Authority of the Freeport Area of Bataan

Last updated

Authority of the Freeport Area of Bataan
Freeport Area of Bataan logo.png
Logo, used since April 2011
Freeport Area of Bataan, Admin Building front (Mariveles, Bataan; 05-20-2023).jpg
Administration building
Agency overview
FormedOctober 23, 2009;14 years ago (2009-10-23)(agency's creation)
June 30, 2010;13 years ago (2010-06-30)(zone's operations and management)
Preceding agency
JurisdictionThe Whole Area of Freeport Area of Bataan, Barangays Malaya and Maligaya
HeadquartersAFAB Administration Bldg., FAB, Mariveles, Bataan 2106
14°26′N120°29′E / 14.433°N 120.483°E / 14.433; 120.483
Agency executives
  • Mohammed Hussein Pangandaman, Administrator
  • Atty. Pablo M. Gancayco, Chairman
Parent agency Office of the President of the Philippines
Website afab.gov.ph

The Authority of the Freeport Area of Bataan (AFAB) is a government agency attached to the Office of the President of the Philippines that operates and manages the Freeport Area of Bataan (FAB) in Mariveles, Bataan, Philippines. It was created on October 23, 2009 through RA 9728 and started operations and management over the zone which took over from Philippine Economic Zone Authority (PEZA) on June 30, 2010.

Contents

The FAB was originally designed as an Export Processing Zone. [1] Its existing infrastructures include 11 Standard Factory Buildings (SFB) with three stories each, and a total working area of 8,352 m2 (89,900 sq ft). per SFB. It is currently home to over 50 locators engaged in manufacturing products for export ranging from tennis balls to yachts. AFAB also has two locators using their facilities for warehousing, one locator engaged in animal feeds processing and an enterprise currently constructing a clean coal power plant. These enterprises employ a total of 13,443 workers.

The objective of the AFAB is to revive the area and expand the Freeport. To accomplish these objectives, the Freeport seeks to attract more locators in the manufacturing, Business Process Outsourcing (BPO), electronics industries and green industries, among others. It is also seeking investors to boost its tourism capabilities by refurbishing its existing recreational facilities. The AFAB is also targeting new investors to build hotels, entertainment establishments, duty-free shops, resorts, team-building facilities, and sports facilities, among others, to encourage the influx of local and foreign tourists. It also hopes to attract a medical center to the Freeport with a view towards medical tourism. Finally, it aims to encourage universities and colleges to locate in the area, to create and sustain a talent pool that can service the human resource needs of the locators.

History

Prior history

Prior to the creation of BEPZ, the area where the freeport zone is currently located was formerly part of barangay Camaya and barrio of NASSCO (National Shipyard and Steel Corporation) under the jurisdiction of municipality of Mariveles. Barangays Malaya and Maligaya, the two barangays of Mariveles that are also under the jurisdiction of BEPZ, were formerly mountainous areas prior to the zone's creation.

World War II gave Bataan its place in humanity’s darkest history and made this war-torn fishing village one of two starting points to a brutal, long march that saw thousands of Filipino soldiers and hundreds of their American counterparts killed.

In April 1942, the infamous Bataan Death March began—from the towns of Bagac and Mariveles in Bataan province to Capas town in the province of Tarlac.

The war changed the tempo of life in Mariveles, relegating it to an economy of subsistence, where farmers heavily depended on the yield of the land and catch from the sea for their existence.

When NASSCO complex was set up in 1950, families of the Nassco workers began to inhabit a large piece of land which had been used by the US Navy as a base. NASSCO told the workers to stay where they like. Therefore the NASSCO community was formed. [2]

Until the late 1960s, Mariveles was largely underdeveloped. It had a rickety road network, with businesses centered mostly on sari-sari stores catering to the everyday needs of community residents. Farming and fishing remained the community’s main source of income.

When President Marcos declared the establishment of BEPZ in Mariveles in order to hasten the hope for an industrialized Philippines, NASSCO inhabitants were requested to move out from the zone where they had been living for over 20 years and transfer to other parts of the municipality but they were not given proper places nearby and they received no compensation. Housing in Mariveles thus became overcrowded.

1969–2010: Foreign Trade Zone Authority and Export Processing Zone Authority/Philippine Economic Zone Authority

On June 21, 1969, Congressman Pablo Roman, Sr. authored Republic Act 5490 designating Mariveles, Bataan as the first free trade zone in the Philippines. [3]

In early 1972, three congressmen — Roman, Roces, and Sarmiento - sponsored the bill to convert the free trade zone authority into government corporation. This would grant the power of a corporation combined with the coercive strength of the Philippine Government to move the project ahead, especially regarding the relocation of residents. The bill stalled in Congress due to the opposition of many members to the vested interests involved.

On November 20, 1972, the Bataan Export Processing Zone (BEPZ) became the first official economic zone in the Philippines through Presidential Decree 66 (which also created Export Processing Zone Authority (EPZA), later became Philippine Economic Zone Authority (PEZA)). The BEPZ was one of the most progressive communities in Luzon during its first decade of operation. The area attracted over one hundred multinational locators.

In 1976, Mattel established a wholly owned subsidiary called Mattel Philipines, Inc. within BEPZ to minimize expenses, notably in manufacturing. Barbie dolls, as well as some of the dolls' clothes and accessories, were manufactured at the factory and subsequently dsitributed to various countries across the world.

However, in the 90s to 2000s BEPZ (now renamed as Bataan Economic Zone or BEZ after the enactment of Republic Act 7916 in February 1995 [4] ) stagnated and declined after it was outcompeted by two newly formed freeport zones from the remnants of American bases in nearby Clark and Subic Bay.

2008–present: Authority of the Freeport Area of Bataan

To put a halt to BEZ's decline and allow the zone to fulfill its original mandate to become a catalyst for progress and development in the region, Bataan 2nd District Congressman Albert S. Garcia and Senator Loren Legarda authored a bill for the conversion of Bataan Economic Zone into a freeport and creation of Authority of the Freeport Area of Bataan (AFAB). On May 6 and June 6, 2008, the consultative meeting on House Bill 1425 and Senate Bill 2118 known as Bataan Special Economic Zone and Freeport Act of 2008 was held. Legarda said that the conversion to a freeport zone will generate more investment for Bataan. It also helps to address the government's efforts of creating 2 million jobs per year to be able to neutralize the rate of unemployment in the country.

The Philippine Congress then passed the Freeport Area of Bataan Act (Republic Act 9728), which was enacted into law on October 23, 2009. This Act created AFAB which will turnover the zone's operations and management from PEZA on the last day of the administration of President Gloria Macapagal Arroyo and upon her successor Benigno Aquino III become President of the Philippines resulting in the conversion from BEZ to FAB and the creation of the second freeport zone in Bataan after Subic Freeport in Morong and Hermosa eight months later on June 30, 2010.

During the transition period from BEZ to FAB in 2010, the question "Are you ready for the FAB?" is printed on signboards posted in various parts of Bataan, referring to the future Freeport Area of Bataan (FAB) which will replace BEZ on June 30 of the said year. [5]

Five months after AFAB's creation, President Gloria Macapagal Arroyo appointed Deogracias G.P. Custodio as the first AFAB chairman and administrator in March 2010. [6] [7]

On June 30, 2010, AFAB turned over the zone's operations and management from PEZA which officially started the management and operations of the former over the zone, and resulted in the conversion of the zone from BEZ into FAB, abolishment of BEZ, and the creation of the second freeport zone in the province after SBFZ in Morong and Hermosa pursuant to Section 28 of RA 9728. This started the zone to adapt the FAB name and logo, with the change was reflected when the PEZA and BEZ names on the zone's administration building and a welcome sign along Roman Superhighway were removed two months later on late August 2010 which made the red part of the BEPZ/BEZ/PEZA logo became all blue as one of the projects of AFAB made during its first few months of operation and management over the zone and then the said logo was next to be removed by placing a cement on a part of the building where the logo is in 2012. Despite the conversion to FAB and turnover of the zone to AFAB, there are still traces and references of BEPZ/BEZ and PEZA still left that were not yet removed, such as on some signages found on Mariveles Zigzag Road and on a newer welcome sign located after the zone's another sign with a guard house along the said highway. The BEZ sticker is still effective until FAB started to issue its own sticker in 2011 which succeeded the former. FAB initially had 39 enterprises and 12,777 workers by the time of conversion of the zone from BEZ to FAB and turnover of the zone's operations and management from PEZA to AFAB which inherited from its predecessor BEZ. [8] [9] [10]

AFAB issues its sticker to enter the zone's premises since 2011 which succeeded the BEZ sticker that were produced until 2010 and has been in use until 2011 or the first months of the zone as FAB.

On August 30, 2019, President Rodrigo Duterte signed Republic Act 11453, amending the provisions of RA 9728, and further strengthening the powers and functions of AFAB, enabling the freeport to expand its operation anywhere within the province of Bataan except the Hermosa and Morong portions of Subic Special Economic and Freeport Zone, another freeport zone located within the province and under the Subic Bay Metropolitan Authority (SBMA), as defined by R.A. No. 7227. [11]

First logo of Authority of the Freeport Area of Bataan (AFAB), used from June 30, 2010 to June 2014. Authority of the Freeport Area of Bataan June 30, 2010-2011 Logo.jpg
First logo of Authority of the Freeport Area of Bataan (AFAB), used from June 30, 2010 to June 2014.

From AFAB's creation on October 23, 2009 until the conversion of the zone from Bataan Economic Zone (BEZ) to Freeport Area of Bataan (FAB) and turnover of the zone's operations and management from Philippine Economic Zone Authority (PEZA) on June 30, 2010, the agency did not yet have a logo as the zone was still operated and managed by PEZA and the name of the zone is still known as BEZ until the said date of June 2010.

The first logo of AFAB, used when it started operated and managed the zone eight months after its creation on June 30, 2010 to June 2014, featured a phoenix symbol and AFAB text on a red rectangle, with the text "Authority of the Freeport Area of Bataan" in red below. The phoenix symbolized the change or transition from BEPZ/BEZ to FAB which happened on June 30, 2010 - a rebirth of sorts. It was concurrently used with the 2011 AFAB logo until the said month of 2014.

The second and current logo of AFAB, used since April 2011, features the FAB in blue text with red and blue swirl or spiral on the upper-right of the text, and the text "Freeport Area of Bataan" below. The swirl or spiral of the logo symbolizes growth, swirl's interlocking parts represents trade and partnership, and red and blue are reminiscent of national pride, with red exudes determination, passion and strength, and blue depicts stability and depth. [12] This logo is currently used on the freeport zone's administration building since 2012.

Administration

The Authority of the Freeport Area of Bataan (AFAB) is headed by a Chairperson, duly-elected from a 9-member AFAB Board of Directors (AFAB BOD), and an Administrator that oversees the day-to-day operations of the AFAB. The Administrator is also considered as a director and a member of the AFAB BOD, but shall in no case be, elected as the Chairperson or Vice-Chairperson of the AFAB BOD. Each Board member represents a sector that is vital to the growth and development of the FAB. All members, including the chairperson and the administrator, are appointed by the President of the Philippines.

The AFAB may grant to its FAB Registered Enterprises incentives under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).

List of AFAB Chairman and Administrators

NameTermPositionAppointing president
Deogracias G.P. CustodioMarch 2010 – October 10, 2016Chairman and Administrator Gloria Macapagal Arroyo
Emmanuel D. PinedaOctober 10, 2016 – April 28, 2023Administrator (2016–2023)
Chairman and Administrator (2016–2020)		 Rodrigo Duterte
Atty. Pablo M. GancaycoMarch 6, 2020 – presentChairman
Mohammed Hussein PangandamanApril 28, 2023 – presentAdministrator Bongbong Marcos

See also

Notes

  1. ↑ Philippine Economic Zone Authority (PEZA) still exists today. However, EPZA/PEZA operated and managed the zone from November 20, 1972 to June 30, 2010. AFAB was created in October 23, 2009 but it was not until June 30, 2010 when it turned over the zone's operations and management from PEZA. Thus, EPZA/PEZA served as AFAB's preceding agency in zone's operations and management.

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References

  1. ↑ "Republic Act 9728" (PDF). Archived from the original (PDF) on September 23, 2012. Retrieved May 7, 2013.
  2. ↑ Ibiblio. "Bataan Export Processing Zone" . Retrieved August 27, 2023.
  3. ↑ Ibiblio. "Bataan Export Processing Zone" . Retrieved August 27, 2023.
  4. ↑ "Republic Act No. 7916 | GOVPH". February 24, 1995.
  5. ↑ BusinessMirror (March 3, 2010). "Bataan residents get ready for FAB".{{cite news}}: |author= has generic name (help)[ dead link ]
  6. ↑ "History - Authority of the Freeport Area of Bataan" . Retrieved July 3, 2021.
  7. ↑ "AFAB News Magazine Issue 1 by FAB". May 6, 2013. Retrieved March 19, 2022.
  8. ↑ Ernie Esconde (December 21, 2019). "Number of workers in Bataan freeport hits record high in 2019". Philippine News Agency. Retrieved July 14, 2022.
  9. ↑ "AFAB 2010 Executive Summary" (PDF). Archived from the original (PDF) on July 9, 2021. Retrieved July 3, 2021.
  10. ↑ "AFAB: Freeport Growth Won't Kill Small Biz". February 25, 2022. Retrieved July 14, 2022.
  11. ↑ "AFAB 2019 Executive Summary" (PDF). Retrieved July 3, 2021.
  12. ↑ Authority of the Freeport Area of Bataan (February 11, 2020). "Did you know? The meaning of the FAB logo". Facebook . Retrieved March 27, 2022.

14°26′21.06″N120°30′2.55″E / 14.4391833°N 120.5007083°E / 14.4391833; 120.5007083

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