Extension of Pagcor franchise seen to generate 270,000 new jobs

ThePhilippine Amusement & Gaming Corp. (Pagcor) won the nod of the House committee on legislative franchises for the extension of its corporate life for another 50 years after assuring committee members of the huge benefits such an extension will bring to the country.

Last Nov. 20, a multiparty congressional panel voted 24-7 in favor of House Bill 4238 extending Pagcor’s franchise which is due to expire in 2008.

As Pagcor looks forward to the plenary hearings on the merits of the proposed extension, it’s confidence is boosted by the announcement of President Arroyo that she is set to sign an Executive Order proclaiming the site, formerly known as Pagcor Entertainment City, as a special urban tourism economic zone. The President has suggested calling it "Ang Bagong Nayong Pilipino Tourism Estate."

In a speech enjoining the legislative franchise committee to endorse the bill, Pagcor chairman Efraim Genuino said: "The President’s decision has made it imperative for Pagcor to seek the extension of its franchise not in 2008 when it is due to expire but today 2002, so that the great benefits that will accrue from this development may be gained by our country and people — not tomorrow, but today."

"The President has made it clear that our economy needs it," Genuino told the committee, adding that once started, the first phase alone of the proposed tourism ecozone will generate these benefits: 270,000 jobs; $1.6 billion in foreign direct investments; P10.6-billion worth of investments in the construction industry; P14.7 billion in taxes remitted to the BIR over 10 years; P147 billion in remittances to the National Treasury over 10 years; and $3.5 billion in foreign exchange inflow from 10 million new visitors over a five-year period.

The proposed tourism zone, according to Genuino, is also expected to perk up other sectors like transportation, communications, food service and entertainment.

In announcing the EO for the proposed tourism ecozone, President Arroyo said Pagcor is fighting not just for the extension of its corporate life, but also for the lives of the poor it has vowed to serve since day one of its existence as a government owned gaming institution.

Pro-poor

"I believe Pagcor can do much more in supporting the government’s pro-poor programs. Its record-breaking performance speaks for the competence of its management. But given the immensity of the poverty situation in the country, Pagcor’s earnings are never enough. I recognize its need to be given the mandate to venture into enterprises that can attract revenues in billions of dollars. Therefore, my decision is to name Pagcor as the lead proponent of the country’s first tourism ecozone," President Arroyo said.

Foreign investors

The proposed "Ang Bagong Nayong Pilipino" is a tourism-driven, value-enhancing project aimed at attracting foreign and domestic tourists of all ages, business and socio-civic convention groups and cultural and sports enthusiasts. It will be driven by private sector investments, which are seen to pump prime the economy. As a tourism ecozone, it will be granted PEZA incentives.

Rep. Prospero Nograles (Lakas, Davao City), author of HB 4238, said Pagcor needs to extend its franchise "to attract firm commitments from investors for its planned multi-billion dollar, Disneyland-type entertainment city at the reclamation area along Manila Bay."

He said "Pagcor officials have assured the committee that they have received offers from potential foreign investors to locate themselves in Bagong Nayong Pilipino Tourism Estate. However, these investors wanted assurance that Pagcor would continue operating for another 50 years so that they could recoup their investments."