SBMA administrator Armand Arreza, SBMA chairman Feliciano Salonga, HCPTI chairman Reghis Romero II and HCPTI CEO Michael Romero (left to right) sign the joint venture agreement at the EDSA Shangrila Hotel.

SUBIC BAY FREEPORT – A joint venture agreement has been signed between the Subic Bay Metropolitan Authority (SBMA) and the Harbour Centre Port Terminal, Inc. (HCPTI) to develop the former Naval Supply Depot (NSD), a logistics center in this free port, along with other wharfs and piers, here.

Harbour Centre, the country’s largest private commercial port operator for non-containerized cargo, has committed to develop and transform this Freeport zone into a modern industrial port and logistics hub in the Northern Luzon area.

Harbour Centre pledged some P6-billion worth of investments for the NSD project. This is broken down into P3 billion for the improvement of the NSD area, and another P3 billion for the procurement of equipment necessary in the operation.

In a statement, SBMA administrator Armand Arreza said that the joint venture agreement would also give Harbour Centre the right to develop other port areas in Subic such as the Boton, Alava, Rivera and Bravo ports.

Arreza, SBMA chairman Feliciano Salonga, HCPTI chairman Reghis Romero II and HCPTI CEO Michael Romero signed the agreement at the EDSA Shangrila Hotel late Wednesday afternoon.

Arreza said the venture will last for a period of 25 years, during which HCPTI guarantees SBMA a minimum of $500,000 per year, plus an annual increase, inclusive of a variable commitment per metric ton of 20 percent depending on the volume.

The project would also involve the construction of warehouses, cold storage, a food terminal and an oil depot inside the 17-hectare NSD area, making it a multi-purpose terminal that is capable of handling various types of cargo.

Arreza said the SBMA is keen on pushing with the project, as it will be beneficial to the government.

“This will parallel the SBMA program to improve Subic ’s capacity as a maritime logistics and service center,” he said.

He added that his office received HCPTI’s unsolicited proposal in November 16. “After evaluating it, we presented it to the board (of SBMA) and then went on to renegotiations with both parties,” Arreza said.

He added that the renegotiations took 30 days, and this effectively put things into perspective and that all agreement done would be converted into terms of reference.

Arreza added that another bidder could give a higher offer, subjecting it to Swiss challenge wherein HCPTI has the right to match any offers given by the other bidder.

Meanwhile, HCPTI chairman Reghis Romero stated that they are very confident that they will get the contract for the operation of the ports in Subic .

According to Romero, the company forecasts to service six million metric tons or more of cargo in Subic .

“The point is how much cargo can you increase so that the Philippine economy will benefit,” Romero said. “It’s not only in providing the services, but also getting the locators by providing more cargo for their specific port.”

Arreza also explained that the NSD port is now used for unloading heavy machinery, vehicles and grains, adding that the NSD “is more than capable of handling 2 million metric tons every year.”

“For them to break even, they have to service around 4 to 5 million metric tons of cargo. HCPTI is confident that they can do so,” Arreza added.

Currently, the NSD terminal caters to the port requirements of businesses in Central and Northern Luzon and the Subic Bay Freeport.

The water frontage of NSD terminal is around 800 meters wide and is partially bulk-headed with most of the area having rock-rubble shore protection.

NSD has an open storage and transit area of approximately 6.26 hectares. (REY GARCIA)

The Clark International Airport Corporation (CIAC) has passed the stage 1 audit of the International Standard Organization Certification (ISO-9001:2008) in a bid to meet the worldwide industrial and commercial standards.

Tristan Arwen G. Loveres Chief Operating Officer of the TUV Rheinland Philiipines Inc., in a letter dated January 27, 2010 to CIAC Corporate Planning Manager and Quality Management Representative Darwin Cunanan stated that CIAC has passed the Stage-1 audit of the ISO-9001-:2008 conducted last December 21, 2009.

“This is to confirm that Clark International Airport passed the stage-1 audit which was conducted last Dec.21, 2009.” Loveres told Cunanan.

Cunanan explained that Stage 1 Audit involves General and Documentation Requirements, Management Commitment, Customer Focus, Quality Policy and Planning.

TUV Rheinland Philippines Inc., is the certifying body of CIAC’s bid to be at par with the worldwide industrial and commercial standards to improve services in airport operations.

CIAC is the operating arm of the Diosdado Macapagal International Airport (DMIA) which is bustling with international and domestic flights in the South East Asian Region and the Middle East.

Loveres also said that CIAC will undergo Stage 2 Audit slated on February 10, 2010.

CIAC Vice-President for Operations and Business Development and current ISO General Manager Romeo N. Dyoco Jr., said the move will pave the way to meet with the worldwide industrial and commercial standards as well as to upgrade quality services to international travelers and passengers using the DMIA.

The ISO program for DMIA started in January 2009 with the involvement of airlines and government support service such as the Philippine Tourism Authority (PTA), Philippine Overseas Employment Administration (POEA), Philippine National Police Aviation Security Group (PNP-ASG), Bureau of Immigration (BI), Bureau of Customs (BOC), Bureau of Quarantine, Department of Health (DOH), Bureau of Fisheries and Aquatic Resources (BFAR), Bureau of Plants and Animal Industry, Asiana Airlines, Air Asia Berhad, Tiger Airways, Cebu Pacific Air, Miascor, and Clark Airport Support Services.

Other CIAC support services in the ISO program includes Airport Operations Department, Emergency Services and, Aviation Security Department, Airport Security and Intelligence Office, Finance Department, Human Resource Department, Corporate Planning Department MIS IT Department, Property and General Services Department and Engineering Maintenance Department.

Dyoco said the scope of the ISO 9001:2008 involves Passenger Facilitation where it aims to deliver a better quality services to international travelers and passengers at DMIA which is bustling with international and domestic flights being provided by international and local air carriers.

“We expect a jump in investments this year, but most of these will no longer be inside the fenced-in area of the Subic Freeport,” Arreza said.

“We will be moving most of the investments we can generate this year to the new frontiers, which are composed of neighboring areas in Olongapo City, Subic town in Zambales, and Morong and Hermosa towns in Bataan,” he added.

“Finally, we shall be realizing this year the SBMA vision to spread development, and directly benefit our partners in the neighboring communities,” said Arreza.

To carry out the expansion program, Arreza said the SBMA is just awaiting the release of implementing rules and regulations (IRR) so that it could start processing investment proposals meant for neighboring areas.

The IRR, which has reportedly passed the scrutiny of agencies like the Bureau of Customs, governs the flow of goods and services in the areas qualified for tax- and duty-free privileges as provided for under Executive Order No. 675, signed by President Arroyo on November 5, 2007.

Arreza also said that under the expansion program, the SBMA is eyeing three billion-dollar investments that are expected to start their initial development this year. These include the resort projects of Korean firms Neocove and M Castle, as well as the re-development project of Ayala Land Inc. in the Subic Freeport and Olongapo City.

Aside from attracting big-ticket projects by both foreign and Filipino companies, Arreza stressed that the SBMA expansion program would level the playing field for local entrepreneurs.

“We have been receiving concerns from Olongapo businessmen that they don’t enjoy the same privileges given to foreign investors,” Arreza noted. “Now, this program will give them the same opportunity, as long as they invest.”

He said that aside from corporate incentives like those given to any Subic Freeport-registered businesses, the SBMA may also grant personal incentives like tax-free dividends, a scheme that is popular in the United States.

He added that the Olongapo City government may endorse its City Mall project near the Subic Freeport main gate to qualify for the program.

At the same time, Arreza urged local government units in the area to extend their support to the SBMA in crafting a new master plan that would synchronize development in the Freeport and the neighboring areas.

“If we don’t come up with a new master plan, and development remains an individual effort among communities, then in about 20 years we will have a chaotic situation here,” Arreza warned.

The SBMA proposed the expansion program last year due to the limited area for industrial use in Subic. Arreza said the problem could be resolved by developing additional industrial estates along the corridor between the Subic and Clark free ports.

He added that by developing new industrial estates, the SBMA can hope to increase the Freeport’s workforce to 150,000.

The SBMA expansion also calls for the development of parks and leisure resorts in the coastal barangay of Minanga in Morong, the Cawag area in Subic town, and barangay Barretto in Olongapo City, as major tourist resort destinations

Arreza said that new investors who locate beyond the fenced-in area of Subic, but still within the Subic Special Economic and Free Port Zone (SSEFPZ), will still enjoy tax- and duty-free privileges as provided for under Executive Order No. 675.

MCAC Chair Benigno N. Ricafort and Co-chair Mabalacat Mayor Marino “Boking” Morales said the council, which is composed of Local Government Units adjacent to the Freeport, will appeal to the DOJ to bring the two agencies’ offices back to Clark.

This, after clamor from various sectors intensified following the recent transfer of the DFA office and the impending relocation of NBI office to the City of San Fernando.

Morales, in previous news reports, pointed out that the presence of the DFA regional consular office here creates a multiplier effect on Clark and its contingent communities.

“The presence of the two offices helps create small businesses and employment opportunities to other people,” Morales noted.

He added that “having the DFA and NBI offices in Clark strengthens the move to transfer all government agencies to the Freeport.”

Also, Morales stressed that “knowing that the NBI regional office is inside Clark creates a sense of security.”

“Just like the presence of the Philippine Air Force (PAF) inside the Clark Freeport, the NBI office inside Clark adds a sense of security inside this former U.S. military installation,” Morales said.

In a rejoinder, Mabalacat Mayor Marino “Boking” Morales denied reports that he accused the Clark Development Corp. (CDC) of sleeping on the job.

“My concern on the matter is focused on bringing back the DFA and NBI offices back to the Clark Freeport because of its importance and significance to the community and the residents and people who depend on these agencies’ services,” Morales noted.

Also in a published rejoinder, Ricafort, who is also president of the CDC, said the state-owned corporation had provided DFA officials of alternative sites as early as 2007 when the agency bared plans to move out of Clark.

The erroneous news report, which came out in the Tuesday (Feb. 2) issue of Business World bore the headline “South Korean businessman murdered in Clark eco zone.”

But Acting Manager Nicanor S. Targa of the CDC-Public Safety Department said there was no shooting incident inside the Clark Freeport.

Targa said the fatal shooting of South Korean Kang Ha Yong happened at Arirang Villas in Barangay Anunas in Angeles City and not inside the former United States military installation.

The victim was a resident of Arirang Villas, Targa added.

CDC Public Relations Manager Angelo “Sonny” Lopez lamented that the news story has sent wrong signals to business locators here.

“News stories such as this can do so much damage to businesses inside the Clark Freeport,” he said.

“For an award-winning paper such as Business World, they should have checked their facts,” Lopez added.

Lopez said the headline specifically identified Clark as the location of the incident but a close examination of the body of the story shows that the report did not even pinpoint the exact place where the shooting incident happened. Rather it only used Clark as a reference point.

“While the story attributed some details to a police officer, the report did not cite concrete information from a police report,” Lopez said.

This was clarified by Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza after local businessmen proposed that the Kalaklan bridge project be re-scheduled to allow businesses to cash in on the peak tourism season this summer.

The SBMA said earlier it will close the bridge this month to make way for the construction of a P200-million replacement with a covered walkway.

According to Arreza, building a new bridge to replace the crucial Kalaklan span that leads to the Zambales highway, would only take a year.

“Hence, losing out on the tourism peak season this summer would not be too much of a sacrifice,” he said. “If you delay the project, however, you’d lose out on both the Christmas season and the summer season next year.”

Arreza issued this statement after members of the Metro-Olongapo Chamber of Commerce Inc. (MOCCI) expressed fear that closing the Kalaklan bridge would disrupt business activities in the city and lead to losses among local business establishments.

They pointed out that most of the visitors in the summer months are day tourists, who would lose much time going around the area due to the anticipated heavy volume of traffic during the bridge construction.

“If the average traveling time from Manila to Subic is four hours, and another four hours would have to be spent going back, visitors will have no more time left to enjoy their day here. If that is the case, tourists will not come here anymore,” MOCCI members said in a recent dialogue with the SBMA.

“If you really need to close down the bridge, do it after the summer season,” the Olongapo businessmen suggested.

However, Arreza said the project has to be implemented as scheduled because the bridge, which is about 50 years old, has already developed cracks and has been determined to be “structurally weakened.”

The construction of a new bridge in Kalaklan will also jumpstart the SBMA program to expand the physical boundaries of the Subic Bay Freeport Zone, and extend the development to nearby communities, he added.

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

He admitted that when the bridge closes to all vehicles and pedestrians starting February 15 and March 1, respectively, the re-routing to Olongapo “will cause temporary heavy traffic in some main roads of the city, as well as inside the Freeport , especially during rush hours.”

However, Bakuteza pointed out that the public may still use the free port gates at Rizal Avenue and 14th Street to prevent traffic build-up.

Earlier, Olongapo City mayor James Gordon Jr. said the city government will put into effect a truck ban from 7:00 a.m. to 9:00 a.m and from 11:00 a.m. until 7:00 p.m from Monday to Friday to help ease the traffic problem during the bridge closure.

The city will also declare the busy 14th Street as a tow-away zone to prevent gridlock at the alternative route to the Subic Bay Freeport, Gordon added.

Stakeholders in the Subic Bay area, along with guest conservationists, clean up a stretch of beach along the famous Waterfront Road in the Subic Bay Freeport, as part of community efforts to arrest the degradation of the bay’s water quality

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SUBIC BAY FREEPORT — Stakeholder groups in the Subic Bay area gave an overwhelming response to calls from the Subic Bay Metropolitan Authority (SBMA) to help arrest the degradation of Subic Bay by joining resource conservation and protection projects initiated by the agency.

With renewed passion that stemmed from the recently-concluded Subic Bay Water Summit, more than 500 representatives of community groups in the free port area demonstrated their affection for Subic Bay through the “Save My Bay” beach cleanup held here on Saturday.

“This is a clear demonstration that the private sector, the academe, and the government understand the value of this precious water resource,” said SBMA chairman Feliciano Salonga, whose agency initiated the water summit on January 28-29 to assess the condition of Subic Bay and lay the groundwork for its conservation.

Salonga said that Subic Bay is facing threats from the rapid development around it, so that the formulation of a concrete framework and action plan for its preservation has been deemed urgent.

“The SBMA cannot do this on its own,” Salonga said in his appeal to the clean-up participants. “ Subic Bay is vast! The areas surrounding the bay— the Subic Freeport, Olongapo City , the town of Subic , Zambales and parts of Bataan —all benefit from its waters, so protecting and conserving it is a common responsibility.”

Salonga added that the two-day Subic Bay Water Summit clearly pointed out the need for joint conservation efforts, as the different groups that impact the bay signed a commitment to unite for the cause to save Subic Bay.

“We should not wait for dismal conditions like those in the Pasig River to appear, before we formulate steps to save our common resource,” he said.

Salonga proudly noted that the concern for Subic Bay was not limited to residents in the greater Subic Bay area.

Miss Earth beauties traveled all the way from Manila to demonstrate their support, along with members of Rotary District 3780 based in Cubao West, Quezon City , which organized the event along with the SBMA, The Lighthouse Marina Resort Hotel here, and the International Yachting Fellowship of Rotarians, Philippine Fleet.

“They see how the SBMA cares for its natural resources, so it is easy to generate support,” Salonga also noted.

Jun Avecilla, president of The Lighthouse Marina Resort Hotel, who was among the organizers of the event, said they are “committed to preserving the bay.”

“ Subic Bay is an asset, and our group will continue to conduct activities that will improve the condition of this water resource,” said Avecilla, who is also president of Rotary District 3780 and commodore of the local chapter of the International Yachting Fellowship of Rotarians.

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) will host the first Subic Bay Water Summit here on January 28-29 to address concerns on the sustainability of this free port’s number one asset — the waters of Subic Bay.

Experts said the 12,350-hectare body of water, which plays a critical role in the development of the Subic Bay Freeport, had been subjected to various strains brought about by rapid urbanization, as well as development activities.

“If these stresses continue, we are sure to be left with an unsustainable resource,” SBMA Administrator Armand Arreza warned.

“Of course, we don’t want that to happen because Subic Bay is an all-important natural asset,” he added.

Arreza pointed out that Subic Bay, which forms part of the communal waters of Olongapo City and nearby areas in the provinces of Zambales and Bataan, is now considered a threatened resource due to patches of pollution load caused by the disposal of partially-treated sewage, nutrient inflows from changes in land use, and inadequate treatment of industrial wastes.

“Surprisingly, despite the growing industrialization in the Subic Bay Freeport, the major culprit in the observed decline of water quality at this point is waste from domestic households in the surrounding local communities,” Arreza added, citing studies made in 2006 during the preparation of the free port’s Integrated Coastal Management Plan (ICMP).

Experts said that as the primary selling point for Subic’s development into a center for investment, commerce, industry and tourism, the bay is being stressed by several sources. These include reduction of forest cover, inefficient use of fertilizer and pesticides, burning of grasslands, proliferation of fish cages, and increasing sewage and pollution load from domestic wastes produced by neighboring communities.

The same studies also revealed that pressures from commercial and industrial activities in nearby communities, as well as rapid urbanization of surrounding communities have also increased solid waste generation.

These stresses are exacerbated by limited sewer and wastewater treatment facilities, and lack of waste disposal facilities despite increases in local population.

In view of this, Arreza said the SBMA decided to call for a summit to involve stakeholders in the Subic Bay Freeport area and local communities in improving the water quality of Subic Bay, and keeping the natural environment healthy, productive and sustainable.

“Since Subic Bay is a common resource, every stakeholder has the moral obligation to keep this critical resource sustainable and we hope that the summit would address this very vital concern,” Arreza added.

SBMA Ecology Center manager Amethya dela Llana-Koval, whose department is spearheading the two-day event, said the SBMA seeks to define the current status and issues on the quality of the environment in Subic Bay through the water summit.

It also wants to raise environmental awareness among stakeholders and community groups, and provide them with examples of current best practices in environment and water resource management; identify and prioritize key water issues and action plan for the greater Subic Bay area; and generate commitment among stakeholders towards sustainable use and management of land and water resources

“We hope to move on from general concerns to specific commitments,” Koval explained. “After determining the problem areas, we hope to identify concrete solutions, then move on to specific action plans for key issues.”

Among those expected to join the summit are people’s organizations in Olongapo, Zambales and Bataan; environment officials; heads of local government units; and representatives from Subic business locators, schools, and various SBMA departments.

The speakers will include Sec. Edgardo Pamintuan, chairman of the Subic-Clark Alliance for Development Council, who will talk on the impact of human settlements on water resources; Gov. Felipe Nava of Guimaras, who will present best practices in marine conservation; Marikina Mayor Marides Fernando, who will tackle sustainable city planning; World Wide Fund for the Environment vice president Joel Palma, who will make a presentation on marine conservation; and Engr. Cesar dela Cruz, president of the Philippine Institute of Chemical Engineers, who will lecture on sustainable technologies and best practices in industries.
Two members of the SBMA ICMP team, Dr. Hoanh Hoang Nguyen, a soil and water specialist; and Engr. Carlito Rufo an environmental consultant, will also make presentations on land and water use planning, and coastal management, respectively, while Engr. Jaime Garcia, assistant general manager of Subic Water and Sewerage Co., will expound on the firm’s sewerage master plan.

Sen. Richard Gordon, who served as the first SBMA chairman and administrator, has also been invited to deliver his message to participants of the two-day summit.

The Clark Freeport will be the host of the to be held on January 22 at the Mimosa Golf and Country Club here, the Clark Development Corp. (CDC) announced.

CDC President Benigno N. Ricafort said the event is a joint project between the state-owned CDC and top Manila-based editors that aims to raise funds for the families of the victims of the gruesome Maguindanao Massacre.

Ricafort said the golf tournament was initially conceived as a fund raising project for the benefit of victims of typhoons Ondoy and Pepeng.

However, Ricafort added that the tragedy was followed by another misfortune, which involved the grisly killing of at least 30 Mindanao-based journalists.

Ricafort said “The nation was appalled, then enraged. Emotions will gradually die down but the sufferings of all the Mrs. Myrna Reblandos of General Santos City have just started.”

“This fund-raising golf tournament is our small gesture of support for them,” Ricafort added.

Participating in the 1st Celebrity Newsmen’s Golf Tournament are editors and reporters from at least five national broadsheets, 10 daily and local weekly papers, four national television stations, and three radio stations.

Also expected to participate in the event are high ranking officials from the Philippine National Police, Philippine Air Force, former Public Works Secretary Hermogenes Ebdane, LTO Chief Asec. Arturo Lomibao, PNP Chief Jesus Versoza, and local officials led by Pampanga 1st District Rep. Carmelo “Tarzan” Lazatin, Mabalacat Mayor Marino “Boking” Morales, and Cabinet Secretary Edgardo Pamintuan.

LAST SALUTE. Law enforcement officers of the Subic Bay Metropolitan Authority (SBMA) honor Capt. Ceferino Abadia during his interment at the Olongapo City Memorial Park. Abadia died in the line of duty along with MSG. Delfin Orines early this month.

SUBIC BAY FREEPORT — About 300 law enforcers of the Subic Bay Metropolitan Authority (SBMA) gave their final respects to two fallen comrades who were killed early this month by an alleged security aide of Vice-Mayor Esmael “Toto” Mangudadatu of Maguindanao.

With the SBMA brass band leading the way, officers of the SBMA Law Enforcement Department (LED) yesterday morning escorted the remains of Capt. Ceferino Abadia from his residence in Barangay Barretto, Olongapo City to the Immaculate Concepcion Church there where a necrological mass was held.

From the church, the mourners proceeded to the LED headquarters at Bldg. 657 here before going to the Olongapo Memorial Park, where Abadia was finally laid to rest at noon.

Abadia, who was killed when suspect Mohamedin Panegas Ali went on a shooting rampage here on January 4, was survived by his wife Margarita, 60, sons Jasper, 31, and Velmier, 28, who is also an LED officer, and daughter Heather, 23.

This was the LED’s second funeral parade this week as they performed the same ceremonial rites for MSG. Delfin Orines (Ret), 60, in San Marcelino Zambales on Thursday in San Marcelino, Zambales.

Orines was with Abadia when Ali allegedly went amok. He was survived by his wife Milagros, 57.

“With the untimely demise of two of my men, we are deeply in mourning,” said retired Gen. Orlando Maddela, who heads the SBMA-LED.

According to Maddela, Abadia or “Dodong” to his co-workers, first served at the Subic Naval Base in the early 70’s as a “blue shirt” or security officer.

He was assigned later to the office of the Provost Marshall, and then was deployed for jungle and special operations before he became part of the K-9 unit.

When the Americans left Subic Bay in 1992, Abadia became one of the pioneers of the SBMA police force, serving in the K-9 unit before his promotion as officer of the day (OD) up until his demise.

Orines on the other hand started with the Philippine Constabulary in 1973. He then joined the Philippine National Police (PNP) where he spent most of his time at the PNP Camp in Barangay Barretto.

He retired in 2006, after which he joined the SBMA police force.

Maddela said charges of murder and attempted murder were filed against the suspect, who is now detained without bail at the Olongapo City Police Office Station 3.