Batangas State University Knowledge, Innovation, Science & Technology (KIST) Park, the country’s first knowledge-based special economic zone, is seeking local and foreign investors and partners to achieve its five-year development goal.

University President Tirso Ronquillo said during a virtual ceremony for the KIST Park, which was proclaimed by President Duterte as special ecozone through Proclamation No 947, said investors can come in through Public Private Partnership (PPP) mode.

He said the Board of Regents of Batangas State University has approved initial budget of over P1 billion. They have so far allocated funds for the construction of the ground infrastructure and road network inside the park and the construction of the first building at a cost of P100-million.

“This is a work in progress and as developer and operator of KIST Park we need to source funds,” he said.

They are looking at investors, who do not just pour in money or set up operations, but those who are willing to enter into a memorandum of agreement for knowledge sharing. He said that locators should be able to tap its science and engineering capabilities and students to become part in their operation.

The park is also open for government research and development laboratories.

Ronquillo revealed of industrial firm investors including a design company engage in the production of personal protective equipment that are keen to locate at KIST.

As special economic zone registered with the Philippine Economic Zone Authority, locators are entitled to income tax holiday. But they are given extra privilege of a knowledge sharing with the Batangans University where the can do R and D with students. Their facilities can also be used as students’ immersion platform to mentor students on potential technology solutions.

As a university, Ronquillo said that KIST Park is the academe’s response to industry’s needs. “The academe and industry can engage together so they could provide good input to the country’s Innovation Act,” he said.

The KIST Park is also benchmarking their ecozone rental rates for locators that could be lower than other ecozones in the country as locators are on knowledge sharing deal. Locators are also expected to give preference to Batangas-based people in their hiring.

PEZA Director-General Charito B. Plaza also said that the university being the initiator of the KIST Park must be creative and resourceful in looking for investors and not be dependent on government budget.

“You can enter into joint ventures and PPP mode of constructing facilities and may forge long term lease agreements with locators,” she said.

PEZA-registered enterprises that locate in the ecozones are also entitled tax and fiscal incentives. Projects classified under pioneer status are entitled to a maximum of 8 years of income tax holiday and 6 years for non-pioneer status.

After the ITH, locators may start availing the 5 percent tax on gross income earned. Also, their importation of capital equipment are zero duty and purchases from the domestic market are VAT-free.

Plaza said that any industries can be attracted to locate in KIST Park, making the ecozone a catalyst for economic development in the Calabarzon area and a major job provider.

So far, there are 16 state universities and colleges that have signed MOAs with PEZA to establish similar KIST parks. This also open for private educational institutions.