PEZA to offer cheaper power to Mindanao ecozone locators

MANILA, Philippines - The government will soon offer economic zone locators in Mindanao cheaper power rates in its bid to attract more investors.

Philippine Economic Zone Authority (PEZA) director general Charito Plaza said her agency and the Department of Energy (DOE) would come up with a memorandum of agreement to bring down the cost of electricity in industries operating in various economic zones in Mindanao.

“They (DOE) will subsidize Mindanao economic zones to cost only P2.75 per kilowatt-hour (kwh) for power,” Plaza said.

Plaza said the move is intended to entice more investors to cash in on Mindanao which, in turn, would boost economic activity in the country’s second largest island.

“Locators will benefit in this one. For us, we will attract more investors because electricity is cheap so they will be enticed to establish their businesses in Mindanao,” she said.

Plaza said, the P2.75 per kwh power rate to be offered to locators would be significantly cheaper from what industries in Mindanao are currently paying.

She said Energy Secretary Alfonso had asked her for three initial areas where the subsidized rate would be implemented.

Plaza said she had recommended the Autonomous Region in Muslim Mindanao (ARMM), the Caraga Region and Region 11, given the number of industries in these areas.

“All other regions will follow,” she added.

Plaza last month said PEZA would take over the operation of industrial zones in the ARMM from the Regional Economic Zone Authority (REZA).

According to Plaza, she has reached an agreement with ARMM Gov. Mujiv Hataman for PEZA to handle the economic zone programs in the region which were previously under REZA.

The REZA was created in 2003 during the time of ARMM Gov. Parouk Hussin, but remained a paper tiger owing to lack of political determination to put its mechanisms at work.

Plaza said a lot of foreign and local investors are looking to tap the potential of Mindanao but are waiting for more incentives and clearer programs from the government.