THE Cagayan Economic Zone Authority (CEZA) said it signed an agreement with two companies to develop a $4.5 billion new city in Sta. Ana, Cagayan, on the northeastern tip of Luzon, within two years.
In a statement on Thursday, CEZA said administrator Raul L. Lambino signed recently a memorandum of understanding (MoU) for the project.
Under the agreement, the overall master planning for the city will be handled by an Italian firm, Mercurio Design Lab.
Singapore’s LongRunn Capital Pte. Ltd was granted exclusive rights as the overall main developer, operator and engineering, procurement and construction contractor of the project.
CEZA said LongRunn Capital committed to finish the project in two years.
The investment promotion agency said the new city, which will be named “Polaris,” will feature hotels, high-end residences, a cyberpark for digital currency firms, a business park, a hospital, casinos, and online gaming businesses and golf courses.
Under the MoU, LongRunn Capital is in charge of marketing the development and manage the pre-sale operations.
CEZA will issue LongRunn Capital a master license for the development and operation of casinos and online gaming and will be entitled to an incentive package which includes permanent residency status for foreign investors and immediate family members. Investors can qualify with an investment of at least $150,000.
The development of the area will be supported by a new expressway to the town of Lal-lo, where the Cagayan North International Airport (CNIA) is located.
The MoU also covers an agreement for LongRunn Capital to upgrade, expand and modernize the airport in Lal-lo with additional facilities like hangars, cargo warehouses, power and waste plants and duty-free shopping malls with high-end restaurants.
LongRunn Capital also agreed to invest in a regional airline company.
LongRunn’s role in the airport upgrade is a separate transaction from CEZA’s goal to upgrade CNIA’s carrying capacity with the addition of two three-kilometer runways and a multi-story passenger terminal. — Janina C. Lim
