The Philippine Economic Zone Authority (PEZA) offers to expand Mactan economic zone (MEZ) for another 200 hectares in a reclaimed area in partnership with the private sector as the developer.
Charito Plaza, PEZA director-general, said the agency is seeking approval from the Philippine Reclamation Authority on the project in the coastal area of MEZ.
Plaza said PEZA will have 40 percent equity in the project with the private sector developer taking a majority of 60 percent.
MEZ currently spans 150 hectares and is fully occupied, leaving existing locators no room for expansion.
“Ideally, the expansion should be adjacent to the existing MEZ…so we have to reclaim the area,” Plaza said.
Plaza said PEZA is yet to have an estimate of the project cost.
The plan comes in the wake of the opposition of PEZA on a plan of the Mactan-Cebu International Airport Authority (MCIAA) to build a second runway at MEZ1, the original site. MEZ2 is the first expansion.
Both are located near Mactan International Airport Authority.
PEZA, the local government of Lapu Lapu and MEZ locators have opposed the plan as this would cause disruption to the operations of companies that could lead up to P150 billion in damage and losses.
The MCIAA’s other option is to locate the runway in the adjacent barangay which will displace some households.
Plaza said locators would demand from the MCIAA compensation of at least $2.3 billion to cover relocation costs. MCIAA should also shoulder an additional $4 billion for loss of revenue and expired inventory.
