By Henry Empeño | October 26, 2026

SUBIC BAY FREEPORT — Aboitiz-backed Subic EnerZone Corporation (SEZ) has renewed its franchise to operate and manage the power distribution system in this free port for another 25 years, with two years remaining in its original contract.

SEZ, the distribution utility of Aboitiz Power Corp. (AboitizPower), signed an Extended Distribution Management Service Agreement with the Subic Bay Metropolitan Authority (SBMA) in a formal ceremony in Makati City late last week.

Both parties hailed the renewal as a contract for “powering Subic’s next chapter.”

Anton Perdices, executive chairman of the AboitizPower Distribution Group (APDU), highlighted the partnership between SEZ and the SBMA during the partnership launch, citing the need for practical planning, close coordination, and a long-term view of reliability and growth

“As Subic moves into its next chapter, reliable electricity will remain essential to that progress. It supports the daily work of locators, the services people depend on, and the opportunities that continued investment can bring,” Perdices said.

“For AboitizPower Distribution Utilities and Subic EnerZone, this partnership carries a clear responsibility: to plan alongside SBMA, strengthen the systems that serve the Freeport, and prepare for its changing needs,” he added.

SBMA Chairman and Administrator Eduardo Jose L. Aliño, meanwhile, emphasized that the partnership seeks to modernize infrastructure and build a more sustainable freeport moving forward.

“Our contract runs until 2028, but we are not waiting for it to end,” Aliño pointed out. “We are moving forward with each renewal because the needs of this region keep changing—and a good partnership has to change with them.”

According to Jay Navarro, SEZ OIC president and general manager, the firm has outlined detailed system upgrades, growth roadmaps, and reliability enhancement plans to support SBMA’s vision for a modern, resilient, and future-ready economic hub.

“Looking ahead, we are ready for Subic’s growth. Our demand and capacity forecasts project a steady rise in power needs. With Subic’s position as the Global Gateway of the Luzon Economic Corridor, these forecasts will change significantly, and we are prepared for it,” Navarro said.

SEZ has provided electricity services in the Subic Bay Freeport since 2003, serving over 3,750 industrial, commercial, and residential customers, and powering streetlights in this special economic zone.

AboitizPower owns, directly and indirectly through Davao Light, a 99.98% equity interest in Subic Enerzone. ▲

COVER PHOTO: SBMA Chairman Eduardo Jose L. Aliño and Subic Enerzone OIC President and General Manager Jay Navarro exchange tokens during the franchise renewal for the Subic power distribution system. (SEZ)