Authority of the Freeport Area of Bataan

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.

Authority of the Freeport Area of Bataan
Logo, used since April 2011

Freeport zone
Agency overview
FormedJune 30, 2010 (2010-06-30)
JurisdictionThe Whole Area of Freeport Area of Bataan, Barangays Malaya and Maligaya
HeadquartersAFAB Administration Bldg., FAB, Mariveles, Bataan 2106
14°26′N 120°29′E
Agency executive
  • Emmanuel D. Pineda, Chairman and Administrator
Parent agencyOffice of the President of the Philippines
Websiteafab.gov.ph

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

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[2]) 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.[3][4]

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.[5]

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.[6]

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

The first logo of AFAB, used from 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) to AFAB on June 30, 2010 to 2011, featured a bird symbol and AFAB text on a red rectangle, with the text "Authority of the Freeport Area of Bataan" in red below. This logo was only used for one year.

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.[7] This logo started to be used on the freeport zone's administration building on late 2011, one year after the Bataan Export Processing Zone (BEPZ)/BEZ/PEZA logo and all references to it were removed on September 2010.

Administration

The Authority of the Freeport Area of Bataan (AFAB) is headed by an Administrator who sits as Chairman of the 9-member AFAB Board of Directors. Each Board member represents a sector that is vital to the growth and development of the FAB. All members, including the chairman, are appointed by the President of the Philippines.

The AFAB may grant to its FAB enterprises incentives under the Special Economic Zone Act of 1995 or the Omnibus Investments Code of 1987. The AFAB has the power to operate on its own, or to license, tourism-related enterprises, including games, gambling casinos, horse-racing and other recreational and sports facilities, subject to the approval and supervision of PAGCOR.

List of AFAB Chairman and Administrators

Name Term Position Appointing president
Deogracias G.P. Custodio June 30, 2010–October 10, 2016 Chairman and Administrator Gloria Macapagal Arroyo
Emmanuel D. Pineda October 10, 2016–present Chairman and Administrator Rodrigo Duterte

See also

References

  1. "Republic Act 9728" (PDF). Archived from the original (PDF) on 2012-09-23. Retrieved 2013-05-07.
  2. "Republic Act No. 7916 | GOVPH".
  3. "History - Authority of the Freeport Area of Bataan". Retrieved 2021-07-03.
  4. "AFAB News Magazine Issue 1 by FAB". 2013-05-06. Retrieved 2022-03-19.
  5. "AFAB 2010 Executive Summary" (PDF). Retrieved 2021-07-03.
  6. "AFAB 2019 Executive Summary" (PDF). Retrieved 2021-07-03.
  7. Authority of the Freeport Area of Bataan (2020-02-11). "Did you know? The meaning of the FAB logo". Retrieved 2022-03-27.

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