“My creed is that public service must be more than doing a job efficiently and honestly.
It must be complete dedication to the people and to the nation with full recognition that every human being is entitled to courtesy and consideration, that constructive criticism is not only to be expected but sought, that smears are not only to be expected but fought, that honor is to be earned, not bought.”
- Margaret Chase Smith
3 4 All of You … like a big ship A big applause for the men & women SBMA…
The ‘Crew’ of this ship Policy Reforms & Good Governance
Freeport Sustainable Expansion development
Build, Build, Safety & Build Security 10 POINT Program Tourism Community Star Engagement
FDIs & Locator Service MSMEs Excellence
Subic Freeport as gateway 8 Policy Reforms and Good Governance
Non-extension of locators’ project development schedule Stringent policy to collect SBMA receivables, as approved by the BOD Revocation of Dynamic Konstruk’s lease and development agreement due to project proponent’s failure to meet its obligations Repossession of SBMA facilities (SUBAC / Museum / Comteq) Transfer of signatory and release of CRTEs to the Office of the Chairman and Administrator
SUBIC BAY METROPOLITAN AUTHORITY 9 Sustainable Development
Approval of SBMA Environmental Policy in preparation for ISO 14001:2015 Standards International Coastal and River Clean-up Drives Declaration of SBFZ as a non-smoking environment in compliance with Executive Order 26 Second ASEAN Mangrove Congress Third Arbor Day Celebration (5,000 trees planted)
SUBIC BAY METROPOLITAN AUTHORITY 10 Safety and Security
RESCUE AND DISASTER PREPAREDNESS
KPI 2016 2017 Var Var. %
No. of Major Event Responses SBFZ 3 2 1 33% Average Response Time (min) 3.5 1.5 2 57% Target Response Time (min) 7 7
8 36 CRIME VOLUME 42 11 7 4 3 1 3 7 8 2016 3 1 0 6 2017
BREAK-INS THEFT ROBBERY STOLEN MURDER / BUKAS UNAUTHORIZED ELECT HOMICIDE KOTSE FISHING WIRES
SUBIC BAY METROPOLITAN AUTHORITY 11 Safety and Security
SBMA’S DISASTER RESILIENCY AND PREPAREDNESS PROGRAM Reconstitution of the Subic Bay Disaster Risk Reduction and Management (DRRM) Committee Freeport Simultaneous Earthquake Drill
Trained 9,186 participants in various DRRM Capacity Enhancement Programs
FREEPORT-WIDE IMPLEMENTATION OF ANTI-DISTRACTED DRIVING ACT
STATE OF THE FREEPORT ADDRESS 12 Community Engagement
INDIGENOUS PEOPLES’ WELFARE International Finance Awards 2017 for Best Social Responsibility Initiative for Tripartite Joint Management Agreement among SBMA, National Commission on Indigenous Peoples, and Tribung Aeta Ambala ng Pastolan Celebration of October as Indigenous Peoples’ Month Seminars on Climate Change and Drug Abuse Prevention for young Aetas Educational tours for Kanawan, Kawag, and Olongapo Aeta children
SUBIC BAY METROPOLITAN AUTHORITY 13 Community Engagement
OTHER MARGINALIZED SECTORS Red Cross 143 Seminar for waste and landfill pickers Medical mission for fisher folks’ families Dialogue with fisher folks’ leaders on Ship-to-Ship Transfer operation of Liquified Natural Gas (LNG) in Subic Bay Freeport
FIRST FREEPORT COOPERATIVE DEVELOPMENT CONFERENCE
SUBIC BAY METROPOLITAN AUTHORITY 14 Community Engagement
BUSINESS COMMUNITY First Freeport Occupational Health and Safety Town Hall Meeting SBMA Mabuhay Awards Program WORKFORCE Ten Outstanding Freeport Workers Subic Bay Freeport Labor Congress Job Fair and Oratorical Activity RESIDENTS Residents’ Forum in Kalayaan and Binictican areas TOURISM STAKEHOLDERS Seminar on Service Excellence in Tourism
SUBIC BAY METROPOLITAN AUTHORITY 15 Community Engagement
ADJACENT LOCAL COMMUNITIES Stronger partnership with LGUs Release of LGUs’ shares Public service programs of 89.5 Bay FM Participation in Olongapo City’s Mardi Gras
SUBIC BAY METROPOLITAN AUTHORITY 16 Locator Service Excellence
We made life easier for our locators
BOD-approved reduction of documentary requirements for issuance of business registration
Off-site SBMA ID processing activities and non-appearance for ID renewal processing
* Departmental Performance Commitment Review
SUBIC BAY METROPOLITAN AUTHORITY 17 Locator Service Excellence
We seriously reduced processing times! Admission Declaration Export Permit of Admission Declaration
6.63 h 6.25 h 1.85 h
Target 8 hours (ISO/DPCR*) -1.38 h -1.75 h -6.15 h ~ 17 % ~ 22 % ~ 83 % FASTER
* Departmental Performance Commitment Review
SUBIC BAY METROPOLITAN AUTHORITY 18 Locator Service Excellence Higher & better satisfaction feedback
Very Good and Good Rating 2016 2017 25,597 (or 98%) 42,897 (98%) Service +67.6% 24,690 (or 94%) 42,170 (97%) Staff +70.8%
Poor Rating 96 (0.37%)
31 (or .07%) -67.7% Service 77 (0.295)
21 (or .05%) -72.7% 2016 2017 Staff
SUBIC BAY METROPOLITAN AUTHORITY 19 Locator Service Excellence Accessibility
Personal: To all Freeport Stakeholders +63 917 620 50 56
One Stop Shop Regulatory Building, Ground Floor Business Services
SUBIC BAY METROPOLITAN AUTHORITY 20 Subic Freeport as Gateway
SEAPORT Open Window Access Initiative, waiving US$200-accreditation fee Launching of #GO SUBIC BAY Campaign (Ship Smarter, Ship Faster) Signing of MOU with Virginia Port Authority Regular port calls of 23 shipping lines
1) APL American President Lines Ltd. 12) NYK Fil-Japan Shipping Corporation 2) Avega Bros. Integrated Shipping Corporation 13) Ocean Tankers Corporation 3) Baliwag Navigation, Inc. 14) Petrotrade Philippines, Inc. 4) Chealsea Shipping Corporation 15) Seen Sam Shipping, Inc. 5) Eastern Shipping Corporation 16) Shinline Sdn Bhd 6) developiEvergreen Line 17) Sinotrans Shipping 7) Fortune Sea Carrier, Inc. 18) SITC Container Lines Philippines, Inc. 8) Hanjin Shipping 19) Swire Shipping 9) K Line 20) T. Madsen Shipping Philippines, Inc. 10) Maersk Line 21) Teekay Shipping Philippines 11) Matsya Shipping Lines Corporation 22) Uni-Ship, Inc. 23) Wan Hai Lines
SUBIC BAY METROPOLITAN AUTHORITY 21 Subic Freeport as Gateway
AIRPORT Positioning of SBIA as an air traffic redistribution gateway for business aviation, as well as general aviation, MRO, and chartered flights Visit of Asian Business Aviation Association (AsBAA) executives Full commercialization of the retained Southwest area
SUBIC BAY METROPOLITAN AUTHORITY 22 FDIs and MSMEs
FOREIGN DIRECT INVESTMENTS (FDIs) Participation in DTI’s Philippine Investment Road Shows in South Korea, Australia (with SBMA as lead coordinator), and Japan Outbound mission to Arizona, San Francisco, Virginia, and Los Angeles
SUBIC BAY METROPOLITAN AUTHORITY 23 FDIs and MSMEs
MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs)
Land Bank’s commitment to extend loans to MSMEs of up to PHP3 million to SEs within SBF and those in the eight (8) adjacent LGUs
SUBIC BAY METROPOLITAN AUTHORITY 24 Tourism Star
ASIA’S NEWEST CRUISE PLAYGROUND Arrival of MS Bremen of the German tour giant Hapag Lloyd Cruises Participation in 2017 Asia Cruise Forum JEJU in Jeju Island, South Korea Participation in International Cruise Summit in Qingdao, China Ocular visit of vice president for Commercial and New Business Development of Royal Caribbean Cruises, Ltd. Follow-up visit by president for China and North Asia Pacific Region of Royal Caribbean International
SUBIC BAY METROPOLITAN AUTHORITY 25 Tourism Star
BEST SPORTS TOURISM DESTINATION Total of 29 sports events with participant count, ranging from 1,000 to more than 3,000 ADDITIONAL TOURISM FACILITIES Moonbay Marina Water Park
SUBIC BAY METROPOLITAN AUTHORITY 26 Build, Build, Build
Port Facilities Rehab PHP 530 M from Nat’l. Gov’t.
Airport Facilities Upgrade PHP 500 M from Nat’l. Gov’t.
Magsaysay Bridge & Access Roads Rehab Consultancy Agreement awarded
SUBIC BAY METROPOLITAN AUTHORITY 27 Freeport Expansion Initial Allotted Land Area per LGU San Marcelino San Antonio 10,000 HA 9,000 HA Mining Quarry Resort development Agriculture Leisure industry
Subic 500 – 600 HA Castillejos Factories 500 HA Agriculture Energy Light to medium industry Warehousing
Olongapo Hermosa 900 HA 505 HA Housing Light to heavy industry Light industry Renewable energy Tourism Metal industry Staging of trucks Auctions SUBIC BAY METROPOLITAN AUTHORITY 28 International Recognition of our Success
International Finance Awards 2017 The Fastest Growing Free Trade Zone 2017 KPIs Financial Performance NET INCOME Decrease Debt +34% -5% +23 M KPI 2016 2017 Var
Revenue 2.95 B 3.08 B 4% Operating Income 1.44 B 1.55 B 8% (EBITDA) 0.68 B 0.91 B Net Income 0.68 B 0.91 B 34% Cash & 4.24 B 4.43 B 4% Investments
Total Debt* 6.55 B 6.20 B (5%)
• Rate as of December 31, 2017 and December 31, 2016 2016 2017 were $1: 49.93, JPY1: P0.4423 and $1: 49.72 JPY1: P0.4251, respectively
SUBIC BAY METROPOLITAN AUTHORITY 31 Business and Investment
New Investments KPI 2016 2017 Variance
New Investors 144 239 66 % Projected 3,868 3,488 (9.82 %) Employment Committed PHP 6.35 B PHP 2.54 B (60 %) Investments
Expansion Projects of Existing Locators 2016 2017 Variance No. of Projects 37 63 70% Projected 521 821 57% Employment Committed PHP 0.36 B PHP 1.09 B 203% Investments
SUBIC BAY METROPOLITAN AUTHORITY 32 Job Generation TARLAC 2%
OTHERS 17%
ZAMBALES 27% PAMPANGA 3% OLONGAPO +15,5 k 36% NCR people BATAAN 3% +14% 12%
112.6k 128.2k Services 70,650
33,593 Shipbuilding / 8,621 Marine related 15,303 Construction 2016 2017 Services Manufacturing
SUBIC BAY METROPOLITAN AUTHORITY Contribution to the National Economy
2016 2017
BOC Subic Cash Collection BIR SBMA Collection* LGUs’ 2% share out of the 16.8 B 5% tax on GIE of SBF Registered +11% Enterprises** Dividends to the National Government ***
* Includes National Gov’t’s 3% 0.3 B share out of the 5% Tax on Gross 19.6 B Income Earned (GIE) by SBF +18% Registered Enterprises ** Released every February and +0.8% +14% August or each year *** Actual payments made to the 2.2 B Bureau of Treasury for the year ^ Due to accumulated tranches
+533%^ 0.92 B
35 SUBIC BAY METROPOLITAN AUTHORITY Port of Subic
KPI 2016 2017 Variance Port Revenue PHP 1,137 M PHP 1,207 M 6%
Containerized Cargo 124,707 140,938 13% Volume (TEUs) Non-containerized 7,071,444 6,633,189 (6%) Cargo Volume (MTs) Gross Registered 30,709,010 28,454,581 (7%) Tonnage (GRT) Foreign: 1,365 Foreign: 1,526 12% Ship Calls Domestic: 1,704 Domestic: 1,252 (27%)
Transshipment 368 2,084 468% Export Trade Value US$ 1,690 M US$ 2,332 M 38% Import Trade Value US$ 1,601 M US$ 1,771 M 11%
SUBIC BAY METROPOLITAN AUTHORITY 36 Tourism
KPI 2016 2017 Variance Same-day 7,890,709 8,646,720 10% Visitor Arrivals Tourist Arrivals 1,652,633 1,689,786 2% Hotel 65.83% 67.24% 2% Occupancy Rate MICE Events 397 478 20% MICE 314,277 265,981 (15%) Participants Sports Events 116 94 (19%) Sports 65,731 64,461 (2%) Participants
SUBIC BAY METROPOLITAN AUTHORITY 37 Tourism
Participation in 12 local travel fairs and five (5) international travel fairs and trade missions
Participation Cost PHP 2.16 M Revenues Generated PHP 4.22 M Net Earnings PHP 2.06 M
SUBIC BAY METROPOLITAN AUTHORITY 38 Environmental & Tourism Admission Fee (ETAF)
+26% Ecology 1.26 M
• Procurement of analyzers 8.08 M 10.19 M for water & vehicle emission monitoring, PPEs & Oil Spill Kits • Recyclable Collectors Event
Tourism 11.42 M
• Local & international trade exhibits • Special events • Ads & collaterals • Trainings & seminars for 2016 2017 tourism stakeholders
SUBIC BAY METROPOLITAN AUTHORITY 39 Common Use Service Area (CUSA)
Total CUSA Billing UNPAID Accounts 101.6 M 2015 25.23 M 104.6 M 2016 25.70 M 103.3 M 2017 34.98 M Cumulate UNPAID since 2012: ~139 M PHP
CUSA Net Collection Utilization: Maintenance and (Real available assets) Other Operating Expenses 68.3 M PHP 236.6 M PHP 2017
Construction Utilities Fire Law Maintenance Streetlights Enforcement
SUBIC BAY METROPOLITAN AUTHORITY 40 ECONOMIC PERFORMANCE
41 The Philippine Economy in 2017
SUBIC BAY METROPOLITAN AUTHORITY 42 CHALLENGES
CHALLENGES Tax Reform for Acceleration and Inclusion (TRAIN) Law
TRAIN 1 · TAX SUMMARY
Lowering Simplifying the personal the estate and income tax (PIT) donor’s tax
Expanding Increasing Increasing Introducing value-added tax oil excise tax automobile a sugar-sweetened (VAT) base excise tax beverage (SSB) excise tax
Source: SGV TRAIN Briefing (Impact on the Economy)
SUBIC BAY METROPOLITAN AUTHORITY 46 BIGGER CHALLENGE Solid Waste Management Smuggling Safety & Security In the Pipeline
52 Costa Atlantica
6, 20 3, 17 1, 22 5, 19 14, 28 11, 25 9 18 MAR APR MAY JUN AUG SEP OCT NOV DEC 13, 21 1
Superstar Glory Ovation of Voyager of Gemini Sea the Seas the Seas 2 of the biggest cruise ships in the world Other major events in 2018
NCAA Nuevo by Summer Beach Volleyball the Bay Siren Championships April 28-30 Festival 2018 Feb 27-Mar 2 May 11-13
FEB MAR APR MAY JUN
Ad Summit Century Tuna Pilipinas 2018 IRONMAN March 7-10 Philippines Triathlon June Opening of Ocean Adventure’s Adventure Beach Water Park Additional expansion areas
Reclamation: 20 HA Infill Development: 150 HA Redondo Peninsula: 3,000 HA LGUs: 21,405 HA Business and Investment Triboa Majestic Bay Residences at Triboa Bay Target Completion: 2020 for Phase 1 and 2025-2026 for Phase 2 DM Leisure Inc. PHP3.6-billion golf course and hotel & leisure facilities Rain Forest Golf Course will open in October 2018 at the former Binictican Valley Golf Course Global Marine System Ltd. Cable Depot project : PHP 136-million Global Residencia Hotel Condominium: PHP 38-million DBA Global-BPO: PHP 40-million
SUBIC BAY METROPOLITAN AUTHORITY 56 Safety and Security
SAFETY AND SECURITY ISO 45001 for Occupational Health and Safety Management Systems Institutionalization of the Subic Bay Disaster Risk Reduction and Management Committee Campaign for heightened community vigilance against crime Securing equipment to improve safety and security
SUBIC BAY METROPOLITAN AUTHORITY 57 2018 CUSA Utilization Plan
CLASSIFICATION ITEM AMOUNT Motor Vehicles / • 3 Structural Fire Trucks PHP 120.00 M Heavy Equipment • 13 Security & Fire Service Vehicles 21.30 M • 13 Heavy Equipment Vehicles 86.20 M • 2 Stake Trucks 16.00 M • 8 Patrol Motorcycles 7.22 M • 2 Patrol Boats 1.95 M Security 9mm pistols, Assault & Sniper PHP 19.86 M Equipment Rifles/Bullet Proof Vests) (P 19.86M) Others • Traffic Control System* PHP 11.20 M • Fire-fighting Equipment 12.00 M • Speed Radar Gun 2.80 M • Vehicle Barriers with Security 1.50 M Cameras for SBMA Housing TOTAL PHP 331.59 M
* Along Burgos St. corner Canal Road/Canal-Labitan intersection/Rizal Highway Corner 14th Street
SUBIC BAY METROPOLITAN AUTHORITY 58 Amendment of RA 7227
Share on the 5% Gross Income Tax Revenue Expansion areas Qualifications of Chairman and Administrator Empowering the Law Enforcement Department Further autonomy
STATE OF THE FREEPORT ADDRESS 59 AUTONOMOUS VEHICLES
Proponents and Venture Capitalists from Silicon Valley Consider Subic Freeport for Autonomous Vehicles
STATE OF THE FREEPORT ADDRESS 60 GRAB IS COMING!
61
SBMA “SEAL” Reclamation Project
SUBIC BAY METROPOLITAN AUTHORITY 65 66 67 68 INTEGRITY The moral compass that will guide the agency CORRUPT-FREE CULTURE At the forefront of governance MALASAKIT The core principle and anchor of all strategic initiatives and agency objectives
#onesbma #strongertogether
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Our Journey has just begun …