Phoenix set to acquire Subic company

The board of directors of publicly-listed Phoenix Petroleum Philippines Inc. has given its go-signal for the company’s acquisition of the Subic Petroleum Trading and Transport Philippines Inc., a firm at the freeport zone engaged in the trading of refined petroleum products.

Following the board’s approval, the company noted that it will “conduct due diligence for the proposed acquisition.”

From the submission of the result of the due diligence process, the company explained that the management will make onward recommendation as to how much it would be willing to invest to corner the petroleum trading firm.

The cost and terms of the acquisition will be among those to be fleshed out in the due diligence report which will then serve as the company’s guidance in the planned acquisition.

At the oil firm’s board meeting, it also approved an “investment of corporate funds to form and incorporate a new corporation,” which shall be utilized to subscribe to its majority shares and to have Chelsea Shipping Corporation as minority shareholder.

The proposed new firm, Phoenix Petroleum said, will be used for its plan in “acquiring and operating a new tanker vessel to boost and support the company’s fuel importation” as well as its proposed depot facilities expansion and the corresponding increase in fuel capacity of its depot terminals.

The Board has given its management the authority “to determine the corporate structure of said new corporation and its corporate purpose.”

With buoyed profitability and to respond to market growths, the oil firm has previously laid down plans of investing P1.5 billion this year for expansion projects, partly for the broadening of its retail network.

The company has mapped up plans of expanding further its niche in the Luzon market; while steadily growing its base in Mindanao. It has just recently reported a 140 percent jump in its core earnings to P427 million; and also surpassed its revenue target in 2010 at P14.79 billion. By MYRNA M. VELASCO - mb.com.ph

Filipino firm invests P10M in Subic beach resort

SUBIC BAY FREE PORT— All Hands Beach Resort, a popular attraction near Subic Bay’s international airport, has been awarded to a private company that pledged to “overhaul” the 5,600-square meter prime beachfront property and turn it into a world-class facility.

The Subic Bay Metropolitan Authority (SBMA) said it has signed a management contract with Filipino firm Brighterday Subic Ltd. Inc. (BSLI) to develop All Hands after the property reverted to the Subic agency recently.

All Hands, which was reserved for the use of noncommissioned officers in the US Navy when Subic was still an American naval base, is among the SBMA-owned tourism facilities previously operated by the SBMA subsidiary Freeport Service Corp. (FSC).

The contract for All Hands was recently preterminated by both parties as the FSC was placed by its mother unit in a “dormancy state.”

According to the new management agreement, the BSLI will invest P10 million in the development of All Hands within a period of five years.

The development project includes the construction of 30 Mediterranean-type beach cabañas, installation of drainage facilities and sewerage system, construction of retaining walls for sand protection, conversion of pavilions into function halls, and the rehabilitation of 10 overnight cottages.

The project will also involve an “overhaul” of the plumbing system, showers, restrooms and dressing rooms, life-guard towers, lighting facilities, as well as landscaping works.

The rehabilitation work, according to Raul Marcelo, SBMA’s deputy administrator for business, is expected to boost the potentials of All Hands as a revenue-generating asset.

Marcelo said that All Hands failed to meet the standards of the Department of Tourism (DOT) last year due to the financial woes of FSC, which had suffered “irreversible financial losses” in the past few years.

“But now that the resort has reverted to its owner, which is SBMA, it is incumbent upon the agency to ensure that the development and management of All Hands would meet DOT standards,” Marcelo added.

The SBMA said that under the new management contract, the SBMA will receive an estimated P12 million in annual revenues from entrance fees at All Hands beach.

BLSI will collect revenues from rentals for cottages, pavilions, huts and other beach facilities.

The SBMA took over the beach resort on Aug. 3 and had already deployed personnel to guard the gates and temporarily run the facility in preparation for the coming turnover to the new operator. Written by Henry Empeño / businessmirror.com.ph Correspondent

SBMA eyes P2-B fund for new economic zones

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) has proposed the creation of a P2-billion fund to enable the development of new economic zones near the Subic Bay Freeport and the Clark Freeport.

The proposal was made by SBMA Administrator Armand Arreza during a meeting with the Senate Committee on Government Corporations and Public Enterprises, chaired by Sen. Richard Gordon, and representatives of the Clark Development Corporation (CDC) and the Bases Conversion and Development Authority (BCDA).

Gordon, who has filed Senate Bill 0143, or the “3-2-1 Luzon Global Corridor Act of 2009”, earlier proposed the creation of new special economic zones in Luzon to optimize the three airports, two seaports, and one connecting highway and railway in the major ports of Manila, Subic, and Clark.

The bill also seeks to strengthen the power of the SBMA and CDC, giving them the mandate to develop nearby areas into new economic zones.

To speed up the process, Arreza then proposed the creation of a fund to develop new zones.

“If we want Subic and Clark to reach the level of Singapore, we will need investments the equivalent of either seven Texas Instruments or four Hanjins a year. But to start all these, we need to build roads first,” Arreza said.

Arreza recalled that when SBMA and CDC were formed, the primary intention was to create jobs for those affected by the eruption of Mt. Pinatubo in 1991 and the pullout of the U.S. military from Subic and Clark in 1992.

However, he pointed out that the business model that supports the growth of Subic and Clark “to a certain level, is very limited, as they rely primarily on leases or income from land, which is a finite resource.”

Arreza noted that to carry out their new mandate of developing nearby communities, Subic and Clark would require a tremendous amount of annual investments in the next 10 years to fund various public infrastructures, such as roads, water and sewerage systems, as well as technical schools that would help reduce skills mismatch.

He also stressed that an eco-metric study made by the SBMA showed that Vietnam and China invested anywhere between 7-8 percent of their annual gross domestic product in infrastructure to boost their edge as investment sites.

In contrast, the Philippines spends only 3 percent of its GDP for the same purpose, Arreza added.

Responding to Arreza’s proposal, Gordon said he would file a bill that would set aside part of the taxes collected by SBMA and CDC in the next 20 years to develop more eco-zones in their areas.

SEC threatens to suspend license of Subic golf club

The Securities and Exchange Commission warned Subic Bay Golf and Country Club that it will suspend its registration statement and permit to sell securities for failure to submit reportorial requirements as provided in the Securities Regulation Code.

The SEC in an order said the company failed to settle assessed penalties for late filing of financial reports from 2007 to 2008 and file information statement for its 2008 annual stockholders’ meeting and a change in its office address.

The SEC set a hearing on Friday on why the company should not be penalized given its violations.

“The company’s failure to appear at the said hearing shall be considered a waiver of its right to be heard with regard to the suspension of its registration of securities and permit to sell securities,” the SEC said.

In 2007, Subic Bay Metropolitan Authority took over the management of Subic Bay Golf and Country Club from Taiwan’s Universal International Group of Developers due to its alleged failure to pay current and arrear accounts.

Universal International Group earlier entered into a lease agreement with SBMA, giving the company a 50-year lease over the 105-hectare Binictican golf course.

The Taiwanese company has been trying to restore possession of the Subic Bay Golf and Country Club and P10 million worth of personal properties and valuables seized during the takeover.

The SEC in January also suspended the registration of securities and permit to sell of two country clubs and revoked the license of three others due to failure to submit reportorial requirements.

Companies whose registration of securities were revoked were Waterworld Theme Park and Country Club Inc., Villa Anna Paradise Resort and Farm Inc. and Italia Country Club Inc.

The companies whose registration statement were suspended were Pamplona Plantation and Country Club Inc. and Buena Vista Park and Country Club Inc. By Jenniffer B. Austria - Manila Standard Today

Subic hotel-casino to create 5,000 jobs

SUBIC BAY FREEPORT — Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza expressed optimism yesterday that at least 5,000 new jobs will be created with the completion of the $120-million hotel-casino along the Waterfront Drive in this free port.

According to Arreza, the 15-story integrated resort-hotel, complete with convention center and casino, is expected to be completed within two years.

Arreza said the landmark development project, which will be known as Ocean 9 Casino and Hotel Resort, is designed to be the most beautiful hotel in the Subic Bay Freeport.

“This promises to be a significant landmark that will create meaningful jobs for Filipinos and transform the face of Subic Bay, making it the pride of Olongapo and Zambales,” the SBMA administrator added.

Arreza also emphasized that the Ocean 9 Casino and Hotel Resort project is considered to be a critical infrastructure in Subic’s bid to attract more foreign tourists to the growing number of holiday destinations in this free port.

The hotel will be located near Subic’s Alava Pier, which is being developed by another firm as a passenger terminal for cruise ships, he said.

Alava is also being used for berthing by visiting US Navy ships that regularly dock in Subic during military exercises between the Philippines and the United States, he added.

Earlier, Arreza, together with Moon-Sung Choi, chairman of the proponent-firm Grand Utopia, Inc., led the groundbreaking ceremonies.

The event was witnessed by Philippine Amusement and Gaming Corp. (PAGCOR) chairman and CEO Efraim Genuino, Olongapo City Mayor James Gordon Jr., Zambales Vice-Gov. Anne Gordon and representatives of the Korean business community in Subic. PhilStar

Japanese firm to market leisure sub abroad

SUBIC BAY FREEPORT—Amuza Co. Ltd. of Japan will start producing two-seater leisure submarines here starting next year.

Amuza plans to sell the product in the international market after a series of tests off the waters of Subic Bay.

Amuza will set up a manufacturing plant here in partnership with an existing locator that specializes in fiberglass and composite materials construction intended for vintage cars.

The two-seater leisure submarine, which moves at a speed of 5 knots per hour, weighs four tons and is about the size of a typical car —two meters wide, four-and-a-half meters long and two meters high.

It sucks in water in underwater, adding to its weight of up to 4.8 tons.

Powered with a lithium-ion battery, which Amuza is developing, the leisure sub can navigate up to 50 nautical miles, or about 90 kilometers, and dive up to 150 meters deep on a full charge of up to 10 hours.

“This will be like a toy for rich people. Everybody could now be Mr. [Jamees] Bond,” Subic Bay Metropolitan Authority administrator Armand Arreza said shortly after the successful conduct of sea trials of the submarine prototype here last week.

“The production would be low, slow and cautious, but of the highest quality,” Arreza said.

Amuza, which worked on the project for 10 years, has teamed up with former Subic locator Taiyo Sangyo Trading and Marine Service Ltd., which referred it to McGram Fusion Inc.

McGram Fusion, which manufactures car body kits made of fiberglass, carbon fiber and Kevlar, has agreed to fabricate the vessel’s hull and other visible components, while electronic parts and systems will be shipped in from Japan. By Cecille Garcia - Manila Standard Today

Architect gives up $1M in protest

SUBIC BAY FREEPORT, Philippines—For his belief in protecting the environment, architect and urban planner Felino Palafox Jr. lost what could have been six months of payroll worth $1 million (P48.8 million).

Palafox said he had broken ties with a Korean-backed project in this free port after he learned that more than 300 trees would be destroyed to give way to a casino and hotel resort.

“There are 366 trees there, and 37 of them are century-old, so they are heritage trees already. The reason why I broke with that group (Grand Utopia Inc.) is because I refuse to compromise myself and the environment,” Palafox told the Inquirer by interview on Friday.

“I would have gotten $1 million—six months worth of payroll. But that’s rape of the environment,” he said.

“Frankly, in Korea, a project like this will never be allowed. Their government and people will not allow it. But here, government officials let it happen and we are treated like second class citizens,” he said.

Not his work

Palafox said a foreign architectural firm tapped him to design Grand Utopia’s casino hotel but in the end, he noted, it all amounted to being asked to sign on other people’s work.

“They wanted my name and license, asked me to put my name on the work of others. They have to be investigated for that. No foreign architect can practice in another country without a license,” he said.

Palafox said the Subic Bay Metropolitan Authority is “trying to get away from the issue.”

“They said in their letter to Eric Park of Grand Utopia that the area was classified as an urban jungle zone. How can they build several levels of basement garages there if they won’t get rid of the trees?” he asked.

SBMA Administrator Armand Arreza, however, said the agency would protect trees inside the free port and would exert all efforts to save these amid the development of the $120-million Ocean 9 Casino and Hotel Resort.

SBMA promise

“We won’t stand for the cutting of trees. Definitely, we won’t allow it,” said Arreza.

Amethya dela Llana-Koval, head of the SBMA Ecology Center, said the project site is within the central business district of the free port zone that is not classified as a protected area.

“We only characterized that area as an urban jungle because it was densely populated by trees. But the zoning of that area is commercial, so there should really be no objection to establishments being built there,” Koval said.

‘Green spaces’

She said no trees would be cut in that area, a former mini golf course established by the United States Navy here.

“No trees will be cut. That’s our policy. What we’re going to do is ball the trees, nurture them, and place them in ’green spaces’ within the free port. Some of them will even be left in the area, around the perimeter of the proposed establishment,” she said.

The relocated trees, Koval said, would be taken to the “green spaces” or areas where no or minimal development are allowed.

She said the SBMA has given Grand Utopia a demolition permit and a temporary fencing permit. The firm does not have any authority to touch any of the trees in the area, she said.

“They have applied for permits to ball (transplant) the trees, but they have yet to submit the balling plan. The relocation areas are already identified and by the time the environmental compliance certificate has been issued to Grand Utopia—probably by December this year if they comply with all requirements —then the relocation of the trees can begin,” she said.

Koval said the casino and hotel resort project is considered by the SBMA as “non-critical,” which means that the ecology center can issue an ECC to Grand Utopia without the need of the Department of Environment and Natural Resources to approve it.

“It is within the jurisdiction of the SBMA, but we will coordinate with the DENR,” she said. By Robert Gonzaga - Inquirer Central Luzon Desk

Ocean 9 casino-hotel devt breaks ground in Subic Freeport

Ocean 9 Casino and Hotel Resort, an integrated hotel-resort development which features a convention center, broke ground last week along Subic Freeport’s Waterfront Drive.

To be completed in 2010, the fifteen-storey project will provide jobs for 5,000 workers and will cost some $120 million. It is also expected to attract more tourists in the area.

The structure will occupy a 9,713 square meter area. A secondary building, which will house a three-storey casino, is expected to occupy 4,200 square meters.

Besides offering a central stage for live performances, the structure also features a walkway that could be used for fashion shows, Grand Utopia Inc., the company that proposed the development said.

The casino’s first floor will have 500 gaming tables with each table fitted with an organic light emitting diode (OLED) for visual effects.

One side of the structure’s main hall will have 60 to 120 luxury stores, selling premium items from Italy and France, Grand Utopia Inc., the company that proposed the development said.

“The hotel and casino complex will be built using cutting-edge technology and advanced architectural systems in order to make a unique design that will blend comfort with entertainment," said Moon-Sung Choi, Grand Utopia chairman.

Among those who witnessed the groundbreaking include Choi, Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza, Philippine Amusement and Gaming Corp. (PAGCOR) chairman and CEO Efraim Genuino, Olongapo City Mayor James Gordon Jr., Zambales Vice-Gov. Anne Gordon, and representatives of the Korean business community in Subic. - GMANews.TV

Last two minutes

By Fr. Jerry Orbos - Philippine Daily Inquirer
THE story is told about a priest who patiently waited in line to have his car filled with gas in preparation for a long holiday weekend. The attendant worked quickly but there were many cars ahead of him. Finally, the attendant motioned him to come forward and told him: “Sorry Father, it seems as if everyone waits until the last two minutes to get ready for a long trip.”

The priest replied: “I know what you mean. It’s the same in my business.”

In today’s Gospel (Mt. 25, 31-46) Jesus reminds us to prepare for the final judgment, when the Son of man will separate the goat from the sheep. The basis of the judgment will be the deeds we did to others: “Whatever you did for one of these least brothers of mine, you did for me.” Let this be a warning for those who treat others unjustly, and a consolation for those who go through life lovingly.

I am amazed at how some people could be so unaware or uncaring about the final judgment. I mean, they just continue stealing, lying, manipulating other people, especially the poorest of the poor with no thought about eternal life or eternal punishment. Money has become such a powerful force in our country and in government. Pera-pera na lang ang lahat. Money has become the bottom line. It is really sickening to see the rich and the powerful victimize and terrorize the “little ones” in our midst. To whom can they run to? The very institutions that are supposed to serve and protect them are now also corrupted and demonized.

It’s not as if everything is dark. There is light, and there are agents of the light in our midst. Just now, I received a phone call from a former seminarian, a famous and respected architect and environmentalist who just gave up a $100-million contract because it meant cutting down 300 century-old trees in Subic. Here is a man who has a conscience and strong convictions. He told me that in spite of pressures and even death threats from higher people in government, he is turning down the offer from a Korean company because he believes that it will not be good for the country and for the future generation.

Many of his colleagues are telling him that $100 million is a lot of money (it is!), and that it would be foolishness on his part to turn it down. But our friend said he is standing his ground. I told him that we are all fools in the world anyway, so better to be a fool for Christ, than to be a fool for money. The bottom line, he said, is that he will stand before the Lord someday, and on that day, he will be able to say that he did his very best for other people, for our country, and for the earth. Mabuhay ka kapatid! We are behind you. We are all proud of you!

For now, we respect our friend’s request not to be identified. In time, he will be revealed, and his light will shine. For that matter, many evildoers can still hide or cover up their misdeeds for now, but in time, for sure, they too will be revealed and they will be exposed to the light. Don’t forget: Light is more powerful than darkness. Agents of the light, be strong! Agents of darkness, beware!

Philip Morris to build P1-B warehouse in Subic next year

Philip Morris Philippines Manufacturing, Inc. will start building a P1-billion tobacco leaf warehouse in Olongapo City next year, with company officials committing to expand operations here despite the global economic slowdown.

The investment will be on top of its recently completed P70-million cigarette warehouse in Batangas.

Targeting the low-income market and strengthening its distribution network have allowed the local subsidiary of the multinational cigarette maker to remain profitable, officials said.

Chris J. Nelson, Philip Morris Philippines managing director, told reporters yesterday they would build the leaf storage facility at the Subic Bay Freeport next year.

The facility will hold up to 24,000 metric tons of tobacco obtained from local and foreign suppliers. It will be four times bigger than its existing facility, also in Subic.

The announcement came as the company inagurated its 3,500-square meter cigarette warehouse extension in Tanauan City, Batangas.

The cigarette warehouse, completed in September, can hold a billion cigarette sticks for sale here and abroad, particularly to Thailand, Pakistan and other countries in the region.

The warehouse increases Philip Morris’s storage capacity by more than half to 1.8 billion sticks. It accomodates increased production and meets the need for more efficient and higher-quality storage facilities, Mr. Nelson said.

"The new investment we are inagurating today is further assurance not only to tobacco farmers, but to all our stakeholders that Philip Morris Philippines is here to stay," he said. "We’ve expanded. It’s hard to predict the next five years, but that’s the trend we want to continue," he added.

Vincent Nguyen, Philip Morris Philippines operations director, said: "We will, in the next five years, make this the best manufacturing [site] in Asia."

The company is upbeat about local prospects and expects "fair to good" profit growth by year-end, Mr. Nelson said, but declined to go into the details.

The firm has kept sales up by launching cheaper cigarette packs containing only five sticks, he said.

Philip Morris International, Inc. earlier said third-quarter profits went up by a fifth to $2.08 billion due to strong sales in Asia, Eastern Europe and Latin America.

Asked to comment on the country’s ongoing cigarette trade dispute with Thailand, Mr. Nelson cited the need to resolve the case given the uncertainty over the cost of exporting, which has made long-term planning difficult.

Thailand is Philip Morris’s main export market. The two countries have been embroiled in a two-year dispute on the taxes Thailand imposes on cigarettes from the Philippines. — Jessica Anne D. Hermosa, BusinessWorld

Investors wanted for $2-b project

By Cecille Garcia - Manila Standard

A KOREAN developer has vowed to campaign to entice Korean and Filipino investors to build a $2-billion tourism complex on Mt. Tapulao in Zambales, Central Luzon’s highest mountain, and transform it into one of Asia’s top tourist destinations. Dongho Co. has also promised to invite the World Bank and the Asian Development Bank to build a road network to connect the proposed 450-hectare complex to the outside world.

“The Mt. Tapulao eco-tourism project should be integrated and made part of the new economic corridor to uplift the tourism industry in Central Luzon,” said Sang-Hyun Park, vice chairman of Dongho’s Overseas Projects division. Dongho made a study of the 17,809-hectare Mt. Tapulao and its potential as a top tourist destination in April at the invitation of Zambales Gov. Amor Deloso. On July 24, it presented the results saying it’s possible to build five-star hotels, casinos and spas, sports facilities, condominiums and villas in the area.

The same study says the provincial government could lease the area to investors for 25 years, with an option to renew the lease for another 25. Deloso says the project has the full backing of his province and the governors of Bataan, Pampanga, Tarlac, Bulacan and Nueva Ecija—provinces that will be given 10 hectares each at the complex to build pavilions showcasing their products. But provincial officials say Mt. Tapulao must first be declared a protected area and a mining-free zone through a presidential proclamation to ensure the environment is preserved. The mayor of Palauig town, Generoso Amog, says mining is destroying parts of the mountain, which should be preserved for nature lovers including trekkers and campers.

Looking for financing to develop the area can start once the place is declared protected and closed to destructive exploitation, he says. Amog, the same official who invited Dongho to do a study on Mt. Tapulao’s potential, says financing is critical to transforming the mountain into a tourist haven and boosting the economy of the towns surrounding it.

“Despite the beauty and biodiversity [of Mt. Tapulao], the local government unit concerned cannot fully develop the place because of the insufficiency of public funds,” he said in his letter to the Korean developer.

Over 100 Subic houses up for lease

SUBIC BAY FREEPORT—A Taiwanese property developer has opened a posh subdivision project here with over 100 modern housing units up for lease to meet the growing demand of foreign and local executives.

Josephine Chua, chief executive of Grand Pillar International Development Inc., led the opening ceremony of Grandville Estate, the latest and most modern housing project inside the Freeport.

Grandville Estate is located along the former Greyback community at East Kalayaan housing area.

“Grandville was created to provide homes that harmonize with the serene beauty of the Kalayaan Hills,” said Chua. “We offer a secure and hassle-free living for each and every resident.”

She said Grandville would be an exclusive community with 24/7 security personnel manning the village.

Grand Pillar to date has completed renovation of at least 30 housing units.

Chua said Grandville was offering a long-term 50-year leasehold right to prospective buyers. The Bases Conversion Law creating the Freeport prohibits ownership or sole proprietorship of government-owned real estate properties inside the economic zone.

Freeport residents, instead, can equally enjoy all privileges, including tax and duty-free incentives as provided to investors.

Grandville will have separate sentry and guard house, three playgrounds, a multi-purpose covered court, swimming pool and a tennis court.

It offers two story, five-bedroom housing units with total floor area of about 220 square meters, including four toilet and bath rooms, hot and cold water facilities, terrace, a separate maid’s quarter, and individual air conditioning units for all bedrooms, living, dining and family rooms.

Other models include three- and four-bedroom housing units with prices ranging from $180,000 to $230,000 each.

Grandville chief business development officer Johnson Yang said the company had committed to spend $5 million as initial investment. By Cecille Garcia - Manila Standard today

Firm completes study on $2-B project in Zambales

PALAUIG, ZAMBALES, Philippines — A Korean urban planner and developer has completed a feasibility study for Mt. Tapulao, which the local government wants to turn into a major tourist destination in Asia.

The development blueprint involves the construction of five-star hotels, leisure facilities, casinos, concert halls, condominiums and villas, as well as an 18-hole golf course within a 450-hectare area of the mountain.

The $2-billion project will be patterned after Genting Highlands in Malaysia, and Yeosu Hwayang Tourism Complex and Gampo Complex in Gyeongju City, both in Korea, said Sang-Hyun Park, vice-chairman and director for Overseas Project division of Korean developer Dongho Co., Ltd.

Proponents claimed the project would uplift living standards with minimal damage to the environment.

In April, the South Korean firm signed a deal with Governor Amor Deloso for the feasibility study. The governor said Mt. Tapulao has a semi-temperate climate similar to that of the Cordillera province and can rival Baguio City, the country’s summer capital. Tapulao in the local language means pine tree, which the mountain has plenty of.

Also known as the Zambales high peak, Mt. Tapulao rises to 2,037 meters above sea level and forms a contiguous chain of mountains in Central Luzon.

Dongho specializes in developing blueprints for urban development while minimizing its effects on the environment.

Dongho will plan, design and monitor before, during and after the construction of various development projects.

It will provide services involving water quality management, air pollution prevention, erosion, waste treatment and recycling.

Palauig Mayor Generoso Amog said the project would bring progress to his town. "We welcome the Mt. Tapulao project because it will surely bring economic growth to our town," he said.

On Wednesday, the mayor led a protest march calling for the declaration of Mt. Tapulao as a mining-free zone. They want to turn the mountain into an eco-tourism site instead.

Mr. Amog blamed mining activities in some sections of the mountain, whose summit is supposedly in danger of collapsing.

"Right now, Mt. Tapulao is in grave danger, which could be saved by the proposed eco-tourism project," he said. He said the peak would be preserved for mountain trekkers, campers and nature lovers.

Under the blueprint, a road network will be developed to complement the recently opened Subic-Clark-Tarlac Expressway via a new access road traversing the nearby town of Botolan to Tarlac province. — Reynaldo M. Garcia, BusinessWorld

Investors eye ferro-nickle smelting plant in Zambales

A big consortium of investors is eyeing to put up a ferro-nickle smelting plant in the province of Zambales amounting to US$1 billion.

Zambales Governor Amor Deloso said the entry of AES Corporation to operate the 600 megawatt Masinloc coal-fired power plant is one major component and would pave the way for the realization and development of the Masinloc transshipment Port Project.

"The proponent is seriously considering the purchase of 700 hectares of raw land just across the proposed Masinloc International Transhipment Port," Governor Deloso said during the formal turn over ceremony of the Masinloc plant last Wednesday night.

"There is an excellent synergy in this project because within a 10 kilometer radius, the key components are located, the industrial park, the transshipment port and of course the Masinloc power plant who will provide energy by means of direct-tapping," he added.

Deloso also revealed that the boom in the mining industry in the province of Masinloc has given them about P120 million income in just ten months last year.

Masinloc Vice Mayor Roberto Eamilao said the entry of AES Corporation will give the province about P12 billion revenues in the next 25 years.

For the next 25 years, the local government of Zambales stands to earn P12 billion of revenues from Masinloc power plant," Eamilao said, adding that the Provincial Office in turn gives the new owner of Masinloc an incentive by cutting their taxes.

Aside from the potential investors in the industrial park, Deloso said two Korean firms are also planning to put up a major resort in the province while the other is eyeing the construction of the Ocean Fantasia resort complex in Silaguin Bay in Subic.

A modern hospital is now being developed and constructed in Subic.

For his part, AES Philippines president Matthew Bartley assured the government of Zambales as well as its people of strong business commitment.

He also committed to immediately address the growing demand for electricity in the country by improving the capacity of the Masinloc plant to another 600 megawatts in the near future.

Last week, AES finally settled the US$930 million cost of Masinloc which was bidded out on July 2007. (MSN/Sunnex)

Subic firm building high-tech spy ships?

“The world is soon to witness a new industry rising here in Subic,” so goes the Tuesday announcement of the Subic Bay Metropolitan Authority. SBMA’s press statement did not receive much attention on the business pages of broadsheets but a closer look at the announcement made an impression on this writer. Subic could soon be a manufacturing hub for unmanned high-tech spy airships floating 70,000 feet above the earth and surveying every nook and cranny for military intelligence purposes.

That fear, of course, is unfounded at the moment as SBMA’s newest locator, Stratospheric Airship Technologies Sdn Bhd (SAT) of the United Kingdom, plans to merely build solar-powered “commercial airships” that will carry broadband and telecommunications equipment. SBMA administrator Armand Arreza, who signed an agreement with SAT managing director Bryn Lloyd Williams last Thursday, said the British company planned to invest $500 million for its manufacturing hub.

The SBM is actually offered SAT an area at the Subic Bay International Airport, which is being used by Federal Express as a hub of its Asian operations until its eventual transfer to Guangzhou, China, within the year.

SAT’s airships will do their job at 65,000-70,000 feet (about 21 kilometers)-high above the clouds, or the jet stream, and severe weather in a stationary position. SAT’s airship will basically serve as a telecommunications relay but other high-altitude vehicles, like those manufactured by Lockheed Martin, can either as weather observer or a “peacekeeper from its over-the-horizon perch.”

Modern Zeppelin version

SAT, according to the SBMA, plans to bring down its airships to earth every five years for repairs during their 15-year lifespan. The design of the airships, says, Williams, is based on the early 20th century Zeppelins, but is now “totally different” as inert helium will be used instead of hydrogen, which catches fire.

SAT promised to build in Subic “the largest single-spanned building in Southeast Asia.”

“It would be a great sight to behold,” says Arreza. “When the SAT project pushes through, we will see Subic as a high-tech manufacturing center, and this fits very well with what we are trying to do.”

The SBMA said SAT’s high-altitude unmanned airships aimed to provide communications links covering entire countries—a new trend that has promising prospects in view of the telecommunications industry’s rapid growth.

“The key technological advantage here is that we don’t need the ground infrastructure which is too costly and, sometimes, very difficult to install. In some places, it gets stoned or vandalized, and weather conditions interfere with its performance,” says Williams. “We’re talking to Globe and Smart and they have expressed a high level of interest to augment their land-based and satellite systems.”

Lockheed’s new toy

Lockheed, meanwhile, has developed an unmanned lighter-than-air vehicle that will operate above the jet stream. The North American Aerospace Defense Command (Norad) said 11 high-altitude airships would provide overlapping radar coverage of all maritime and southern border approaches to the continental US “and may be a significant asset in homeland defense efforts.”

Lockheed calls its airships the Stratospheric Platform System (SPS) dirigible, which operates just barely within the outer limits of the earth’s atmosphere and is emerging as part of the military’s 21st century transformational mindset.

SPS is an unmanned airship that can maintain a relatively geo-stationary position at 70,000 feet. Its onboard sensors’ surveillance coverage extends over the horizon and monitors a diametric surface area of 775 miles. At nearly 500 feet long and 150 feet in diameter at its widest girth, the airship’s volume exceeds 5 million cubic feet.

Lockheed’s Goodyear blimp and SAT’s modern Zeppelin may be apart in missions but just the same, they patrol the same expanse-the jet stream above, where a new air traffic is unfolding. Rey Enano - Manila Standard Today

Hanjin may review investment in RP - report

The Hanjin Heavy Industries and Construction Corp may review its investment in the country after a series of negative media reports about the company's projects at the Subic Bay Freeport, a report said Tuesday.

The London-based "Lloyd’s List" news portal said Hanjin may review its investment program in the Philippines if media reports "get any worse."

The report quoted Hanjin Philippines president JS Shim as saying that much of the extensive media coverage of the $1.6B shipyard and related infrastructure was "part of a politically motivated campaign to undermine the country’s current administration led by the increasingly unpopular president Gloria Macapagal-Arroyo."

“Hanjin’s investment in the Philippines is one of this administration’s most praised achievements. Certain sections of the media who do not approve of the administration are seeking to undermine that achievement," the report quoted Shim. - GMANews.TV

Two firms to develop logistics & aircraft hub at DMIA for $ 125M

CLARK FREEPORT, A Kuwaiti firm will develop a world-class logistics hub costing $ 25 million in the Diosdado Macapagal International Airport (DMIA) complex.

Singapore Airlines Engineering Company (SIAEC) will also pour in an initial $ 100 million investment for its project to set up a world-class aircraft repair facility at DMIA complex.

The Global Gateway Logistics Park will be established by the Kuwait Gulf and Link (KGL), according to Clark International Airport Corporation (CIAC) President and CEO Victor Jose I. Luciano who is set to sign the Memorandum of Agreement (MOA) with the Kuwait firm on Friday during the inauguration of DMIAs Expanded Terminal.

The KGL project will be aviation-related and dependent businesses including but not limited to warehousing, distribution, multi-nodal logistics, light manufacturing alongside complementary business operations and facilities to support aviation-related activities within the Civil Aviation Complex of the airport.

KGL will occupy at least 250,000 square meters (125 hectares) at the civil aviation complex for the development of the world-class logistics park, Luciano said.

President Gloria Macapagal Arroyo has envisioned the development of a megalogistics hub and services in the Subic-Clark Corridor, with Clark as site of an international airport and Subic as site of a deep-sea port.

Clark and Subic will be connected via the P27.5 billion Subic-Clark-Tarlac Expressway (SCTex).

Meanwhile, SIAEC of Singapore will also sign an MOU for the setting up of a $ 100-million, 10-hectare maintenance, repair and overhaul (MRO) facility at DMIA.

SIAEC, a major provider of aircraft maintenance, repair and overhaul services in the Asia Pacific Region, is part of the Singapore Airlines Group and provides maintenance services to Singapores Changi Airport for the more than 60 international carriers including airframe and component overhaul on some of the most advanced widely used commercial aircraft in the world.

SIAECs line maintenance support extends to more than 40 countries such as Australia, China, Indonesia and the Philippines.

Luciano said SIAEC is expected to generate 700 jobs in the field of aircraft repair and maintenance, adding that the Singaporean group will construct five large hangars at DMIA for the repair of Boeing and Airbus aircraft.

The MRO will complement the development of a logistics hub and the development of DMIA as envisioned by President Arroyo.

The facility will occupy a 10-hectare property at the DMIA which would be the center of repair, maintenance and overhaul of various wide and narrow-bodied aircraft such as the Airbus A380, currently the worlds largest aircraft, the Airbus 300 and Boeing 747s and 777s, among others.

SIAEC services at least 80 international carriers and aerospace equipment manufacturers. It has 20 certifications from airworthiness authorities around the world with six hangars and 22 in-house workshops in Singapore which provide a complete MRO services in airframe, component, engine, aircraft conversions and modifications to major airlines from four continents. (PNA)

Taiwanese firms to put up businesses in Clark

Two Taiwanese manufacturing companies have made initial investments of about P208 million, or US$5 million, each into the at the Clark Freeport Zone, north of Manila, said the Manila Economic and Cultural Office (MECO), which represents the Philippines in Taiwan.

Multi-Tek Fasteners & Parts Manufacturer Corp. and Fwu Kuang Enterprises Co. Ltd. accounted for two of the biggest projects that the Taiwanese committed to put up in the Philippines last year, the MECO said. It said total investment inflows from Taiwan in 2007 reached US$782.3 million

Maria Isabel Golamco, MECO director for information services, told reporters that Taiwanese companies last year committed to put up 17 projects in the Philippines, including projects in the manufacture of machinery parts and components, mining, power generation, construction, healthcare, and shrimp production.

In a statement, MECO managing director Antonio Basilio said the Taiwanese companies were planning to increase investments and expand operations in the Philippines and to step up recruitment to match the expansion plans.

The Multi-Tek Fasteners & Parts project in Clark will be worth $30 million and will need a workforce of up to 1,000 people, including 300 to be hired in the first year of operations, the MECO said.

Fwu Kuang’s project is in the manufacture of socket head cap screws. Its total cost is estimated at $10 million in the first three years of operations, the MECO said.

The biggest project from Taiwan last year was the previously announced plan of Formosa Heavy Industries for coal-fired power plants in the southern provinces of Cebu and Iloilo, worth a total of $700 million.

Under a joint venture agreement with Global Business Power Corp., a unit of Metropolitan Bank and Trust Co., Formosa Heavy Industrres will build a 246-megawatt plant in Toledo City in Cebu and a 140-megawatt plant in La Paz, Iloilo.

Taiwan’s Mega-Tsung Mining Corp. will invest an initial $6 million in a project in Paracale town in the southeastern province of Camarines Sur.

Mega-Tsung is expected to double the investment in three years and hire up to 500 workers.

Other projects from Taiwan include Tong Lung Metal Industry Corp.’s $12-million expansion at the Subic Bay Freeport; Mei Tail Luggage Inc., $3.55 million; Taiwan Resibon Abrasive Products Co. Ltd., $2-million expansion; and Eva Care group’s $2-million, 100-seat call center for hospital administration, customer service and human resource management. Edited by INQUIRER.net By Ronnel Domingo - Philippine Daily Inquirer

SBMA to sign deal with Taiwan firm

By: MA. ELISA P. OSORIO - Manila Bulletin


The Subic Bay Metropolitan Authority (SBMA) announced it will be signing a deal with a Taiwanese firm that will bring in up to $35 billion in initial investments within the Freeport zone.

“I will be going to Taiwan this Friday and I am confident we will sign something by that time,” Armand Arreza, SBMA administrator and CEO said yesterday.

According to Arreza, he is finalizing the agreement with the Century Development Corp. to build a software park in Subic.

Arreza said the initial $35 million is only for land development.
“The big investments will come when firms start locating within the software park,” Arreza explained.

The software park is expected to be constructed in a 10-hectare lot within th Freeport zone.

The construction of the software park is expected to spur the information technology industry in the country. The software park will house companies that provide research and development and programming services.

Initially, he said the park will host call centers but eventually, Arreza said business process outsourcing (BPO) companies will also locate in the area.

“We will get the high tech industries from Taiwan to use our IT (information Technology) talents,” Arreza said.

“This development is similar to Eastwood in Quezon City,” Arreza explained. The administrator said the development is Subic will be an integrated development wherein commercial spaces and education and training facilities will be built.

This forms part of the phase two of Subic Bay’s industrial park.

‘The focus has shifted from low cost manufacturing to the production of hig technology supplies with high value added,” Arreza said.

Subic investments up 7% in first two months

By:Elaine Ruzul S. Ramos - Manila Standard Today

Subic Bay Metropolitan Authority approved 30 new projects with combined investments of $12.3 million in the first two months of the year , up 7 percent year-on-year.

The agency’s administrator and chief executive Armand Arreza said he was “highly optimistic” the higher investments generated in the first two months of the year would set the pace for the rest of the year.

“Given this growing investment trend that started two years ago, when Subic breached the $1-billion year-end total, chances are we’d get a higher investment output for the third succeeding year,” said Arreza in a statement.

The SBMA recorded $1.67 billion worth of investments in 2007 and $1.42 billion in 2006, bringing Subic’s cumulative investment pledges to $5.43 billion since Arreza took over as administrator.

Arreza said the authority’s board gave the green light to 10 new projects worth $6.2 million in January, and to 20 other investment proposals worth $6.1 million the following month.

The new investments are expected to bring to 961 the total number of registered investors in the Freeport.

Hanafil Golf & Tour Inc. of South Korea committed the biggest investment at $3 million. It will establish and operate golf, tour and other related recreational facilities. It plans to hire as many as 1,495 workers upon full commercial operations.

Palmgold Int’l Ltd. of Malaysia committed $1.9 million to import gaming equipment and operate slot machine arcade, while Grand Pillar International Development Inc. will invest $1.9 million to acquire and improve real estate properties within Subic Bay.

The other new investor-firms include local Janburlai Corp. and M. Waseem International Corp. of Pakistan, which both pledged $800,000.