AlloyMTD to build 12 gov’t business centers for P20 B

By Bernie Cahiles-Magkilat Malaysian infrastructure conglomerate AlloyMTD is investing as much as P20 billion in the country for the development of 12 government centers in partnership with local government units and with the support of the Philippine Economic Zone Authority (PEZA). Engr. Isaac David, chairman of AlloyMTD Philippines, Inc., told reporters at the signing of the company’s registration as a special economic zone developer of the three-hectare Palayan City Government Centre and Central Business Hub (PCBH) in Palayan, Nueva Ecija that its parent firm AlloyMTD is funding these projects. “We are looking at 12 projects around the country,” David said noting that PCBH is the second project they have completed so far. The first project is the Calabarzon Regional Government Center (CRGC) located in Calamba City, which was completed in 2015. Other similar projects are expected to rise in Cebu, Surigao, Ilocos Norte and Ilocos Sur, Batangas, Camarines Sur, and Subic. Patrick Nicholas P. David, president of AlloyMTD Philippines who happens to be the son of the company chairman, said they are investing an average of P1.5 billion for each of these projects. The younger David said that its third hybrid PPP (Public Private Partnership) project located in Bataan is expected to be completed in three months. This will be AlloyMTD’s biggest government business center project with investment of P3.5 billion. At the signing and awarding of the certificate of registration on Friday, David said that the P1.6-billion PCBH consists of a new government business center building that will host satellite offices of at least 16 national government agencies and two BPO buildings that can house 4,000 BPO workers. BPO firm Sutherland has already started operation and is continuously hiring for full operation. The property has been declared by President Rodrigo Duterte under Proclamation No. 526 on June 25, 2018 as an information technology park (ITP). PEZA Director General Charito B. Plaza said that locators inside the IT Park are entitled to five percent tax on gross income earned of which two percent will go to the local government unit. The elder David explained that they will recoup their investments through leases from the locators over the 30-year contract to operate the ecozone/IT Park. The Palayan LGU will also pay a minimal lease rate for the government business center, he said. For her part, Palayan City Mayor Rianne Cuevas said they expect to boost tax collection from the new businesses and BPO locators in the ecozone. Cuevas was hopeful of the jobs that will be created and additional taxes that will soon follow noting that Palayan as a fifth class municipality is heavily reliant on the national government for subsidy under the internal revenue allocation (IRA). “We can create 18,000 jobs and even beyond, plus taxes. With this project we can ignore our IRA,” she said. Palayan receives government subsidy of P360 million. “We came from nothing, we are barriotic,” Cuevas said adding that the new government center and the world class facilities have lifted Palayan as a center of business for Nueva Ecija and nearby towns. The presence of government offices in PCBH will make it easy for residents of Palayan City as well as from other cities and municipalities of Nueva Ecija to transact business with the government as this will serve as a one-stop-shop especially those who are planning to work abroad.