The Subic Bay Metropolitan Authority (SBMA) reported today that it has approved a total of $1.2-billlion worth of new investments last year to boost the cumulative financial resources infused by both foreign and local firms in this premier Freeport zone to $7.16 billion.

In a statement, SBMA administrator Armand Arreza said that investments recorded last year eclipsed the total in 2009 by almost 486 percent, or a difference of more than P1 billion. In comparison, the Subic Freeport attracted investments worth only P206.5-million in 2009 due to the global economic crisis.

Arreza said that the 115 new projects, buoyed by five major investment proposals that also made it to Subic’s list of top investment projects in the last five years, made 2010 another banner year in Subic’s history.

Arreza said that since the Subic free port was established in 1992, last year was only the third time that annual investments here breached the $1-billion total. The first was in 2006 when committed investments totaled $1.44 billion, and the second was in 2007 when investments reached $1.71 billion.

The new investment projects also brought Subic’s total number of approved projects to 1,463.

Arreza also pointed out that while the agency approved a total of only 115 investment projects last year, compared to 201 project proposals in 2009, “the value of investments more than made up for the relatively smaller volume.”

Of the 115 investment projects approved by the SBMA in 2010, the biggest was that proposed by MCastle Philippines, a Korean firm that has set aside $1 billion for the development of a world-class integrated resort in Morong, Bataan.

Meanwhile, Sunnew-Subic Investments Ltd., a Chinese company, was recorded as the second biggest with $75 million for a wind farm and a solar energy project that could be expected to generate 50 megawatts and 100-200 megawatts, respectively.

The other investment projects in Subic’s top 10 list for 2010 were: Subic Bay Town Center Inc., a Filipino firm that committed $36.4 million for the development of a commercial center; Alubat Aviation Composites Philippines (German/British), with $15 million; Vapco International Corporation (Jordanian/Filipino), $15 million; Sands of Triboa Resorts (Fililipino), $5.95 million; Fertuna Holdings Corp. (Filipino), $5.35 million; Holy Land Subic Foundation, Inc. (Filipino), $5.33 million; Udenna Management and Resources Corp. (Filipino), $3.22 million; and San Bernardio Shores Beach (Filipino), with $2.21 million. Records from the SBMA also indicated that five projects approved in 2010 now ranked among the top 20 projects recorded since 2005.

These are the projects for MCastle, which ranked second biggest next to the $1.68 billion committed by Korean shipbuilder Hanjin Heavy Industries Corp.-Philippines; Sunnew-Subic,which ranked number 10 with $75 million; Subic Bay Town Center, at No. 14 with $36.42 million; and Alubat Aviation and Vapco International, both at No. 19 with $15 million.

SBMA figures also indicated that more than 82 percent of the 115 investment projects approved last year were foreign direct investments (FDIs) from South Korea. On the other hand, 8.14 percent of the total investments were proposed by Filipino-owned companies, and 6.26 percent by Chinese firms.

Other investments put up last year came from the United Kingdom, Germany, Jordan, Taiwan, the United States, Canada, Norway, Japan, Singapore, Australia, Sweden, Belgium, France, and Italy.

In terms of job generation, the projects approved last year have a projected total employment of 8,050, Arreza also announced. The 2010 employment figure represents an 11.77 percent increase over the projected 7,202 jobs from the 201 projects approved in 2009.

An agreement was signed by Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza and PMPMI managing director Chris Nelson that will increase the total land area of its project here from a 9,600-square-meter to a 49,279-square-meter depot.

Once completed, the state-of-the-art warehouse will have a capacity to hold some 24,000 metric tons of tobacco. At present, the P30-million peso refurbished warehouse can only accommodate 6,100 metric tons.

In a statement released, Nelson said the new warehouse will boast of features like humidity control, fire-suppression equipment and air conditioning to handle the imported tobacco leaves from foreign suppliers, which will then be shipped and processed in cigarette-manufacturing facilities in the Philippines, Malaysia and Indonesia.

According to Arreza, the agreement, which extended PMPMI’s lease agreement to 50 years, “strengthens Subic Bay Free Port’s competitive posture as Southeast Asia’s logistics hub, as envisioned by President Arroyo.”

He added that this free port’s multimodal transport (air-land-sea) capabilities, world-class infrastructures, modern road networks, and tax incentives have prompted PMPMI to extend its contract that spans to half a century.

“A global brand such as Phillip Morris would not make hasty decisions, which means the firm has really found Subic an enviable logistics hub,” said Arreza.

Nelson, for his part, said PMPMI continued to expand since its establishment here in 2007 at the Subic Technopark, and even posted growth during the global economic slowdown which hit the country in the last quarter of 2008.

Nelson added that the warehouse expansion is “a reflection of our faith in the Philippine government, particularly the SBMA.”

The PMPMI managing director also expressed confidence that the company will sustain profitability and competence against its competitors, despite the increasing competition in the tobacco industry.

‘‘If you plan well ahead, and stay committed, this country will reward you in many ways,” Nelson said. ‘‘It may be difficult to get us, but once you have us, it would be difficult for us to leave you,” said Nelson. Rey Garcia