A joint memorandum circular (JMC) was signed by the Bureau of Corrections (BuCor) and the Philippine Economic Zone Authority (PEZA) to formalize their partnership ahead of the expected Presidential Proclamation designating a portion of the Iwahig Prison and Penal Farm (IPPF) as a Special Economic Zone.

The agreement was signed by BuCor Director General Gregorio Pio P. Catapang Jr. and PEZA Director General Tereso O. Panga.

Catapang said the JMC facilitates the transfer of exclusive use and possession of the designated area within the IPPF to PEZA for ecozone development. He noted that the documentation is required for submission to the Office of the President to secure the proclamation.

This partnership, according to Catapang, reflects the direction of a “modern BuCor,” one no longer limited to prison walls but capable of contributing to national development.

“The law empowers us to use our lands to support reformation, generate income, and sustain our modernization,” he said.

“Today, we honor that mandate by embracing a vision that is bigger than ourselves. Iwahig will soon become a living proof that transformation is not only possible, it is inevitable when leaders choose courage over hesitation, collaboration over isolation, and service over self-interest,” Catapang added.

The planned Special Economic Zone is envisioned to support agro-industrial, commercial, and recreational industries, creating hubs for investment, tourism, and employment while optimizing government-owned land.

Under the Supplemental Agreement signed on June 9, 2025, BuCor granted PEZA full and exclusive rights to utilize the property for 50 years, with a possible 25-year renewal. Catapang said the long-term engagement signals a strong commitment to transforming the Palawan Mega Economic Zone into a thriving hub for business and investment.

Under the revenue-sharing arrangement, PEZA will remit 90 percent of monthly rental fees from businesses leasing properties back to BuCor, while PEZA will retain 10 percent as a management fee.

BuCor will be responsible for ensuring full legal title to the property and securing necessary clearances and LGU endorsements. PEZA, meanwhile, is tasked with preparing the draft Presidential Proclamation and coordinating the Technical Working Group to complete all supporting documentation.

BuCor and PEZA emphasized that their collaboration is aimed at accelerating the zone’s development roadmap and creating a sustainable economic environment that benefits both the local community and the nation.