The 3rd Annual SOFA - sbfcc.comsbfcc.com/newsletters/Mar2008.pdf · and Jolibee for the sandwiches. Photos by DWB Marketing and Advertising . MARCH 2008 SBFCC Newsletter 2 ... that

THE MONTHLY NEWSLETTER OF THE SUBIC BAY FREEPORT CHAMBER OF COMMERCE

Inside This Issue

SBFCC Working Committees

SBFCC News

SBMA News

National News

Membership

SBFCC Board Members

Volume 56 Issue 120 March 2008

The 3rd Annual SOFA

The Subic Bay Freeport Chamber of Commerce hosted the 3rd annual State of the Freeport Address & Community Forum last February 5 at the Subic Bay Arts Center.

SBMA Chairman Commo. Feliciano G. Salonga reported on “A Year of Continuing Confidence in the Freeport” as proven by cumulative investments of $5.4 billion. SBMA Administrator & CEO Armand C. Arreza, on the other hand, presented “Moving from Good to Great” where he discussed various initiatives, including the adoption of more investment-friendly policies that will help realize SBMA’s increased investment target of $7.5 billion in 2010.

Special thanks to Subic Family Land for providing the buffet dinner; also to Rali's Grill and Jolibee for the sandwiches.

Photos by DWB Marketing and Advertising

MARCH 2008 SBFCC Newsletter 2

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SECURITY and EMERGENCY RESPONSE COMMITTEE

Chairman: Rose B. Baldeo E-mail: [email protected] Tel: 252-7064

BUSINESS DEVELOPMENT COMMITTEE Chairman: Danny J. Piano

E-mail: [email protected] Tel: 252-3934

LABOR COMMITEE Chairman: Peter Tumanda


LIAISON COMMITTEE Chairman: John E. Corcoran


MEMBERSHIP DEVELOPMENT COMMITTEE Chairman: John E. Corcoran


NORTH LUZON EXPRESSWAY MMOOTTOORRIISSTT HHAANNDDBBOOOOKK &&

Available @ the Chamber office. Great value for only

P20.00 – Motorist Handbook

P10.00– Gabay Lakbay 120 pages of full-color General Tips for Driving the NLEX,

Handling Emergencies, Road Signs and Signals, Traffic Rules and Regulations and excellent linear maps of each

NLEX interchange.

ANNOUNCEMENTS AND PRESS RELEASES ARE PUBLISHED FREE OF

CHARGE FOR MEMBERS. PRIORITY WILL BE

ACCORDED TO RELEASES OF NEWS VALUE AND ARE SUBJECT TO EDITING.

PLEASE SEND TO:

The Editor, SBFCC Newsletter at SBFCC, Bldg. 866, Waterfront Road, SBFZ Tel 252 3180; Fax 252 3190 Email: [email protected]

CHAMBER SECRETARIAT


Dear Fellow SBFCC Members,

The 3rd Annual State of the Freeport Address (SOFA) held on Tuesday, February 5,

was initiated by your Chamber. The program continues to present to our

community, our partnership with SBMA. Chairman Salonga reflected on the performance of the last

two years, presenting some very impressive numbers and accomplishments.

Administrator Arreza presented a development plan to grow the Freeport, creating an ever

increasing revenue stream and a significant number of new jobs. All in all, it was extremely

informative and gave us a better picture of where SBMA is focusing their plans for the future.

Irrespective of your position on these plans, it would appear that with the opening of the Subic

Clark Expressway, the development of that corridor, the expansion of the existing Freeport Zone to

new borders and the movement toward Clark as the new international airport facility for Luzon, it

would appear that change is inevitable for us.

SBFCC will be reviewing these plans in detail, along with other matters that affect business.

Chamber Director and Treasurer, Danny Piano, will chair our Business Development Committee,

tasked with this function. You are cordially invited to participate in this or any of our other

committees listed in this newsletter. Just let the SBFCC office know of your desire to serve and we

will do our best to accommodate your request.

We are currently looking for venues that would be willing to host one of our monthly meetings. If

you would like to showcase your business this would be a great opportunity to do so. These monthly

events are well attended and provide an atmosphere for networking, getting acquainted or simply

meeting with friends and associates. Let us know if you would like to “sign up.”

While I have said it many times before, it is worth repeating, this is your Chamber! Your ideas,

concerns and suggestions are appreciated, as is your active participation. SBFCC only works for you

when you get involved. I’ll look forward to a very busy and productive year with your help.

God bless,

John

Message from the President:


WHAT HAS YOUR CHAMBER BOARD DONE SINCE LAST MONTH?

• Initiated and hosted the 2008 State of the Freeport Address at SUBAC

• Hosted the February Mixer/Networking Evening at the Subic Park Hotel

• Completed the induction of SBFCC 2008 Board of Directors

• Collated and completed Annual SBFCC Membership Survey reports

• Attended and participated in the Forum for “Subic Bay as a Cruise Ship Destination”

• Participated in the Gawad Kalinga Resettlement Ground-Breaking Ceremony in Cawag, Subic, Zambales

• Supported information campaign for various SBF Residents Meetings, various SBMA Labor Center seminars, and other tourism related activities.

• Attended and participated committee meetings with SBMA LED on various issues

• Collaborated with SBMA Traffic Safety Board

Highlights of the February 5 SOFA “State of the Freeport Address” by SBMA Chairman Salonga and Administrator Arreza

• SBFCC requested to be included in the Multi-partite Monitoring Team (MMT) for the now sanctioned coal-fired power plant project. SBMA advised that it is DENR who has the authority to appoint specific NGOs to the MMT

• Revised and amended SBMA Housing Rules are released for implementation

• Review of past performance comparison and target for 2008 to 2010

• Subic Maritime Industry’s coalition with the International network of Affiliated Ports (INAP)

• Report of SBMA initiatives on reduced power rates, stable water rates, new telecom players and re-established fiber optic links, streamlined and harmonized customs procedures with Clark

• Established vision and plans for the future of Subic Bay modeled after the bustling Singapore economy

DATE ORGANIZATION EVENTS / ACTIVITY VENUE

FEB 26 SBFCC MIXER/NETWORKING NIGHT SUBIC PARK HOTEL

MAR 07 – 08 ROTARY DISTRICT CONFERENCE SBECC

MAR 08 & 22 Roadwise Motoring

Foundation RALLY SPRINT SERIES Naval Magazine

MAR 17 – 23 SBMA HOLY WEEK CELEBRATION SBF

MAR 24 – 29 Lighthouse and SBYC 16TH PRESIDENT’S CUP REGATTA Subic Bay

MAR 25 SBFCC MIXER/NETWORKING NIGHT RAMA MAHAL

APR 02 – 06 3RD PHILS. OLYMPIC

FESTIVAL CENTRAL LUZON – CAR QUALIFYING GAMES SBF

CALENDAR OF UPCOMING EVENTS



For sale at the Chamber Office:

EZ Map Subic Bay/Olongapo®

Connecting You To Your Destination

P100.00 only Call the Secretariat at 252-3180

Subic woos Dubai investor The Subic Bay Metropolitan Authority plans to allocate at least 100 hectares of land along the Subic-Clark-Tarlac Expressway for the 51 auctioneers of used vehicle imports that face eviction from the Freeport.

SBMA administrator Armand Arreza told reporters that the relocation of the auctioneers and importers of used vehicles outside of the Freeport would facilitate the entry of Dubai’s Jafza International, the world’s fourth-largest marine terminal operator.

Jafza Dubai earlier announced plans to invest between $200 million and $250 million over the next three to five years to re-develop the Freeport as its logistical hub in the region. It operates Economic Zones World, a free trade zone in Dubai with 6,000 locator-companies. Arreza said some of these companies, which handle logistics operations, also wanted to offer their services in Asia.

The Dubai-based company is choosing among four areas within the Freeport—the Industrial Technopark, Boton Wharf, the Subic Bay International Airport and the residential Cubi area for its proposed industrial and logistics zone.

Arreza said the ideal place for such an investment is the Boton area, where the auctioneers are located. He said the area needed further development to Jafza’s requirements.

“We can perhaps allocate 100 hectares along the SCTEx [for the Subic auto auctioneers] and compensate them for any improvement or expropriation made in Boton,” said Arreza.

The 51 auctioneers occupy around 55 hectares in the Boton area, each with their own auction yard.

Arreza said the Boton area was being leased to the auctioneers for P30 per square meter against the going rate of $1.25 per sq.m. or roughly P50 per sq.m. The contracts with the auctioneers range from 25 to 50 years.

“Should they agree to the relocation, they can still

unload the used vehicles in Boton but the actual auction would be done some place else,” said Arreza.

He said a delegation from Jafza was expected between February and March to negotiate directly with the auctioneers. The Dubai firm is proposing to expropriate or buy out the rights of the auctioneers over the property.

He said SBMA could also help the auctioneers by providing them incentives for investments in the new site. A new Malacañang directive gave SBMA the power to grant incentives to an expanded area outside of the Subic Freeport, including Olongapo City and other areas.

Arreza said it was about time that Subic Bay Freeport was redesigned into a logistics zone.

“Subic is being eyed as the logistics hub in the country and there’s an opportunity to tie up not only with Jafza but also its sister company, Dubai Autozone,” said Arreza.

Dubai Autozone is the largest second-hand auto trading company in the world. It provides used vehicles to the rest of the Middle East market and Africa.

“We’ve invited them to come here also to re-export their used vehicles to Africa and the rest of Southeast Asia,” said Arreza. Dubai Autozone, he added, re-exports at least 30,000 units per month to Middle East, Africa, South and Southeast Asia as well as Pakistan.

The investment commitment from Jafza Dubai was among those raised by the official visit of President Gloria Macapagal Arroyo to the United Arab Emirates last month. By Elaine Ruzul S. Ramos - Manila Standard Today


Freeport Chamber encourages ongoing participation in SBMA Adopt A Playground Program

UBIC BAY FREEPORT - SBFCC President John E. Corcoran recently announced the Chamber’s

commitment as continuing as one of the first locators to adopt the Children’s Playground located at the Boardwalk on Waterfront Road.

After renewing the MOA with SBMA recently, the Chamber President added “The Chamber’s unwavering support in community service missions such as the Adopt A Playground Program provides value added service to the community”. He added that he anticipates other locators and service organizations will become as involved as SBFCC in providing clean, maintained and safe areas in which children may play.

The said program gives locators the opportunity to select and manage one of the dozens of playgrounds available for “Adoption” from SBMA. The program is geared to restore and revitalize the dilapidated

playgrounds and to provide well-maintained recreational facilities for children in the SBF community and for the visiting public.

SBMA Senior Deputy Administrator Hermenegildo Atienza III said in a memorandum that a sponsoring SBF locator shall be entitled to erect, at its own expense, signage at the premises of an adopted playground, which signage shall conform to the specifications, dimensions and aesthetical standards prescribed by the Promotions and Marketing Department and Planning and Development Office of the SBMA.

A MOA shall be executed between SBMA and the sponsoring locator and will be valid for one (1) year, renewal upon agreement of both parties. For details of the MOA, interested parties may approach any of the SBFCC officers and staff or coordinate directly with the SBMA Office of the SDA for Business Development at 252-4365 or 252-4498.

S

““CCoommiinngg ttooggeetthheerr iiss aa bbeeggiinnnniinngg;; kkeeeeppiinngg ttooggeetthheerr iiss pprrooggrreessss;; wwoorrkkiinngg ttooggeetthheerr iiss ssuucccceessss..”” –– HHeennrryy FFoorrdd


Expressway to force operational merger of Subic and Clark zones With the opening of the direct expressway linkage between Subic and Clark, both logistical hubs are moving towards a merger in its operations to facilitate a seamless operation in terms of customs, immigration and quarantine procedures in the processing of investments and trade.

Subic Bay Metropolitan Authority administrator Armand C. Arreza said the harmonization of the two international logistics hubs was paved by the signing of a memorandum of agreement of the Subic-Clark Alliance Development.

"We have harmonized customs, immigration and quarantine procedures by having a single platform in order to track down cargoes," Arreza said. In terms of customs procedures, Arreza would like to see one collector only or one Customs district only.

Arreza said that having one customs collector would also discourage smuggling because of the installation of the RFID system to make tracking of goods easier, which could be undertaken via a build-operate-transfer scheme.

Under a harmonized operation, Arreza said, it will be easier to reconcile figures.

"We hope the Bureau of Customs will issue a Joint Customs Administrative Order same as that of the Immigration and Quarantine," he said.

In terms of immigration, Arreza said that Subic and Clark allow a 14-day free visa for tourists and this privilege is expected to augment tourist arrivals in both Subic and Clark.

With only 30 minutes travel time as a result of the Clark-Subic expressway from over an hour before, more goods are expected to be shipped through Subic and more flights flocking into Clark.

The Clark-Subic expressway is on track to open on March 15. By BERNIE CAHILES–MAGKILAT(Manila Bulletin)

SBMA eyes expansion of Freeport Because of space constraints, Subic Bay Metropolitan Authority is forced to undertake a redevelopment of the Freeport coverage to include Olongapo, Zambales and Bataan and extend its perks to locators in these new areas.

SBMA Administrator Armand C. Arreza said this as the Freeport has only 400 hectares available and most of it are in Redondo. He said that Malacañang has already issued Executive Order 675 for the initial expansion of the Freeport coverage to Olongapo.

Under the plan, the central business district would be moved down to Olongapo to maximize the Subic area.

New hotel developments would be directed in the Olongapo proper down to Barretto, he said.

Already, SBMA is looking at tapping Hermosa, which has a 400-hectare industrial estate that did not take off to bring investors over to Bataan.

The development of resorts would be pushed towards the Zambales area where land is cheaper.

The master plan, however, for the expansion of the Freeport coverage has yet to be bid out.

Inside Subic Freeport itself, Arreza said they are implementing a master plan conducted by the San Francisco-based master planning services firm – EDAW.

The master plan has called for a redevelopment of the Gateway district and Royal areas.

It will be a 55-hectare area that could be developed into a leisure, entertainment and commercial area that could house the planned casinos.

"We have to maximize the remaining lands, that’s why we are pushing for vertical development inside Subic," he said.

Meanwhile, SBMA is revising upward its investments target by 2010 after its cumulative investments surpassed targets last year as it projected massive investments from MGM and Harrahs, two of the world’s biggest casino operators, before 2010.

Arreza said they are more confident of hosting new investments in 2009 and 2010 when the entertainment projects finally come in. "We have to review the investments target by 2010 in view of some long term good prospects," Arreza said.

Senator Richard Gordon, who is also former SBMA chairman, said he had conducted preliminary talks with MGM and Harrahs, two of the world’s biggest casino operators.

MGM has operations in Macau but Harrahs has no interest yet in Asia because Singapore granted two licenses only to Las Vegas Sands and Genting of Malaysia for casino operations. (BCM -Manila Bulletin)

Chamber of Commerce

Comment on Text

Since this newsletter was published, BCDA has announced SCTEx will now reschedule the opening to end of April 2008


Subic power companies gear up to fill demand

ower companies in Subic Bay Freeport are expanding their generation facilities and

improving distribution systems in anticipation of the influx of more investments in the next few years.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said Redondo Peninsula Energy Inc. would start construction of a $420-million coal-fired power plant next year while Subic Enerzone Corp. was implementing a P210-million installation and rehabilitation project.

“Investors worldwide are looking for investment sites with stable but cheap power supply, along with accessibility and security, investment perks and skilled manpower,” Arreza said.

He said power projects were crucial to the growth of Subic Freeport and the local economy because they could bring down the cost of electricity,

address a projected increase in electricity demand and help avert a potential power crisis in Luzon by 2012.

Subic Enerzone, operator of the power distribution system in Subic Freeport, said consumption in its Subic franchise area had been increasing over the past few years, with a total of 17.4 million kilowatt hours consumed last month.

This is why we have to upgrade the power system in Subic and put up additional generation facilities on top of Subic’s total output of 130 megawatts so that we could be more competitive,” Arreza said.

He said Malacañang’s recent order to expand the coverage of Subic’s tax- and duty-free regime was expected to boost investments in the area and increase power supply in the Luzon grid, where a 1,950-megawatt shortage is projected within the next few years. By Elaine Ruzul S. Ramos Manila Standard

P

““IItt iiss hhaarrdd ttoo ffaaiill bbuutt iiss wwoorrssee nneevveerr ttoo hhaavvee ttrriieedd ttoo ssuucccceeeedd..”” –– TThheeooddoorree RRoooosseevveelltt


SBMA unit may close due to financial woes

SUBIC BAY FREEPORT — Freeport Service Corp. (FSC), a subsidiary of the Subic Bay Metropolitan Authority (SBMA), may have to close because of a financial crisis, the new company president revealed recently.

Antonio Rex Chan, who was appointed last month as FSC president by President Arroyo, said “urgent measures” are necessary now to prevent the closure of the 15-year old company that provides services to both the SBMA and business locators here.”

At the root of the financial crisis, Chan said, are a deficit of P7 million incurred by the firm as of January 2008, and more than P70 million in outstanding loans and debts that have to be paid.

“Preliminary findings and assessment on the state of affairs at FSC reveal an alarming situation — a crisis that has already caused immense injury to government interest,” Chan said in a four-page memorandum, a copy of which was obtained by The STAR.

“If not appropriately and urgently addressed, it shall result in irreversible damage to the company, adversely affect its sustainability, and lead to a situation that may even cause its closure,” he added.

Chan said that because of the financial crisis, the monthly subsidy of P6 million from the SBMA is now being spent for payroll, instead of for the upkeep of SBMA facilities under contract with FSC.

Chan pointed out that the company’s administrative plantilla consisting of 721 employees “is excessive.”

He noted that the 531 regular employees, 14 consultants, and almost 200 contractuals and temporary hires “do not all contribute to revenue generation or enhancement of the company’s operations.”

Instead, these “non-profit personnel significantly consume power, water, office space, fuel, administrative service, depreciation, and other expense items aside from their salaries and bonuses,” he added.

“The secret of success is making your vocation your vacation.” – Mark Twain

Another concern raised by Chan is the number of managers in the company, which has reportedly increased to 15 today from the previous six.

Calling their salaries “substantive,” he said the perks given to managers — free car fuel, maintenance and driver; reimbursement expenses that are “hardly related to their functions”; and free communication equipment and cell phone charges, among others — contribute greatly to the drain in the resources of the company.”

Chan pointed out the FSC used to be a profitable venture, providing manpower and services to investor companies, as well as managing facilities like the JEST Camp, a popular tourism attraction, and the Forest Hills housing area, and Dungaree Beach, which it privatized in 2006.

Chan said, however, that as of now the only significant sources of revenues for the firm are the two gas stations that FSC has set up three years ago.

“The tourism facilities are seasonal at best,” he added. By Bebot Sison Jr. (Phil Star)



Harrah's Considering Subic Bay

For Major Casino Project Manila, Philippines (AHN) - Harrah's Entertainment Inc., the world's biggest casino operator, is meeting officials from the Philippines to seriously look into the possibility of putting up a multi-billion dollar gaming project inside the Subic Bay Freeport and Special Economic Zone (SBFSEZ).

Senator Richard Gordon, who was a former Subic Bay Metropolitan Authority (SBMA) chairman, told reporters in an interview recently that the idea is to help the Freeport area become attractive to gambling tourists coming from the Asia-Pacific Region.

Gordon said the Philippines should take advantage of Harrah's future plan to expand in the region since it could no longer locate in Singapore or Macau where the issuance of casino licenses is limited to existing operators.

In Macau, there were three licenses issued plus another three sub-licenses, while the Singapore government has only allowed the presence of two operators, Gordon explained.

With world-class casino operators such as Hannah's doing operations in the Philippines, the whole of Subic including Clark could easily become a top tourist destination especially with the presence of three airports and two seaports.

According to Gordon, he has already talked to top executives of Harrah's to discuss the prospects of Subic as its most ideal site for expansion in the region. He said prospects were good but another follow-up meeting may be needed to finally lure the

company to the Freeport.

SBMA administrator Armand Arreza, in the same interview, said inviting world-class casino operators to do business inside the Freeport area is in line with the government's plan to develop casino resorts either within the zone or outside Subic where the same fiscal incentives will also be offered to interested parties.

Harrah's operates eight luxury casino hotels in Las Vegas and manages 40 casinos in three countries. The company is led by Philip Satre and Gar Loveman.

In December 2006, Harrah's entered a $17 billion buyout offer from private equity firms Apollo management and Texas Pacific Group. It went public in 1971 and acquired Holiday Inn in 1980.

Other acquisitions include Rio Hotel and Casino, Inc. in 1999 for $888 million; Caesars Entertainment, Inc. (Bally's Caesars Palace, Flamingo, Paris) for $5.2 billion. Ceasar's was the casino spin-off of Hilton Hotels; It has bought the Horseshoe brand name when it purchased Horseshoe Gaming Holding Co. until 2005 when it sold the casino to MTR; bought the Imperial Palace in 2005 for $370 million. Joseph Dela Cruz - AHN News Writer

Address all editorial comments, Suggestions and material to the Editor.

SBFCC Bldg. 866 Waterfront Road, SBFZ Tel #: 252-3180; Fax: 252-3190;

E-mail: [email protected] Website: www.subicchamber.org

DISCLAIMER OF LIABILITY

Every effort is made to provide accurate and complete information. However, with the thousands of documents available, we cannot guarantee that there will be no errors. With respect to information contained herein. SBFCC makes no warranty, expressed or implied, including the warranties of merchantability and fitness for a particular purpose with respect to documents and programs available. SBFCC assumes no legal liability for the accuracy, completeness, or usefulness of any information, process disclosed herein and hoes not represent that use of such information would not infringe on privately owned rights.


Philippines Phasing Out

Incandescent Bulbs to Cut Greenhouse Gas Emissions

MANILA, PHILIPPINES - In a first for Asia, the Philippines plans to phase out inefficient incandescent bulbs in favor of more energy-efficient compact fluorescent lamps (CFLs) that will reduce greenhouse gas emissions and cut household energy costs.

In her closing remarks at the 2008 Philippine Energy Summit, President Gloria Macapagal Arroyo announced the country’s plans to phase out incandescent bulbs by January 2010. Australia made a similar move early last year, which was followed by Canada and other industrialized countries.

The Asian Development Bank (ADB) acted as technical advisor to the Energy Summit, assisting the Department of Energy in developing plans to address climate change and reduce energy consumption.

“The most effective way we can reduce energy demand and greenhouse gases is by using energy more efficiently,” said Thomas Crouch, Deputy Director General of ADB’s Southeast Asia Department. “The climate change challenge is a global one. ADB will support and encourage other developing countries to follow the Government of Philippines’ lead and make the switch to more energy-efficient products like compact fluorescent lamps.”

ADB is considering extending a $30 million loan later this year to the Philippines to help fund a range of programs on energy efficiency, including pilot programs that could be continued as long-term development projects. Portions of the ADB funding could be used to provide CFLs to low-income families to mitigate the impact of the change from incandescent lighting.

While CFLs are more expensive to buy than incandescent bulbs, they pay for themselves in lower power bills within a year. CFLs use around 20% of the electricity used by incandescent bulbs to produce the same amount of light. Additionally, CFLs last six to ten times longer than the average incandescent bulb.

The switch to CFLs will result in household lighting costs falling by as much as 80%, and the country’s annual greenhouse gas (GHG) emissions falling 2 million metric tons starting in 2010. Additionally, national electricity demand is expected to fall by 2,000 megawatts, or the equivalent of electricity generated by six power plants.

Electric lighting generates emissions equal to 70% of those from all the world’s passenger vehicles, and 90% of the energy consumed by each bulb generates heat, which then adds to air-conditioning costs.

Philippines dropped from list of world democracies

The Philippines was one of 3 countries relegated by a private democracy watchdog organization from a list of totally free countries to partly free.

The New York-based Freedom House reported that freedom declined significantly in 2007 in almost 4 times as many countries as registered improvements last year as the world was less free for a 2nd consecutive year.

According to Freedom House, 36% of the people in the world – about half of them in China – are not living in freedom.

The Philippines received a downgrade due to the spate of political killings specifically targeting left-wing political activists.

Malacañang criticized Freedom House, saying the private watchdog ignored positive developments in the country and was apparently swayed by propaganda from critics. Press Secretary Ignacio Bunye stressed that Filipinos “live in a free society” and pointed out the Philippines held local and congressional elections in May last year and many potential candidates have been preparing for the 2010 elections this early - are examples of the vibrancy of the country’s democracy.


Free-for-all looms over Clark

NTERNATIONAL airline companies not covered by existing air service agreements between the

Philippines and their country of origin will also benefit from the open skies policy of the country.

President Arroyo revealed that the much - awaited Executive Order 500-B liberalizing air policies at the Diosdado Macapagal International Airport in Clarkfield, Pampanga, was now being finalized.

Mrs. Arroyo told the Philippine Economic Briefing at the Makati Shangri-La Hotel that the government is embarking on the “Swiss Challenge” for the expansion of the Pampanga airport and in fact is accepting unsolicited build-operate-transfer offers for the airport’s expansion.

“We will accept unsolicited proposals for BOT. The first one to submit will be the basis for the Swiss Challenge. We have enough private sector interest without the government having to release funds,” the President said.

Swiss Challenge is a process whereby other investors can have the opportunity to offer lower cost for the project than the proponent, who can subsequently match the offer, under the BOT law.

Mrs. Arroyo has earlier announced that Singapore’s Changi Airport has already expressed interest to submit an unsolicited proposal for the DMIA upgrade.

EO 500-B, on the other hand, is now being finalized by

chief presidential legal counsel Sergio Apostol, the President said.

“Take the case of Russia. We have a bilateral agreement with Russia and they have designated Aeroflot, but Aeroflot does not operate here. So we don’t need to have other Russian airlines designated for them to operate here,” she said, referring to budget airline Trans-Aero that has signified interest in operating in Clark.

EO 500-B is expected to rescind the original order that imposed restrictions on budget airlines operating in Clark and Subic, allowing only airlines that have been designated by their countries of origin through bilateral air agreements with the Philippines to enjoy air rights.

Mrs. Arroyo’s announcement effectively overturned the recommendation of Transportation Secretary Leandro Mendoza who insisted during last month’s Cabinet meeting that air service agreements be signed first instead of automatically granting air freedom to all carriers operating in DMIA.

Under the President’s initiative, the former military airstrip in Clarkfield, Pampanga, was converted into an international airport to serve as an alternative to the already congested Ninoy Aquino International Airport in Pasay City.

The DMIA now hosts a number of small international carriers like Tiger Airways, which operates direct flights to a number of Asian cities like Singapore, Thailand and Hong Kong.

Passport application appointment via email launched he Department of Foreign Affairs (DFA) recently announced the launch of a passport

application appointment system via email.

In a press release, the DFA announced that under the system, called the DFA Passport Appointment System by Internet, passport applicants can set an appointment with the DFA Passport Office for the filing of their passport applications.

In the said system, the passport applicant emails the details of the application - full name, date and place of birth, and the latest passport number and date of issuance - to the email address [email protected] one week before the proposed date of appointment.

The office would then send a confirmation and a reference number for the appointment, and would then proceed to the DFA Passport Office at the confirmed schedule.

A special area would be designated at the office for those processing their passport applications using the said system, the statement read.

The system is initially available for people with expired passports or those expiring within the year and for applicants aged over 60 years old.

The system would then be made available to all passport applicants in the future, the statement read.

I

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“To laugh often and much; to win the respect of intelligent people and the affection of children; to earn the appreciation of honest critics and endure the betrayal of false friends; to appreciate beauty, to find the best in

others; to leave the world a bit better, whether by a healthy child, a garden patch or a redeemed social condition; to know even one life has breathed easier because you have lived. This is to have succeeded.” – Ralph Waldo


CATEGORY 2 RATING ON RP'S AVIATION

The United States Federal Aviation Administration (FAA) has downgraded to Category 2 its rating on the Philippine aviation safety regulatory capability, because of concerns on the ability of the Air Transportation Office to institute safety measures on the country's aviation industry.

Among the issues raised by the FAA include weaknesses in the primary aviation legislation, specific operating regulations, technical guidance, qualified technical personnel, licensing and certification, continued surveillance regulations, and resolution on safety issues.

Major concerns mentioned were outdated aviation regulations, poor training programs for safety inspectors, and sub‐standard licensing for airframe and engine inspectors.

This downgrade in effect put Philippine carriers under heightened surveillance and prevented them from adding flights to the United States. Because of the gravity of the problem, President Gloria Macapagal‐Arroyo has appointed Transportation Secretary Leandro Mendoza to head the ATO in place of Mr. Danilo Dimagiba and gave Mendoza three months to address the issues raised by FAA.

Secretary Mendoza said the immediate solution to the problem is the ratification of the law creating the Civil Aviation Authority of the Philippines (CAAP). He said that if the bill were to be passed soon, the ATO will ask FAA for a new audit of its aviation safety regulatory capability within three months.

"If we have the law and we have complied with the FAA findings, we will invite them (FAA) for another audit," Secretary Mendoza said, although he admitted that it will take time for the ATO to train new personnel to fill up the large number of vacancies for pilots, air traffic controllers and other aviation experts.

The ATO is searching for an additional 32 check pilots, 27 airworthiness inspectors, and 300 air traffic controllers. At the end of 2007, ATO has only 12 check pilots, 25 airworthiness inspectors and 700 air traffic controllers nationwide.

"We need a large number of pilots," Secretary Mendoza said. "But we are losing two to three pilots a month."

The check pilots, airworthiness inspectors, and the operation inspectors of the ATO are receiving a maximum monthly remuneration of just PhP25,000, while pilots with the rank of first officer employed by domestic airlines are receiving a minimum monthly salary of PhP70,000. Pilots with rank of captain employed by foreign airlines receive US$10,000 to US$15,000 a month.

The CAAP bill aims to convert ATO into a corporate entity, which will provide financial flexibility and enhance commercial, operations and management efficiency. It will also enhance civil aviation regulation and enforcement, which is one of the deficiencies noted by FAA.

Under the proposed bill, ATO will have fiscal autonomy to use all of its revenues for its operations. In 2007, only PhP1.3 billion or less than half of the ATO's revenues were

allocated for the agency under the General Appropriations Act. This year, the ATO will receive PhP1.6 billion out of the projected PhP3 billion revenues of the agency.

An ATO official said the proposed bill needs to be passed this time, as he recalled that FAA also downgraded its rating on the country's aviation safety to Category 2 in 1995, but lifted it two years later, after the Ramos administration promised to pass the bill. "We were able to convince them that the law will be passed then," he said, while noting that the country was unable to deliver its promise in a decade, thus the reason for the downgrade.

At present, the ATO is still governed by Republic Act No. 776, enacted in June 30, 1952, otherwise known as the Civil Aeronautics Act of the Philippines, which is now outdated. To address the other issues raised by the FAA, Secretary Mendoza said the ATO will be reorganized within the next six months to fill up the huge number of vacant positions in the agency. Of the 7,000 plantilla positions in ATO, only 3,500 posts or only half have been filled.

The problem, he said, is that the government cannot convince skilled aviation personnel to join the ATO, because of the Salary Standardization Law that limits the salaries of public servants.

Secretary Mendoza also said he formed a committee, composed of consultants from the International Civil Aviation Organization (ICAO) and experts from the stakeholders in the civil aviation industry, including the airlines and from the trade and tourism industries. The committee will develop necessary measures and mechanisms and implement corrective actions to enable rapid resolution of the safety concerns identified by the FAA.


RP CARRIERS RESTRICTED IN THE US MARKET

Following the downgrade on the country’s safety regulatory capability to Category 2, the United States has warned American nationals in the Philippines to refrain from using Philippine‐based carriers due to "serious concerns" about the Air Transportation Office's (ATO) alleged mishandling of the aviation industry.

"Whenever possible, Americans travelling to and from the Philippines should fly to their destinations on international carriers from countries whose civil aviation authorities meet international aviation safety standards for the oversight of their air carrier operations under the FAA's International Aviation Safety Assessment programme," the embassy said.

Among the FAA's concerns are the following: outdated aviation regulations, poor training programs for safety inspectors, and sub‐standard licensing for air frame and engine inspectors.

"While in Category 2, Philippine air carriers will be permitted to continue current operations to the United States, but will be under heightened FAA surveillance," the FAA said.

The downgrade affects directly Philippine Airlines (PAL), the only Filipino airline that flies to the United States. The US market at present accounts for 30 percent of PAL’s operating revenues. PAL said the Category 2 rating prevents it from increasing its 33 flights a week to the US and its territories, and from changing the type or increasing the number of aircraft on those routes.

Lufthansa to leave Manila

LUFTHANSA will stop flying to Europe from Manila on March 30 despite the double-digit growth of visitor arrivals from Europe to the Philippines, and largely because of stiff competition from Middle Eastern airlines.

The German airline becomes the latest European carrier to pull out of the country after British Airways, Swiss International, Alitalia and Air France.

Lufthansa’s reservation office in Manila confirmed that it will be out of Manila by April, and that all its European flights will be made via Hong Kong.

Filipino travelers who want to take Lufthansa flights to Europe may go to Hong Kong via Cathay Pacific and take their connecting flights there, Lufthansa said.

Lufthansa has been operating in the Philippines for more than two decades, accounting for nearly 30 percent of passenger traffic to and from Europe.

Its departure will make KLM Royal Dutch Airlines the only European carrier flying to Europe via Amsterdam from Manila.

Philippine Airlines has been prevented from adding new flights to the United States following the downgrading of the Philippines’ aviation standards by the Federal Aviation Administration, but it is not keen about flying to Europe.

PAL president Jaime Bautista said the European service was not profitable at this point because of the small passenger traffic.

But the tourism department says visitor arrivals from Europe have been growing at double-digit rates for several months now. Visitor arrivals from Europe grew 13.8 percent to 296,443 last year from 260,394 in 2006.

The top sources of European visitors in 2007 were the United Kingdom (79,670), Germany (55,894), France (19,273), The Netherlands (17,705), Switzerland (17,150), Italy (14,382), Sweden (13,049), Norway (12,925), Russia (12,853) and Denmark (11,882). By Roderick T. Dela Cruz

See something NQR? Help SBMA LED (Law Enforcement Dept) help

you! REPORT IT… Emergency: from landline, call 911

from cell phone, call 9111

Non-emergency or traffic violation report –Call 252-4550 For Binictican Housing 252-5347; For Kalayaan Housing 252-5346

Even better, for more serious offences, submit a Voluntary Statement to LED. Blank Voluntary

Statement Forms are available at all LED detachments or print one from the Chamber website at

www.subicchamber.org

If necessary, sign it as a concerned investor or resident drop it off at any LED detachment or FAX to 252-4667.

Better yet — take a photo or two, to help substantiate your complaint..

A picture is worth a thousand words!

““WWhhaatt iiss tthhee uussee ooff lliivviinngg,, iiff iitt bbee nnoott ttoo mmaakkee tthhiiss wwoorrlldd aa bbeetttteerr ppllaaccee ffoorr tthhoossee wwhhoo lliivvee iinn iitt,, aafftteerr wwee

aarree ggoonnee..”” –– WWiinnssttoonn CChhuurrcchhiillll


SUGGESTIONS or COMMENTS ?

Anything that will help improve and maintain traffic

safety, let us know. Email us at

[email protected]

STATUS REPORT OF REQUESTED WORK BASED ON SBMA TRAFFIC SAFETY BOARD MEETINGS FEBRUARY 2008

Replaced / installed with new and standard signage – “LEFT TURNER

MUST GIVE WAY” at the island of Maritan Hi-way (for vehicles turning left to Subic Bay Golf Course)

Installed / replaced old speed limit:

From 60 to 70 kph at Maritan Hi-way

From 60 to 70 kph at Rizal Hi-way starting from Kalalake Bridge downstretch to Maritan Highway

From 40 to 50 kph at Rizal Hi-way starting from Ritz Spa down to Park ‘n Shop

Installed “Intersection Ahead” sign at Canal Rd for vehicles coming from Manila Ave/Canal Rd approaching Labitan St – Canal Rd intersection.

Installed “KEEP RIGHT” with direction sign at the island of Labitan St along Dewey Ave (to avoid confusion for motorists taking the wrong lane)

Painted traffic pavement markings (thanks to Subic Chamber of Commerce for providing 5 gallons of traffic paint):

Added Dotted Edge line at Burgos St. in front of LED (to help motorists mistakenly using the road going to Grand Seasons but intending to go to the Freeport Exchange area and beyond)

Stop Line and word “STOP” on newly asphalted pavement (Canal Rd cor. Aguinaldo St; Dewey Ave cor. Aguinaldo St; Dewey Ave – Manila Ave intersection; and Dewey Ave near Kalaklan gate)

Painted new pedestrian lane at Dewey Ave in front of Subic Chapel.

Installed “TURN RIGHT ANYTIME WITH CARE” sign at Rizal Ave (for vehicles coming from Rizal Ave – Aguinaldo St intersection approaching/turning right to Burgos St)

Trimming of trees covering the “REDUCE SPEED” sign at Rizal Hi-way near Wistron.

Requested and got cooperation from LandBank to remove their signage from center island Rizal Ave across Times Square.

Trimmed/cut mangrove trees (bakawan) corner Canal Rd and Labitan St for improved line of sight of motorists crossing the intersection.

Requested and got the cooperation of contractor and developer of hotel project at Subic International Hotel lot along intersections of Canal Rd and Labitan St to move back construction fence.

Trimmed center island plants at Rizal Ave, Central Business District.

Hauled concrete barrier at Kalalake bridge near 14th St and replaced with reflective traffic cone (to avoid potentially fatal crash accidents on said barrier).

Installed “FLASHING YELLOW PROCEED WITH CAUTION” sign at Maritan Highway traffic light (both sides).

Replaced/installed new speed limit from 30 to 50 kph along stretch of Dewey Ave (from cor. Manila Ave) to Kalaklan gate.

“Whatever humans have learned had to be learned as a consequence only of trial and error experience. Humans have learned only through mistakes.” – Buckminster Fuller

TRAFFIC SAFETY BOARD Chairman Atty. Ruel John T. Kabigting Planning & Dev Office Manager

Board Members Atty. Ferdinand L. Hernandez DA for Admin & LED OIC Col. Eric Palabrica Intel & Investigation Office Manager Diosdado Santos Jr. Maint Dept OIC Dr. Solomon Jacalne Public Health & Safety Dept Manager Engr. Jocelyn Collins Transp & Telecom Dept Manager Prof. Danny J. Piano Subic Chamber Representative


Membership fee adjustments:

Corporate Members: P10,000 Associate Members: P 7,000

Last adjustment to membership fees was made in 2005. Due to increased operating costs and our attempts to increase the level of service, membership fees were disproportionate, allowing almost the same level of service to both Corporate and Associate members. For these reasons, we have had to make an adjustment to the rates, effective March 1, 2008.

SBFCC ANNOUNCES exclusive MEMBERSHIP CATEGORY

Members receive for one complete calendar year:

Ongoing recognition through banner ad on the SBFCC website;

Opportunity to display banners at all SBFCC events;

Live acknowledgement during SBFCC events throughout the year;

One year quarter page ad in monthly SBFCC Newsletter;

Logo inclusion of event t-shirts and on-site banners at special events;

Recognition as Silver Circle member in SBFCC Directory;

Recognition and banner placement as hole sponsor for Annual SBFCC Golf Tournament;

Unlimited mass emailing to all SBFCC members;

Two (2) players at the Annual Golf Tournament;

Priority endorsement of products to SBFCC members and third party inquiries

Two (2) Complimentary admission tickets to all monthly SBFCC social events

AAllll iinncclluussiivvee ppaacckkaaggee pprriiccee:: PPhhpp 5500,,00000000

GGOOLLDDEENN EEAAGGLLEE MMEEMMBBEERR FOR A 2ND CONSECUTIVE YEAR

COMPANY: GLOBAL TERMINALS DEVT INC. GLOBAL SHIP MANAGEMENT & MARINE SVCS INC.

Representative: ROSE B. BALDEO Type of Business: Marine Terminal Operation and Prime Real Estate

Development Address: Bldg. 12P Rivera Pier SRF Compound, SBFZ

Tel. No.: 252-7064; 252-3158

E-mail Address: [email protected]

SSIILLVVEERR CCIIRRCCLLEE MMEEMMBBEERRSS COMPANY: ABSOLUTE SERVICE INC. Representative: DANNY PIANO Type of Business: Data entry, typesetting, Pre-press Technology Services Address: Bldg. 1149 George Dewey Complex, SBFZ Tel. No.: 252-3934; 252-5235 E-mail Address: [email protected]

COMPANY: INNOVE COMMUNICATIONS Representative: JESSIE ALANO Alternates: DAX APOLINARIO / CATHY SALCEDA-ILITO Type of Business: Telecom Services Address: 15/F Globe Telecom Telepark

111 Valero St., Salcedo Village, Makati City Tel. No.: 0917-797-5282 (DA) E-mail Address: [email protected];

[email protected]

COMPANY: OCEAN ADVENTURE Representative: JOHN E. CORCORAN Type of Business: Marine Theme Park Address: Camayan Wharf, West Ilanin Forest Area, SBFZ Tel. No.: 252-9000 E-mail Address: [email protected]

COMPANY: PETRON FREEPORT CORPORATION Representative: JONATHAN GALBAN Type of Business: Retail of petroleum products Address: Rizal Avenue cor Argonaut Highway, SBFZ Tel. No.: 252-1858 E-mail Address: [email protected]

COMPANY: SUBIC ENERZONE CORPORATION Representative: ENGR. DANTE T. POLLESCAS Type of Business: Electric Distribution Address: Labitan St., Cor. Canal Road, CBD, SBFZ Tel. No.: 252-7398; 252-7392 E-mail Address: [email protected]


Our tentative April 18 Golf Tournament has been postponed for the time-being. Stay-tuned for details when the event

will be rescheduled.

NNEEWW MMEEMMBBEERRSS

COMPANY: FREEPORT INST. RESEARCH, SCIENCE &TECH (FIRST)

Representative: SOLEDAD M. CATLI Type of Business: Educational Institution; college, HS & elementary;

Offers 1 & 2 years technical courses Address: Bldg. Q 7931 A&B Manila Ave. Subcom Area, SBFZ Tel. No.: 252-2602 E-mail: [email protected]

COMPANY: INTERNATIONAL MANAGEMENT SYSTEMS MARKETING LTD.

Representative: BERNARD TETLOW Type of Business: International standards ISO certifications, ISO 9001:

14001: 22000: 22001: BS OHSAS 18001 Address: Subic Int'l Hotel, Sta. Rita Rd. CBD, SBFZ Tel. No.: 252-2222; 0929-328-1142 (BT) E-mail Address: [email protected]

COMPANY: LSL HEALTH SERIVCES

Representative: LEA DELOS SANTOS LAZONA Type of Business: Health Spa Address: Legenda Suites, Cubi Point Narra Bldg. Rm.7311, SBFZ Tel. No.: 252-2888 LOC. 7311 E-mail Address: [email protected]

MMEEMMBBEERRSSHHIIPP RREENNEEWWAALLSS COMPANY: AMERICAN HARDWARE COMPANY Representative: JOSEPH ALMEDA Type of Business: Warehousing/Retailing of Hardware Materials Address: Bldg 1109, Palm Street SBFZ Tel. No.: 252-7475 E-mail Address: [email protected] ; [email protected]

COMPANY: BRENT INTERNATIONAL SCHOOL SUBIC Representative: DICK ROBBINS Type of Business: International educational institution Address: Bldg. 6601 Binictican Drive, SBFZ Tel. No.: 252-6872; 252-6873 E-mail Address: [email protected]; www.brentsubic.edu.ph

COMPANY: CHINATRUST PHIL COMMERCIAL BANKING CORP. Representative: ED ENCIO Type of Business: Financial Services Address: Subic Bay Industrial Park Phase 1, SBFZ Tel. No.: 252-1381 / 1390; 0920-961-3909 (EC) E-mail Address: [email protected]

COMPANY: COLTRANS CARGO, INC. Representative: ANNA LIZA M. GARCIA Type of Business: Domestic and Int’l Forwarder and Brokerage Firm Address: Bldg. 1143 Rizal cor Argonaut Highway, SBFZ Tel. No.: 252-3452; 252-5978 E-mail Address: [email protected]; [email protected] COMPANY: DATAWORX OFFICE SOLUTIONS Representative: JAKE OH Type of Business: Computer Sales Parts Services, Supplies & Equipment Address: #16 MT. APO, 1ST ST., EAST TAPINAC, Olongapo City Tel. No.: 222-8707 E-mail Address: [email protected]; [email protected]

COMPANY: FOOD AND BEVERAGE SUBIC, INC. Representative: MARY ANN PASCUA Type of Business: Operations of ADIDAS Outlet, Tonton massage, Subic

Wines & Spirits, and Spanish Gate Restaurant Address: Bldg. 1143 Rizal cor Argonaut Highway, SBFZ Tel. No.: 252-5118 E-mail Address: [email protected]; [email protected]

COMPANY: IDESS MARITIME CENTRE (SUBIC) INC. Representative: CAPT. ROBERT K. RAYNER Type of Business: Maritime Training Center Address: Bldg. 2079 A & B, Nabasan Pier, Naval Mag. SBFZ Tel. No.: 252-3043 E-mail Address: [email protected] ; [email protected] ; [email protected]

COMPANY: ROYAL CARGO LINES, INC. Representative: THERESA ANGELICA M. AJERO Type of Business: Logistics and Transportation, int'l freight forwarding,

Warehousing, trucking and hauling Address: Lot 9-10 Greenwoods Park, Rizal Highway, CBD, SBFZ Tel. No.: 252-7834; 252-3907; 02-851-6229 E-mail Address: [email protected]

COMPANY: SUBIC TEHCNOPARK CORPORATION Representative: ICHIRO TSUJI Type of Business: Construction, Operation, Leasing, Maint and others Address: Subic Techno Center, Boton Area, SBFZ Tel. No.: 252-1708; 1709 E-mail Address: [email protected] ; [email protected]


PETER R. TUMANDA Phone No: 252-8137; 224-8084

SBFCC Corporate Secretary Fax No: 252-8137

President, ZEN STEP Professional Management Corp. E-Mail: [email protected]

Subic Loft Admin Building Canal Road cor Manila Avenue, Central Business District, SBFZ

Bus. Nature: Real properties management, company services

DANNY PIANO Phone No: 252-3934; 252-5235

SBFCC Treasurer Fax No: 252-3935

President / CEO, Absolute Service Inc. E-Mail: [email protected]

Bldg. 1149 George Dewey Complex, SBFZ Bus. Nature: Data Entry, Typesetting and Prepress Technology Services

JOHN E. CORCORAN Phone No: 252-9000

SBFCC President Fax No: 252-5883

President, Ocean Adventure/ Camayan Beach Resort E-Mail: [email protected]

Camayan Wharf, West Ilanin Forest Area,

SUBIC BAY FREEPORT ZONE

Bus. Nature: Marine Theme Park & Beach Resort Hotel

ROSE B. BALDEO Phone No: 252-3159; 7064

SBFCC Vice President Fax No: 252-3072

Pres.& CEO, Global Terminals & Dev., Inc. (GTI) E-Mail: [email protected]

Pres & CEO, Global Ship Management & Marine Services Inc.

Bus. Nature: General Shipping Agency & International Ship Supplier

12P Bldg. Rivera Pier, SRF Compound, SBFZ

RASHEDUL CHOWDHURY Phone No: 252-1340 252-1341

SBFCC Director Fax No: 252-1342

Vice President for Operations, D-J AEROSPACE, INC. E-Mail: [email protected]

#12 Aim High Corner Commitment St., SBIP, Phase 1, SBFZ Bus. Nature: Assembly of Aircraft Parts

STEVE J. HAUCH Phone No: 252-1310 252-7906


Vice President and Country Director, CORPORATE AIR, INC. E-Mail: [email protected]

Bldg. 8128 Subic Bay Int'l Airport, SBFZ Bus. Nature: Air Charter

DANTE T. POLLESCAS Phone No: 252-7392 / 7398


VP and General Manager, SUBIC ENERZONE CORP. E-Mail: [email protected]

Labitan St., Cor. Canal Road, CBD, SBFZ

Bus. Nature: Electric distribution

Documents

The 3rd Annual SOFA - sbfcc.comsbfcc.com/newsletters/Mar2008.pdf · and Jolibee for the sandwiches. Photos by DWB Marketing and Advertising . MARCH 2008 SBFCC Newsletter 2 ... that