Transcript www.mysubicbay.com.ph

MARCH 17, 2015
Presented by
ROBERTO V. GARCIA
Chairman and Administrator, Subic Bay Metropolitan Authority
The Philippine
Economy in 2014
THE GOOD NEWS
“The Philippines is the Next Asian Miracle
and a global model in fighting corruption, as
it emerges from decades as a regional
economic laggard.”
Jim Yong Kim
World Bank President
July 15, 2014
3
PH GDP growth is second only to China in Asia
2000 - 2014 PH GDP Growth
PH GDP Growth
2010
7.7%
2011
3.7%
2012
6.8%
9.0
8.0
7.0
6.0
5.0
4.0
2013
3.0
7.2%
2.0
2014 (FY)
1.0
6.1%
0.0
2014 (4Q)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
6.9%
Source:
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Y
4
Ease of Doing Business in PH improves
World Bank
Ease of Doing Business
Report 2014
+30
Out of 189 countries:
From #138 to 108
+6
Out of 148 countries:
From #65 to 59
+5
Out of 152 countries:
From #61 to 56
+10
Out of 177 countries:
From #107 to 97
World Economic Forum
(2013/2014)
Global Competitiveness
Index
Economic Freedom of the
World
2013 Annual Report
2013 Index of Economic
Freedom
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PH becomes more competitive
PHL Jumps to 59th in
Competitiveness Index
Country
Rank
Singapore
2
South Korea
23
Malaysia
24
China
29
Thailand
37
Indonesia
38
Philippines
59
Vietnam
70
Cambodia
80
Laos
81
Source: RAPPLER.COM
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Credit rating encourage investors in PH economy
2013
2014
BBB-
BB+
Outlook:
Stable
BBB
BBB-
Outlook:
Stable
Baa3
Ba1
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Outlook:
Positive
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PH: Asia’s most popular expansion destination
Source: Survey Conducted by the US Chambers of Commerce in ASEAN, Manila
Bulletin, September 4, 2012
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Philippines hits highest FDI
2014
US$ 6.2 B
(63% higher than 2013)
2013
US$ 3.8 B
2012
US$ 3.2 B
2011
US$ 2.0 B
2010
US$ 1.1 B
Source:
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SBMA TODAY
Key Performance Indicators
Revenues Per Strategic Business Unit
Big revenue gains across all Freeport business sectors
FPI
2013
2014
Variance
Maritime &
Logistics
626.55
908.60
45%
Industrial &
Commercial
Leases
996.86
1,115
12%
Tourism
12.15
19.61
61%
Total Operating
Revenues
2,013
2,442
21%
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I. Maritime / Logistics Strategic Business Unit
2014 vs. 2013
Classification
2013
2014
Variance
Actual Revenues
PHP626 M
PHP908 M
45%
Containerized Cargo
(in TEUs)
37,469
77,177
105%
Non-containerized
Cargo (in MTs)
2,404,649
6,112,644
154%
No. of Ship Calls
2,177
2,591
19%
Gross Registered
Tonnage
33,591,875
40,147,025
20%
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Port Expansion
 Active participation in the Cabinet Cluster on Port Congestion and
implementation of E.O. 172, designating Subic as alternate to Port of
Manila
 To attract more shipping lines, harbor fee and berthing fees were reduced
by 83% and 88%, respectively for a period of six (6) months
 Hosting of “Traffic Summit” with operators and drivers of cargo-hauling
companies to discuss measures on ensuring efficient traffic flow of
container trucks in the Freeport and avoiding congestion
 Aggressive marketing to increase port volume through speeches with the:
 Association of International Shipping Lines
 Chamber of Accredited Customs Brokers
 Clark and AFAB locators
 Philippine Ship Agents Association
 8th Philippine Ports Authority Conference on Shipping and Ports
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SUBIC PORT IS NOW CONNECTED TO THE WORLD!
NYK
SITC
MAERSK
APL
WAN HAI
Kaohsiung
Manila
Tanjung
Subic Bay
Kaohsiung
Subic Bay
Subic Bay
Manila
Manila South
Manila North
Manila
Jakarta
Subic Bay
Singapore
Manila South
Ho Chi Minh
Xiamen
Singapore
Surabaya
Subic Bay
Singapore
Busan
Jakarta
Kaohsiung
Hong Kong
Osaka
Manila North
Surabaya
Cebu
Keelung
Shimizu
Manila South
Busan
Laem Chabang
Taichung
Nagoya
Shanghai
Vostochiniy
Batangas
Port Kelang
Yokohama
Ningbo
Nansha
Busan
Taipei
Yokkaichi
Hakata
Tagoloan
Tokyo
Kobe
Hong Kong
Yokohama
Tokyo
Chiwan
Nagoya
Laem Chabang
Malalag, Davao
Chiba
Shanghai
Yokkaichi
Shekou
Cebu
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II. Industrial & Commercial Leases Strategic Business Unit
Investment Promotion
KPI
2013
2014
2014
vs 2013
Total Approved
Committed
Investments
(NEW PROJECTS)
PHP 3.6 B
PHP 18.5 B
414%
Cumulative
Investments
(1992-2014)
US$ 8.7 B
US$ 9.1 B
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N
A
5%
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Territorial expansion under E.O. 675 in cooperation
with Local Government Units
 10,000 hectares in San Antonio,
Zambales, ideal for tourism and
resort development
THIS SITE
 50 hectares of coastal land in Subic,
Zambales, ideal for shipbuilding and
ship repair
 400 hectares of land in Castillejos,
Zambales, viable for industrial
development for light manufacturing
THIS SITE
industries and warehousing
 900 hectares of Olongapo City
viable for commercial / residential,
mixed
use,
and
eco-tourism
development
THIS SITE
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2014 Industrial and Commercial Development
 PHP 11.4 B committed investment
 356 jobs for manufacturing sector
 388 jobs for commercial sector
 HANJIN additional jobs in 2014: 7,537
Total no. of workers: 25, 704
Investment Promotion Initiatives
 Supreme Court ruling upholding RP Energy’s coal power in Barangay Cawag,
Subic, Zambales paving the way for the construction of the plant which will
provide adequate and lower priced power to the Freeport.
 Pastolan Ayta community’s approval of a US$200-million renewable energy
project in an 800-hectare area within the Aytas’ ancestral domain in SBFZ
 An increase in Hanjin’s production, from 9 vessels in 2013 to 22 vessels in 2014,
with a corresponding increase of 48% in export value, from US$440 million in
2013 to US$853 million last year
 Increase in Vale’s transhipment operations by 19%.
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III. Tourism Strategic Business Unit
TOURISM TRAFFIC (ARRIVALS VIA SCTEX ONLY)
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U
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B
A
Y
YEAR
VISITOR
ARRIVALS
2013
5,697,554
2014
6,398,376
TOTAL
12%
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Meetings, Incentives, Conventions, and Exhibitions
2014 vs. 2013
MICE & Special Events
Classification
2013 2014
No. of Participants
Variance
2013
2014
Variance
13,485
26,050
93%
International
4
10
150%
Local
190
268
41%
113,459 219,795
94%
TOTAL
194
278
43%
126,944 245,845
94%
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Sports Events and Participants Count
2014 vs. 2013
Sports Events
No. of Participants
Classification
2013
2014
Variance
International
18
17
Local
37
TOTAL
55
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B
I
C
B
A
Y
M
E
2013
2014
(6%)
12,485
21,870
75%
59
59%
30,730
21,830
(29%)
76
38%
43,215 43,700
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Variance
O
1%
R
I
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Completed Leisure Projects in 2014
 Freeport Elite Resort, Inc.
 Completed 80-room
December 2014
condotel
facility
in
opened
in
 Actual Investment: PHP208 million
 Mansion Garden Hotel
 New 450-pax function
December 2014
room
 2nd hotel facility to open in April 2015
 Subic Grand Harbour Hotel
 New 70-room hotel opened in December 2014
 Actual Investment: PHP95 million
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Completed &/or expanded Leisure Projects in 2014
 Sun Plaza Subic
 37 condotel units opened in August 2014
 Actual Investment: US$3 million
 Wow World
 Olympic-sized swimming pool opened in May 2014
 Actual Investment, including
building: PHP46 million
new
commercial
 Interpark Hotel
 54-room expansion completed in 2014
 Construction of commercial spaces to be complete
in 2015
 Moonbay Marina Villas
 15 new villas completed in 2014
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Tourism Strategic Initiatives
1. 2014 DOT Region III Report
 SUBIC IS THE NO.1 tourist destination in Central Luzon with 1.2 million
tourists followed by Clark with 621,000.
 Subic enjoyed the highest hotel occupancy rate in Central Luzon at 69% vs.
the average of 62%.
2. Signing of a 3-year MOA with the prestigious Century Tuna IRONMAN 70.3,
together with the widely acclaimed Summit 5150, TRAP, and Tri-United, making
Subic the undisputed “Triathlon Capital of the Philippines”.
3. Subic is now also known as the “Theme Park Capital of the Philippines” and the
“Sailing Capital of the Philippines”.
4. Holding of the “Advertising Summit,” the most prestigious MICE event.
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Good Governance Initiatives
Improved Peace & Order
2007 – 2014 COMPARATIVE CRIME VOLUME
350
295
300
250
195
200
150
128
116
106
100
50
47
38
2012
2013
31
0
2007
S
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I
2008
C
B
A
2009
Y
M
E
2010
T
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P
2011
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N
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U
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H
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2014
R
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Y
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Improved Security
 Delivery and deployment of 8 brand new service vehicles to the Law
Enforcement Department (LED) to augment security efforts in the Freeport
 Recognition by the PNP’s Anti-Illegal Drug Special Operation Task Force of
LED’s “valuable and outstanding support” to the seizure of PHP2.5 billion worth
of shabu in Subic, Zambales.
 Substantial decrease of 75% in crime volume from 2010 to 2014
 Implementation of new traffic rules and higher penalties to improve traffic
discipline
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National Government and LGU Shares
Allocation
from 5%
Corp. Tax
2011
National
2012
2013
2014
vs
2013
2014
PHP199 M
PHP187 M
PHP211 M
PHP298 M
41%
LGUs
145 M
139 M
156 M
199 M
28%
TOTAL
344 M
326 M
367 M
497 M
36%
(3%)
(2%)
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GOOD GOVERNANCE
Jobs, Exports and Govt. Collections
2014 vs. 2013
KPI
2013
2014
Variance
Employment
89,584
96,958
9%
US$ 1.4 B
US$ 2.3 B
58%
BIR Cash
Collection
PHP 1.4B
PHP 1.8B
27%
BOC Cash
Collection
PHP 11.3B
PHP 15.3B
36%
Export
(FOB-US$)
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Good Governance Initiatives
 Managements efforts to upgrade employees salaries resulted in the President’s
approval of the 10% increase retroactive to January 2013 with back wages of PHP48
million. The last salary increase of employees was 6 years ago.
 Management has further budgeted in 2015 a total of PHP400 million in salary
increase under the Standard Salary Law retroactive to 2009.
 SBMA gave PHP243 million in dividends to the National Govt.. SBMA ranked No. 9
among the 39 GOCCs after not having remitted dividends since 2004.
 Institutionalization of Integrity Program in SBMA and signing of Integrity Pledge by
Freeport locators as a shared commitment to adhere to ethical business practices
 Signing of IRR with the Pastolan Aetas and NCIP, thus paving the way for the full
implementation of the Joint Management Agreement
 Holding of First Women’s Summit in SBFZ to promote the welfare and development
of womenfolk
 Renewal of ISO 9001 certification due to no major audit deficiencies
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Environmental Protection
 Strict implementation of Permit to Transport Effluent and Sewage
 Donation from the proceeds of the Chairman’s golf tournament of 2 military jeeps
now used for forest patrols to eradicate illegal logging and kaingin practices
 Launch of Ecology Dept.’s Guard My Nest sea turtle conservation program for
stakeholders to make their establishments more pawikan-friendly
 Increase in the following environmental protection efforts:
 17% in the number of trees planted in the Freeport;
 250% in the number of biodiversity inspections/monitoring activities of the MultiTripartite Monitoring Team; and
 120% in the Ecology Dept.’s Terrestial Conservation Monitoring activities
 Holding of First Water Summit
 Participation of SBMA in the International Coastal Clean-up activity
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Other Accomplishments
 Hosting of the International Network of affiliated Ports (INAP)’s 16th General
Assembly and Symposium, focusing on mutual opportunities and cooperation in
light of the ASEAN Integration
 Elevation of the SBMA Rescue Team to the Hall of Fame of Gawad Kalasag
Best Government Emergency Response Team
 Increase of 22% in the Freeport’s active manpower employed in the shipbuilding
and other marine-related services sector, 16% in the domestic
helpers/caretakers sector, and 14% in the services sector
 Improved environment and beautification of the Freeport through continuous
implementation of Operation Facelift.
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Financial Performance
2014: A Third Record Year
Millions
SBMA GROSS REVENUES
2014 is HIGHEST ever.
2,600.00
2,442
2,100.00
2,020
1,600.00
1,410
1,400
1,670
1,600
1,560 1,540
1,500
1,570
1,420 1,400
1,340
1,310
1,630
1,570
1,470
21%↑
1,180
1,100.00
800
610
600.00
420
200
100.00
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(400.00)
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SBMA GROSS REVENUES
2011-2014
Millions
Existing Revenues
New Revenue/Cost Recovery Initiatives
3,000
2,441.61
2,500
2,019.96
846.67
(35%)
2,000
1,627.38
1,398.77
1,500
544.90
(27%)
184.02
(11%)
0.00
(0%)
1,000
1,398.77
(100%)
1,443.35
(89%)
1,475.06
(73%)
2011
2012
2013
1,594.94
(65%)
500
0
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N
2014
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SBMA OPERATING INCOME (EBITDA)
2014 is HIGHEST ever.
Millions
1500
1391
1250
1000
↑
920
51%
869
779
750
795
750
653
589
627
550
500
435
338
361
475
406
359
341
367
329
240
250
183
39
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization
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SBMA NET INCOME
2014 is HIGHEST ever.
Millions
3000
2500
2000
1,556
1500
1,110
1000
40% ↑
800
500
245
2
135 170
33
8
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-102 -233
-417
-185 -73 -35 -82
-138
-106
-500
-1000
-928
-1,203
-1500
-1,119
-2000
-2500
-2,540
-3000
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BENCHMARKING
SBMA is the largest and most progressive Freeport
PHILIPPINE ECOZONES & FREEPORTS
Particulars
SBMA
PEZA
CDC
CEZA
AFAB
PPMC
TOTAL ASSETS
28,089,039,000
5,971,132,000
5,722,137,240
TOTAL
LIABILITIES
11,114,149,000
1,718,146,000
2,228,207,702
287,658,000
524,169,802
36,422,074
TOTAL EQUITY
16,974,890,000
4,252,986,000
3,493,929,538
5,188,225,000
978,774,109
60,771,144
REVENUES
2,954,140,000
7,979,394,000
1,303,999,000
492,963,000
823,966,671
66,259,000
EXPENSES
1,788,292,000
6,501,079,000
947,032,677
209,862,000
816,436,539
69,215,000
NET INCOME
(LOSS)
1,110,450,000
1,036,920,000
331,736,917
200,338,000
7,530,133
(4,278,035)
5,475,883,000 1,502,943,911
97,193,218
Source: COMMISSION ON AUDIT
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2014 Approved Investments
(In PHP Million)
18,440.1
13,040.9
2013
2014
3,582.8
3,392.5
1,153.4
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B
I
C
B
A
Y
M
E
T
R
O
P
619.0
O
L
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N
A
U
T
H
O
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SBMA Prospects
2015 and Beyond
Projected Economic Growth
Philippines is expected to register the 3rd highest GDP growth in the world!
Projected Change in REAL GDP in 2015
Country
GDP
China
7.1%
India
6.4%
PHILIPPINES
6.2%
USA
3.1%
UK
2.7%
Canada
2.4%
Japan
0.8%
Source: WORLD ECONOMIC OUTLOOK, Oct. 2014
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What We Face in 2015
THREATS
 Looming power shortage in Luzon and Visayas this summer due to inadequate
power capacity and high power demand during summer
 Effect of Fiscal Incentives Rationalization bill on non-PEZA enterprises located
inside economic zones and free ports
 National Government’s study to build a “mega port” outside Metro Manila in
anticipation of container volume build-up in 5-8 years
 Political activities in anticipation of 2016 National and Local Elections
 PHL’s 101st ranking out of 144 countries in terms of port infrastructure, which is
the lowest among the ASEAN-6 (Source: 2014 WEF Global Competitiveness Index )
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What We Face in 2015
OPPORTUNITIES
 SBFZ’s role in ASEAN Integration as an extension of the Port of Manila, transshipment
hub, logistics center, manufacturing base, and cruise destination
 Congestion in the Ports of Manila, Batangas, and Cebu
 Major PPP projects by the National Government in the offing, like the Tarlac-PangasinanLa Union Toll Expressway and the NLEX-SLEX Link Connector, both of which will improve
the Freeport’s accessibility
 Integrated and simplified NLEX-SCTEX toll payment system to be completed before end2015
 Inclusion of Subic with the ports of Davao, Bohol, Boracay, Cebu, Metro Manila, Puerto
Princesa, and Zamboanga in PPA-DOT’s list of eight (8) ports billed as the country’s top
international hubs for cruise liners
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2015 Strategic Initiatives
Strategic Directions
 Move from over-regulation to developmental mode
 Expand Freeport area to accommodate more investors
 Capitalize on Philippines economic boom by aggressive marketing of
the Freeport to attract more investments
 Focus on game-changing projects
 Institutionalize Good Governance initiatives
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I. Maritime/Logistics Strategic Initiatives
1.
Aggressive promotion of the Freeport Container Terminal to increase
capacity utilization, targeting at least 120,000 TEUs or 20% utilization
2.
Expand Tipo Road to ease expected traffic congestion
3.
Initiate feasibility study on expansion of container port to 1.2 million
TEUs, as well as new bypass road to connect directly to SCTEX
4.
Hold 2nd Maritime Summit in April 24 to convince more Central Luzon
shippers to use Subic Bay
5.
Support Hanjin, as well as the other boat builders, to further expand
their operations and employment
6.
Support VALE, as well as other logistics hub enterprises, to expand
operations
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II. Industrial and Commercial Leases Strategic Initiatives
1.
Initiate the development of additional industrial parks, totaling at least
500 hectares, to accommodate new investors in cooperation with
LGUs with suitable areas
2.
Attract big BPOs to locate in the Freeport, targeting at least 15,000 call
center agents in the next 3 years
3.
Promote the Freeport among residential developers for additional
housing
4.
Bring in high value added and high technology industrial firms
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III. Tourism Strategic Initiatives
1.
Aggressively market the Freeport to increase MICE and sports events
2.
Launch a branding and promotional campaign to project tourism
potential of the Freeport
3.
Participate in important trade fairs to generate interest in the Freeport’s
tourism programs
4.
Renovate SBECC and other tourist facilities
5.
Continue promoting the Freeport as the Theme Park, Triathlon,
Sailing, and Sports Capital of the Philippines.
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Ongoing Leisure Projects for completion in 2015
 Edgewater Int’l. Trade & Development Corp.
 32-room hotel
 Committed Investment: PHP20 million
 Subic Bay Peninsular Hotel
 Total of 90 hotel and function rooms
 Vascos Hotel and Restaurant
 Expansion from 14 to 22 hotel rooms
 Grand Pillar International
 Four-storey building with swimming pool and elevator
 Est. Total Project Cost: PHP240 million
 Sands of Triboa Resort
 Phase 1: 110 world-class hotels and resort rooms
 Total Projected Investment, including residential development
project for completion in 2019: PHP659 million
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Good Governance Strategic Initiatives
1.
Make business environment more friendly and convenient for locators
with new CRTE process
2.
Further improve employees’ salaries by securing DBM/OP approval of
SSL in 2015
3.
Formulate new organizational set-up for better focus and efficiency of
operations
4.
Continue crusade against corruption by getting all stakeholders to sign
Integrity Pledge
5.
Continue to improve peace and order in the Freeport by further
reducing crime rates and protecting our forests and waters.
6.
Invest PHP800 million CAPEX to upgrade long neglected equipment
and infrastructure
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2015 CAPEX PROGRAMS
1 ROAD AND BRIDGES PROJECT
NSD Road Network
Detailed Engineering of Magsaysay Bridge
Rehabilitation of Aparri Road
44 sets of unified directional signages
2 PORTS IMPROVEMENT
Enhancement of Off-shore Approach Light Barette Steel Piles
Refurbishment of airfield signage and markers
Rehabilitation of rubble mound for barette light runway 07
Strengthening of Existing Seawall at GTI Area
Connection of Permanent Power Supply @ NSD New Warehouse
3 ENHANCEMENT OF SBMA OPERATIONS
Biometrics Timekeeping
ERPS
Desktop Computers and other related IT Equipment
Construction of Storage Area
Construction of Toll Booth at Tipo
4 PURCHASE OF SERVICE VEHICLES
30 units of CUV/Pick up/Passenger Van/AUV
2 units of bus/mini-bus
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U
53.0
37.5
4.4
9.8
1.3
11.8
2.5
3.0
4.0
1.0
1.3
111.7
1.9
50.0
58.0
1.5
0.3
49.6
37.6
12.0
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2015 CAPEX PROGRAMS
5 SECURITY AND SAFETY PROJECTS
70.4
5 units of patrol boat/rubber boat/dive boat
8.6
CCTV
60.0
Rifles and ammunitions
0.9
2 units highway patrol
0.9
6 IMPROVEMENT OF SBMA SERVICES
51.1
11 units Heavy Equipment (dump truck, dropside, compactor)
51.1
7 DISASTER READINESS (RISK REDUCTION)
62.0
I unit of Structural Fire Truck
32.0
3 unit of military/stake truck
24.0
I unit of ambulance
6.0
8 CORPORATE SOCIAL RESPONSIBILITY
12.0
Construction of two (2) Classroom HS Building and Clinic at Pastolan
12.0
9 COMPLIANCE WITH NATIONAL DEVELOPMENT PROGRAM
2.0
Gender and Development/Day Care
2.0
10 OTHERS
S
400.8
SBMA Corporate Center
400.8
TOTAL
836.3
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Focus on inclusive growth over the next 5 years
INDUSTRY SECTOR
SOURCE
NO. OF
JOBS
NATURE OF JOBS
TOURISM & SERVICES
10,000
HRM, Hotel Staff, Chefs, Nutritionists,
Back Office
SHIPBUILDING
10,000
Welders, Painters, Design Engineers,
Naval Architects, Scaffolders
20,000
Call Center Agents, IT Technicians,
Design Engineers, Web Design
Specialists, Medical Transcriptionists
BPO
MANUFACTURING
5,000
Factory Workers, Technicians,
Production and Quality Supervisors
MARITIME & LOGISTICS
5,000
Warehousemen, Shipping Specialists,
and Customs Brokers
TOTAL: 50,000 JOB PROSPECTS
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SBMA contribution to the National Economy
2014 vs. 2013
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KPI
2013
2014
Variance
BOC
Php11.2B
Php15.3B
36%
36%
BIR
Php1.4B
Php1.8B
27%
Govt. 3%
GIE share
Php211M
Php298M
41%
LGU 2%
GIE share
Php156M
Php199M
28%
Dividends
0
Php243M
TOTAL
Php12.96B
Php17.84B
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38%
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THE GOOD NEWS
“The good news never gets old because it just
keeps getting better for the Philippines.”
(President Aquino in his roundtable discussion with CEOs and senior
officials from the US Chamber of Commerce and the US-ASEAN
Business Council in New York on September 23, 2014)
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