SUBIC BAY FREEPORT – Television and communications mogul Antonio “Tony Boy” Cojuangco is expanding a beach resort and hotel project, here with the infusion of P300 million fresh investments for site development.

“The Nabasan area will be one of the next top destinations inside Subic Freeport,” Subic Bay Metropolitan Authority (SBMA) Administrator Armand C. Arreza said shortly after the contract signing for the P300 million project of Mr. Cojuangco held at the SBMA Board room early this week.

Mr. Cojuangco, chairman of Nabasan Subic Development Corporation, is currently developing the areas adjoining the former Nabasan Wharf beach into a world-class hotel resort with complete amenities with actual initial investments of P500 million thus increasing its pledges to P800 million.

Nabasan Beach is one of the popular places in Subic for tourists as it offers crystal clear waters. The beach area is also a favorite spot of scuba divers wanting to explore the marine life and underwater wrecks in Subic.

SBMA deputy administrator for business group Stef Saño also confirmed that Cojuangco has expressed strong interest to take over the rehabilitation of the Subic golf course including the construction of a five-star hotel and luxury villas within the golf course.

Mr. Saño said that Hanafil Golf and Tour Inc., the operator and developer of the 18-hole Subic golf course is presently negotiating the final terms and conditions for Mr. Cojuangco to the takeover the golf course.

Saño said that Benjamin John Defensor III, chief executive and president of Hanafil had already informed the SBMA authorities about the on-going negotiations with Mr. Cojuangco.

Hanafil has committed to invest $48-million for the redevelopment work of the 18-hole old Binictican golf course which was closed down last year. Howevr, golf club members are complaining on the slow-paced development being implemented by Hanafil.

Meanwhile, the SBMA Business and Investment department reported that a total of twenty-six tourism related expansion projects of existing locators with a combined total investment commitment of US$1,015,675,977 and employment of 7,279 have been processed by the SBMA during the first six months of the year.

The top ten (10) expansion projects for the first half of 2010 are Korean property developer M Castle Subic Philippines, Inc. (US$1 billion), Nabasan Subic Dev’t Corp. (US$6,521,739), Grande Island resort developer GFTG Property Holdings (US$2,223,222), Royal Duty Free Shops, Inc. (US$2,127,659), Aggressive North Developers, Inc. (US$1,063,829), Gerry’s Grill Restaurant operator James Fausto Corp. (US$891,304), Segara Villas and Promenade Commercial Building owner Global Hotel and Leisure Properties (US$ 666,667), computer and internet cyber shops operator Jemeryk Portal System (US$ 652173), Freeport Sarang (US$250,000) and Starbucks franchise holder R.Joseph Holdings (US$217,391).

SBMA Leisure Business and Investment Department Manager Kenneth G. Rementilla said that the SBMA also signed up for the past six months of the year a total of eighteen new project with combined total investment commitment of US$21,699,410 and hiring 1,029 workers.

The top 10 companies are Sand of Triboa Resorts (US$14,319,970),Subic Bay Brands & Lifestyle retails Concept, Inc. (US$6,065,217), Fertuna Holdings Corp. (US$5,434,782), CW Subic Bay Dev’t Inc. (US$1,489,361), FBM Gaming and Amusement (US$323,000), Jobin & Jobin, Inc. (US$319,148), Dunlevy Food Corp (KFC) (US$304,348), MDC Subic (US$260,869), RPQ Rides and Amusement Corp. (US$212,765) and Manila Golden Kawa (US$130,434).

The SBMA is actively promoting tourism to attract both local and foreign investors in this Freeport zone that offers multi-faceted activities such as eco-tourism, sports, historical and cultural attractions. Rey Garcia

SINGAPORE – Subic Freeport has been chosen as the first and only destination in the Philippines for international luxury cruise ships as a new regular route is being mulled in the Asia-Pacific rim.

The Subic Bay Metropolitan Authority (SBMA) has been invited to join as one of the founding members of the newly created Asia Cruise Terminals Association (ACTA) joining Asia’s top cruise ship destinations such as China, Singapore, Taiwan, Japan, Korea, Sri Lanka and India.

The association was organized by Singapore Cruise Centre Pte Ltd., the only cruise and ferry port operator in Singapore which manages passenger travel within the Southeast Asian Region. Singapore is one of the busiest seaports in world being the top-ranked transshipment port and regional hub for passenger travel in the region.

ACTA was formed to provide a unified marketing platform in the Asian region which is set to be formally launched on January 2011 as a non-profit organization.

SBMA Administrator Armand C. Arreza said that one of the key initiatives of the SBMA is to pro-actively promote and market Subic Freeport as the next cruise ship destination in Asia.

“Joining ACTA is a strategic move for SBMA as parts of our efforts to build solid business network with member countries,” Mr. Arreza said.

Mr. Arreza said that the SBMA is targeting major players in luxury cruise ship industry such as Star Cruises, Royal Caribbean, Silver Seas, Costa Crocere and other key players to make Subic as part of their cruise itinerary. 

During the meeting, Singapore Cruise Centre Pte Ltd Vice President Ivan Ng said that among several other ports in the Philippines, Subic Freeport was chosen because of its readiness to play a key role in the cruise ship industry.

“We are glad that SBMA will be one of the founding members of ACTA, we have only chosen one port in the Philippines and that is Subic Bay Freeport”, Mr Ng said.

Mr. Ng said that Subic has the port infrastructures, deep natural harbor, support facilities, security and tourist attractions.

“I am now convinced, and this strengthens the business case for Subic, that indeed, it is ready to play a key role in the cruise ship industry,” Mr. Ng said.

Singapore Cruise Centre Pte Ltd Vice President Ivan Ng (center) welcomes SBMA deputy administrator for tourism Raul Marcelo Marcelo (right) and SBMA maritime investment department head Ronnie Yambao upon arrival in Singapore.

SBMA deputy administrator for tourism Raul Marcelo said that Singapore Cruise Centre, which handles 9 million passengers annually, will serve as the model for SBMA to establish a cruise ship industry in Subic Freeport.

“Benchmarking from Singapore Cruise Center would mean learning expertise from the best of the best in terms of passenger handling, formulating waterfront development plans to integrate with the passenger terminal, technology, marketing activities and maintaining the momentum of the cruise ship market growth,” Mr. Marcelo said.

Marcelo, along with SBMA maritime investment department head Ronnie Yambao attended the organizational meeting, here of ACTA.

The following have been agreed upon by all ACTA member countries. 

Scope of activities
The Association shall cover the following activities:
• To formulate and to continuously update and implement a cooperative program for the improvement of cruise terminal operations and management efficiencies;
• To continuously exchange information and undertake innovations on:
• Cruise and passenger processes and handling systems;
• Relevant cruise terminal procedures and documentation;
• Cruise statistics collection and analysis;
• Training of cruise terminal personnel on various aspects of cruise ships and terminal management;
• Cruise berth planning and development; and
other cruise terminal related and / or other cruise related matters;
• To promote activities and foster closer relationship among Members of the Association.
Aims and objectives
The main aims and objectives of the Association shall be as follows:
• To provide the Members with a platform for regional cooperation in terminal development, operations and management; and
• To increase awareness of the Members’ cruise terminals internationally which result in an influential alliance leading to the emergence of a captivating Asia cruise playground;
• To promote and protect the interests of Members’ cruise terminal;
• To improve the standard and promote Asia cruise industry to international standard.
The specific objectives of the Association shall be as follows:

• To provide best practices in the cruise industry, to promote and to assist in the development and implementation of efficient operations and methods on the following:
1. Cruise terminal procedures and documentation;
2. Administration of cruise terminal personnel, including those of private agencies,
3. Involved in the business of the cruise terminal;
4. Cruise statistics;
5. Cruise information systems; and
6. Planning and development of cruise itinerary with cruise liners
7. Any other cruise related operational issues that will have material impact to Asia cruise industry.
• To promote the exchange of cruise related data and information on among the Members’ cruise terminals;
• To upgrade the skills and knowledge of cruise terminal personnel through the exchange of personnel for on-the job- training, exchange visits, holding of seminars/workshops on cruise terminal and / or cruise related issues including planning; operations and management;
• To promote cooperation in the coordination of Members’ terminals marketing, operations and management in Asia;
• To develop and maintain close relationships with other ASIA organizations especially those of ASIA cruise liners, regional or international cruise terminals, cruise related associations, resort owners, port agents and travel agents; and
• To undertake other activities as are incidental or conducive to the attainment of the above objectives.

SUBIC Bay Freeport, one of the top income earning economic and Freeport zones in the country, collected P3.5 billion revenues derived from various government taxes in the first six months of the year.

Subic Bay Metropolitan Authority said that the combined collection of the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR) reached P3.478 billion during the first half.

“The first half collection is actually 62 percent of the entire 2009 figure. So at this rate, we could be looking at a P6-billion plus total at the end of the year,” SBMA administrator Armand Arreza said.

Figures submitted by the BoC and the BIR showed that in June alone, the two government collection agencies posted a total of P826.52 million, the highest monthly cash collection in the six-month period, as the two collecting agencies came up with P473.93 million and P352.59 million, respectively.

For the whole six-month period, the BoC recorded cash collections totaling P2.508 billion. This exceeded last year’s total of P2.206 billion by P301.6 million or 13.67 percent.

In addition, BoC also processed government-to-government transactions amounting to P2.818 billion, thereby increasing its total cash and non-cash collections to P5.326 billion.

Duties and taxes collected by the BoC were derived from domestic and foreign ship calls, transshipment operations, and the taxes and duties paid for by the Freeport investors, including importation of oil, importation of motor vehicles, and other general merchandise.

For the same period, the BoC also exceeded its target of P2.054 billion by almost half a billion or 22.12 percent.

Meanwhile, the BIR posted a total of P970 million in cash collections derived from income taxes, value-added taxes, percentage taxes and other taxes paid for by the more than 1,000 Freeport business locators and their employees, as well as an increasing number of port users.

BIR’s cash collection in January-June 2010 topped last year’s P706.38 million, surpassing it by P263.86 million or 37.35 percent.

Arreza noted that part of the taxes collected by the BIR is the corporate tax, which comprises five percent of the gross income of locators here, and which the law imposes on business enterprises operating within the zone in lieu of national and local taxes.

He said that part of the corporate tax paid by Subic enterprises is allotted to local government units (LGUs) affected by or contiguous to the Subic Bay Freeport Zone.

Arreza added that starting in the second quarter of this year, the SBMA implemented a new scheme in collecting the two percent share of the LGUs.

Instead of going entirely to the BIR, the corporate taxes are split into 60 percent, which remains with the BIR, and 40 percent with the SBMA Treasury Department for direct remittance to the LGUs.

The LGU shares are intended to fund LGU development projects and provide for basic support services in health, education, and peace and order.

The SBMA revenue was issued to media amid reports that the national budget deficit ballooned to P196.7 billion in the first half, adding to the pressure on the government to keep the country’s finances under control.

According to media reports, the government tagged the failure to privatize state assets and a final spending flurry by the previous administration, but said they remained confident that this year’s expanded P325-billion deficit target would still be met.

The June shortfall alone was P34.6 billion as the government spent P126.7 billion while collecting only P92.1 billion.

Expenditures for the six-month period hit P788.8 billion, higher than the programmed P761.1 billion, versus revenues of P592.1 billion that were below a P615.9-billion target.

The January to June deficit also exceeded a P178.5-billion estimate offered by the previous government when it blew past its P145.2-billion first half goal in May. The five-month shortfall was P162.1 billion, which officials blamed on the failure to complete planned asset sales.

This explanation was reiterated on Wednesday by National Treasurer Roberto B. Tan in a statement issued to media, who said: “Privatization proceeds worth P30 billion programmed for the first half did not happen.”

The assets lined up for sale were a stake in the Malampaya natural gas project, a portion of the Food Terminal Inc. complex, and the lease of property owned in Japan .

The Aquino administration has lowered its 2010 privatization target to just P2 billion — which does not include the three assets — and officials have said it could resort to borrowings to narrow the deficit.

The country’s two main revenue agencies, the BIR and the BoC, both topped their first half targets: the former netted P403.5 billion, exceeding its P390.3-billion goal, while the latter netted P130.7 billion, also higher than its P124.1-billion mark.

But the Bureau of the Treasury was short of its P28.3 billion target, collecting only P24.9 billion, while income from other offices hit P33 billion, also short of the P73.3-billion goal.

Mr. Tan said the government was still keeping its 2010 deficit target of P325 billion — raised earlier this month from P300 billion.

“The increase in the collection target of the BIR for the whole year would cover the non-realization of privatization for the year,” he claimed.
The BIR’s 2010 collection goal has been hiked to P860.4 billion from P830.4 billion, and the BoC’s to P280.7 billion from P275.7 billion, on expectations of higher economic growth.

The Aquino government has said it would increase revenues by weeding out corruption in collection agencies and through better enforcement of existing laws before looking at tax increases.

Last year’s budget shortfall hit a record P298.5 billion, well in excess of the P250-billion target. Rey Garcia

In a statement, the BCDA said that landslide occurred along Barangay Pabanlag, Floridablanca, on September 8 at around 2 a.m. in the height of extraordinary heavy rains in the area.

Clearing operations are now ongoing and are expected to be completed within the day. The BCDA and its interim service provider, Tollways Management Corporation (TMC), have also fielded personnel to make sure that motorists are being warned about the situation.

Further, the BCDA is hiring the services of an independent geotechnical engineer to review the situation and provide a long-term holistic solution.

BCDA is looking at the warranties of the contractors and consultants based on their contracts.

In the meantime, motorists are advised to take the necessary precautions and observe the proper speed limit while driving along the SCTEx. Rey Garcia

SUBIC BAY FREEPORT—Guam senators who met with officials of the Subic Bay Metropolitan Authority (SBMA) on Friday said Subic Bay would make an ideal training center for the thousands of Filipino workers needed in Guam, where the United States’ “greatest military build-up since the end of World War II” will be made.

Senators Judith Guthertz and Rory Respicio, who led the Guam delegation here, inspected the various skills-training facilities in this free port and urged the SBMA to form a Philippine delegation to Guam to expedite the setting up of the Subic Bay training center.

SBMA chairman Feliciano Salonga, who led the SBMA receiving party, readily pledged his support on behalf of the SBMA, saying that “a Philippine representation will ensure that Filipino workers will get a first shot at this massive employment opportunity.”

“This project costs US$15-billion, and 20,000 foreign workers are needed. We must not let this opportunity slip from our hands,” said Salonga, who is keen on fulfilling SBMA’s mandate to maximize employment in the region.

The SBMA official said that through the Philippine representation, technical and legal requirements for the training center and various labor concerns, including the mass deployment of Filipino workers, will be addressed.

He added that the Philippine panel will also help ensure that the training center will adhere to standards set for the Guam project.

Guthertz, who chairs the Guam Committee on US Military Buildup and cites her University of the Philippines (UP) education, urged the to-be-formed Philippine representation to work out training designs with Guam’s community college.

She also expressed much confidence in the skill of Filipino workers, “who built Guam after the brutal World War II.”

Guthertz added that the “sudden change” in Guam compelled them to look up the history of Subic Bay, which underwent similar transformation as it was a former US naval base.

Meanwhile, Respicio, who heads the Guam Committee on Foreign Affairs, said the Philippines “will likely be the source of labor for the Guam buildup,” and ruled out competition from Chinese labor.

“You have the facilities here; the Philippines is poised to grab this opportunity, so you have to be prepared,” said Respicio.

The Guam mission then signed a memorandum of understanding with Salonga and SBMA administrator Arreza as an “expression of the mutual goal of the Philippines and Guam.”

“As we sign this MOU, we’re holding true to our pledge that we have an obligation as senators from Guam to ensure that foreign workers that will go to Guam will not be exploited,” said Respicio.

The Guam mission also met with Department of Labor and Employment (DOLE) secretary Marianito Roque, Philippine Overseas Employment Administration (POEA) chief Jennifer Manalili, Overseas Workers Welfare Association (OWWA) head Carmelita Dimzon, and Technical Education and Skills Development Authority (TESDA) director-general Augusto Syjuco.

The visit, according to Guthertz, was meant “to establish understanding, and to learn more about the Philippine process,” so that final agreements could soon be made for the Guam build-up that would relocate US troops stationed in Okinawa, Japan.

Guthertz said that major construction works are scheduled from 2010 to 2014, while proposed troop movement of 14,200 military personnel and their 38,070 dependents starts on 2012 and is scheduled to be completed by 2016.

But unlike any other regular international conference, the ICGIA is security demanding as some 4,200 policemen will be tapped to protect local and foreign delegates at the Philippine International Convention Center (PICC) starting Wednesday.

A total of 1,200 expected local and foreign participants are expected to attend the event.

“This international event hosted by the Philippines is another shining moment for the PNP and a great opportunity for the country to open its doors to the international community of nations,” Philippine National Police (PNP) chief Director General Jesus Verzosa said.

President Arroyo will be the keynote speaker when the conference ends on September 11.

“With the PNP’s experience in handling security operations in past international events, we are optimistic this ICGIA Conference will be similarly successful,” Verzosa added.

The highlight of the conference will be the adoption of the ICGIA of the Manila Declaration, a plan of action that will feature a mechanism for the regular review of progress towards the conference’s goals.

The participants include government ministers and senior officials of Asian countries, business leaders, top officials of the United Nations system and other international and regional organizations, the ASEAN secretariat, prominent experts, media and civil society representatives are expected in the conference.

The hosting of the ICGIA this year is through the Department of Environment and Natural Resources (DENR) with the support of the United Nations Industrial Development Organization (UNIDO), the United Nations Environment Programme, and the United Nations Economic and Social Commission.

As a starting ground for security measures, Verzosa said he had already formed a special task force that will be dubbed National Task Force “Greening Industry in Asia” and designated Deputy Director General Jefferson Soriano, PNP Deputy Chief for Operations as its commander.

The group, the official said, will oversee the operations of several Task Groups directly involved in providing security to delegates in the international conference.

Aeta students from the Pastolan and Kanawan villages in Bataan proudly pose for their class photo during the graduation rites for a professional housekeeping course at the Subic Bay Arts Center.

SUBIC BAY FREEPORT — Their renowned jungle survival instincts made them masters of Subic Bay’s virgin forests. But realizing that the “outside” world is much bigger than their forest homes, Subic Bay’s indigenous people are now pursuing technical skills training to enable them to survive in the lowlands.

Supported by the Subic Bay Metropolitan Authority (SBMA) and various organizations, the Subic natives are seeking opportunities for training and employment, intent as they are in establishing their presence in this bustling free port, said SBMA deputy administrator for corporate communications Knette Fernando.

Last Thursday, Fernando lauded the efforts of 36 Aeta students from the remote areas of Pastolan and Kanawan in Bataan, who finished a professional housekeeping course — the first batch to do so at the GP Corporate Personality Enhancement Center in this free port.

Aside from Fernando, those who cheered on the new graduates at the Subic Bay Arts Center commencement rites were Bataan representative Herminia Roman, Subic Bay Freeport Chamber of Commerce president Danny Piano, SBMA PRO manager Armie Llamas, GP Center director Gina Prohorrov, and relatives of the graduates.

Prohorrov said the 36 hardworking graduates underwent weekend trainings for four months, covering the aspects of cleaning standards, computer operation, conversational English, work value and etiquette, and customer service.

Among the Aeta students in this batch, 14 took and passed the assessment test of the Technical Education and Skills Development Authority (TESDA), earning for them the NC2 certification that qualifies them for employment overseas, Prohorrov added.

“That translates to a 100% passing rate. The rest of the 36 were equally capable but, unfortunately, were not able to make it during the application for the exam because of heavy rains that day,” said Prohorrov.

However, while waiting for the next examinations, the graduates can apply for local employment, she added.

Rep. Roman, meanwhile, thanked the SBMA and Prohorrov “for giving my constituents the opportunity to rise above their present conditions,” adding that she approved of this SBMA-GP project that emphasized self-reliance by way of the “teach-a-man-how-to-fish” approach.

Roman said that she was so moved by the graduates’ testimonials that she vowed to construct and repair roads and bridges in the Pastolan-Kanawan area to improve logistics, and boost economic activities in the remote villages.

She also thanked the “good heart” of Prohorrov, whose GP Center shouldered all the graduates’ expenses in uniform, teambuilding activities, and educational materials.

In the same event, SBMA’s Fernando urged other organizations based in the Subic free port to emulate the example of GP Center.

She added that the SBMA needs more partners for its livelihood and community development programs for indigenous people in the Subic Bay area.

SBMA seaport department strategic planning head Lynette de la Cruz said they had decided to lease the property to manufacturing firm Bechtel Corp. for the next four years in order to have some cash flow and pay for the loan used to develop the terminal.

“Bechtel will use NCT-2 as its hub for four years. By that time, we expect that the current financial crisis will be over, and we could generate enough interest from the international market for our terminal,” de la Cruz said.

“After the lease contract, we will immediately resume with the privatization of the port. But as of now, we are more concerned in paying up our loan,” de la Cruz added.

She said the company will use the port, which has a capacity to handle up to 300,000 twenty-foot equivalent units, as its hub for its aluminum and electrical modules. The company will be paying SBMA about $1.10 per square meter per day.

She did not state the entire contract cost.

According to the original schedule as agreed upon by SBMA and the Japan Bank for International Cooperation, the procurement of the operator for the NCT-2 should not be later than the second quarter in 2008.

SBMA tried to privatize NCT-2 in April, but forced to declare it a failed bid. All of the four qualified bidders, which included Manila-based port operators Asian Terminals Inc., International Container Terminal Services Inc., and Harbour Centre Port Terminals Inc., did not submit their respective bids due to economic reasons.

When fully privatized, SBMA placed the potential annual revenues for the port at $6 million.

The annual lease for the port, which has a lifespan of 50 years, will be enough to shoulder the $60-million loan from JBIC used to partly fund the project, it earlier said.

The government wants international shipping lines as the major operator for NCT-2 to ensure a strong cargo volume. According to the bid invitation sent out earlier by SBMA’s bids and awards committee, the contract will be for the operation, management and maintenance of the NCT-2 as a transshipment hub.

The port, located in Cubi Point in Subic, has a 14-hectare container yard, a 280-meter -long wharf, two units of 53-ton-capacity quay gantry cranes, as well as other buildings, equipment and utilities. It can accommodate big container ships, including Panamax vessels.

An agreement was signed by Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza and PMPMI managing director Chris Nelson that will increase the total land area of its project here from a 9,600-square-meter to a 49,279-square-meter depot.

Once completed, the state-of-the-art warehouse will have a capacity to hold some 24,000 metric tons of tobacco. At present, the P30-million peso refurbished warehouse can only accommodate 6,100 metric tons.

In a statement released, Nelson said the new warehouse will boast of features like humidity control, fire-suppression equipment and air conditioning to handle the imported tobacco leaves from foreign suppliers, which will then be shipped and processed in cigarette-manufacturing facilities in the Philippines, Malaysia and Indonesia.

According to Arreza, the agreement, which extended PMPMI’s lease agreement to 50 years, “strengthens Subic Bay Free Port’s competitive posture as Southeast Asia’s logistics hub, as envisioned by President Arroyo.”

He added that this free port’s multimodal transport (air-land-sea) capabilities, world-class infrastructures, modern road networks, and tax incentives have prompted PMPMI to extend its contract that spans to half a century.

“A global brand such as Phillip Morris would not make hasty decisions, which means the firm has really found Subic an enviable logistics hub,” said Arreza.

Nelson, for his part, said PMPMI continued to expand since its establishment here in 2007 at the Subic Technopark, and even posted growth during the global economic slowdown which hit the country in the last quarter of 2008.

Nelson added that the warehouse expansion is “a reflection of our faith in the Philippine government, particularly the SBMA.”

The PMPMI managing director also expressed confidence that the company will sustain profitability and competence against its competitors, despite the increasing competition in the tobacco industry.

‘‘If you plan well ahead, and stay committed, this country will reward you in many ways,” Nelson said. ‘‘It may be difficult to get us, but once you have us, it would be difficult for us to leave you,” said Nelson. Rey Garcia

Members of the House Committee on Labor and Employment, (from left) Reps. Magtanggol Guinigundo, Mitos Magsaysay and Rafael Mariano, arrive at the Hanjin shipyard in the Subic Bay Free Port to inspect the firm’s compliance with labor safety standards.

Headed by its chairman Rep. Magtanggol Guinigundo (2nd District of Bulacan), the committee made an inspection of the shipbuilding facility owned and operated by Hanjin Heavy Industries Corp. (HHIC) in Subic’s Redondo Peninsula.

Subic Bay Metropolitan Authority (SBMA) officials, who accompanied the House delegation, said the lawmakers wanted to see for themselves how workers fared at the Hanjin facility.

“The ocular visit is in connection with the ongoing committee hearing to determine how safe the facility is, and to evaluate the working conditions of the workers in the Hanjin shipyard,” Guinigundo said during the inspection.

Other committee members who joined the Hanjin inspection were Reps. Carlos Padilla (Nueva Vizcaya), Joel Maglunsod (Anak Pawis), Mitos Magsaysay (1st District of Zambales), Rafael Mariano (Anak Pawis), Walden Bello (Akbayan), Edno Joson (Balane-Kampi), Rufus Rodriguez (2nd District of Cagayan de Oro) and Monico Puentavella (Bacolod).

The lawmakers were accompanied by Director Nathaniel Lacambra of the Department of Labor and Employment (DOLE) in Region III, Director Brenda Villafuerte of the DOLE’s Bureau of Working Conditions, and SBMA officials, headed by senior deputy administrator Ramon Agregado.

The delegation was welcomed by HHIC general manager Taek Kyun Yoo, who briefed the visitors on Hanjin operations prior to the inspection tour.

According to SBMA records, a total of 19 fatal accidents have occurred in the shipyard since it started operations in 2006. The incidents had led SBMA and other government agencies to suspend Hanjin operations, as well as to blacklist some subcontractors, pending a review of safety measures at the shipyard.

During the briefing, Yoo told the congressmen that HHIC has been implementing health and safety measures that the House committee has recommended during previous hearings.

“We are happy to report to you that Hanjin Philippines is now 99.9-percent compliant in securing accreditation for all its health and safety personnel, and works toward the improvement of the working conditions of our workers,” he said.

Yoo also reported that the emergency clinic in the shipyard complex has been expanded to accommodate 20 beds and modern equipment, and now has four medical doctors.

The clinic is supported by an ambulance and three units of fast sea ambulances, he added.

Yoo likewise reported that the HHIC Board has approved an annual budget of P311,356,292 for the improvement of work conditions in the facility. This will also cover the procurement of personal protective equipment (PPE) such gloves, shoes, overall work suits, goggles and helmets, which are given free to workers, he added.

Bello noted, however, that despite the improvements in Hanjin’s labor safety, the implementation is still in the early stages.

“We are happy to hear and see the big improvement in the implementation of safety measures, but because they have just started doing this, there are lots more to do,” Bello added.

Magsaysay insisted, meanwhile, that despite the additional medical equipment and personnel, Hanjin should build its own hospital in the area so that full medical services would be available to the workers.

She added that doctors and nurses should be on duty at the facility on a 24-hour basis.