The Cagayan Economic Zone Authority (CEZA), a government-owned and controlled corporation, is celebrating its 30th anniversary, marking three decades of contributions to the economic and social development of Northern Luzon. Created by virtue of Republic Act 7922, also known as the “Cagayan Special Economic Zone Act of 1995,” CEZA was the brainchild of Senator Juan Ponce Enrile and approved by President Fidel V. Ramos. CEZA is tasked with the managing and supervising the development of the Cagayan Special Economic Zone and Freeport (CSEZFP).
Strategic gateway to Asia-Pacific trade
Situated at the Philippines’ northeastern tip bordered by the Balintang Channel and Pacific Ocean, the Cagayan Freeport serves as a crucial link between North America’s West Coast, the Far East, and Southeast Asia, making it a prime transshipment point for trade in the Asia-Pacific region. The zone covers the entire municipality of Santa Ana, as well as the Fuga, Barit, and Mabbag Islands in Appari, Cagayan, encompassing approximately 54, 118.95 hectares of urban, suburban, and agro-industrial lands.
CEZA aims to transform the area into a self-sustaining industrial, commercial, investment, financial, and tourism-recreational center, complete with suitable retirement and residential areas. It operates as a separate customs territory similar to Hong Kong, Singapore, Lubuan in Malaysia, and Hamburg in Germany, offering attractive incentives and advantages to investors.
Milestones and achievements
Since 1997, CEZA has initiated numerous projects to promote development in the CSEZFP, attracting legitimate local and foreign investments and creating employment opportunities in and around the Freeport. CEZA is also the first economic zone in the Philippines to host financial technology companies in the emerging fintech industry.
In a significant step towards bolstering financial crime prevention, CEZA garnered positive feedback at the Asia Pacific Joint Group (APJG) Meeting in May 2024. The agency was commended for conducting comprehensive examinations of 100% of its covered persons, including interactive gaming operators and interactive gaming support service providers (IGSSPs) under its jurisdiction. CEZA’s efforts contribute to the Philippines’ progress toward exiting the Financial Action Task Force (FATF) Grey List, enhancing Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), and counter-proliferation financing management.
Under the leadership of Secretary Katrina Ponce Enrile, who assumed office as Administrator and CEO on June 7, 2023, CEZA has been propelled toward modernization, economic resilience, good governance, and sustainable development. Enrile’s vision, “Future-Proofing CEZA,” focuses on restructuring the organization, enhancing support facilities, and attracting investments to unlock economic and employment opportunities in the CSEZFP.
Current initiatives and future plans
CEZA is embarking on several significant initiatives and future plans aimed at enhancing its role as a pivotal economic hub in Northern Luzon. As of early 2025, CEZA has secured a budget of ₱324.47 million for the fiscal year, which is set to support various infrastructure and development projects within the CSEZFP.
Key initiatives
• Infrastructure Development: CEZA is focusing on upgrading critical infrastructure to facilitate economic growth. This includes enhancements to Port Irene, which will allow it to accommodate larger vessels, thereby increasing trade capacity. The agency is also planning to construct a new data center and telecommunications facility to bolster digital infrastructure, ensuring seamless connectivity for businesses operating within the Freeport.
• Digital Transformation: In August 2023, CEZA partnered with Now Group to develop a world-class Communications Critical Infrastructure. This initiative aims to establish advanced 5G connectivity within the CSEZFP, positioning it as a modern technological hub that can attract further investments and enhance operational efficiency for existing enterprises.
• Economic Diversification: CEZA is actively working to diversify its economic base by promoting sectors such as financial technology, tourism, and agro-industry. The agency’s strategic vision includes transforming the Cagayan Freeport into a major fish port and tourism destination, leveraging its natural resources and scenic locations to boost local economies.
Future plans
• Expanded Budget Utilization: The approved budget for 2025 will be utilized for various projects aimed at revitalizing industries and boosting trade. CEZA’s leadership has emphasized the need for this funding to support ongoing initiatives and new projects that will create employment opportunities and stimulate local economies.
• GANDA 2025 Initiative: Under the CAGANDA 2025 development agenda, CEZA aims to improve access routes and infrastructure across Cagayan Province. This initiative includes plans for new economic centers, bridges, and enhanced health facilities, all designed to open up the province for more effective trade and investment opportunities.
• Strengthening International Ties: CEZA is also pursuing economic cooperation with Taiwan, focusing on developing fish ports and processing areas. This partnership is expected to create jobs while addressing issues like poaching in coastal areas, thus contributing to sustainable development in the region.
• Enhanced Governance and Transparency: CEZA is committed to transforming its procurement processes to ensure transparency and efficiency in project implementation. This transformation is vital for building trust with stakeholders and ensuring that resources are utilized effectively.
As CEZA continues to implement these initiatives, it remains focused on its mission of fostering economic growth and social development in Northern Luzon. The agency’s strategic plans not only aim at attracting investments but also at uplifting local communities through job creation and improved infrastructure. With a clear vision for the future, CEZA is poised to play a crucial role in shaping the economic landscape of the region in the years ahead.
