.0 are Indian GM Bakre Tejas, who bested GM Ziaur Rahman, and Indonesian GM Susanto Megaranto and Iranian Fide Master Ashgar Golizadeh, who figured in another draw.

Filipino GM Rogelio Antonio Jr., a 12-time national champion, could only draw with untitled Chinese Wang Li and, with 3.5 points, needs to sweep his last three games to earn a berth to the World Cup slated in Khanty-Mansiysk, Russia.

In the women’s division, Iranian WGM Atousa Pourkashiyan downed Chinese WFM Ding Yixin to rise to 5.0 points and share the lead with Chinese IM Wang Yu, who was held to a draw by Vietnamese WGM Hoang Thi Bao Tram.

The nine-round tournament is organized by the National Chess Federation of the Philippines headed by Prospero “Butch” Pichay with support from the Subic Bay Metropolitan Authority, Department of Tourism, Philippine Amusement and Gaming Corp. (Pagcor), Philippine Charity Sweepstakes Office (PCSO) and the Philippine Sports Commission. (Roy Luarca, Philippine Daily Inquirer)

Photo: Filipino Grandmaster Wesley So (right) needs only three straight draws to secure a World Cup stint.

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