SBMA eyes $1.9-billion new investments this year

SUBIC BAY FREEPORT , Philippines  – The Subic Bay Metropolitan Authority (SBMA) expects to get at least $1.9 billion worth of investments this year after a dismal 2009 performance.

In a press conference, SBMA Administrator Armand C. Arreza said that 2010 will be a better year in terms of investments given that they expect the completion of the implementing rules and regulations (IRR) of EO 675 which provides for incentives for areas outside the Subic Bay Freeport Zone including Olongapo City.

Arreza said that the investments will mainly come from two Korean firms and the Ayalas. He reported that their three big investors for the year are Subic Neocove Corp., M Castle and the Ayalas.

Subic Neocove will be investing a total of $1.090 billion for their tourism and leisure project which will be located in Cawag. The first phase of the investment, which includes the construction of an island resort including hotel and condominium, a golf course and a water park will cost $312 million. The groundbreaking for the project will be held next month.

The Ayala mall is worth P3 billion. Construction is set to begin in March. Additional investments from Ayala is expected once the IRR is passed. Arreza said that the Ayalas have already commissioned a commercial development study.

Arreza said that it is good to invest in Olongapo because they can own the land in Olongapo compared to Subic which is only under lease agreements.

The third big project is the Korean M Castle in Morong. The investment is worth $1 billion which will be spread over 10 years. Arreza described the investment as a resort development. It will be located in a 560 hectare land.

Aside from this, Arreza announced that they will be privatizing the New Container terminal 2 (NCT 2). He said that they have received an unsolicited proposal from Harbor Center. The contract is worth almost P5 billion and is divided in three phases.

“They will improve storage facilities,” he said. He noted that the North Harbor is already operating at capacity that is why there is a need to improve the Subic facility.

Arreza said that another oil depot will be constructed and a fertilizer and grain terminal.