The Philippine Economic Zone Authority (PEZA) is recommending another location for the site of the second runway of the Mactan Cebu International Airport so as not to disrupt the operations of existing locators of the Mactan Economic Zone 1 (MEZ1).
Charito Plaza, PEZA director-general, said in statement over the weekend building the second runway in the site near MEZ1 would result in billions of pesos in economic losses as locators are now considering the option of bringing their businesses to other countries.
Plaza said locators would demand from the MCIAA compensation of at least $2.3 billion to cover relocation costs.
They said the MCIAA should also shoulder an additional $4 billion for loss of revenue and expired inventory.
The Mactan Export Processing Zone Chamber of Exporters and Manufacturers (MEPZCEM) and the Japanese Chamber of Commerce and Industry of Cebu Inc. submitted to the Mactan-Cebu International Airport Authority (MCIAA) and to the National Economic and Development Authority (NEDA)-ICC Secretariat last separate petitions expressing their concern over the planned second runway.
“(The report) has produced a perception of uncertainty in the PEZA ecozone business environment (…) to the extent that new investments for expansion of present capacities are put on hold and plans to relocate the other countries in Asia are already on the table,” the groups said in their petition.
MEZ I is the home of 150 MEPZCEM member-locators which employ a total of 57,000 direct and 285,000 indirect workers.
The Lapu-Lapu City government also gets a share in the income taxes paid by these locators consisting of 2 percent of the 5 percent special income tax paid.
