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PEZA seeks development of 137 new ecozones

PEZA seeks development of 137 new ecozones

By Bernie Cahiles-Magkilat | Published 

The Philippine Economic Zone Authority (PEZA) has identified 137 new sites for economic zone (ecozone) development covering 70,475 hectares of public lands around the country.

PEZA said these idle public lands are owned and managed by various government agencies such as the Privatization and Management Office, Power Sector Assets and Liabilities Management Corp. (PSALM), National Commission on Indigenous Peoples (NCIP), Philippine Mining Development Corp. (PMDC), and Department of Environment and Natural Resources (DENR).

PEZA Director-General Charito B. Plaza said they have already signed the memorandum of agreement (MOA) with these agencies for the redevelopment of their properties into ecozones under the Private-Public Partnership or joint venture schemes.

“These agencies are now complying with other documents for the presidential proclamation of these sites into special ecozones,” Plaza said.

Data showed that majority of these government-owned lands can be converted and suited for specific ecozone.

A majority of 39,940 hectares have been identified for manufacturing ecozone. This is followed by tourism ecozone with 19,815 hectares, and agro-industrial zone with 10,659 hectares. At least 42 hectares could be converted into IT Parks, and 4.5 hectares as IT centers. The remaining 5 hectares are deemed suitable for retirement ecozone.

At present, there are 380 ecozones in the country hosting a total of 4,147 export-oriented enterprises and contributing an overall R3.3 trillion to the entire Philippine economy.

Plaza has moved for the redevelopment and utilization of public lands either for export or domestic-oriented enterprises to maximize their productivity and create new jobs in the country. She has pushed for the creation of one Green Economic Zones and Indistrial Cities in every province and city.

In particular, Plaza has moved for the creation of domestic-oriented ecozones, particularly on major crops such as rice and other high-value crops to ensure the food security of the country.

Already, PSALM has started the suitability study of its real estate assets for conversion into economic sites, with nine sites situated in various locations in Metro Manila, Pampanga, and Bataan already covered for further assessment.

PSALM and PEZA entered into a memorandum of understanding (MOU) in December 2017 to consummate the newly formed joint undertaking. This will enhance collaboration towards utilization of PSALM’s idle real estate assets. Institutional arrangements will be determined following the results of the suitability study.

PSALM noted though that converting some of PSALM’s real estate assets into economic zones is an important privatization undertaking. Leasing out its land properties will provide it with a long-term opportunity to generate sustainable revenue while the government remains the property owner.

A two-pronged purpose is expected to be achieved from this business option. For one, PSALM will be able to generate income streams which will augment its fund sources to pay-off its assumed financial obligations. Two, it will also realize its strategic goal of participating in local and national development.

Aligned with PEZA’s mandate, PSALM’s move to convert its land assets into ecozones will help augment job opportunities and stimulate economic activities, thereby, providing more income for Filipinos.

It has already provided a list of assets to PEZA for consideration in its initial phase of suitability assessment. A joint technical working group has been formed to jumpstart the profiling project and suitability assessment.

PSALM properties are located beside power stations, which could be very attractive to investors.

PMDC, which has more than 60,000 hectares of idle lands, has also initially identified 8,000 hectares that can be redeveloped into mineral processing zones. PMDC is under DENR.

In the case of NCIP, PEZA said the agency has around 5 million hectares in ancestral domains that can be converted into ecozones. PEZA will be holding dialogues with the indigenous peoples in these areas to make their lands more productive and earn additional income from rentals. Besides, development of their lands means jobs creation.

According to Plaza, the NCIPI will prioritize ancestral domains with Certificate of Ancestral Domain Title (CADT). They are also set to conduct dialogues with the IP clans issued with CADT.

PEZA is also creating a technical working group to identify military reservation areas but which can be developed as defense economic zone. Already, a technical working group is preparing for the document of the 300-hectare government arsenal in Bataan as a defense ecozone.

In their initial talks with Defense Secretary Delfin Lorenzana, both agencies  agreed to look into Clark as possible military aircraft manufacturing hub and Subic as production hub for naval ships, patrol boats and submarines.

PEZA also has forged agreements with the Philippine Association of State Universities and Colleges for the building of KIST (Knowledge Innovation Science Technology Park) located in the various state colleges and universities. There are thousands of hectares covered by these SUCs but are mostly idle, Plaza noted.

PEZA itself is establishing a PEZA Institute, which will determine the skills needed by their investors. They will hook up with other government agencies like the Commission on Higher Education, Department of Education and TESDA to formulate a curriculum for the needed skills training of workers. Plaza noted that of the 1 million working age group, only half of them have finished college. Of the 500,000 college graduates, she said, only 30 percent are employable because their skills do not match with the requirements of industries.

Thus, the PEZA Institute would address the lack of skills of these workers and make them profitably employed.

Source: https://business.mb.com.ph/2018/04/15/peza-seeks-development-of-137-new-ecozones/

 

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