Agence France-Presse . Subic Bay,

Philippines Emirati developer Jafza International and Economic Zones World has signed an accord to develop a logistics hub in the Subic Bay freeport, north of the Philippine capital, it was announced Wednesday.

Under the memorandum, the United Arab Emirates-based Jafza could invest as much as 250 million dollars over the next five years in the international hub, said Armand Arreza, chief executive officer of Subic Bay Metropolitan Authority.

The agreement was finalised during Philippine president Gloria Arroyo’s recent visit to the UAE, said Arreza.

Under the agreement, Jazfa International will lease and develop parts of an industrial zone, the wharf and the international airport located in Subic for use of its logistics operations, the official added.

Subic Bay was formerly the base of US naval forces in the region but was transferred back to Philippine control in 1992. It has since been converted into a free-port, industrial zone and tourism centre.