Press Release
June 13, 2009

Bataan Freeport to place RP in the ranks of the world's great cities

Senator Richard J. Gordon (Ind.) today expressed confidence that the creation of a Freeport in Bataan will place the Philippines in the ranks of the world's great cities as well as address the problem of increasing unemployment rate.

Gordon, who sponsored Senate Bill No. 2118 or the Bataan Special Economic Zone and Freeport Act of 2008 authored by Sen. Loren Legarda, said adding a Freeport in the special economic zone will generate more investment for Bataan.

"The sad state of the Bataan Economic Zone as of 2008 can be seen. Its conversion to a Special Economic Zone and Freeport status allows it more competitiveness. It will expand opportunities for Bataan, Manila Bay and the nearby provinces," he said.

"All the great cities of the world are beside great bays. San Francisco is a great city along San Francisco Bay, so are Tokyo Bay, Hong Kong, which is one of the busiest harbors in the world, and Singapore. The Philippines can be among their ranks by making Mariveles the Bataan Special Economic Zone and Freeport" he added.

Legarda, in filing SBN 2118 which Gordon co-authored, stressed that the addition of a free port to an already existing economic zone will help in addressing the government's efforts of creating 2 million jobs per year to be able to neutralize the rate of unemployment in the country.

The Bataan Economic Zone boasts of the country's largest oil refinery and petro-chemical complex, the National Shipyard and Steel Corporation complex, a pulp and paper mill, copper smelter, electronic and assembly plants, garment factories, and an array of other companies..

Unfortunately, development of the economic zone is very slow due to several factors affecting the smooth operations inside the economic zone such as roads that have to be repaired and maintained, buildings that needs to be restored and remodeled; and other infrastructure that should be constructed to be able to fit and adapt to the needs of the changing times..

In addition, the economic zone is facing a tough competition with other economic zones with freeports especially those that are located nearby.

With its proximity to Metro Manila, the Bataan Special Economic Zone and Freeport will attract more foreign investors and has the potential of becoming a busy trade center in Asia once developed to its fullest and a port is successfully put in place that could service both local and international trade.

Gordon, who led the conversion of the former Subic Naval Base into a Freeport, said local governments should also have a strong hand in operating the Bataan Special Economic Zone and Freeport as they had in Subic because the local folks would have more enthusiasm in making it into a viable operation.

"Every time we manage the zone from Manila, it would appear that they do not have the wherewithal, the desire or the accountability to the local folks to be able to make it happen. I think I can speak personally from the time that the Subic Freeport started operation. I have always thought the local government would best be able to handle Subic ," he said.

The senator also noted that the beaches in Mariveles, Bataan would be another advantage because they could be utilized to develop the tourism industry in the area, which would equate to additional employment.

"The beaches in the area could be developed to attract more tourists. In Subic, the tourist arrivals increased when the Freeport started operation which generated more business opportunities and employment for our locals," he said.

Despite words of discouragement from various sectors, when the Americans abandoned the military facility in Subic, Gordon and his group of volunteers converted the facility into a Freeport and turned it into a going concern that even contributed to the national government.

In a span of four years, the Subic Bay Freeport created 200,000 jobs, generated US$2 billion worth of investments and attracted thousands of tourists which raised the occupancy rates in 20 hotels and housing operators to 99.5 percent.

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