Freeport expansion welcomed in Subic

SBMA, local govt to jointly develop economic zone


SUBIC BAY Free Port: Officials of the Subic Bay Metropolitan Authority and local government units around the Free Port have agreed to work closer to pursue opportunities and development of this economic zone.

This was the result of a meeting after President Gloria Arroyo issued Executive Order No. 675 effectively expanding the area where tax and duty-free privileges in the Free Port zone would apply.

Arreza met last week with Bataan Gov. Enrique Garcia, Olongapo Mayor James Gordon Jr., Olongapo Vice-Mayor Cynthia Cajudo, Castillejos Mayor Wilma Billman, and San Marcelino Mayor Joker Rodriguez during a program honoring Subic’s LGU stakeholders.

“It’s a short, but very productive meeting,” described Arreza, who briefed the officials on the $1.45-billion investment commitments generated by the agency in the last nine months.

“We all saw that the best course for us is to coordinate and cooperate for the common good,” explained Arreza, referring to his recent meeting with LGU officials from Olongapo City, Bataan and Zambales.

“We acknowledged both the challenges and opportunities that EO 675 brings us, and we concluded that we should synergize, lest we all stagnate—which is, of course, not a valid option as far as everyone is concerned,” he added.

He further elaborated that it would be easier for SBMA to bring out investment and employment opportunities from the Free Port to the nearby communities now that the President has issued EO 675.

The executive order, signed by President Arroyo on November 5, amended EO 97-A, which provides that the tax- and duty-free incentives under Republic Act 7227 were limited to businesses and residents within the secured area of the Subic Special Economic and Free Port Zone.

Arreza said the expansion of coverage would benefit the nearby communities more as they could catch business spillover from Subic Free Port, which has a limited area for expansion.

Under EO 675, the SBMA, as manager of the Subic Free Port, was given the authority to identify, fence, and secure additional “secured areas” where tax- and duty-free perks may be allowed.

In the meeting both SBMA and the affected LGUs, would identify the areas to be developed early next year.

In the same meeting, the local government officials expressed their satisfaction over SBMA’s economic performance in the past 15 years, and recalled how Subic transformed itself from a US Naval Station till 1992 into one of the most if not the most successful free port in the country today.

“If it seemed the end of the world for many when the Philippine Senate did not ratify the RP-US military agreement, many could see today that those fears were really unfounded,” said Gov. Enrique Garcia of Bataan.

To this concern, Arreza said the development plan for additional secured areas would consider all possible impacts to the community, including residents and the environment.

“We are also preparing a plan for the construction of access roads going to some tourist and investment sites in Zambales, so that more opportunities would open up in the countryside,” Arreza said.

He added that the development plan would involve the construction of new power plants inside the Free Port zone to bring down power rates, attract more business locators, and further stimulate the local economy.
--Anthony Bayarong -- Manila Times