12/17/2009 [ tribune.net.ph ]
The Subic Bay Metropolitan Authority (SBMA) requires more than P20 billion from the government to fund proposed expansion projects of freeport zones that would open up new access roads needed to link these to infrastructure developments.
SBMA administrator Armand Arreza said the vision to expand Subic’s freeport functions provide the urgency to develop more economic zones covering the nearby areas of Subic Bay and Clark Special Economic Zone.
An important infrastructure project that the government must prioritize to further spur the entry of new investments is the opening of a 50-kilometer road connecting Olongapo to Castillejo in Zambales and to the Subic-Clark-Tarlac Expressway (SCTEx).
Arreza, however, said Subic alone has no capacity to fund the various infrastructure projects to realize its dream of becoming a fully-equipped world-class business port.
Subic now sustains its operations through earnings from rentals fees, including the 20 percent initial fee from the total costs of new projects approved and signed.
Apart from these, Arreza said Subic has no other means to raise additional budget to fund the expansion of the Freeport area.
Another way for Subic to earn besides leases is through legislation that would allow it to retain at least 40 percent of its total annual revenues.
Under the current set up, all tax collections go to the central government. On the average, total tax collections recorded jointly by the Bureau of Customs and the Bureau of Internal Revenue from SBMA-administered zones amount from P3 billion to P4 billion.
What Subic hopes to get is just a 20 percent share of the Freeport’s annual revenues to raise the needed amount to finance its various infrastructure projects, Arreza said.
But this may only happen if the Senate would pass a bill authored by Sen. Richard Gordon who once served as Freeport chief.
Under Senate Bill 321, the Subic Freeport zone may enjoy a 20 percent share of the tax collection and another 20 percent will go the local government of Olongapo.
With a new direction to focus on tourism, Arreza said he is seriously considering to slap at least 3 percent from tourism related activities. The amount to be raised will be used for marketing development and promotion of the zone. Ayen Infante
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