The Philippine Economic Zone Authority (PEZA) said it resumed accepting applications for IT centers for Metro Manila, stating this move would usher in the inflow of more IT-business process management firms to locate in the country.
The processing of applications for the establishment of economic zones in Metro Manila was banned under Administrative Order (AO) 18 signed by then President Duterte on June 17, 2019. The AO stated that the moratorium on the acceptance, processing and evaluation of ecozones in the National Capital Region will stay until lifted. The AO was meant to complement existing strategies and policies on rural development as it will encourage, particularly IT-BPM firms, to locate in the provinces and create economic activities in the countryside.
But PEZA OIC Deputy Director General Tereso O. Panga said it is their position that the CREATE Law, which was passed and took effect in 2021, already superseded AO 18. “Our position is that it (AO 18) has been superseded by CREATE and its implementing rules and regulations,” said Panga.
In addition, Panga noted that CREATE is superior law and since it is the latest law it also superseded AO 18.
Panga earlier explained that CREATE provides for the criteria in setting up an IT Center in Metro Manila including listing the IT services as an eligible activity. With that, Panga said that PEZA’s understanding is they should resume processing and declaration of IT Centers in Metro Manila.
“We will resume accepting IT center applications for Metro Manila because it means big investments inflow,” said Panga, but will let the Office of the President will have to address the AO 18. Usually, the Office of the President would issue a supporting AO to align with the prevailing law.
Even as PEZA processes these applications, it will still be elevated to Malacanang for final approval for their declaration as special economic zones.
PEZA has been strongly calling for the lifting of the moratorium stating that some cities in the NCR do not have IT-BPM locators or do not host any IT center.
In fact, nine mayors in Metro Manila earlier issued an appeal to lift the moratorium. PEZA IT Parks are located only in five business districts in Metro Manila.