PEZA, BuCor seals deal to establish Mega Economic Zone in Iwahig

PEZA, BuCor seals deal to establish Mega Economic Zone in Iwahig | Daily Tribune

The Philippine Economic Zone Authority and the Bureau of Corrections have finally sealed a partnership in transforming the Iwahig Penal Colony in Palawan into a Mega Economic Zone, aligned with PEZA’s commitment to facilitating and creating more investments, promoting exports, and generating employment for the country during the tenure of President Ferdinand Marcos Jr.

The MoU, sealed by PEZA director general Tereso Panga and BuCor chief, director general Gregorio Catapang Jr. on Tuesday, mandates both parties to establish economic zones in a portion of lands under BuCor, which is in Palawan.

In signing the MoU, PEZA and BuCor are set to create a Technical Working Group to determine the viability for ecozone development of lands under BuCor and suggest the co-development and revenue sharing scheme to be utilized by the parties.

For the part of BuCor, it shall prepare and comply with the documentary requirements for the issuance of a presidential proclamation for the establishment and development of an economic zone and determine and provide an inventory of idle BuCor lands that are viable for development into sustainable types of PEZA-BuCOR MoA economic zones, such as Agro-Forestry Ecozones, Defense Industrial Complex and Mineral Processing Ecozone, among others.

For PEZA, the MoU mandates it to facilitate the registration of identified and proposed lands under BuCor as PEZA-registered economic zones.

Promotion of BuCor economic zones

PEZA is also delegated to promote the BuCor economic zones as ready locations for foreign and local investors wanting to avail of fiscal and non-fiscal incentives provided to PEZA-registered business enterprises under Republic Act 7916, as amended by Republic Act 11534.

“The Parties shall explore the possibility of making a portion of the lands under BuCor the location of a mega-ecozone under PEZA; and the Parties shall endeavor to develop such mega-ecozone under an eco-industrial development framework under the Paris Agreement on Climate Change and United Nations’ Sustainable Development Goals, utilizing all available renewable energy technologies under a microgrid system and providing an ecosystem that enables locator companies to adopt circular economy principles,” read the MoU.

Now is the time

During his speech, PEZA’s Panga maintained that similar to how the Philippines’ ASEAN neighbors have developed government-owned and managed large-scale eco-industrial and biotechnology parks, he said he believes that it is high time for the country to establish its own mega ecozone.

“This will enable us to address key obstacles hindering the country’s FDI growth and bid to become the top investment destination in the region, such as the availability of renewable energy sources, high power rates, land availability, cost, tenure, and size, as well as the ease and cost of doing business,” he said.

Panga pointed out that the mega ecozone is ideal for hosting various sectors and entire supply chains, particularly those focused on innovation, digital transformation and sustainability.

“Emerging industries like electric vehicle production, advanced manufacturing, green ores processing, nanotech, knowledge-based and AI-driven industries, medical-related industries, and blue industries will find a conducive environment within this eco-industrial township, allowing us to promote clean and green production and integrate industry 4.0 technologies across supply chains,” according to Panga.