Less than half of 131 PEZA-approved IT projects to seek palace OK

LESS than half of the 131 information technology (IT) projects in Metro Manila approved by the Philippine Economic Zone Authority (PEZA) are expected to move forward with their applications for economic zone status, following the freeze on economic zone applications for locations in the capital.

Administrative Order (AO) No. 18 or “Accelerating rural progress through robust development of special economic zones in the countryside,” which took effect in June, intends to strengthen economic growth in the countryside and suspended the processing of applications for economic zones in Metro Manila.

Exceptions to the moratorium include applications without requirement deficiencies already lodged with the Office of the President (OP), and applications that address requirement deficiencies within thirty days.

In a letter dated July 1, PEZA Director-General Charito B. Plaza told the Office of the President that 131 IT projects as of June 2019 were PEZA board-approved but have not yet been endorsed to the OP, which must issue the final economic zone proclamation.

According to PEZA, 121 of these projects are IT Centers while 10 are IT Parks, generating investment of about P159.44 billion in total.

Half of these, according to PEZA, might not be able to complete the requirements for the application even with a three to six-month transition period. PEZA asked for six months to comply, while the Trade Department said it will request three months.

PEZA also said that the IT locations in Metro Manila are most likely already occupied and profitable even without PEZA status. PEZA does not grant incentives to IT economic zone developers in Metro Manila and Cebu City.

The Philippines currently has 278 IT parks and centers in operation, 167 of which are located in Metro Manila. Makati hosts 45 followed by Quezon City with 35 and Pasig with 24.

PEZA requested in the same letter to exclude the cities of Manila, San Juan, Marikina, Las Piñas, Malabon, Caloocan, Pateros and Valenzuela, which have little to no presence of IT parks and centers. — Katrina T. Mina