SBMA, neighbor LGUs seegreater benefits under EO 675
By Henry Empeño
SUBIC BAY FREEPORT—Despite some concerns about territory and jurisdiction, the Subic Bay Metropolitan Authority (SBMA) and local government units (LGUs) around the Subic Freeport Zone agree that more economic benefits could be had by local communities when the free port’s tax- and duty-free regime is expanded under a recent order from Malacañang.
SBMA Administrator Armand Arreza said officials of the SBMA and neighboring LGUs vowed last week to work closely together to pursue more economic opportunities and bring development “beyond the boundaries” of this growing economic zone.
This came about after President Arroyo issued early this month Executive Order 675, which effectively expanded the area where tax- and duty-free privileges for free-port zones would apply.
“We all saw that the best course for us is to coordinate and cooperate for the common good,” said Arreza, referring to his informal meeting with Bataan Gov. Enrique Garcia, Olongapo Mayor James Gordon Jr., Olongapo Vice Mayor Cynthia Cajudo, Castillejos (Zambales) Mayor Wilma Billman and San Marcelino (Zambales) Mayor Joker Rodriguez, during a program honoring Subic’s LGU stakeholders.
“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.
Under EO 675, signed by President Arroyo on November 5, 2007, the tax- and duty-free privilege within the Subic Special Economic and Free Port Zone (SSEFPZ) “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured or declared as additional secured area by the Subic Bay Metropolitan Authority.”
Accordingly, business enterprises and individuals, both Filipino and foreign, who are residing within the secured areas would be free to import raw materials, capital goods, equipment and consumer items tax- and duty-free.
The EO was issued purposely to “entice more local and foreign investors to set up businesses within the SSEFPZ,” Malacañang said.
In the same meeting, SBMA records showed, the LGU officials expressed their satisfaction over SBMA’s economic performance in the past 15 years, and recalled how the SBMA brought about the “Subic miracle” after the US Navy withdrew from its former military outpost in 1992.
“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 Governor Garcia. “As you can see, the social and economic development happening in the Subic free port are now filtering out into the surrounding communities,” he added.
This observation was shared by Cajudo, Rodriguez and Billman, with the latter recalling how her family “panicked” over the impending bases pullout. She said her uncertainties “soon turned into amazement as we saw how the newly created free port grew into a bustling economic zone.”
The municipality of Subic, which was not represented in the meeting, however, had expressed concern over the possible effects of EO 675 on its plan to develop its own economic zone.
“Of course, we welcome EO 675 because it will maximize the tax- and duty-free privileges of the Subic Freeport Zone so that more investments would come into the zone,” said Subic municipal secretary Dick Otero.
“But we are concerned that if the Subic free port’s secured area were extended to include parts of Subic town, then that portion will be under the SBMA and not the municipality of Subic,” Otero said in an interview.
Otero said the municipality of Subic will develop some 600 hectares of land, which had been set aside by the Zambales provincial government for the planned Zambales Port Development Project.
The planned ecozone is located at the Redondo Peninsula, near the Hanjin shipyard project site, under SBMA jurisdiction.
SUBIC BAY FREEPORT—Despite some concerns about territory and jurisdiction, the Subic Bay Metropolitan Authority (SBMA) and local government units (LGUs) around the Subic Freeport Zone agree that more economic benefits could be had by local communities when the free port’s tax- and duty-free regime is expanded under a recent order from Malacañang.
SBMA Administrator Armand Arreza said officials of the SBMA and neighboring LGUs vowed last week to work closely together to pursue more economic opportunities and bring development “beyond the boundaries” of this growing economic zone.
This came about after President Arroyo issued early this month Executive Order 675, which effectively expanded the area where tax- and duty-free privileges for free-port zones would apply.
“We all saw that the best course for us is to coordinate and cooperate for the common good,” said Arreza, referring to his informal meeting with Bataan Gov. Enrique Garcia, Olongapo Mayor James Gordon Jr., Olongapo Vice Mayor Cynthia Cajudo, Castillejos (Zambales) Mayor Wilma Billman and San Marcelino (Zambales) Mayor Joker Rodriguez, during a program honoring Subic’s LGU stakeholders.
“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.
Under EO 675, signed by President Arroyo on November 5, 2007, the tax- and duty-free privilege within the Subic Special Economic and Free Port Zone (SSEFPZ) “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured or declared as additional secured area by the Subic Bay Metropolitan Authority.”
Accordingly, business enterprises and individuals, both Filipino and foreign, who are residing within the secured areas would be free to import raw materials, capital goods, equipment and consumer items tax- and duty-free.
The EO was issued purposely to “entice more local and foreign investors to set up businesses within the SSEFPZ,” Malacañang said.
In the same meeting, SBMA records showed, the LGU officials expressed their satisfaction over SBMA’s economic performance in the past 15 years, and recalled how the SBMA brought about the “Subic miracle” after the US Navy withdrew from its former military outpost in 1992.
“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 Governor Garcia. “As you can see, the social and economic development happening in the Subic free port are now filtering out into the surrounding communities,” he added.
This observation was shared by Cajudo, Rodriguez and Billman, with the latter recalling how her family “panicked” over the impending bases pullout. She said her uncertainties “soon turned into amazement as we saw how the newly created free port grew into a bustling economic zone.”
The municipality of Subic, which was not represented in the meeting, however, had expressed concern over the possible effects of EO 675 on its plan to develop its own economic zone.
“Of course, we welcome EO 675 because it will maximize the tax- and duty-free privileges of the Subic Freeport Zone so that more investments would come into the zone,” said Subic municipal secretary Dick Otero.
“But we are concerned that if the Subic free port’s secured area were extended to include parts of Subic town, then that portion will be under the SBMA and not the municipality of Subic,” Otero said in an interview.
Otero said the municipality of Subic will develop some 600 hectares of land, which had been set aside by the Zambales provincial government for the planned Zambales Port Development Project.
The planned ecozone is located at the Redondo Peninsula, near the Hanjin shipyard project site, under SBMA jurisdiction.
Labels: Executive Order 675, LGUs, sbma
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