Hermosa locator to hire 3,000 workers

HERMOSA, Bataan--Hermosa Mayor Danny Malana said Sumi Philippines Wiring Systems Corp.is taking in about 3,000 workers once it starts full operation next year.

The Japanese firm, which is engaged in manufacturing, exporting and sales of automotive wiring harness and maintenance service, is a major locator at Hermosa Ecozone Industrial Park.

Malana said Sumi has invested about P300 million to put up its facility.

Earlier, SPWS president Takashi Takagaki said the plant site and design are tailored to ensure safe working conditions and compliance to labor laws.

According to Malana, HEIP is a 165-hectare industrial estate component in a 478-hectare mixed-use property development in the municipality.

Locators have access to the international seaport and airport facilities of Subic, along with Clark and Bataan freeport and economic zones. Butch Gunio - manilastandardtoday.com

Subic Chamber President released a letter on SBFCC position and update on coal power plant

Here-under is Prof. Danny J. Piano's mail regarding the chamber's position on coal power plant and update for our info:

The issue about the Redondo coal-fired powered plant has again reared its head so I think it is best that members be informed of what went on and its present status. Here’s a brief historical timeline:

28 Jul 2006 – Memorandum of Understanding (MOU) between SBMA and Taiwan Cogeneration Corp (TCC) regarding the latter’s proposal to build a coal-fired power plant

11 Aug 2006 – letter by TCC regarding proposed location of ash pond

4 Dec 2006 – SBFCC letter to SBMA Administrator Armand Arreza (ACA) opposing the Redondo coal-fired power plant

Dec 2006 – Environmental Impact Statement (EIS) submitted by TCC

22 Dec 2006 – SBMA Ecology Center consultation meeting with the Subic Bay Resorts Association (SUBRA) and later, with SBF locators

24 Jan 2007 – Manifesto from the Alliance for the Preservation and Enhancement of Subic Bay

26 Jan 2007 – Subic Coal-Fired Power Plant Presentation to Locators by TCC

4 Apr 2007 – SBMA’s Ecology Center issues Environmental Compliance Certificate (ECC) to TCC

7 May 2008 – DENR's Environmental Mgt Bureau's (EMB) Public Hearing at Cawag Elem School, Subic, Zambales (there was another one conducted at around this same date at the Aristocrat Restaurant)

12 Jul 2007 – SBFCC letter to DENR Sec. Angelo Reyes, re: opposition to coal-fired power plant

26 Jul 2007 – SBFCC letter to newly appointed DENR Sec. Jose Atienza Jr, re: opposition to coal-fired power plant

27 Dec 2007 – SBFCC letter to VP Luis Aboitiz, re: opposition to issuance of ECC to TCC

12 Mar 2008 – Danny Piano’s report to the SBFCC regarding the circulating fluidized bed technology based from a similar TCC power plant in Taiwan

14 May 2008 – SBFCC’s letter to DENR-EMB's Julian Amador opposing the plant

22 Dec 2008 – DENR, which essentially "voided" SBMA's ECC, issues their own ECC to the Redondo project nonetheless

6 Oct 2010 – HHIC (Hanjin) writes SBMA regarding their concern about possible effects of dust from the power plant to their painting operations

14 Dec 2010 – Redondo Peninsula Energy’s (RP Energy) replies to HHIC saying essentially there is negligible or no effect

28 Jun 2011 – Pres. Aquino showed support to coal-fired power plants when he inaugurated a plant in Cebu and said, "While the power plant we are inaugurating today does not necessarily produce renewable energy, it does comply with the Clean Air Act”

22 Jul 2011 – Meralco PowerGen Corp. takes majority stake in the Subic Bay 600-megawatt coal-fired power plant. Secretary Jose Rene Almendras of the Department of Energy who witnessed the signing said that the Philippines will continue to rely on coal as a major fuel for power generation

The Subic Bay Freeport Chamber of Commerce has been at the forefront of this issue and has submitted several position papers regarding our opposition to the Redondo coal-fired power plant. The SBFCC position has not changed.

Unlike some people who today profess knowledge about the issues concerned and what went on, we were actually there since the start. Since 2006, we spent, mostly on personal time, hundreds of hours researching the facts; attending public hearings; and gathering, studying, and analyzing documents we can get our hands on.

While the Subic Bay Freeport obviously has a need for more reliable and cheaper electricity, we are also a premier tourism destination. But, we do not want to be fear mongering as others do since the plant that will be built is based on the new and much cleaner circulating fluidized bed (CFB) technology; it is a case of NIMBY or not-in-my-backyard in our case.

Some SBF manufacturers who in the past did not care much about the power plant when electricity was more reliable and cheaper have now expressed concern due to the continuing rise of electricity rates. Studies by the Philippine Chamber of Commerce and Industry (PCCI), of which the SBFCC is a member, have shown that unless something is done, the Philippines will have electricity supply problems. Also, that the Philippines now have the highest electricity rate in Southeast Asia. It also said that we need the right mix of renewable but expensive energy and non-renewable but less expensive energy like coal. It is a necessary evil, the same as our gas-guzzling cars and SUVs. It is analogous to the reason why we are not all driving hybrid cars—because we cannot afford them.

In short, the cause for concern of many manufacturers is not without basis, as do the concern of tourism-related companies about the potential effects of the power plant to the environment and tourism. It is a case of being caught between a rock and a hard place.

But, are we really going to get cheaper electricity rates from the Redondo plant?

Just today, another newspaper release came out from the Philippine Daily Inquirer titled, “Subic locators not primary beneficiary of coal-fired power plant.” If this is true then we won’t get much of the cheaper electricity that we are hoping for in the first place. Fortunately, it is not entirely accurate. The nodal billing and open access system that will become effective nationwide late this year will take care of that. Basically, the cost of transmission will depend on how close one is to a power generation plant. The closer we are to one, the cheaper the transmission cost. Not to mention the plan to provide generation cost discounts to Freeport locators if the previously proposed 69kv line for a 50MW block to the Freeport mainland is found to be impractical.

In any case, the stark reality is that the Redondo plant project is going to push through. It already has, in fact. The project proponent has already started its development which it expects to complete by 2015. Even as we have not changed our position, even if we have been fighting it since 2006, the reality is we lost this fight. Some organizations and people who were not there during the fight when it was happening are now making it appear to be the gladiators—when the fight is all but over. The past Arroyo administration has approved the project more than two years ago. The present Aquino administration is for it, too, because of the impending power crisis and since it complies with the strict Philippine Clean Air Act in the first place.

Friends, we cannot fight a fight that is over. While hope springs eternal, we must also be pragmatic. What your Chamber is now trying to achieve relative to this project is to make sure that appropriate monitoring systems are put in place and that the visual impact of the power plant to tourism is minimized. I had made a suggestion to the project proponent that the 24/7 emission display on their computer monitoring system be made available to the public via a website. This way, anybody can monitor the emissions and there will be transparency. I look forward to winning this one at least. Strict monitoring is very important and is the reason why some coal-fired power plants like the one in Oahu, Hawaii and Redondo Beach, Los Angeles, California are able to co-exist with both commercial and tourism establishments. For this reason, we will lobby to be part of the authorized monitoring team as well.

I hope I have provided a summary of all the information we have on hand relative to the Redondo power plant project. You may agree with me or not on some or all of it but, as your president, it is my duty to present it as it is.

Sincerely,

Prof. Danny Piano

President

= = = = =

Reply of Alex Corpus Hermoso predalex@info.com.ph to Danny's letter

In HAWAII:

The Hu Honua plant emit more particulate pollution than many coal plants. The plant also emit between 200 and 300 tons of carbon monoxide per year, which is treated by EPA as a proxy for organic pollutants like formaldehyde. The plant will emit over 6 tons of formaldehyde and 5.74 tons of benzene per year.

Partners For Policy Integrity

Author: R. Wiles Published April 22,2011

In 2006, Hawaii's sole coal-fired power plant produced 1.6 million tons of CO2, 900 tons of sulfur dioxide, and 1,000 tons of nitrogen oxide;

This coal-fired power plant was responsible for 7.6% of the state's total CO2 emissions

Along Delaware canal 44.8% colorectal cancer

In Kenton 22.4% above average for ALL cancer cases

In Millsboro 29.8% for lung cancer

In Wilmington 21.1 % for prostate cancer

by Cris Barrish , The News Journal

Fluidized bed combustion (FBC) technology is not Taiwanese Technology

FBC boilers was first used in eastern Pennsylvania in 1987.
FBC burner are more complicated than normal pulverized coal power plants

Waste coal has higher concentration of mercury than normal coals ( 4X than bituminous coal) PAHs from FBC are more than normal coal burners due to their use of limestone injections , their lower combustion temperature range , the low rank coal being burned and the higher levels of chlorine and sulfur in the fuel. The addition of extra limestone can promote the formation of PAHs in the FBC system. The total PAH emission increases with an increase in sulfur content of coal. Some ash particles can still pass the Electrostaticprecipitators and transported into the atmosphere. Treatment of FBC ash with N2O4 increased its mutagenic potency (cancer -causing property) by as much as 3200 times .CFBC plants contain PAH that readily cause bacteria to mutate.

Mike Ewall Energy Justice.net

www.energyjustice.net/coa/wastecoal

April 2008

1,910 container vans and 1,866 vehicles are missing as BOC conducted inventory in Subic recently

Conspiracy eyed in missing shipments

by Joel E. Zurbano - manilastandardtoday.com

The Bureau of Customs will recommend the filing of criminal charges against 10 private inviduals in connection with the disappearance of 1,1910 container vans just as it begins investigation on yet another case of missing articles.

Customs chief investigator Fernandino Tuason said that 10 private individuals will be included in the charge sheet, on top of the 16 Customs officials and personnel who could be liable for the missing container vans. He added the the private individuals were part of a grand conspiracy to “defraud government of duties and taxes through smuggling via the transshipment operations.”

While Tuason admitted that the private individuals have abandoned their listed addresses, he said he was hopeful they would eventually be arrested.

“We are now coordinating with the BIR (Bureau of Internal Revenue) and Department of Trade and Industry for audit and to provide us immediately with any information that they will be encountering with these people...warrants of arrest will be issued against these people if criminal charges will be pursued,” he said.

Refusing to name names pending the approval of his report submitted Thursday to Commissioner Angelito Alvarez, Tuason also hinted at possible conspiracy charges against Customs officials and employees suspected of involvement in the case.

Depending on recommendations made by the Customs legal office, Tuason said charges of dishonesty, gross neglect, grave misconduct and conduct prejudicial to the best interest of the service are just some of the cases being readied against the Customs officials and personnel who could be part of the conspiracy.

But on the same day Tuason’s recommendations were submitted to Alvarez, the Commissioner ordered an investigation, this time on a case of missing imported vehicles.

According to Alvarez, the vehicles which were supposed to be in the possession of locators in the Subic Bay Freeport, went missing in 2007.

“It happened in the past administration. October 2007. We conducted an inventory recently and our worst fear has been confirmed that out of the 2,000 vehicles, 1,866 are missing,” said Alvarez.

Alvarez, however, failed to describe what type of vehicles were reported missing, saying they’re “still checking it.”

He said he directed his men to “coordinate closely with the Subic Bay Metropolitan Authority, Land Transportation Office and importers, as well as locators for the export documents. But we have reasons to believe that many have been registered with the LTO.”

The Customs chief said before, locators have privilege to import vehicle but with the understanding it will be used for their business. “But there were information that the vehicles were being sold outside.”

“When we conducted an audit over 1,800 cannot be accounted, so either the vehicles were re-exported which is allowed or registered with the LTO within Customs territory,” said Alvarez.

= = = = =

Explain missing vehicles, 40 locators told

By Robert Gonzaga - Inquirer Central Luzon

SUBIC BAY FREEPORT—A top customs official on Friday gave 40 Subic locators a week to explain how 1,800 imported secondhand vehicles had vanished while under their custody.

“We are requiring these locators to account for the missing vehicles in their yards. They have to submit documents to explain where these vehicles are now, or else face charges,” Errol Albano, chief of the Bureau of Customs at the Subic port, told the Inquirer.

The missing vehicles were part of the 2,907 used cars inventoried by officials in 2007. These were placed in storage yards by their owners after the government banned the sale of imported secondhand vehicles. The ban, contained in Executive Order No. 156 issued by then President Gloria Macapagal-Arroyo in 2007, was in compliance with new tariff agreements that took effect that year.

However, a new inventory, conducted by the Bureau of Customs and the Subic Bay Metropolitan Authority, could no longer account for the 1,800 used cars, Albano said.

Subic slates ‘barrio fiesta’ celebration

SUBIC BAY FREEPORT — The Subic Bay Freeport community is gearing up for a full-blast “barrio fiesta” celebration from August 14 to 16 to commemorate the feast of San Roque, Subic Bay’s patron saint.

Everything from food, music, decoration and presentations will feature the countryside Filipino lifestyle for this year’s version of the Subic Bay “Karakol” festival, which since its inception in 2000 has drawn people to its core religious message.

To drive home the “Authentic Filipino Fiesta at Subic Bay Freeport” theme this year, the Subic Bay Metropolitan Authority (SBMA) has also sponsored a “building dress-up contest” here, where building facades will be decorated with the best of indigenous materials to create a truly festive atmosphere throughout the celebration.

“So don’t be surprised to see nipa huts, farm implements, and ‘banderitas’ suddenly sprouting all over the Freeport,” said SBMA Deputy Administrator Raul Marcelo.

The Subic Bay Karakol Festival, Marcelo explained, has become a form of thanksgiving for the sustained economic success of the Subic Bay Freeport Zone over its 18 years of existence.

“We give thanks specifically for having weathered the recent global economic slowdown, and then experiencing growth in the first half of 2010,” Marcelo added.

Subic’s upcoming barrio fiesta celebration will kick off on August 14 with a sand sculpture competition for 10-member teams at the Boardwalk Park here.

This will be followed by indigenous games for children on the next day at the San Roque chapel grounds, as brass bands and various presentations will rev up the excitement. By FRANCO G. REGALA - mb.com.ph

Subic free port gets $10-M projects in Q3

SUBIC BAY FREE PORT — More companies involved in the storage, transshipment and transport of goods have established operations in this free port in the third quarter, putting up projects worth a total of $9.98 million in projected investments.

The investments in logistics comprised almost half the $20.45-million pledges for the 44 projects approved by the Subic Bay Metropolitan Authority (SBMA) in that period.

A report from the SBMA business and investment group indicated that at least six firms engaged in logistics services set up projects here from August to September, as authorities intensified efforts to market Subic as a center for shipping and transshipment.

The firms included Pure Petroleum Corp., which has a projected investment of $6.22 million to import, sell, store and transship petroleum products; Chifil International Import-Export Manufacturing Co. Inc., which will put up $1.41 million for cigarette manufacturing, packaging, warehousing, transshipment and reexporting of manufactured cigarettes; Mateen Tokyo International Inc., with $550,000 for the import and export of machinery, equipment and electronics and food products; and Petron Corp., with $1.02 million for a fuel retail outlet, with ancillary facilities like a bus terminal, convenience store, coffee shop and restaurant.

Two other companies—Kerry-Aboitiz Logistics Inc. and APL Logistics Inc.—will each put up freight- forwarding operations here. For their Subic operations, Kerry-Aboitiz committed $45,000, while APL pledged $20,000.

Of the 44 projects approved by the SBMA in August and September, Pure Petroleum Corp.’s $6.22 million venture had the biggest investment projection.

Five other projects registered in the same period also breached the $1-million investment mark. These are Subic Business and Technology College Inc.’s learning center, which is worth $4.29 million; Bonsure Evergreen International Corp.’s food- manufacturing venture, worth $2.22 million; Chifil International’s $1.41-million cigarette import-export project; Petron Corp.’s $1.02-million fuel outlet; and RGO Megatrade Inc.’s export operations, with a $1-million investment projection.

According to Stefani Saño, SBMA senior deputy administrator for business and investment, the 44 approved projects are projected to create a total of 765 new jobs in the Subic Bay Free Port.

The SBMA is now actively promoting both its sea port and airport as ideal shipping and transshipment hubs for import-export firms and other port users, especially those from Central and Northern Luzon regions.

Ferdinand Hernandez, SBMA senior deputy administrator for operations, said that the agency “is on the right track” in marketing the Port of Subic to more shippers, importers, brokers and cargo forwarders, as he noted the surge in income at the Subic seaport in the first half of 2009.

He added that huge investments in infrastructure like the Subic-Clark-Tarlac Expressway and Subic’s new container terminal “have made the SBMA’s marketing strategies for the port very effective.”

This, in turn, enabled the SBMA “to greatly enhance Subic’s performance as a logistics hub,” Hernandez said. Written by Henry Empeño / Business Mirror Correspondent

Subic marine park starts dolphin-breeding program

SUBIC BAY FREE PORT—The operator of the Ocean Adventure marine park in this free port has embarked on a cetacean breeding program to boost the number of dolphins in its open-water viewing facilities.

According to a statement from the Subic Bay Marine Exploratorium Inc. (SBMEI), the company that operates Ocean Adventure and its sister facility, Camayan Beach Resort & Hotel, four more dolphins were acquired recently from Japan for the marine park’s breeding program.

Three female and one male bottle- nosed dolphins were the new arrivals, the SBMEI said. They are now undergoing a routine 30-day quarantine and acclimatization period before their introduction to the existing dolphin population at the park.

Ocean Adventure, which is one of the most popular tourism attractions in the Subic Bay Free Port today, is expanding its marine park business that features trained dolphins, false killer whales and sea lions that perform in a huge open-water habitat.

The SBMEI said that under a permit approved by the Department of Agriculture, the four new dolphins will be part of a cetacean breeding program “so that a stable and sustainable population of bottle-nosed dolphins at Ocean Adventure may be achieved.”

The dolphin breeding program was pushed by the firm after it became “extremely successful” with its sea-lion reproductive-management program that has produced three healthy sea- lion pups this year. The company said a total of seven pups have been born so far at the marine park since it began operations in 2001.

Before they were transferred to Subic, the four dolphins lived in an open-water facility in Japan, where they underwent some preliminary conditioning and training for the past two years, the SBMEI said.

At their new Ocean Adventure home, the new dolphins will undergo further training from Ocean Adventure’s animal-care experts and training staff to “enhance the animals’ development through internationally recognized positive-reinforcement training techniques,” the SBMEI said.

Aside from being used in the SBMEI’s cetacean breeding program, the four dolphins will also become the “new additions to our already exciting lineup of entertainment and activities,” said John Corcoran, a director of the SBMEI.

The company said it has opened two new shows this month that feature trained animals at Ocean Adventure.

The first one, the Rap, Jump and Roll Show,” is presented at a new seaside stadium and features international trampoline performers, along with the park’s famous animal mascots and dancers.

The second is called “Walk on the Wild Side,” shown at the new Eco Theater, and includes forest animals, along with Aeta tribesmen who demonstrate jungle survival skills.

SBMEI chairman and CEO Timothy Desmond also announced recently that the firm has opened “Adventure Beach,” which was designed for special events, group outings and team-building activities. Written by Henry Empeño / Business Mirror Correspondent

Senate passes Bataan Freeport bill

The Senate passed on third reading last Monday a bill that proposes to convert the Bataan Economic Zone (BEZ) in Mariveles, Bataan into a Freeport which has the potential of becoming a busy trade center in Asia.

Sen. Richard J. Gordon (Ind.), co-author and co-sponsor of Senate Bill 2118 or the Bataan Special Economic Zone and Freeport Act of 2008, said the creation of a Freeport in Bataan will spur development, not only in the province of Bataan, but also in the National Capital Region (NCR) and the whole of Luzon.

“The creation of a Freeport in the Mariveles special economic zone will generate more investments for Bataan which will help the government address the problem of increasing unemployment in the country,” he said.

“With its proximity to Metro Manila, the Bataan Special Economic Zone and Freeport (BSECF) will attract more foreign investors and has the potential of becoming a busy trade center in Asia once developed to its fullest after a port that could service both local and international trade is successfully put in place,” he added.

The bill was passed with 14 affirmative votes, two negative votes, and one abstention.

House Bill 055344, the House of Representatives’ counterpart measure of the Senate measure, was passed on third reading on Dec. 8, 2009 and was transmitted to the Senate on Dec. 12, 2009.

Gordon, who led the conversion of the former Subic Naval Base into a Freeport, stressed that local governments should also have a strong hand in operating the Bataan Special Economic Zone and Freeport as they had in Subic because the local folks would have more enthusiasm in making it into a viable operation. by MARIO CASAYURAN, ROLLY CARANDANG - TEMPO

Subic seaport raises target

SUBIC BAY FREEPORT — Subic Bay Metropolitan Authority’s (SBMA) Seaport Department has raised its collection target this year to P440.84 million, SBMA deputy administrator for operations Ferdinand L. Hernandez said in a press statement here yesterday.

This, he said, is because the department had surpassed its full-year target of P316 million, collecting P319.68 million in January to July.

The total as of July was also 15.7% more than seaport revenues reported in the same period last year.

"For the remaining months of 2009, it is a foregone conclusion that the [original] target will be surpassed," Mr. Hernandez said.

The statement said that the seven-month collection consisted of the following:

P131.23 million in vessel charges;

P91.67 million in cargo charges;

P35.6 million in leases and rentals;

P34.62 million in fees for port-related services;

P21.56 million in processing fees; and

P5 million in other charges.

Monthly breakdown was as follows: 37.62 million in January, P41.57 million in February, P51.01 million in March, P44.49 million in April, P41.07 million in May, P60.69 million in June, and P43.24 million in July.

These figures included:

P68.3 million in fees paid by laid-up vessels — or international ships laid idle by the current global crisis;

P39.8 million in wharfage fees on grains, wheat, fertilizer and rice; and

P21.5 million in wharfage fees on imported petroleum products.

"Despite of the global economic slowdown, the SBMA Seaport Department has consistently recorded banner revenues," Mr. Hernandez said.

Earlier, Subic seaport officials said SBMA generated revenue worth P276.49 million from seaport operations in the first half.

"June 2009 alone, which brought in P60.69 million, is worth highlighting because it was the seaport’s highest monthly record thus far, ever since SBMA was created in 1992," said Mr. Hernandez. — RMG - Business World

Freeport Shootfest set

SUBIC Bay Freeport – Hundreds to shooters from Region 1, 2, 3, 4 and metro manila are expected to join the 1st Chief Supt. Orlando Maddela, Jr. (ret.) Cup Level II to be held at the SBMA Firing Range Naval Magazine on May 29, 30 and 31.

The three-day competition will be hosted by the Zambales, Olongapo Pistol and Riffle Association headed by its President Anthony “Bong” dela Peña.

The competitions have seven stages. The course of fire composed of Stage 1 – Tactics, Stage 2 – Scorpion’s Tail, Stage 3 – Way of the Scorpion, Stage 4 – Two-Way, Stage 5 – Sting, Stage 6 – Zigzag and Stage 7 – Along D’ Way.

Shooters will be competing in Open, Standard, Modified, Production, Revolver and Single Stack categories. Up for grabs are 54 trophies.

Top shooter such as Jethro Dionisio, former World Shooter Champion, is expected to join the shootfest.

--By. Mamer Bañez – People’s Journal

Subic’s massive infrastructure will continue to interest investors

By. Irma Isip – Malaya

The Subic Bay Metropolitan Authority (SBMA) is confident of attracting new investments despite the economic crisis due to massive logistics infrastructure in the Subic Freeport zone.

In his speech at the two-day general assembly of the International Network of Affiliated Ports (INAP) that started Tuesday, SBMA Administrator Armand C. Arreza cited the growing role of sports in the global trade.

Arreza, who is pushing for Subic as an ideal maritime logistics hub, is still optimistic of attaining growth despite economic difficulties.

Arreza said the port of Subic now boasts of the newest operating container port in the country, and it possesses key infrastructure that can support a wide range of businesses.

“With this, Subic now responds to the growing requirements of seaborne trade in Northern and Central Luzon, and is ready for the capacity shortage of 14 million TEUs (twenty-foot equivalent units) projected for South East Asia,” Arreza told conference delegates.

Arreza also said Subic’s new containerterminal-1, which was funded by the Japan Bank for International Cooperation (JBIC), has an annual capacity of 300,000 TEUs and equipped with two quay cranes capable of handling even post-Panamax cargo vessels.

He added that the existence of nine other piers and cargo terminals in Subic, the massive logistics support infrastructure now existing in the Subic-Clark growth corridor, as well as the free port’s strategic location in the center of the growing East Asian Region, definitely gives Subic a solid foundation to gain more investments, attract more trade and weather the current economic storm.

‘Compared to 10 years ago, Subic has come a long way,” Arreza said.

Subic Bay Freeport is now home to some 1,100 investor firms that provide jobs more than 85,000 workers.

Arreza said because of the economic crisis today, it is important that INAP focus on its fundamental objectives. These include responding to the needs of the maritime transport industry, while strengthening cooperation among members, exchanging information and technology, and conducting regular interaction among members.

INAP, which was formed in 1998 as a venue for exchanging information and sharing technology and expertise on marine transport and logistics, held its 10th annual conference here as the global economic down turn began affecting major industries, including the maritime sector.

At the conference, INAP installed SBMA chairman Feliciano Salonga as INAP chairman for the year 2008 to 2009.

De Castro, Villar at CREBA meet

Vice President Noli “Kabayan” de Castro and Senate President Manuel Villar will grace the Chamber of Real Estate and Builders Associations (CREBA) Inc. national convention at the Subic Bay Exhibition and Convention Center, Subic Free Port, Zambales on Oct. 24-25.

This was announced by CREBA National President Reghis Romero II and overall convention chairman Angel Vivas Jr. The convention theme is “Managing Land and Environment for Today’s Communities: Best Practices and Success Stories.”

On Oct. 24, De Castro will be the guest of honor and speaker after the land use forum on “Balancing Land Use for Food, Shelter and Environment.” De Castro is chairman of the government’s Housing and Urban Development Coordinating Council (HUDCC) which oversees housing development in the country.

Villar will be the special guest at the convention’s gala night program to receive the Lifetime Achievement Award by the Council of Leaders of CREBA. Villar has long been supporting CREBA as the country’s leading real estate and housing industry organization.

Convention sponsors are Boysen Paint, MB Villar Group of Companies, Durawood Construction & Lumber Supply, Moldex Group of Companies, R-II Builders Inc., Prime Estate Ventures, Inc., Harbour Centre, Sta. Lucia Realty Development Inc., Prime Peak Properties Inc., BPI Family Savings Bank, Manila Water Company Inc. and Hausland Development Corporation.

CREBA is inviting all builders, professionals and other sectors to join the convention. Please contact the CREBA secretariat at 373-2270 to 75 or email: creba_inc.@yahoo.com.

BoI to review used car import policy

The Board of Investments will review Executive Order 156, which prohibits the importation of used motor vehicles into the country, amid the controversy surrounding the entry of second-hand units in Cagayan province via Port Irene.

Trade Secretary Peter Favila told reporters he was asked by Senator Juan Ponce Enrile to revisit the Malacañang directive to clarify whether or not Cagayan Freeport was exempt from the prohibition.

Enrile was implicated in the alleged rampant smuggling of used vehicles in his province of Cagayan.

The Bureau of Customs and Presidential Anti-Smuggling Group denied smuggling in the province, adding that the proper taxes were collected.

Executive Order 156, entitled “Providing for a Comprehensive Industrial Policy and Directions for the Motor Vehicle Development Program and its Implementing Guidelines,” bans the entry of imported used vehicles into Philippine customs territory.

The Supreme Court unanimously voided the inclusion of the Subic Bay Freeport Zone in the directive, which effectively limited the importation and resale of used vehicles within the Subic Bay Freeport.

The high court ruled with finality that used motor vehicles that come into Philippine territory via the secured fenced-in former Subic Naval Base area may be stored, used, or traded therein, or exported out of the Philippine territory, but they cannot be imported into the Philippine territory outside of the former American base.

“In particular, the senator wants a clarification on the provision of the directive that provides for the areas covered by the prohibition,” said Favila.

Cagayan Export Zone Authority has filed a case before the Regional Trial Court of Aparri, Cagayan, arguing that order did not apply to the ecozone.

Cagayan ecozone officials said the October 2007 final ruling of the Supreme Court upholding the constitutionality of EO 156 was not clear whether or not the directive applies to areas other than Subic Bay.

“It is a legal issue, but we will look into that,” said Favila.

Favila said while used motor vehicle imports were prohibited in the country, he also recognized the issue that many Filipinos could only afford to buy a second-hand vehicle.

“I have asked local vehicle assemblers to come up with an affordable people’s car so people won’t have to buy used vehicles that are cheaper,” said Favila.

While sales of new vehicles, as reported by the Chamber of Automotive Manufacturers of the Philippines Inc., continuing to post double-digit growth despite the harsh economic environment, the industry thinks it still needs to work on its competitiveness. By Elaine Ruzul S. Ramos - Manila Standard Today

Freeport and industrial park set to rise in Zambales

IBA, Zambales - A 600-hectare freeport industrial park envisioned to spur economic development in this typhoon-devastated province is set to rise here.

Gov. Amor Deloso said Imagine Realty Corp is bullish in developing a vast idle lot owned by the government located at the Redondo Peninsula in Barangay Cawag, Subic, Zambales to make it into an ecozone.

"Zambales will soon have its own Freeport designed to attract more investment and generate employment for our people," Deloso said.

The project will focus on sustainable development, said Deloso adding it will be of mix-use industrial park. The ecozone will be limited to light and non-polluting industries such as electronic and garment factories, information technology and even call centers.

"We will not allow heavy pollutant industries in the area," Deloso pointed out.

Subic town being a contiguous community of the Subic Bay Freeport, Deloso said has been declared as part of the ecozone.

Just like Subic Freeport, the Zambales Freeport Industrial Park will be developed into a self-sustaining, commercial, financial and investment center to generate employment in the province and attract local and foreign investments.

Roberto Aventajado, Imagine Realty Corporation president, said Subic town has a potential to become a freeport due to the existing seaport complemented with other infrastructure facilities.

"Our company is currently in alliance with international investors that can pursue full development of the Zambales Industrial Park," Aventajado told reporters here.

The firm, Aventajado said will shoulder the cost of the project study to be completed in the 30-days period. "Our proposal will be mutually beneficial, especially for the progress of Zambales.

Similar to Subic Freeport, Deloso said Zambales Industrial Park will be operated and managed as a separate custom territory ensuring free flow and movement of goods. He said the province will retain its basic autonomy and will operate according to the Local Government Code of 1991.- Jess Malabanan - ABS CBN NEWS

Smuggling in free ports probed

By Lawrence Agcaoli - Manila Standard Today

THE government yesterday vowed to curb rampant smuggling in the country’s free ports to plug tax leakages that could endanger the country’s fiscal consolidation program.

Finance Secretary Margarito Teves said in a statement that the Department of Finance would oversees several administrative measures being implemented by the Bureau of Customs to eliminate smuggling in major free ports such as Subic bay Freeport and clark Special Economic Zone.

“We are currently implementing several administrative measures to curb smuggling through the country’s free port’s,” Teves said

He said the government was set to pilot test next month the much delayed fuel marking technology at Subic, Clark and the Batangas port to ensure that proper taxes and duties were paid on oil imports.

The finance department mandated the marking of imported kerosene and fuel oils on Aug.15 in the three ports.

The marking of all kerosene and all diesel oil subject to zero exercise tax will be implemented in other ports through a nationwide roll-our to properly identify and track fuel oils shipped into the Philippines.

Teves said the department also issued an order tightening the monitoring o importations and grant of tax privileges to enterprises through the sharing of information between Customs and administrators of free ports as well as other special economic zones.

He added that Customs signed a memorandum of agreement with Subic Bay Metropolitan Authority for closer coordination of importations made by locators inside the former US military naval base.

The finance chief said Customs had started conducting post-entry audit on imported cigarettes, alcohol products and motor vehicles.

He said Customs had imposed a morotarium on the accreditation of customs bonded warehouse due to reports that they were being used as conduits to smuggling activities.

Customs aims to collect P254.5 billion this year, or 21 percent higher than last year’s P210.5 billion. The agency missed its P228.2-billion after collections grew old by 6.2 percent from P198.2 billion in 2006.

The administration of President Gloria Macapagal Arroyo is at the tail-end of a fiscal consolidation program aimed at achieving a balanced budget this year, or two years earlier than the original 2010 schedule under the Medium Term Philippine Development Plan.

Buoyed by the recode p90.6-billion proceeds from privatization the government trimmed the budget deficit to a record P9.4 billion, or 0.1 percent of gross domestic product, from 64.8 billion or 1.1 percent of the GDP.

Palace orders expansion of Subic free port zone

PRESIDENT Arroyo has ordered the Subic free port expanded to make room for investors seeking to take advantage of its duty-free status.

“There has been a shortage of areas for lease to investors who intend to avail themselves of the tax- and duty-free incentives [within the zone],” Mrs. Arroyo said as she signed Executive Order 675 for the port’s expansion.

“Extending the area of coverage… will entice more local and foreign investors to set up business [there].”

Mrs. Arroyo said the tax- and duty-free privilege within the port applied within the secured area consisting of the fenced-in former Subic Naval Base and other areas that may be added to it by the Subic Bay Metropolitan Authority.

Residents and foreign tourists would be allowed to buy goods within the expanded zone provided the goods were consumed there, she said.

She ordered the SBMA and Customs to adopt more measures to prevent smuggling within the port and to make sure the companies operating within had a control system set up at their own expense to account for imports and sales.

“The removal of raw materials, capital goods, equipment and consumer items out of the secured area for sale to non-registered enterprises shall be subject to the usual taxes and duties,” she said.

SBMA Administrator Armand Arreza said he had already met 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 to discuss the economic opportunities arising from the expansion of the free port.

“We acknowledged both the challenges and opportunities that EO 675 brings us, and we concluded that we should synergize, lest we all stagnate,” he said.

“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,” Subic’s municipal secretary Dick Otero said.

Joyce Pangco Pañares

EO expands duty-free areas; gains seen for SBMA, LGUs

Manila Bulletin - Jonas Reyes

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) and local government units near this premier Freeport agreed to work together in the effort to generate more economic opportunities.

This came about after President Arroyo issued Executive Order No. 675, which expands the area where people may benefit from the tax- and duty-free privileges granted to this freeport.

"We all see that the best course for us is to coordinate and cooperate for the common good," said SBMA Administrator Armand Arreza, referring to his recent meeting with officials of Olongapo City, Bataan and Zambales.

"We acknowledged both the challenges and opportunities that EO No. 675 brings us, and we concluded that we should synergize, lest we all stagnate," he said.

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," said Arreza, who briefed the officials on the $ 1.45-billion investment commitments generated by the agency in the last nine months.

"Our LGU partners agreed that it will be easier for SBMA to bring out investments and employment opportunities from the Freeport to the nearby communities now that the President has issued EO 675," Arreza said.

The executive order, signed by President Arroyo last Nov. 5, amended EO 97A, which provides that the tax- and duty free incentives provided under Republic Act (RA) 7227 are granted only to business establishments and residents in the secured area of the Subic Special Economic and Freeport Zone.

Arreza said the expansion of coverage of the tax- and duty-free privileges now benefits the nearby communities as they can take advantage of the spillover of business in the Subic Freeport, which has a limited area for expansion.

Under EO 675, the SBMA, as manager of the Subic Freeport, is given the authority to identify, fence, and secure additional "secured areas" where tax- and duty-free perks may be allowed.

Arreza said the SBMA, in consultation with the affected LGUs, will identify the areas that will be developed stating early next year.

In the same meeting, the local 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 pulled out in 1992.

"If it seemed the end of the world for many when the Philippine Senate did not ratify the Philippines-US military agreement, many can see today that those fears were unfounded," said Governor Garcia.

"As you can see, the social and economic developments happening in the Subic Freeport are now filtering out into the nearby communities," he added.

This observation was shared by Vice Mayor Cajudo of Olongapo, Mayor Billman, and Mayor Rodriguez.

Billman, who admitted that she favored the retention of the US military bases "like most of the residents of Olongapo and parts of Zambales and Bataan," said she and her American husband, who was then working at the Clark Air Base, panicked over the impending closure of the bases.

"We really didn’t know what would happen to our family when the bases finally closed," she said.

"However, those fears and uncertainties that bothered us later turned into amazement as we saw how the newly created freeport grow into a bustling economic zone."

Subic best for medical tourism

World class health care service at third-World prices makes the Subic Free Port an attractive destination

SUBIC BAY Freeport: Two leading health providers in the country are eyeing Subic Bay Freeport as a prime location for medical tourism.

The plan according to MedTECs Corp. and Total-MED is to convert the existing four story building of MedTECs located at the Subic Bay Industrial Park commercial center into a medical tourism facility which is ideal for medical offices, a nursing school and assisted living facility.

TotalMED president and CEO Dr. Raymond Ricardo disclosed this proposal at the 20th meeting of the Philippine-Chinese & Chinese-Philippine Business Councils at the Formosa Hall of the Subic Bay Industrial Park over the weekend.

“We see Subic as the next medical tourism destination in Asia in the next few years, its all [Subic] here, the location is great, the ambiance is good and the facilities are incredible,” Ricardo said.

MedTECs initially invested P6 million in their its building although the plan to convert the building into a Medical Tourism facility is still in its initial drawings. both MedTECs and TotalMED said they are encouraging prospective investors to the said project.

In his presentation, MedTECs and TotalMED estimated around 5,000 retired US military veterans and their dependents, 100,000 employees and dependents of locators in Clark and Subic, not to mention one-fourth of those residing north of Manila, among others would avail of medical services.

“These are only local potential markets.” Dr. Ricardo said.

Subic Bay Metropolitan Authority Administrator Armand Arreza for his part welcomed the plan and sees medical tourism in Subic as a big opportunity, he explained that medical tourism has a growth rate of 20 to 30 percent per annum and believes that Subic Free Port is the prime spot in the near future for medical tourism.

“We encourage high value activities and move away from low cost manufacturing model and medical tourism is one of the area and were the Philippines and Taiwan can work very closely collaborate with,” Arreza said.

Medical tourism is one of the area that is being encouraged by the Philippine government right now and in 2006 it is estimated that the total revenue generated by medical tourism in Asia amounted to $2.5 billion and is expected to grow to $4.5 billion in 2012.

“Tourist are attracted to this because of world-class health care service at third-world prices that is why the Philippines has become an attractive destination,” Arreza said.

By Anthony Bayarong, Manila Times Correspondent

GMA wants tax privileges at Subic port scaled back

PRESIDENT Gloria Macapagal Arroyo has ordered the tax privilege enjoyed by companies within the Subic free port rationalized or made less wasteful to plug the government’s potential revenue losses from the raw materials, capital goods and equipment being brought into it.

She signed Executive Order 660 tasking Internal Revenue and Customs to review the duties on excess importation amid reports the government loses at least P65 billion in foregone taxes annually on motor vehicles alone.

“There is a need to ensure that the raw materials, capital goods and equipment imported byregistered enterprises [in Subic] are only those required for their business activities and operations,” Mrs. Arroyo said.

“Importations in excess of those requirements... shall be deemed brought into or sold within the Customs territory and therefore subject to taxes,” she said.

She ordered Customs, Internal Revenue and the Subic Bay Metropolitan Authority to issue the corresponding circulars explaining her order, saying the government needed to plug tax loopholes to collect more revenue to finance economic development.

SBMA chairman Feliciano Salonga and administrator Armando Arreza said they had yet to see a copy of the new executive order.

Salonga said excess importation could be considered another form of smuggling, adding the free port had always been plagued by it.

Antonio Villar, head of the Presidential Anti-Smuggling Group, said the International Monetary Fund had estimated that the Philippines’ revenue losses on motor vehicles alone came to at least P13 billion a month. Joyce Pangco Pañares - Manila Standard Today

Grainpro of US Opens Storage System Manufacuring Plant in Subic

SUBIC BAY FREEPORT, Complementing the grain terminal facility being developed in this premier Freeport zone, an American company engaged in developing hermetic storage system has put up a manufacturing plant and marketing centre at the Subic Bay Industrial Park (SBIP).

GrainPro, a pioneer in the manufacturing of pesticide-free hermetic storage technology, inaugurated Saturday GrainPro Philippines, Inc., a new manufacturing plant that will also export its products worldwide.

The company aims to enhance the storage system while preventing post harvest losses of grains, seeds, and high value crops, particularly in hot, humid climates.

The ceremony was led by GrainPro president Philippe Villers. Other guests included United States Ambassador Kristie Kenney, Olongapo City Mayor James Gordon Jr., Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano G. Salong, SBMA Administrator Armand Arreza and Subic Bay Development and Management Corp. president Jeff Lin.

"We are very pleased to have GrainPro to ensure that the crops coming through the Subic Freeport will be in its tip top quality," Arreza said.

The inauguration signified the first production in the Philippines of GrainPro's unique and patented storage system called "Cocoons", that will allow safe storage of crops such as rice, corn and wheat and high value crops like coffee, cocoa and peanuts, for very long period of time, preventing damage from insects, rodents and molds.

The firm, Arreza said, will manufacture hundreds of Cocoons for the Asian, African and American markets of GrainPro. At present, the production is directed for supply to Ethiopia and Ghana in West Africa.

In connection with the inauguration, an international convention was also held for GrainPro distributors worldwide with participants coming from about 20 African and Asian countries.
(PNA)