Freeport Area of Bataan

The Freeport Area of Bataan (FAB), formerly known as Mariveles Free Trade Zone from June 21, 1969 to November 20, 1972, and primarily as Bataan Export Processing Zone (BEPZ) and Bataan Economic Zone (BEZ) from November 20, 1972 to October 23, 2009 and secondarily from October 23, 2009 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. It is also the second freeport zone in the province since October 23, 2009, after Subic Special Economic and Freeport Zone in Hermosa and Morong.

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.

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.

1969–2009: Mariveles Free Trade Zone, and Bataan Export Processing Zone/Bataan Economic Zone
On June 21, 1969, Congressman Pablo Roman, Sr. authored Republic Act 5490 designating Mariveles, Bataan as the first free trade zone in the Philippines.

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 (with the latter also creating Export Processing Zone Authority (EPZA)). 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 Philippines, 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 ) 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. RA 7916 also led to the change from EPZA to Philippine Economic Zone Authority (PEZA).

2008–2010: Conversion from BEPZ/BEZ to FAB, transition of the zone's operations and management from PEZA to AFAB
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 converted BEZ into FAB, and created AFAB which started the eight-month transition period of the zone's operations and management from PEZA to the former and the subsequent abolishment of BEPZ/BEZ from October 2009 to June 30, 2010. It is also when PEZA continued to operate and manage the zone and the Bataan Export Processing Zone and Bataan Economic Zone names became the zone's secondary name during the transition until June 29 and 30, 2010, respectively, as there were still remaining programs and plans of PEZA and BEPZ/BEZ needed to be completed including the turnover to AFAB on June 29 before abolishing BEPZ/BEZ on June 30.

From November to December 2009, BEZ held its last BEZ Trade Fair.

During the transition of operations and management from PEZA to AFAB from 2009 to June 2010, the question "Are you ready for the FAB?" is printed on signboards posted in various parts of Bataan, referring to the preparation for the turnover of the zone to AFAB.

Five months after AFAB's creation and conversion from BEZ to FAB, President Gloria Macapagal Arroyo appointed Deogracias G.P. Custodio as the first AFAB chairman and administrator in March 2010.

2010–present: Full operations and management of AFAB, abolishment of BEPZ/BEZ
On June 29, 2010, one day before the end of the administration of President Gloria Macapagal Arroyo and her successor Benigno Aquino III became President of the Philippines, PEZA turned over the zone's operations and management to AFAB at 1:25 pm. As a result of the turnover from PEZA to AFAB, BEPZ/BEZ were abolished the following day at the end of Arroyo administration and Aquino III became president in June 30, AFAB's first whole day of operations and management over the zone and working of the zone's employees under their new name which are FAB workers.

FAB issues its sticker to enter the zone's premises since 2011 which succeeded the BEZ sticker that were produced until 2010 during the transition period from PEZA to AFAB and has been in use until 2011 or the first months of AFAB's operations and management over the zone.

On late August 2010, AFAB removed the PEZA and BEZ names on the zone's administration building and a welcome sign along Roman Superhighway 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. These are to reflect the June 2010 turnover from PEZA to AFAB and the subsequent abolishment of BEPZ/BEZ.

Despite the turnover from PEZA 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.

On October 2010, FAB launched its website as part of the first anniversary of conversion from BEPZ/BEZ to FAB.

From November 8 to December 23, 2010, FAB held its first FAB Fair named "FAB Fair '10: FAB on the Rise!". FAB Fair succeeded BEZ Trade Fair as a result of the turnover of the zone's operations and management from PEZA to AFAB.

In 2012, the FAB registered the highest increase in employment generation among Investment Promotion Agencies (IPAs) after posting the highest growth rate, with PhP 390.6 million worth of investments, expanding by more than four times the PhP 86.0 million approved in 2011.

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.

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. The value of exported products reached more than US$ 1.05-billion for the year 2023 from the 44 manufacturers operating in the freeport, employing roughly 40,000 personnels. In addition, in a report released by Commission on Audit (Philippines), FAB is among the top ten GOCCs (Government-owned and controlled corporations with PhP 43.68 billion income, topping all other freeports in the country. 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.

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

Logo
Before the abolishment of BEPZ/BEZ on June 30, 2010 resulting from the turnover of the zone's operations and management from Philippine Economic Zone Authority (PEZA) to Authority of the Freeport Area of Bataan (AFAB) one day earlier on June 29, the zone used the logo of PEZA. This logo was primarily used before the conversion to Freeport Area of Bataan (FAB) from the creation of BEPZ on November 20, 1972 until October 23, 2009, and secondarily during the transition period of the turnover of zone from PEZA to AFAB and the subsequent abolishment of BEPZ/BEZ from October 23, 2009 to June 30, 2010. Despite the conversion to FAB on October 23, 2009, turnover of the zone to AFAB on June 29, 2010, and abolishment of BEPZ/BEZ on June 30, 2010, there are still traces and references of BEPZ/BEZ still left, such as on some signages found on Mariveles Zigzag Road and on a welcome sign located after the zone's another sign with a guard house along Roman Superhighway. This logo was also used on stickers to enter the zone's premises until FAB started to issue its own sticker which succeeded the BEZ sticker and administration building in 2011 and 2012, respectively.

The first logo as FAB, used from AFAB's creation in October 23, 2009 to June 2014, featured a phoenix symbol and AFAB text on a red rectangle. The phoenix symbolizes the change or turnover of the zone's operations and management from PEZA to AFAB on June 29, 2010 and the subsequent abolishment of BEPZ/BEZ on June 30 - a rebirth of sorts. It was concurrently used with the 2011 FAB logo until the said month of 2014.

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. This logo is currently used on the freeport zone's administration building since 2012. The logo's blue and red colors also reflect that the zone was inherited from BEPZ/BEZ/PEZA, with BEPZ/BEZ being the zone's former name and PEZA its operator until the turnover of operations and management to AFAB on June 29, 2010 leading to the abolishment of BEPZ/BEZ the following day on June 30.

Location
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 from the Philippines' capital city Manila via Andres Bonifacio Avenue from Manila to Balintawak in Quezon City, North Luzon Expressway (NLEx) from Balintawak, 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 hectare 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. 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), with the latter hosts the freeport's parish church named Our Lady of the Fatima Chaplaincy which is under the Roman Catholic Diocese of Balanga (part of the Ecclesiastical Province of San Fernando, Pampanga), 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 and under the Subic Bay Metropolitan Authority (SBMA), 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 17 approved expansion areas. Their declared economic activities include light and medium industrial, power generation, port services, agri-industrial, commercial, tourism, MICE activities, and BPO/IT in eight (8) different municipalities and the capital city of the province. Of which, ten (10) are now in development, and seven (7) are already operating. Six (6) of these expansion areas are located in Mariveles, while eleven are scattered in the towns of Bagac, Dinalupihan, Hermosa, Orani, Abucay, Pilar, and Limay, and in the City of Balanga.