The Philippine Economic Zone Authority (PEZA) is planning to craft guidelines to establish ecozones specifically geared toward attracting investments in the aviation and aerospace industries.

PEZA Director General Tereso Panga told Manila Bulletin that the investment promotion agency (IPA) will collaborate with the Civil Aviation Authority of the Philippines (CAAP) in developing a framework to turn aerotropolis ecozones into reality.

“That is included in our proposed amendments to the PEZA Law,” Panga said.

PEZA earlier cited aerotropolis ecozones among the industry-specific ecozones it plans to add under the proposed amendments to the Special Economic Zone Act of 1995, which established the IPA.

It sees the need to make these special ecozones operational “in the near future” as more aircraft-related manufacturing companies enter the country.

“This strategic direction aims to cluster aviation and aerospace enterprises near key airport hubs, strengthening infrastructure integration, supply chain efficiency, and global connectivity,” PEZA said.

PEZA earlier entered into a memorandum of understanding (MOU) with CAAP in 2022 for the establishment of aerotropolis ecozones and aerotropolis-linked ecozones in the country.

The MOU serves as both entities’ initial commitment to formalize areas of cooperation in creating ecozones by harnessing CAAP’s idle and unproductive real estate assets.

These ecozones seek to attract investments in aviation-related manufacturing industries, including logistics services and maintenance, repair, and operations (MRO), among others.

The MOU also outlines potential opportunities for joint ventures or public-private partnership (PPP) schemes in operating aerotropolis ecozones.

The push to create aerotropolis ecozones comes as ecozones generate growing interest from aviation companies aiming to set up operations and expand in the Philippines.

PEZA most recently signed an agreement with aerospace firm Global Aerospace Technology Philippines Inc. to register the company as an ecozone export enterprise at the Cavite Technopark-Special Economic Zone.

Global Aerospace plans to establish a facility to manufacture and assemble unmanned aerial vehicles (UAVs), unmanned aircraft systems (UAS), special-purpose machinery, and aerospace components.

PEZA said this project not only strengthens the country’s aerospace capabilities but also creates economic opportunities for micro, small, and medium enterprises (MSMEs) within and outside ecozones.

MSMEs may participate in the value chain through supplier linkages, subcontracting, precision parts manufacturing, logistics support, and technical services.

“[This positions] the Philippines to integrate with Japan—one of the world’s largest aircraft manufacturing nations—as it progresses toward high-value systems engineering, defense platforms, next-generation aircraft technologies, and sustainable aviation solutions,” Panga said.

In terms of investments, PEZA aims to approve ₱300 billion in investment pledges this year, up 15 percent from ₱260.89 billion in approved investments last year.