Busy Batangas

Batangas City anchors its competitiveness on power, port, and people

By Edward C. Gacusana

The Calumpang River thrived with logs in the late 1500s. “Batangan” (from the word “batang” or logs), as the natives call the town, became Batangas in 1961. As the town progressed, it became a city of Batangas province eight years later. Today, it is one of the country’s top revenue earning cities -- reaching P670 million in 2004 -- and home to some of the biggest oil refineries as well as power plants in the country.

Coastal Edge

Batangas City, capital of Batangas province, is a Regional Growth Center. The city is approximately 112 kilometers south off Manila, just 2½ hours by land travel. It has a land area of over 27,633 hectares.

The developed international port spurs business in Batangas City | Click here to view map

“Batangas City has 16 coastal barangays (out of 105) where heavy industries can locate,” explains Mayor Eduardo Dimacuha. Its deep coastline makes it suitable for basic industries requiring private port facilities. The city’s harbor is an international port and an alternate port for Manila. This modern port now serves the neighboring island provinces of Mindoro Oriental, Mindoro Occidental, Romblon, and Palawan.

Some of the shipping companies operating in the port are Supercat Ferry Corporation, Sto. Niño Maritime Services, Viva Shipping Lines, Montenegro Shipping Lines, Shipshape Ferry, and Starlite Ferry, among others.

To further improve access to the International Port, a four-phase development program is underway which includes a 42-kilometer Southern Tagalog Access Road (South Luzon Expressway Extension) that will be linked to Metro Manila. This road development would decongest traffic in access towns going to Batangas City.

Those going to the city via helicopter can use three landing sites: Batangas National High School, Quezon Memorial Stadium, and Camp General Miguel Malvar.

Utilities and Investments

Batangas City is the landing point for natural gas piped in from Malampaya, an offshore field west of Palawan. It hosts the first three power plants (First Gas Power Corp. and Kepco-Ilijan Power Corporation) in the country using natural gas with a combined capacity of 2700 MW. The city also houses Pilipinas Shell Petroleum Corporation’s oil refinery facility and JG Summit’s Petrochemical Corporation. Offshore is Shell Philippines Exploration’s US$4.5 billion Malampaya project, one of the largest investments in the country with an estimated US$13 billion in revenues over the next 20 years.

The city depends on National Power Corporation through Manila Electric Company for its supply of electricity to 24 poblacion barangays and 65 rural barangays. Two barangays are served by the Batangas Electric Cooperative. Some barangays use solar energy while a few others with no electricity yet are under the Rural Electrification Program. The Batangas City Water District, meanwhile, supplies water in most areas of the city.

The city plays a major role in the flow of investments under the CALABARZON Development Plan. Enticing new investors remains part of the mayor’s executive agenda. Mayor Dimacuha is set to provide an environment conducive to investments. “The city implements tax incentives like BOI’s tax holidays for pioneer industries,” relates the Mayor, “and on the drawing board is an Investment Code that will incorporate tax incentives from the city government.”

To complement the growing demand for workers, the city relies on local resources. “Two big universities and three big colleges provide a steady supply of competent professionals and skilled workers,” explains the mayor. The city’s current employment rate is 84.3%, mainly generated by projects at the Batangas pier, the large industries, the fast food chains (McDonalds, Jollibee, KFC), and Shoemart.

On a larger scale, Batangas Province also plans to develop its railroad system via the Batangas Light Rail Transit that will serve employees of the Batangas Industrial Belt, International Port, and the municipalities of San Pascual, Bauan, and Mabini.

Agro-Industrial and Social Services

Land use in Batangas City has changed rapidly since 1981 -- from agriculture to a major urban commercial and industrial center. This is guided by the city’s Comprehensive Land Use Plan which identifies sites for heavy and light industries. About 8.4% of the land has been allotted for industries but a larger portion (39.7%) has been reserved for ecological (forest, agroforestry, watershed, and tourism) and agricultural development (20.2%).

The city recognizes that current investments are capital, not labor intensive. For this reason, the city is continually supporting its farmers who cannot take advantage of employment opportunities provided by the new investments. The City Veterinary and Agricultural Services Office’s strategy includes the yellow corn sufficiency program for animal feeds. Under the program, 332.45 hectares have been planted to corn, harvesting 815.5 metric tons in 26 barangays that benefitted at least 171 farmers.

There are also techno-demo farms established for the production of rice, corn, root crops, high value crops like broccoli and cauliflower, pinakbet crops (sitao, ampalaya, eggplant, okra, and squash), tomato, sweet and hot pepper, papaya, and cutflower production. Bamboo is also being exported to Metro Manila.

Cooperative development is strong in the city. The mini-forest and orchard development program includes 72 mango orchards in 25 barangays; three calamansi orchards in three barangays; and 50 mahogany and narra mini-forests in 28 barangays.

Another program run by cooperatives is the city’s garbage disposal system through a composting project. Its Materials Recovery Facility (in Sico Controlled Dumpsite) has so far processed 21,204 kilos of biodegradable materials and 20,700 kilos of organic fertilizer. Soon, a bio-gas technology facility that will convert pig manure to energy will be pilot tested by the Soro-Soro Ibaba Development Cooperative with the support of the British government.

Over 100 day care centers managed by the City Social Welfare and Development Office in 81 barangays have been established. A Batangas City Health Card is in place for residents that entitles them to medical services. Some P12 million has also been allotted to give families free hospitalization and medicines in case of illness.

First Gas Power Corporation is adding 550 MW to its current 1,000 MW power plant

No wonder then that in 2003 the city ranked Number 4 (from Number 8 in 2002) in the Philippine Cities Competitiveness Project of the Asian Institute of Management Policy Center. Indicators like cost of doing business, dynamism of local economy, quality of human resources and training, infrastructure, quality of life, among others, have significantly improved in the city.

Tourism and Communication

Batangas City is home to about 19 hotels and lodges, including the new Pontefino Hotel that Philippine Business recently featured. Tourists can visit the Plaza Mabini within the Poblacion for its historic value (constructed in 1951 then renovated in 1993). Or one can visit Laurel Park at the Provincial Capitol in Brgy. Kumintang Ibaba. It has a multi-purpose center and a sculpture named “Diwa ng Batangueno” done in bronze/steel by sculptor Ed Castrillo. Other historic sites are the Basilica of Immaculada Conception and the Batangas Church Museum.

The local government is getting ready to host regional and national sports events. It is now building a domed sports coliseum. Estimated to cost P200 million, the facility will be fully air-conditioned and can seat 4,000 spectators. The complex will also include an Olympic-size pool, a track and field oval, an athlete’s dormitory, and a commercial arcade.

For nature lovers, the city has undeveloped resorts like the A & V Tatlonghari Beach in Brgy. Cuta and the Mahabang Buhangin Beach in Isla Verde. Verde Island Resort in Subukin, San Antonio, is now on a promotion spree. It has 27 luxuriously-designed cottages with several amenities such as aqua sports and a swimming pool. The unspoiled Tingga and Ilijan Falls are also potential tourist attractions yet to be explored.

Building City Character

One main thrust of the local government is to instill discipline and a strong character among its citizens. “I would like to see Batangas City as a progressive and economically self-sufficient city where law-abiding and peace-loving Batangueños are gainfully employed in business and industries or are self-employed as entrepreneurs; where the evidence of a city with strong character is visible; and where every Batangueño wears the badge of Eto Batangueño Disiplinado,” says Mayor Dimacuha.

The crucial test, however, is sustaining the clean and green program of the city. “It is difficult to break away from old habits,” admits Mayor Dimacuha. “The implementation of our garbage sorting at source ordinance is moving very slowly despite massive information dissemination and seminars. What I would like to see is the active involvement of all barangay officials in our different programs.” It is a clear challenge for the city because it was a recipient of the Cleanest City Award in 1994 from the World Bank and the Cleanest and Greenest Component City from the Gawad sa Pangulo sa Kapaligiran from 1998 to 2000.

Much has been done and more can be done in Batangas City. With its leaders looking straight at its goals, this naturally-gifted city with its committed people is one of the most competitive growth areas in the country today.