Former U.S. Naval Base RE-OPEN BY 2026 for Philippine and United States Military Modernization

The Philippines is exploring the possibility of converting two islands, that were once part of a U.S. navy base, into a military reservation, a move to bolster its presence in waters facing the South China Sea.
Grande and Chiquita islands, are both located in Subic Bay, which was once a sprawling U.S. base, until the Philippines rejected a lease extension in 1991. The U.S. military pulled out a year later, and the strategically located facility has since been transformed into a special economic freeport zone.
The islands' conversion could help secure the freeport, and an international airport, to support the Philippine navy's development of a base in the area. Grande Island is a strategic vantage point, with a clear view of key sea lanes in the West Philippine Sea, including Bajo de Masinloc, referring respectively to the Philippine exclusive economic zone, in the South China Sea and the hotly disputed Scarborough Shoal.
Upholding the Philippines' sovereign rights in the South China Sea has been a top priority of the administration of President Ferdinand Marcos Jr, which has locked horns repeatedly with China over the conduct and constant presence of Beijing's coast guard and fishing militia near disputed features in Manila's EEZ.
The Philippines wants to reopen parts of Subic Naval Base by 2028 to accommodate its expanding navy. Aside from Subic Bay, the Philippine Navy also plans to activate new naval bases in Mindanao. The expansion of Philippine naval bases will aid the country’s military modernization efforts, in supporting the increasing number of modern and larger vessels procured by Manila under the Revised Armed Forces of the Philippines Modernization Program.
With increasing number of fleets, personnel housing, ship berthing space, and other infrastructure was insufficient to support the growing demand of naval services. The search for a new facility dedicated to military infrastructure was launched as a result of these circumstances.
The Armed forces of the Philippines are more than just acquiring new equipment, this modernization is also about empowering the Philippine Navy with the necessary skills, knowledge, tools, and sustainment that would safeguard the nation’s interest.
The port and nearby Clark Air Base formed America’s largest overseas military presence before both were damaged in the 1991 eruption of Mount Pinatubo and soon after returned to the Philippines. The Philippine navy is already using part of the former Hanjin shipyard across the bay from where the naval base stood, but it needs a larger facility. While Manila plans to grow its fleet rapidly as it engages in a test of wills with Beijing over control of stretches of the South China Sea and small islands relatively close to Philippine shores.
Philippine Administration claimed that ground would soon be broken for Naval Station Nabasan, referring to an existing wharf near the entrance of the bay and within the proximity of a planned military reservation at Grande Island. Further developments were specified at Chiquita Island, also located close to Nabasan in Subic Bay, and Misamis Oriental in Mindanao.
Strategically positioned toward the South China Sea, Subic Bay has been home to colonial-era Spanish, American and Japanese naval bases. Today, Manila’s forces utilize the bay and permit international partners such as the U.S. and France to dock their larger vessels for port stops and repairs. The U.S. Navy has eyed the area for prepositioning Marine Corps equipment in the Philippines, and is looking to activate a large storage facility within 100 kilometers of Subic Bay by 2026.
The US Navy is looking to lease a climate-controlled facility, between 19,000 and 33,000 square meters near Subic Bay and Clark. For the storage of equipment in the Philippines by 2026 under a ten-year-long lease, which could mark the largest prepositioning effort to date between Washington and Manila since 1992.
According to solicitation documents on the proposed lease, this new facility would be utilized for storage and maintenance of vehicles and vehicle equipment. While the Navy specified its preference for a 33,022 square meter facility, the minimum requirements encompass 19,979 square meters. Both projections dwarf a previously leased 5,300 square meter warehouse at Naval Support Depot in Subic Bay, which is set to support U.S. Marine Corps staging efforts in the Philippines and throughout the region.


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