Vol. XXI, No. 170 [ Business World Online ]
Tuesday, April 01, 2008 | MANILA, PHILIPPINES
A KOREAN FIRM has committed to spend $250 million in initial investments to develop a property in Subic Bay Freeport into a leisure facility.
Subic Bay Metropolitan Authority (SBMA) Administrator Armand C. Arreza said the company, which he did not name, is acquiring a 400-hectare property in Half Moon Bay in Olongapo and will start construction within the year. "This project will include a beach, golf course, retirement facilities, among others. It’s going to be integrated. The company is now finalizing the acquisition of the land for $25 million," he said in an interview.
The company is expected to beef up its initial investment over the next four to five years, Mr. Arreza said.
Another site that is up for development is Minanga Bay. "We are in the process of attracting investors for this. We are eyeing to have two 72-hole golf courses here."
Taiwanese companies, meanwhile, plan two hospitals — one with 120 beds and another with 100 beds — that are expected to boost medical tourism.
SBMA data showed that investments in the free port increased by about 17.6% to $1.67 billion last year from $1.42 billion in 2006.
For the first two months of the year, the agency approved 30 new projects with combined investments of $12.3 million, 7% higher than the same period in 2007.
"Given this growing investment trend that started two years ago, when Subic breached the $1-billion year-end total, chances are we’d get a higher investment output for the third succeeding year," Mr. Arreza said in a statement.
Ten new projects worth $6.2 million were approved in January while 20 other commitments worth $6.1 million were recorded in February.
SBMA data showed Korea-based Hanafil Golf & Tour, Inc. pledged $3 million in new investments to put up and operate various recreational facilities. This was followed by Malaysian firm Palmgold Int’l Ltd. with investments of $1.9 million for a gaming project, while Grand Pillar International Development, Inc. committed $1.9 million to acquire and develop real estate properties in Subic. — B. S. Sto. Domingo
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