SUBIC BAY FREEPORT—Saying it has had enough of speculation about the nature of a Chinese investment project in two strategically located islands here in this free port, the Subic Bay Metropolitan Authority (SBMA) on Friday said it welcomes a call by a so-called advocacy group for a Senate investigation into the issue.
“If someone would want an investigation of the Grande Island investment project, then I say, by all means get on with it!” SBMA Chairman and Administrator Wilma T. Eisma said on Thursday, as she directly addressed the reported call for a probe of the alleged sellout to Chinese investors of the Grande and Chiquita Islands in Subic.
“In fact, we are highly encouraging this group calling for an official investigation so that this matter can be resolved once and for all,” Eisma added, referring to the Pinoy Action for Governance and the Environment (PAGE), which called for the Senate probe early this week.
Eisma said that if there may be security concerns over Grande Island because of its strategic location, then this would be the best time to bring out and resolve the issue. “We welcome a Senate investigation, but let me add that let’s take it very seriously. I hope the call was made not only for the purpose of grandstanding,” she said.
Eisma also stressed that the SBMA looks forward to such an official inquiry to resolve the long-drawn issue over the two tourism islands.
“First of all, I would like to point out that Grande and Chiquita have not been sold—they are still the property of the Philippine government,” she said. “But there is an investor company renting the islands, and which has committed P180 million to build a five-star hotel, restaurant and recreational facilities on these properties.”
Eisma said that an official investigation into the matter would only bare the falsely reported “sale” of the islands, which were leased in 2019 to a joint venture between GFTG Property Holdings Corp. and Sanya CEDF Sino-Philippine Tourism Investment Corp., a Chinese-owned company.
The SBMA chief noted that while the proposed project by the Chinese investor company has been “in deep-freeze” after the SBMA objected to some of the development plans two years ago, “some people are maliciously using it as an example of ‘creeping Chinese invasion’ in the country.”
“As much as that group, the Pinoy Action for Governance and the Environment, says it has had enough of intrusions into our country’s exclusive economic zone, I would say that the SBMA, too, has had enough of speculation over the nature of this tourism project here,” Eisma said.
From the viewpoint of SBMA, which is one of the country’s top investment promotion agencies, the Grande Island development project is a legitimate investment proposal in a Philippine special economic zone where 100 percent foreign ownership of business enterprises is allowed.
The SBMA Business and Investment Group said the Grande Island development project started in July 2000 with the firm Silver Dragon Cruises Inc. (SDCI) entering into a lease development agreement (LDA) with the SBMA to rehabilitate a pier on the island and operate a ferry service within the bay. SDCI later assigned its leasehold rights to GFTG Holdings Corp. in September 2002.
The SBMA said that over the years, it approved various amendments to the agreement with GFTG, including those on revenue shares, leasehold period, and special provision for developing and marketing housing units. The biggest change in GFTG occurred in January 2019 when it brought in Sanya CEDF as its biggest shareholder, with 79.99 percent ownership of the firm.
However, in May 2019, the SBMA withdrew its consent to the change in the control and ownership of GFTG, noting that the changes were made without its approval, thus violating the LDA between SBMA and GFTG.
The SBMA also noted that the Sanya-controlled GFTG wanted to build 80 ultra-high end housing units over the water along the coastline of Grande and Chiquita islands, a proposal that was not allowed due to Constitutional limits giving the use and enjoyment of archipelagic waters exclusively to Filipino citizens, Eisma said.
Eisma said that ever since 2019, the Grande project has been in a limbo—for the SBMA, as well as for the investor.
“The company continues paying rent for the property, but no new development has taken place—which is sad because Grande is Subic’s tourism jewel and it’s just going to waste,” she said.