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Manila Bulletin devider Business devider Trade & Industry devider Plans to build Iwahig ecozone underway — PEZA

Plans to build Iwahig ecozone underway — PEZA

Published Dec 27, 2023 03:43 am

The Philippine Economic Zone Authority (PEZA) said that it has begun the necessary processes for the transformation of the 26,000-hectare penitentiary facility in Palawan into a big economic zone.

In a press briefing last Dec. 22, PEZA Director General Tereso O. Panga said that the Investment Promotion Agency (IPA) is currently awaiting the Department of Justice's (DOJ) review of the memorandum of agreement (MOA) draft on its plan for the Iwahig ecozone.

Last month, Panga announced that PEZA is planning to convert the Iwahig Prison and Penal Farm in Palawan into its first vertically-integrated mega ecozone, where high-value manufacturing projects will be established by big industries.

“From our history, the first pioneers were developed by PEZA in the 70s, so it’s about time we venture into our public economic zones,” said Panga.

Panga added that the ecozones were established to make the areas attractive and low-cost, benefiting the local economy and allowing expansion.

The director general said that the facility, owned by the Bureau of Corrections (BuCor), will be self-sustaining in terms of power, water, and ports.

He also said that the project “can also contribute to reform in the penitentiary,” in terms of making law offenders productive.

However, Panga noted that PEZA will not be developing the entire 26,000 hectares because it will be distributed to sub-developers.

“The idea is PEZA won't even spend a single money on this. We provide the land as equity, we manage it for BuCor,” he added.

He noted that they have done the same model for ecozone developments in Camp John Hay, Filoil, (and) Mactan-Cebu International Airport (MCIA).

Panga also mentioned that BuCor has another developed colony-based facility in New Bilibid Prison (NBP) in Muntinlupa, which he said was similar to Bonifacio Global City in Taguig.

After the MOA signing, Panga said that due-diligence processes will follow which involves surveying, mapping, zoning potential resources, and planning for self-contained, self-sustaining township development. He noted that this is a model PEZA used in successful ecozones.

Panga emphasized that PEZA aims to open this project during the Marcos administration.

“This will be a legacy of the current administration, we're able to develop. (Because with) passive development, (that's about) three to five years, although (that's by phase),” he said.

Meanwhile, despite economic impacts brought on by the ongoing tensions in the West Philippine Sea, Panga stressed that they are focusing on investment promotions and continue to engage with Chinese stakeholders amidst “cost for concern”.

“We’ve been getting Chinese delegations because this is one way we can mitigate the impact. And the ones coming here are also industry leaders in their own right, admirable companies in China,” he said.

Panga cited that one of its big investors, which is a partnership between China and the US, aims to develop its own economic zone in the country.

“We don’t allow ourselves to be affected, unless there is a war already but we continue…,” the director general reiterated, adding that they got invitations from Chinese investors to visit the country, particularly in Shamen, Tongwan, Shanghai, and Hunan.

To date, the Philippines has five public economic zones, including Baguio, Bataan, Cavite, Pampanga, and Cebu.

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