Subic Bay: More than just a Freeport

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ChAd Amy Eisma’s State of the Freeport Address: An Excerpt

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THURSDAY, AUGUST 30, 2018 advertise@manilastandard.net

“As someone who was born, raised, and will die here, my dreams for Subic are lofty and ambitious.”

I CALL for applause for everyone in this room because we all made this happen. All of you who responded to my call for Malasakit. I could not seem to find the right English word for it. But remember the love that comes from your gut. The kind of love you have for your child? The one you have for your nephews? The kind that give you until it hurts. That is malasakit. Recently, we hosted a cruise ship and it got me thinking that is very much like SBMA. The passengers are our community — the locators and residents — who all want safe and memorable journey. The captain steers the ship, looks after every human being in it. And that responsibility is mine. But I cannot do this without my hardworking crew. You are the one who deserve the applause. You are the reason why I am here today. Last year, I presented my 10Point Program. So, let’s review what has been done: 1) As part of Good Governance... - With the support of my board of directors, the signing and the release of CRTEs have been transferred to my office, so you can now directly follow these up with me. - You can text or call me anytime if you have any concern. - If there is anyone asking you for money from my office or any SBMA offices in exchange for the release of CRTE’s or any document, please report to me immediately - We are currently working on extending the validity of the CRTE to 3 years. - We hope to get this started next quarter. We also introduced several policy reforms: - Extension of project development schedules are now heavily scrutinized and if warranted denied. - Tightening our policy for collecting receivables and be tough and implementing this. - We cancelled the contract of Dynamic Konstruk for failing to meet its commitment. - Repossessed SBMA properties from locators for not paying their rent for many years. I have been criticized, lambasted, crucified for many of these actions. But I, together with my board of directors, stand firm. There is no room for personal interest in our term, only that of SBMA. 2) The second item in our 10Point Program is Sustainable Development: I am pleased to announce SBMA is the first government agency to pass ISO 14001:2015 certification. It means that our organization has standards to minimize negative effects to the environment, comply with laws, and continually improve the same. And we got this, I believe, because of the malasakit we all have for our community, our home, and our planet. Malasakit in action was what we saw in the thousands of volunteers: - Who joined the clean- up activities for our coasts, rivers, mangroves, and premises; and - Who planted some 5,000 trees on Arbor Day. - And SBMA employees who showed up very early on Fridays to clean up our surroundings first before they go to work. 3) Safety and Security - For 2017, our Emergency and Rescue Team managed to improve its average response time by more than 57% - As in any emergency situation, a two-minute improvement and response time can spell a big, big difference in saving lives and property. - Our police force also managed to reduce the crime volume in some areas — like breakins, robberies, and bukas- kotse. We need, however, to boost our security capabilities and heighten our vigilance to address all forms of criminal activities Also, as part of our safety and security agenda: - We continue to strengthen our Subic Bay Disaster Risk Reduction and Management Committee. - We also participated on Nationwide Simultaneous Earthquake drills which brought to fore malasakit by the cooperation we received - More than 9,000 participated in capacity building programs such as - Bomb and IED Familiarization and Detection Trainings; - Emergency Preparedness Seminars; and - Community First Aid/Basic Life Support Trainings And lastly, implemented the Anti-Distracted Driving Law to keep our motorists and pedestrians safe. 4) Community Engagement We also went deep into community engagement programs

and activities with our Aeta brethren as priority, since after all much of the Subic Freeport are their ancestral lands. Our effort — specifically our Joint Management Agreement with the Pastolan Ambala Tribe — was recognized by the International Finance Magazine as the Best Social Responsibility Initiatives for 2017. We also did not forget our fisher folks and waste and land pickers. Through various activities and projects, we also engaged the rest of the members of our community: - Our Work Force - Locators - Residents - Tourism Stake Holders Another important part of our 10-Point Program is Locator Excellence. - We reduced documentary requirements for issuance of business registration - SBMA started offsite and non- appearance processing - 4,000 new IDs and 400 renewals. While our strategic location is a distinctive edge, we introduced various marketing strategies to further our goal as seaport gateway. - To attract more port users, we waived our port fees for a period of time - This is part of art marketing campaign #GOSUBICBAY Another vital gateway here is the airport. All our outbound missions explored possible FDIs to the Freeport. In support of business inclusivity, we support and provide growth opportunities for Micro, Small, and Medium Enterprises. In early 2017, we dared to dream to make Subic the next cruise ship destination in Asia. In February 2018, this has become a reality when MV Costa Atlantica made a port of call in Subic. We also won the 2017 Best Sports Tourism Destination of the Year award while our theme, “Funtastic Subic Bay,” bested “Visit Victoria” of Australia and “Amazing Thailand.” Allies in Congress, particularly Senator Richard Gordon, assisted us in securing funds to repair our seaport and airport, the Magsaysay Bridge, and an endorsement of funds to maintain and repair our roads from DBM. In other developments, SBMA’s net income increased by 34% while our debt decreased by 5%. If that is not good financial health, I don’t know what is. While our committed investments may have lowered because we decided to sack dubious investors. The more important figure is the expansion projects of existing locators, showing increased confidence in our business climate. Our total contribution to the national economy is PHP19.6 billion. That is a 14% increase from last year. If you don’t call this a strong economic driver, then I don’t know what it is. We also have aggressive port marketing together with SBITC. Containerized cargo volume increased 13%. Transshipment increased by 468%. Our national economic performance is important to us. However, like many other cruise ship in the ocean, we too face rough sailings. I personally had my share of rough seas due to the leadership row in the first nine months of my term. It was a very difficult time for me personally, but also for SBMA and the Freeport as a community. It was never about me, the issue has always been and should forever be the future of Subic. But that is all in the past now, with a fresh mandate, and a recognition from the international community. I will try more than my best to steer Subic’s voyage to a destination worthy of your hard work and the malasakit each and every one of us will invest in. Smuggling to me is another pressing concern. We cannot close our eyes to this. We should not allow it. We are as guilty and complicit if we continue to be silent even if it is already staring in our faces. As someone who was born, raised, and will die here, my dreams for Subic are lofty and ambitious. With integrity as our moral compass, it goes without saying that I will not tolerate corruption in Subic. I have zero tolerance for any form or manner of graft and corruption — whether within the SBMA or elsewhere in the Freeport. To end, I reiterate my clarion call for MALASAKIT sa Subic. Do not do it for me. Do it for the 8,000 volunteers who made Subic what it is today. Do it for those who fought hard to protect Subic to have stable leadership. Do it for yourself. Do it for your business. Do it for your children. Do it for your nephews. Do it for our future.

Subic Bay:

More than just a Freeport I

F BEING the first ever freeport in the Philippines wasn’t enough of an accolade, Subic Bay -- this bustling economic zone and one of the premier economic zones in the country -- has its fair share of trailblazing feats in recent years. From sustaining robust economic growth and leading the way for port-related activities to having its first female chairwoman and administrator, Subic Bay sets the benchmark for all other freeports to equal. The Subic Bay Metropolitan Authority, the primary institution responsible for the development of the Subic Bay Freeport and the Special Economic Zone, will be celebrating 26 years of prolific growth since its inception in 1992 with founding chairman and administrator Richard “Dick” Gordon, now a senator, at the helm. Now, it’s enjoying the unwavering service of the men and women behind the government-owned and controlled corporation. SBMA has turned Subic Bay into a self-sustainable area that promotes the industrial, commercial, investment, and financial areas of trade in the zone as well as in the Philippines. It is currently headed by Atty. Wilma T. Eisma, former Public Affairs and Contributions manager of Philip Morris Fortune Tobacco Company Inc., as Chairman and Administrator. The SBMA is the operating and implementing arm of the Government of the Philippines for the development of the 262 square mile (670 square kilometer) area of Subic Bay Freeport (SBF) into a self-sustaining tourism, industrial, commercial, financial, and investment center to generate employment opportunities for Filipinos. This area was the former American naval facility in Subic Bay. On March 13, 1992, the Philippine Congress passed Republic Act 7227, known as the Bases Conversion and Development Act of 1992, in anticipation of the pullout of the United States from its military bases in the country. Section 13 of RA 7227 created the SBMA to develop and manage the Freeport, which provides tax and duty-free privileges and incentives to business locators in the special economic zone. Gordon, then the mayor of the City of Olongapo, became the first SBMA chairman. The mayor, with 8,000 volunteers, took over the facility to preserve and protect US$8 billion worth of property and facilities

when the last US Navy helicopter carrier USS Belleau Wood sailed out of Subic Bay on November

24, 1992. That started the conversion of the military base into a free port like Hong Kong and Singapore. Its mission is to “grow the Freeport to be an environmentally sustainable community where locators are ahead of their competitors and our stakeholders enjoy the highest quality of life,” while its vision for the future is to be the leading Eco-Urban Freeport in Southeast Asia. Apart from enticing international locators to Philippine shores, Subic has positioned

Head Office: Phase 1 Argonaut Highway cor. Braveheart St. Subic Bay Gateway Park, Subic Bay Freeport Zone 2222 Tel: +63-47-252-1668 Fax: +63-47-252-3234 Website: www.taiansubic.com; www.teco.com.tw

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itself as a premier destination -not only as an investment hub, but as a burgeoning amalgam of industries such as leisure and sports, hotels and tourism, and other recreational activities that fall under their scope in tagging Subic Bay as a place to live, work, and play. With the ascent SBMA has achieved in only a short span of time, it’s hard not to believe that all of this is not achievable -- and greater things are in tow for this Freeport for the next 26 years and more. Peter Paul Duran

Branch Office: Unit 15B Belvedere Tower No. 15 San Miguel Avenue Ortigas Center, Pasig City, Philippines Tel: +63-2-655-6893 / 2938 / 9959

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Subic Bay:

More than just a Freeport

Swiss cruise line eyes Subic Bay Freeport SUBIC BAY FREEPORT – A Swiss cruise line, considered as one of the largest privatelyowned cruise companies today, has become the fourth international cruise line to make this premier Freeport its next destination. MSC Cruises, which is part of the Mediterranean Shipping Company S.A. (MSC), the world's second biggest container shipping operator, is scouting the area because of the tourist spots in the Subic Freeport, as well as those found in the nearby communities. MSC Cruises officials led by Port Operations Assistant Ian Meachem met with Subic Bay Metropolitan Authority Chairman and Administrator Wilma T. Eisma last Friday, August 3 to discuss the possibility of making Subic a part of its itinerary. He was accompanied here by Antonio Calingo Jr., assistant general manager of Wallem Philippines Shipping, Inc., the leading ship agent in the Philippines. In the meeting, Eisma briefed the visitors about local destinations and pointed out the places where most tourists from visiting cruise ships go during their stops here. She added that the SBMA has plans to

turn the coastal area of the town of San Antonio in Zambales into a cruise-ship docking area and resort destination. Meachem noted that the tourist spots in and around the Subic Freeport appear interesting, especially to tour operators who want a little bit of everything. He added that certain requirements had to be met before the company commits to make Subic a part of their itinerary. MSC Cruises welcomed 1.8 million guests on board in 2016, and with 12 new ships to be put into service by 2026, it expects its capacity to nearly triple to 5 million passengers a year over the next 10 years. MSC Cruises, which is the world's largest privately-owned cruise company and the number one cruise line in Europe, South America and South Africa, is the fourth major international cruise line to consider Subic. Three others have made Subic a regular stop: Costa Crociere, an Italian cruise line that is owned by Carnival Corporation & plc; Dream Cruises, which is Asia’s first luxury cruise line; and Royal Caribbean Cruises Ltd., the world’s second largest cruise line operator.

SBMA officials led by Chairman Wilma T. Eisma (middle) welcomes MSC Cruises Port Operations Assistant Ian Meachem (fourth left) and Wallem Philippines Asst. Gen. Manager Antonio Calingo Jr. (fourth right)

Subic to host first Spartan Trifecta Race in Southeast Asia

SUBIC BAY FREEPORT – Another historic first will happen here next month when Subic hosts the country’s first Trifecta Weekend for Spartan Race, the most popular obstacle course race (OCR) in the world today, at the Camayan Beach Resort on September 15-16. Race Director Michael Reyes said in a press conference here on Wednesday that this will be the first Trifecta event in the whole of Southeast Asia where all three medals can be earned in one weekend. “This particular Trifecta Weekend will serve as the grand finale for the Southeast Asian Championship Series and will be offering the only Spartan Beast race in the SEA Series,” Reyes said. “We are expecting around 5,000 athletes to participate in the event since the reception we got in the last three events was phenomenal. We estimate around 7,000 finishers in the Philippines with 99.99 percent finish rate,” he added. Subic Bay Metropolitan Authority (SBMA) Chairman Wilma T. Eisma said in the same briefing that the Spartan Race would add to

the already large number of prestigious sporting events being held in Subic, including the first full Ironman that was held here in July. “Subic has been hailed last year as the best sports tourism destination in Asia, and now with the Spartan Race we’re cementing this free port’s reputation as the endurance sports capital, too,” she added. The Spartan Race Trifecta Weekend is part of the South East Asia (SEA) Series Finale that will take place on September 15 and 16, holding three races in one epic weekend. The race will be held at the West Ilanin Forest area of the Subic Bay Freeport Zone. Reyes said the Subic Trifecta Weekend will comprise all three Spartan Races: Spartan Sprint, which is a six-kilometer long, 20-obstacle course; Spartan Super, a 13km, 25-obstacle course; and the Spartan Beast, a 21-km, 30-obstacle course. The Spartan Beast will be held on September 15, a Saturday, while the Spartan Sprint and Super categories will be held on September 16, a Sunday.

Reyes said Spartan racers from all over Southeast Asia will be coming to Subic Bay Freeport to gain a spot in the 2018 World Championship in Lake Tahoe. He said the top ten male and female finishers from the elite category, the top five male and female racers in the 14-17, 18-24, and 50+ age groups, and the top ten male and female entrants in the 25-29, 30-39, and 40-49 age groups will earn their spots in the 2018 Asia Pacific Championships in Johor, Malaysia on December 2018. Meanwhile, the top three finishers in both the elite and age group categories will qualify in the Regional Championship, as well as the World Championships in Lake Tahoe at the end of the year. Meanwhile, Ocean Adventure founder Scott Sharpe said the company plans to create a small obstacle course inside the Camayan Beach Resort here to give tourists a taste of the Spartan Race course. The firm will also plans to create a fitness facility here based on the OCR model, he added.

SBMA releases P147.13 million for 1st semester LGU shares; cumulative releases since 2010 now total P1.65 billion

SBMA Chairman and Administrator Wilma T. Eisma (left) hands over a check for the LGU share of San Antonio, Zambales to Mayor Estela Antipolo

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) has released P147.13 million representing the first-semester 2018 revenue share for local government units (LGUs) contiguous to the Subic Bay Freeport Zone. SBMA Chairman and Administrator Wilma T. Eisma distributed individual checks for the LGU shares on Wednesday, August 1, during a meeting with mayors and municipal treasurers at the Fortune Restaurant here. The biggest share went to Olongapo City at P34,356,210.73; followed by Subic, Zambales with P22,438,000.32; Dinalupihan, Bataan with P18,317,950.71; and San Marcelino, Zambales with P17,652,452.62. Next came Hermosa, Bataan with P15,292,064.02; Castillejos, Zambales with P13,656,489.21; Morong, Bataan with P12,776,665.57; and San Antonio, Zambales with P12,664,679.21.

SBMA Chairman and Administrator Wilma T. Eisma (right) hands over a check for the LGU share of Castillejos, Zambales to Mayor Jose Angelo Dominguez

Eisma said that the latest releases brought the cumulative LGU shares distributed by the SBMA in the last eight years to a total of P1,649,947,885.13. This means an average release of P206.24 million every year to the eight LGUs covered by the benefit taken from the 5% tax paid by enterprises registered in the Subic Bay Freeport Zone. Again Olongapo City received the biggest share in the eight years that the SBMA began directly releasing the shares to the LGUs. SBMA records indicate that Olongapo has received a total of P396.79 million; Subic, Zambales had P246.42 million; Dinalupihan, P206.39 million; and San Marcelino, P198.89 million. Meanwhile, Hermosa received a total of P169.29 million; Castillejos, P145.03 million; San Antonio, P144.06 million; and Morong, P143.05 million. Eisma said the SBMA began directly

SBMA Chairman and Administrator Wilma T. Eisma (middle) hands over a check for the LGU share of Dinalupihan, Bataan to Mayor Ma. Angela Garcia (left) and another municipal official

releasing the shares to LGUs in 2010. Before this, Subic business locators paid their 5% corporate tax to the BIR, which remits payments to the national treasury. Then the Department of Budget Management released the 2% share to the LGUs concerned. Under Republic Act No. 9400, which amended RA 7227 or the Bases Conversion and Development Act of 1992, business enterprises within the Subic Freeport Zone only pay a 5% tax on their gross income earned within the zone. The corporate taxes are remitted as follows: 3% to the national government and 2% to the SBMA for distribution to LGUs affected by the declaration of, and contiguous to the zone. Meanwhile, the 2% share is divided according to population (50 percent), land area (25 percent), and equal sharing (25 percent).

Rolando G. Estabillo Publisher Anita F. Grefal OIC-Operation Baldwin Felipe Advertising Manager Paula Marie Reynoso Supplements Head Peter Paul Duran Dexter Tilo Ron Tamayo Supplement Proponent Sheila Suarez Joan Velasco Eric Jutic Edelyn Elamparo Deowaher Rabanillo Romel J. Mendez Jerome Calayag John Marc Cruz Design



Subic Bay:

More than just a Freeport

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Places you should visit in

Subic right now

A

By MJ Blancaflor and Dexter Tilo

re you looking for a one-stop place? Stop seeking elsewhere. All you need could be found in one destination. Just two hours away from Manila lies the Subic Bay Freeport, the former American naval base operated and managed by the Subic Bay Metropolitan Authority since 1992, it is the country’s first military base converted into a tax- and duty-free zone. Unknown to many, this investment haven is also a promising tourist destination, which offers unique and exciting activities that await curious locals and foreigners alike. Tired? Breathe calmly as you listen to the waves hitting the seawall. Athletic? Subic has a wide range of activities to stretch those muscles. Adventurous?

Subic provides the wildest, most upto-date unique theme parks. Everything is here in Subic. Leave the confines of the metro and discover that Subic Bay is more than just a Freeport. Explore these fine places Manila Standard has listed just for you. 1.Subic Bay Yacht Club. Witness Subic Bay in its full glory by stopping over the Subic Bay Yacht Club. Inaugurated in 1997, the yacht club has seen first-hand the rich history of Subic— from its military roots to the blooming business and eco-tourism hub that it is today. Surrounded by a mountain range and the West Philippine Sea, the Premiere Marina Country Club not only offers a great port for yacht owners to dock, but also let them enjoy an overnight stay from an upper deck room up to a two-floor presidential suite, with Italian and Asian cuisines served by the cambusa oriental restaurant. The hotel’s interior is just as grand as its surrounding natural bodies. The club has a lot of available sports fa-

cilities such as basketball, tennis, and beach volleyball courts, and a children’s playground. With its stunning facilities, pristine calm waters, and safe harbor, the Subic Bay Yacht Club opens its port as a paradise to yacht owners and tourists, complete with superb service and warm hospitality. 2. The Lighthouse Marina Resort. Unrivaled for its exemplary beauty, elegance, and renowned service, the Lighthouse Marina Resort is a perfect getaway for sea-loving sailors. As Subic Bay's premier luxury hotel, it features 34 modern and tastefully-appointed suites and an all-day dining mecca. Every room at this hotel is air conditioned and features a flat-screen TV with cable channels and DVD player which are perfect for a leisurely stay. All rooms are equipped with a private bathroom. For your comfort, you will find bathrobes, slippers and free toiletries. The rooms provide the utmost relaxation with a host of exquisite indulgences and good views of the hillside, bustling waterfront road, and the breathtaking bay capped by the glimmer of sunsets. The Lighthouse offers room promos this rainy season. Check out their social media accounts for more info or call their 24-hour front desk. 3. Zoobic Safari. Located in the forest of Subic, the 25-hectare Zoobic Safari is the only Tiger Safari in the country. This forest adventure park treats guests to an exciting escapade. Take a train ride and get an open tour of their different attractions,

meet wild animals who are in their natural habitat, and be within pawreach of these animals as you observe how they behave in their natural sanctuaries. You can also walk over a steel grate walkway with crocodiles directly below you. Here you can dangle a quarter chicken on a fishing pole for the crocs to snap away from your line. Far from the conventional zoo and theme park, Zoobic gives you a chance to meet wild animals up close and personal. In turn, it promotes awareness and concern for animals. This unique avenue to commune with nature is truly an thrilling treat for family and friends! 4. Ocean Adventure. Meet the majestic marine life in a trip to Subic’s Ocean Adventure. Grab the opportunity to swim with sea lions, get up close and personal with dolphins, and dive with sharks, turtles, and jacks in activities that will introduce you to the underside of the bay. Ocean Adventure is the first openwater marine theme park in Southeast Asia. It is committed in providing entertainment, while encouraging youngsters and young-at-hearts to take an active role in the protection of marine wildlife. It also exhibits various shows such as Dolphin Tales—an exciting presentation of intelligence, discipline, and skill of some of the friendliest animals in the deep blue sea. 5. Tree Top Subic Adventure. Experience nature tripping from a breathtaking view at Treetop Subic Adventure, with its thrilling above-theground adventures. This includes Canopy Ride, Superman Turbo Charged,

and Tree Drop Adventure. The park uses an original tree trunk clamping mechanism to make sure that trees are not harmed in their spectacular natural setting. Learn how to make a bonfire or drink from water vines while taking a tour of Subic’s remarkably diverse landscape via trekking. Surf into the wind with a fellow rider while seeing the unmatched view of the forest wilderness at the Silver Surfer Ride. Corporate groups can also try team building activities here such as Dragon Boat and Team Cycling. Journey into one-of-a-kind activities with tour guides who are trained in first aid, industrial rope access work, and basic rope access rescue at The Tree Top Adventure. With your unforgettable experience and their unparalleled expertise, this theme park succeeds in promoting a greater appreciation of nature and ecosystems in its rugged beauty. Make no mistake—from its bay, its concrete, and its forest, Subic offers the perfect fusion of a rural and urban experience. While it allures businessmen to invest in the booming economic zone, it also captivates visitors to participate in the rising eco-tourism industry. Subic Bay is not just for large ships of exports, but also for travellers who are in for a surprise. So pack your things, drive your way, rent a hotel, and take your much-needed break at the harbor. Stop seeking elsewhere. All you need could be found here. Subic is more than just a Freeport. It has everything.

ACKNOWLEDGEMENT Manila Standard would like to thank the following Subic Bay Metropolitan Authority Officials: Atty. Wilma "Amy" T. Eisma Chairperson and Administrator Amethya P. dela Llana Officer-in-Charge Office of the Senior Deputy Administrator for Regulatory Kenneth G. Rementilla Deputy Administrator for Business and Investment Noli Manuel Media Relations Officer Media Production Department


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