No More Land in the Freeport?

The 2012 State of the Freeport address by administrator Robert Garcia was enlightening. It was one of the most frank and honest assessments we have ever heard of the problems facing the Freeport. He made many good points about how essentially the freeport has failed since the departure of Fedex and other marquee investors. One very interesting point he made is that the freeport is essentially out of large tracts of available land to offer investors. Though its land area is larger than Singapore, the vast majority of that is protected. Much of the rest of it is locked in low-cost old leases. During a recent visit to Taiwan, Garcia said he had investors asking for 20 to 30 hectares of land. He had nothing to offer. He said during the address that there is 140 contiguous hectares along Tipo Highway but it is rocky, difficult to develop land. The rest of the available land for lease is in 2 to 6 hectare batches in off-prime areas. His hands are tied to solve this problem, he says, because the old 50 year leases, some of it locking up land that is not being used, are contracts that cannot be violated. He said in his address that one of the solutions to increase revenue without leasing out new land will be to focus on tourism development. That is very welcome news. Tourism is clean revenue that enhances the reputation of Subic and benefits not only the freeport but surrounding areas as well. Of course, how the giant coal-fired power plant that they are building near Grande Island fits into the tourism scheme is still a mystery.