MANILA, Philippines – Diversified conglomerate San Miguel Corp. (SMC) is expected to invest about P60 billion in various developments in the Freeport Area of Bataan (FAB).
In a briefing yesterday, Authority of the Freeport Area of Bataan (AFAB) chairman and administrator Deogracias Custodio said a subsidiary of SMC EFARE Investment Holdings Inc. secured last year the go signal to develop a 500 hectare property in the Bataan Freeport into an industrial park.
SMC is seen to spend P40-to P50-billion for the construction of a 600-megawatt coal-fired power plant within the FAB.
Aside from the industrial estate and the power plant, SMC is also expected to expand its feeds plant in Mariveles at a cost of P2.21 billion.
“San Miguel’s B-Meg is at least doubling (the capacity) of their plant. They plan to register the plant with us. The existing one is registered with the Board of Investments but the expansion will be under AFAB,” Custodio said.
SMC is one of the country’s largest conglomerates with interests in food, beverage, infrastructure, packaging, oil refinery, beer, and power.
AFAB expects approved investment pledges to reach P7 billion this year, up 13 percent from the previous year driven by the continued entry of manufacturing firms.
“We’re looking at establishing ourselves as a BPO player also. Right now, the growth is still in manufacturing such as bag and shoe manufacturing,” Custodio said.
As of the first quarter, AFAB had already approved P194 million worth of foreign direct investments in the Freeport, majority of which comprise BPO firms.
“The Freeport Area of Bataan has been generating strong interest from the global investment community with its buoyant business environment and strengthened positioned as one of the best investment destinations in the country. The confidence of the investors was reflected in the investment pledges poured into the Freeport,” Custodio said.
From 2010 to April this year, the total investment pledges approved by the agency reached P107 billion.
Custodio has assured existing locators as well as potential investors that AFAB would speed up infrastructure developments and further improve ease of doing business to sustain the Freeport’s growth momentum.
The FAB is envisioned to become the country’s fashion manufacturing hub as it possesses a budding cluster of companies producing high-end brands of garments, apparel, shoes and accessories.
A total of 114 locators were registered in the Freeport as of December last year. These include Korean, Taiwanese, Chinese, American, Japanese, British, Bahrainese, French and German businesses.
Custodio said FAB will have secured and affordable power supply in the next five years with at least two major power plants underway which include the expansion of the existing 600 MW GN Power Mariveles coal plant.
The expansion will be done in two phases with the first 600 MW unit scheduled for commercial operations in December 2018 while the second unit is targeted to be operational in January 2020.
Project proponents are the US-based GN Power, owned by Nauruan-American firm Power Partners Ltd. Co.; Sithe Global Power LLC, a company owned by investors of The BlackStone Group; and AC Energy Holdings Inc., the power unit of the Ayala Group.
Custodio said FAB expects new locators and further expansion from existing locators especially with the recent completion of the Mariveles dry bulk terminal, which was developed by Seaasia Nectar Port Services Inc.