Dev’t cost estimated at P60B
THE Philippine Economic Zone Authority (PEZA) is designating 30 special ecozones next year at an estimated development cost of P60 billion.
The 2025 target is nearly double the 16 sites designated and proclaimed in 2024.
The ecozones are designed to provide new investors with ready sites where they could conduct their businesses.
In a briefing over the weekend, PEZA director-general Tereso Panga said the agency eyes more ecozones in new growth areas to spur countryside development and help small and medium enterprises (SMEs) form a seamless and effective value chain.
“The challenge is how to provide readily available areas” (for businesses) Panga said.
Each ecozone has a minimum area of 25 hectares, and entails development costs ranging from P1 billion to P2 billion.
“During the site selection of investors, if we don’t have land to offer, especially ecozones, easily … We lose out to competitors in the region,” Panga said.
The new ecozones will be in Calabarzon, Region 3, Cebu and Mindanao.
In Mindanao, the target areas are agriculture and green ores such as nickel, he said.
PEZA sees the certainty of developing information technology parks in next-wave cities and municipalities that will cater to the information technology-business process management industry, he added.
In an earlier interview, Panga said the ecozone authority has verified the link between high economic activity in a local government unit (LGU) and the presence of an ecozone.
“LGUs hosting ecozones have a higher level of progress,” he said.
Ecozones have a positive impact on LGUs, Panga said, citing the nine richest cities outside Metro Manila, except Batanes, are home to a number of PEZA ecozones.
“We see the same trend in the case of other leading and most progressive cities and municipalities in the country hosting ecozones,” PEZA said in another report.
He said Baguio, which is home to the government-owned Baguio City ecozone has registered a per capita GDP of P420,016. The Baguio ecozone is host to long-time locator Texas Instruments, the electronics firm that designs, manufactures, tests and sells analog and embedded semiconductors in the global market.
“The reinstatement of the ecozone program under the MTDP (Medium Term Development Plan) gives us confidence to reach out to investors,” Panga noted.
“The creation of ecozones will … maximize investments and promote industrial dispersion, especially outside metropolitan areas,” he said.
“Further, the ecozones will be integrated into the local economy by relaxing the requirements, facilitating the free flow of parts, components, and other inputs, and increasing open trade between zone locators and firms outside the zones,” he added.
Property consultancy Colliers said in a separate comment that more ecozones and industrial parks in the countryside should
provide more options for locators planning to expand in the Philippines.
Colliers estimated that delivery of about 450 hectares of new industrial sites in the Cavite-Laguna-Batangas corridor and Central Luzon in the three years to 2024.
Developers need to highlight the advantages of locating in industrial parks, including well-maintained road networks, subsidized utility costs and other existing infrastructure to entice potential locators, Colliers said.
Another property consultancy, JLL Philippines said tax incentives will support the growth and development of ecozones outside Metro Manila, which may foster decentralization and disperse economic activities throughout the country.
