By Beatriz Marie D. Cruz, Senior Reporter

THE PHILIPPINE Economic Zone Authority (PEZA) expects the proclamation of six new economic zones (ecozones) within the second quarter in key areas like Batangas, Cavite, and Palawan.

“A total of six ecozones are for proclamation this quarter,” PEZA Director-General Tereso O. Panga told BusinessWorld in a Viber message.

Two ecozones were already endorsed by the Office of the Deputy Executive Secretary for General Administration (ODESGA) and are awaiting the release of the proclamation order from the President, he said.

These are the Suntrust Ecotown Tanza in Cavite and the Light Industry & Science Park IV – Special Economic Zone in Malvar, Batangas.

Likewise, four ecozones are still being evaluated by the ODESGA, Mr. Panga said.

These include ANFLO Industrial Estate in Panabo, Davao; West Cebu Industrial Park in Balamban, Cebu; Rio Tuba Export Processing Zone in Bataraza, Palawan; and Biz Hub at Lima Estate in Lipa City, Batangas.

Mr. Panga also noted that a mega ecozone in Pampanga is slated for approval by the PEZA Board this year.

The Palawan Mega Ecozone in Puerto Princesa City, which was cleared by the PEZA Board last year, also awaits presidential proclamation.

The President must issue a proclamation to declare a tract of land as a special economic zone or ecozone, as reviewed and endorsed by the PEZA Board.

Under Republic Act No. 7916 or the Special Economic Zone Act, ecozones are areas that are considered highly developed or may potentially be turned into an industrial, tourist, agro-industrial, banking, commercial, or investment and financial center.

The agency is looking to proclaim more ecozones in regional areas to help boost countryside development, Mr. Panga said.

“PEZA’s strategy is to spread the creation of ecozones all over the country — particularly in rural and new growth areas to be able to generate investments, jobs, livelihood, exports, increased incomes for LGUs (local government units), and other economic opportunities,” he noted.

Firms operating in a PEZA-registered ecozone can enjoy fiscal and non-fiscal incentives such as duty-free importation, tax holidays, and streamlined processes.

So far this year, President Ferdinand R. Marcos, Jr. has proclaimed three ecozones.

These are the expansion of the First Industrial Township-Special Economic Zone  in Tanauan City, Batangas; Ayala Land, Inc.’s Atria Gardens in Iloilo City; and the First Philippine Industrial Park  II expansion in Sto. Tomas City, Batangas.

For the rest of the year, Mr. Panga said 14 more ecozones are in the pipeline for presidential proclamation.

“Maybe we can hit 20 [ecozone proclamations] this year,” he added.

Earlier, PEZA said it is targeting 30 ecozone proclamations this year.

Sought for comment, former Tariff Commissioner George N. Manzano said ecozones are critical in streamlining firms’ operations as they navigate global trade volatilities.

“Ecozones become especially important during periods of global trade uncertainty because they help reduce many of the day-to-day difficulties faced by investors and exporters,” he said in a Viber message.

Mr. Manzano also cited the need to balance speed in proclaiming new ecozones with the quality of the location. He said authorizing officials must ensure that the area has enough infrastructure, power supply, and long-term economic viability.

“At the same time, it is important that the ecozones should not remain enclaves, i.e., they just import all their inputs and do not use local supplier industries,” Mr. Manzano said.

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