2012 State of the Freeport Address

Page 1

Presented by ROBERTO V. GARCIA Chairman and Administrator Subic Bay Metropolitan Authority


2011 vs. 2010

Performance Review

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Key Performance Indicators

CUMULATIVE INVESTMENTS (1992 - 2011) Year

Committed Investments (Cumulative)

2011

US$8.403 B

2010

US$7.167 B

Up by 17%


Key Performance Indicators

COMMITTED INVESTMENTS FROM NEW PROJECTS Year

Committed Investments

2011

US$1.236 B

2010

US$1.210 B

Up by 2%


Key Performance Indicators

2011 FOREIGN AND LOCAL INVESTMENTS

US$1,074 M US$160 M

Foreign Direct Investment S

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Local Investments I

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Key Performance Indicators

TOTAL JOBS GENERATED Year

No. of Workers

2011

88,957

2010

88,450

Up by 0.57%


Key Performance Indicators

BIR & BOC Cash Remittances to National Government Collecting Agency

2011

2010

BIR

PhP 1,106,889,030.79

PhP 1,706,288,635.14

BOC

PhP 6,053,353,210.12

PhP 4,973,793,844.44

PhP 7,160,242,241.00

PhP 6,680,082,480.00

TOTAL


The Problems We Face

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Huge financial losses Gross Revenues vs. Net Income 3,000,000,000.00

2,000,000,000.00

1,000,000,000.00

Gross Revenue

0.00

Net Profit / Loss

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(1,000,000,000.00)

(2,000,000,000.00)

(3,000,000,000.00)

TOTAL CUMULATIVE LOSS: PhP 7 Billion O

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Low lease rates


Lack of land for new investors Land Resource

No. of Hectares

% of Total

Total Land Area

67,452 ha.

100.00

Less: Protected Areas Undevelopable Areas Leaseable Areas

53,852 ha. 10,341 ha. 2,959 ha.

79.84 15.33 04.39

300 ha.

0.44%

Leasable areas available for new investors

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Under-utilized Airport

SBIA Comparative Revenue vs Expenditure [2005-2011] (in PhP thousand)

S

Net Cash Flow after Debt Servicing

Year

Annual Revenue

2005

255,187

59,763

30,306

2006

219,035

57,451

2,468

2007

193,948

53,848

-11,386

2008

176,410

52,234

-30,311

2009

126,434

44,072

-74,070

2010

31,368

32,003

-154,969

2011

36,571

37,128

-151,797

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Annual Expenditure

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Under-utilized Container Terminal 1

CONTAINERIZED CARGO VOLUME (in TEUs) Year

Total Cargo Volume

2007

24,958

2008

21,184

-15.12%

7.06%

2009

21,906

3.41%

7.30%

2010

25,661

17.14%

8.55%

2011

27,671

7.84%

9.22%

Total Capacity

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Capacity Utilized

8.32%

Average Annual Volume (2007-2011)

300,000 TEUs

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Growth Rate

Unutilized Capacity

24,275.90 TEUs 275,724.10 TEUs (8% of total capacity) (92% of total capacity)

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Five-year Strategic Plan 2012-2016

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Develop Tourism Niche Markets  Operation Facelift  Development focus  Theme Park Capital of the Philippines  Top Sports Tourism Destination  Cruise Ship Destination  Eco Tourism Activities

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Promote Maritime Businesses

 DOTC’s support

to attract maritime logistics players to do business in the Port of Subic

 Build container volume by matching business interests of major Luzon shippers & shipping lines

 Maximize Vale ore transhipment project  Develop Subic as homebase for Super Yachts  Increase repair & maintenance facilities for boats & ships

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Develop Housing

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Development of various residential types for specific markets: • High-end residences • Middle class housing • Workers’ dormitories

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Rationalize Industrial & Commercial Leases

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Shift from landlord to developer • Development of unutilized & idle properties Focus on high-value industrial & commercial leases Provide environment for investors to become competitive & successful • Improved ease of doing business • Competitive cost of doing business

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Conversion of SBIA into an Integrated Familyoriented Tourist Destination

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Good Governance Platform

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Principles of good governance

Openness & Transparency

Accountability

GOOD GOVERNANCE

Stewardship

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Integrity

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Good Governance Initiatives

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Adopted new By-laws & Code of Ethics

Created board committees such as: 1.

GOVERNANCE

2.

FINANCE

3.

AUDIT & RISK

4.

CORPORATE COMMUNICATIONS

5.

SIGNATURE PROJECTS

Reviewed & audited all existing problematic contracts

Conducted Social Acceptability Process among all concerned stakeholders for coal power plant

Acted on COA’s Turnover Audit recommendations

Restructuring loans to meet SBMA’s financial obligations

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Let the lessons of the past and the opportunities of today help us realize the vision of the New Subic that we dream of...


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