Subic investments surge to P100 B

MANILA, Philippines – Investments approved by the Subic Bay Metropolitan Authority (SBMA) surged to P100 billion in the first seven months of the year, one of the biggest half-year investment turnouts for the free port since its establishment in 1992.

SBMA said the new investments generated in the first seven months were more than double compared to the P42 billion worth of projects the agency has received and approved in the first half of the past four years.

SBMA chairman Roberto Garcia said growth this year was fueled by several big-ticket projects.

He said the biggest of these projects is the P60-billon joint venture by an Australian firm with Asian Institute of Aviation, an existing locator at the Subic Bay airport.

“They would transport agricultural products from Australia, mostly meat and seafood, repack them here, and then fly or ship them out to customers worldwide,” he said.

Garcia said the partners would put up an intermodal cargo terminal using both airport and seaport, and is expected to turn out around 60 containers per month for the Subic seaport.

The project would also involve building new hangars as the investors would bring in seven jets for their operations and offer maintenance and repair operations for jets, mostly from Hong Kong.

“So that is going to be a big help. Their investment is going to be P60 billion for this project alone, and it will generate 800 jobs, not counting those for the construction work,” he said.

Garcia said the project, which would occupy the northeast corner of the Subic airport, would not affect the proposed use by the Philippine Air Force of the southwest portion of the Subic airport for military training and logistics under the Expanded Defense Cooperation Agreement.

Aside from the P60-billion project, the SBMA board has also approved an industrial estate project worth P34 billion in a 400-hectare area in the Redondo Peninsula, near the site of the Hanjin shipyard.

The proposed industrial estate project will include the development of a 200-megawatt solar plant and the construction of warehouses and logistics facilities as well as the establishment of factories.

SBMA said the project would generate around 53,000 jobs.