Freeport Area of Bataan

The Freeport Area of Bataan (FAB), formerly Bataan Export Processing Zone (BEPZ) from November 20, 1972 to June 30, 2010, is a special economic zone in Mariveles, Bataan, Philippines. It was envisioned by Congressman Pablo Roman, Sr., a representative from Bataan, who authored Republic Act 5490 designating the said location as the first free trade zone in the Philippines.[1][2] It is also the second freeport zone in the province since June 30, 2010, after Subic Special Economic and Freeport Zone in Morong and Hermosa.

Freeport Area of Bataan
Freeport Zone
Freeport Area of Bataan
OpenStreetMap
FAB
Location within the Philippines
FAB
FAB (Philippines)
Coordinates: 14°26′26.9″N 120°30′53.7″E
Country Philippines
RegionCentral Luzon (Region III)
ProvinceBataan
MunicipalityMariveles
Time zoneUTC+8 (PST)
Websiteafab.gov.ph

Background

In 1972, the Bataan Export Processing Zone (BEPZ) became the first official economic zone in the Philippines through Republic Act 5490 of 1969, primarily authored by Congressman Pablo Roman of Bataan. 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. 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[3]) 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.

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 authored a bill for the conversion of Bataan Economic Zone into a freeport. The Philippine Congress thereafter passed the Freeport Area of Bataan Act (Republic Act 9728), which was enacted into law on October 23, 2009. This Act created the Freeport Area of Bataan (which replaced Bataan Economic Zone (BEZ) eight months later on June 30, 2010), a special economic zone and freeport with a dedicated governing authority, the Authority of the Freeport Area of Bataan (AFAB). President Gloria Macapagal Arroyo appointed Deogracias G.P. Custodio as the first AFAB chairman and administrator on March 2010.[4][5]

On President Gloria Macapagal Arroyo's last day as President of the Philippines and Benigno Aquino III became president in June 30, 2010, Philippine Economic Zone Authority (PEZA) turned over the zone's operations and management to AFAB which officially started the operations of the latter, 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 Subic Freeport in Morong and Hermosa, with Deogracias G.P. Custodio became the first AFAB chairman and administrator after being appointed three months earlier.[6]

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 expant its operation anywhere within the province of Bataan.[7]

Currently, FAB is the third largest freeport zone in the country based in the number of investors and employment created, behind Clark Freeport and Subic Freeport. In 2021, the value of exported products reached more than US$838 million from the 44 manufacturers operating in the freeport, employing roughly 40,000 personnels. The various products produced are leather goods, electronic components, textile, sports and outdoor apparels, formed rubber and plastic products, medical personal protective equipment, fabricated metals, animal feeds, marine vessels, refined petroleum, petrochemicals and optical lenses. The tennis balls used in the Wimbledon Grand Slam are made in FAB.[8]

FAB is also an emerging hub for fintech and blockchain businesses in the Philippines hosting a number of these companies.[9][10][11]

Logo as Bataan Export Processing Zone/Bataan Economic Zone (November 20, 1972–early September 2010).
First logo as Freeport Area of Bataan (June 30, 2010–2011).

When Freeport Area of Bataan was called as Bataan Export Processing Zone (BEPZ) or Bataan Economic Zone (BEZ) from November 20, 1972 to June 30, 2010, it used the logo of Philippine Economic Zone Authority (PEZA). This logo was used from the creation of BEPZ on November 20, 1972 until it was removed on the zone's administration building on early September 2010. Despite that PEZA already turned over the zone's operations and management to Authority of the Freeport Area of Bataan (AFAB) and BEZ was converted to FAB on June 30, 2010, this logo continued to be used on the administration building until its removal as well as all references to BEPZ/BEZ/PEZA on September 2010.

The first logo as Freeport Area of Bataan, used from the conversion of the zone from BEZ to FAB and turnover of the zone's operations and management from PEZA to AFAB on June 30, 2010 to 2011, featured a bird symbol and AFAB text on a red rectangle. This logo was only used for one year.

The second and current logo of FAB, 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 started to be used on the freeport zone's administration building on late 2011, one year after the BEPZ/BEZ/PEZA logo and all references to it were removed on September 2010.

Location

The Freeport Area of Bataan, straddling the barangays Maligaya and Malaya in the town of Mariveles

FAB is located in a cove at the southern tip of the Bataan Peninsula and is about 172.3 kilometers from Manila. The freeport zone is accessible via the North Luzon Expressway (NLEx) from Balintawak in Quezon City to San Fernando, Pampanga, Jose Abad Santos Avenue (Olongapo-Gapan Road) from San Fernando to Dinalupihan, Bataan, and Roman Superhighway from Dinalupihan to Mariveles. The primary host town Mariveles has a total land area of 153.9 km2 or 1,742.48 hectares (4,305.8 acres) representing 12% of the total land area of Bataan. Of this, about 35% consist of the pastureland, 4.6% of forestland, 3.8% agricultural lands and the remaining 6% for residential and industrial use.[13] It is home to a Filipino community speaking a Languages of the Philippines called Mariveleño. According to the 2020 census, it has a population of 149, 879 people.

Agricultural resources include rice, mangoes, legumes, vegetables and coffee. It also has aquatic resources like round scads, grouper, mussel, and abalone; mineral deposits of granite and basalt and forest products like vines and bamboo.

Scope

The freeport area originally covers 2 barangays of Mariveles namely Barangays Maligaya (Pizarro) and Malaya (Quadro), however since August 2019 after the enactment of R.A. No. 11453, FAB is given the power to include the remaining areas of Mariveles and further expand to any area inside Bataan excluding the Hermosa and Morong portions of Subic Special Economic and Freeport Zone, another freeport zone located within the province, as defined by R.A. No. 7227. Before an area can be declared a freeport expansion zone, it'll be subjected to the concurrence of affected local government units and the approval of appropriate national government agencies, government owned and controlled corporations (GOCC) and instrumentalities, and the AFAB Board.

Currently there are already six approved expansion areas, namely:

  • The Bataan Provincial Capitol Compound which is planned to be developed as mixed-use business district - Balanga
  • Dinalupihan Woodlands Economic Zone - Dinalupihan
  • Petron Bataan Refinery Complex - Limay
  • First Abucay Freeport Zone which is a business process outsourcing (BPO) hub - ABucay
  • The Bataan Port City - Pilar
  • FAB Forest Township - Balanga and Bagac

References

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