Fifth Symposium(Presentation of Subic Bay: SBMA)

■BACKROUND
In response to a request from the Government of the Philippines, the Government of Japan decided to conduct the STUDY ON THE SUBIC BAY PORT MASTER PLAN IN THE REPUBlIC OF THE PHILIPPINES and entrusted the study to the Japan International Cooperation Agency (JICA).

JICA sent a study team to the Philippines four (4) times between January 1998 and June 1999, headed by Dr. Koji Kobune of the Overseas Coastal Area Development institute of Japan (OCDI). The team was composed of members from OCDI and Pacific Consultants International (PCI). The team held discussions with officials concerned of the Government of the Republic of the Philippines through the Subic Bay Metropolitan Authorization (SBMA) and conducted field surveys at he study area. The study team conducted surveys in the Republic of the Philippines and the findings of the study, as compiled in the said report, were fully discussed with officials of SBMA and other authorities concerned to formulate the Master Plan. The Master Plan included the Long Term Plan of the Subic Bay Freeport for the period up to the year 2020, and the Short Term Plan of the same port for the period up to the year 2007. After the team returned to Japan , further studies were made and the report, ‘ The Study on the Subic Bay Port Master Plan in the Republic of the Philippines’ was prepared.

On March 10, 2000 the Minutes of Discussion for the Subic Bay Port Development Project were thoroughly discussed, agreed upon and signed by senior representatives of the Subic Bay Metropolitan Authority (SBMA) and the Japan Bank for International Cooperation (JBIC). Among the points agreed upon were: (a) the JBIC mission and the officials of SBMA confirmation of the description of the Project and its estimated costs, (b) The JBIC mission and the officials of SBMA confirmation of the implementation schedule and measures to be adopted for the implementation of the Project, and (c) The JBIC mission and the officials of SBMA confirmation of the main points discussed as detailed in the Minutes of Discussion.

Based on its review and findings and pursuant to R.A. 4860 (Foreign Borrowings Act), the Department of Finance (DOF) expressed its Willingness to Guarantee the Subic Bay Port Development Project Loan on August 7, 2000. This is in reference to the request by the Subic Bay Metropolitan Authority (SBMA) for a Government of the Philippines guarantee of its Loan from the Japan Bank for International Cooperation (JBIC) in the amount of US $ 157 Million to be used for the said Project. On August 31, 2000, SBMA Chairman Felicito C.Payumo and JBIC Governor Hiroshi Yasuda signed Loan PH-P215,the Loan Agreement for the Subic Bay Port Development Project in Tokyo,Japan.


■ LOAN FEATURES
The total cost for the Short Term Plan of the Subic Bay Port Development Project is US $ 215 Million. SBMA will shoulder 85% of the cost ( US $ 185 Million) and the remaining amount (US $ 30 Million) will come from the winning port operators. Of the 85% that SBMA will shoulder ,JBIC will loan SBMA the equivalent of 85% which is: Yen 16,450 Million (US $ 158.2 Million); SBMA will internally source as its couterpart fund the remaining 15% of the Project amount: Yen 2,903 Million ( US $ 27.9 Million). Loan PH-P215 features a 40-year Payment Period, including a 10-year Grace Period. Being a Japanese Tied Loan, PH-P215 has a provision for giving preference primarily to Japanese contractors and their Filipino counterparts to undertake the said Project.

The Short Term Plan includes consultancy for the detailed design of the facilities, construction supervision and bidding assistance for construction, equipment procurement and cargo handling operation. Also included are the annual price escalation, physical contingency, costs for the rehabilitation program of port related facilities and administration cost of SBMA for implementation of the Project. Since Pacific Consultants International (PCI) was also involved in the preparation of the Subic Bay Port Master Plan in the Republic of the Philippines together with OCDI, the Japan Bank for International Cooperation (JBIC) presented no objection to the recommendation of SBMA to negotiate with PCI to handle the consultancy of the Port Project. The involvement of PCI in the Subic Bay Port Development Project will run the duration of the Short Term Plan, up to year 2007.

■PROJECT FEATURES
Objectives:
The objectives of the Project are to the construct a new container port in Cubi Point, to rehabilitate some existing wharves in Subic Bay and to procure necessary equipment in order to promote the economic growth of the Subic Bay Freeport Zone(SBFZ) and the development of Central Luzon.

Location: Subic Bay Freeport Zone(SBFZ)
Executing Agency: Subic Bay Metropolitan Authority(SBMA)
Scope of Works: Civil Works
New Container Terminal(Cubi Point)
1. Pier depth:-13.0m, length:560m., number of berth:2
2 Container Yard area;29.2ha, reclamation volume : 2.0 million cu.m.
3 Access Road 2-lane, total length: 3.6km., Reclamation volume: 335,000 cu.m.
4 Dredging depth:-13.0m., volume:200,000 cu.m. (Channel and Basin)
5 Building Administration Building :1. Gate:2 Substation:2
6 Utilities Water Supply, Fire Fighting ,Storm Water Drainage,
Electrical Works (including Emergency Generator),
Sewage System, Telecommunication
7 Navigation Aids Light Buoys:21 units, Light Beacon: 2 units ,
Navigation Radar System:1 unit(Vessel Tracking Monitoring
System)

Rehabilitation of NSD, Boton, Marine Terminal and Nabasan Wharves
1. Widening of Apron: Additional Width:12m (each side)
2. Rehabilitation of Wharves
3. Roads
4. Maintenance Dredging
Procurement of Equipment
1. Gantry Cranes 4 units
2. Garbage Collector Vessel 1 unit
3. Oil Skimmer 1 unit
4. Speed Boats 5 units
Consulting Services
Engineering Services
1. Review Survey and Soil Investigation
2. Detailed Design and Bid Document
3. Bidding Assistance and Construction Supervision
Management Services
1. Project Management Support
2. Bidding Assistance for Operator Selection
Environmental Management
1. Supplementary Environmental Studies
2. Environmental Monitoring

Planned Container Terminal Facilities

Phase 1 Phase 2 Phase 3
Handling Capacity(TEU) 300,000 600,000 900,000
Berth Length（m） 280 560 840
Ground Slots（TEU） 2,112 4,224 6,336
CFS（m2） 1,920 3,840, 5,760
Gates（unit） 6 12 18
Administration Bldg.（m2） 2,000 2,000 2,000
Terminal Office（m2） 1,200 2,400 3,600
Maintenace Shop（m2） 875 1,750 2,625
Washing/ Cleaning Space(m2） 400 800 1,200
Gas Station（m2） 250 500 750
Substation（m2） 600 1,200 1,800
Emergency Generators 500KVA×2 500KVA×4 500KVA×8

Environmental Concerns
The Subic Bay Metropolitan Authority (SBMA) gave its assurance that the Environmental Clearance issued by the Ecology Center of SBMA on March 1, 2000 is legally valid and biding. The National Economic and Development Agency (NEDA) shares the view that the Ecology Center of SBMA has the authority to issue the environmental clearance for the Project. Despite these issues, SBMA has stated that environmental issues for the Project would still be taken cared of through the joint effort between the Ecology Center of SBMA and the Department of Environment and Natural Resources (DENR). SBMA further agreed to report to JBIC, without delay, specific measures taken regarding joint consultation effort with DENR.

In addition to this joint effort, the JBIC mission and SBMA have confirmed that Supplementary Environmental Studies, Social Acceptability, and a Multipartite Monitoring Team will be included in the Terms of Reference (TOR) of the Consulting Services of the Project. Supplementary Environmental Studies are needed to sufficiently address possible environmental impacts and devise adequate mitigation measures. Leaching tests of seabed materials concerning some heavy metals like Cadmium and Chromium, water quality management programs and social acceptablility programs are among the issues to be addressed for such studies during the detailed design stage of the Project.
SBMA stated that effects on fisheries are not anticipated as neither construction nor the operation of the new Subic Bay Container Terminal is within fishing areas. In order to ensure the public acceptance of the Project, SBMA,mainly the Social Development Division (SDD) of the Ecology Center, will undertake Social Acceptability Programs which will be extended not only to the fishermen in the vicinity but to the residents near the proposed quarry sites in the Redondo Peninsula and other stakeholders in SBMA. SBMA agreed that a Multipartite Monitoring Team would be established to ensure the involvement of stakeholders, and that Non-Government Organizations(NGOs) would be included in the Team. The JBIC mission is encouraging the establishment of such a team.

■PROJECT SIGNIFICANCE
In 1995, the JICA Study Team responsible for the drafting of the Central Luzon Development Program Master Plan Study presented ‘ The Triad Growth Corridor’’ concept of urbanization in the report. The concept integrated the concentric urbanization pattern from three (3) rapidly expanding areas, namely; Metro Subic, Metro Angeles (Clark and its environs) and Bulacan Conurbation Area( towns contiguous to Metro Manila). They are called the National Triad Growth Centers. There was a need to expand the concept of a ‘’ growth corridor’ that not only would encompass other industrial areas, but also integrate the growth potentials that would be derived from other sectors such as tourism and high-value agriculture- an industry very much applicable to the wide plains of Central Luzon. In 1999, the Bataan Technology Park Inc. (BTPI) was put under the administrative supervision of SBMA per Agreement with the Bases Conversion and Development Authority (BCDA). In effort, BTPI’s economic development is enhanced by its affiliation with the rapidly growing Subic Bay Freeport Zone (SBFZ) through access via the Morong Gate. The planned construction of the Subic-Clark Toll Road with eventual future connections to Luisita in Tarlac further opens up the Central and Northern Luzon corridor to economic development that can further boost the significance of the Subic Bay Modern Container Port. Containerized and bulk cargoes, normally going through the traffic-plagued Manila ports, can now have the option of going through the Subic Port. This arrangement would pave the way in making Subic Bay Free Port as the entry / outlet port for Central Luzon and the International Airport located at the Clark Special Economic Zone as the possible regional hub for passenger and cargo aircraft. Finally, having a sister port agreement with the Kochi Prefecture of Japan, the operation of the Subic Modern Container Port will help enhance the already harmonious business relationship between Japan and the Philippines.