AS new members of Congress take office, the Philippine Economic Zone Authority (PEZA) has reiterated its call for the amendment of its 29-year old charter to hasten approval processes for ecozone development and strengthen the agency’s ability to attract foreign direct investments (FDIs).
“The proposed amendments to the PEZA law are intended to empower the agency in terms of exercising regulatory powers and formulating policies that will enhance the promotion and facilitation of ecozone investments,” Tereso Panga, PEZA director-general, said. “We need to keep it true to the times because we’re up against other economies, promoting their own respective economic zones in attracting more FDI into their countries.”
Panga said one of these powers include allowing the PEZA Board to designate areas/industry-specific developments as ecozones similar to the prerogative given to the Authority of the Freeport Area of Bataan and the Tourism Infrastructure and Enterprise Zone Authority.
Panga said at present, ecozones are established through presidential proclamations.
Another amendment seeks to give PEZA autonomy in enforcing the Fire Safety Code, Environmental Compliance Certificate and Occupational Safety Standards to harmonize its procedures with that of Subic Bay Metropolitan Authority and Clark Development Corp., Panga said.
These standards are being handled by the Department of Environment and Natural Resources and the Department of Labor and Employment.
“This is the first time in nearly 29 years that the PEZA Law will undergo amendments. It is therefore timely to introduce these changes to make the PEZA Charter more responsive to the evolving needs of multinational and critical investors—especially during this era of rapid technological advancement,” Panga said.
He said the amendments are meant to future-proof the agency for the next 30 years.
“If we are to further increase the contributions of PEZA via the dividends we directly provide and the benefits like jobs, livelihood, micro, small and medium enterprise growth and community development around the ecozones, the amendment to the PEZA law should be considered and championed now,” he said.
“These key amendments and reforms are crucial to enhancing further PEZA’s one-stop shop services and in driving competitiveness and innovation for the ecozones to generate more investments, jobs, exports and other economic opportunities for the country,” Panga added.
He said the PEZA law amendment will complement the provisions of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.
Under this law, PEZA’s capabilities will be expanded by opening up more positions to handle locators.
At present, PEZA has over 4,000 locators in 427 eonomic zones but only 650 employees nationwide.
Panga added that PEZA aims to increase its contribution to both the local government units and the national government.
Under the law, LGUs where ecozones are located get a 2 percent share from PEZA revenues contributed directly by locators for infrastructure and socio economic programs.
Panga said since the start of the Marcos administration, PEZA has contributed P3.5 billion to the National Treasury.
Panga said the agency obtained the support of some champions in the lower house in the previous Congress.
“We’re hoping to get counterpart authors also from the Senate,” he added.
Possible bill sponsors in the House of Representatives include Speaker Ferdinand Martin Romualdez and representatives Rufus Rodriguez, Antonio Ferrer, R. Alfredo Marañon III, Gerardo Valmayor Jr. and Arnan Panaligan.
Panga expressed confidence PEZA’s bid for changes in its charter would get the support other agencies in its 13-member board which have a big role in making policies that would make the implementation of the country’s development program more effective.
These include the Department of Economic Planning and Development, the Department of Interior and Local Government, the Department of Finance and the Department of Science and Technology.
The Department of Trade and Industry chairs the PEZA board.
“It’s a lot easier for us to be coordinating with them to come up with these amendments to the PEZA law. We have great confidence and hope that these will be implemented in the 20th Congress,” Panga said.
