SBMA puts on hold investment proposal

MANILA, Philippines - The Subic Bay Metropolitan Authority (SBMA) has put on hold the P90 million investment proposition of Amerasia International Terminal Services Inc (AITSI) in the freeport zone following the negotiations between SBMA and Harbour Centre for the operations and managements of the ports in Subic.

In a press conference, Eulalio A. Ventura, legal counsel for AITSI said that two years ago they approached SBMA for a possible P90 million investment to construct a warehouse. However, he said SBMA has put it on hold.

At the same time, AITSI is questioning the agreement between SBMA and Harbour Centre because the deal will in effect give an exclusive contract to Harbour Centre to operate the ports of Subic. Harbor Centre submitted an unsolicited proposal to SBMA for the port operations. Under the law, a Swiss Challenge must take place to give other players the chance to participate.

Ventura said that it is against the law to effectively grant a monopoly to one player. AITSI is currently operating in Subic. He explained that they are asking for a public hearing on the matter before the scheduled Swiss Challenge on April 4.

He said that they have already written to SBMA but the agency has yet to schedule a public hearing. Ventura warned that they will go to court if SBMA ignores them.

Likewise, Ventura stressed that it is not correct to say that SBMA will receive more from the Harbour Centre contract because the proposal is only for P25 million for the first year of operations while the current players remitted $800,000 last year.

Also, Ventura feared that tariff rates might go up once Harbour Centre takes over because of a Board Resolution passed by SBMA stating that it gives the operator the flexibility to adjust tariff rates provided that it will not exceed 95 percent of the PPA approved tariffs in the Port of Manila.

Under the proposal, Harbour Centre said they will invest P5.5 billion for phase one which involves the redevelopment of the whole naval and supply depot break (NSD).

For his part, SBMA Administrator Armand C. Arreza said that the proposal of the firm owned by the Romero family will greatly benefit Subic because it guarantees that it will increase their revenue by P7 million during the first year of operations.

Currently, the NSD earns P18 million annually. The proposal of HCPTI guarantees that the SBMA will get P25 million in the first year. It will escalate to P30 million in the second year, P35 million in the third year and so on until P75 million.