Exemption sought for 9 cities from ecozone ban

MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) has requested anew the Office of the President (OP) to exempt nine cities in Metro Manila from the ongoing ban on new economic zones and to give ecozone developers with pending ecozone applications more time to complete their requirements. 

In a letter to Executive Secretary Salvador Medialdea dated July 23, PEZA director general Charito Plaza said that while Administrative Order (AO) 18, which imposed a moratorium on processing on applications for ecozones in Metro Manila, is already being implemented, the agency would still want its request to be considered. 

“We reiterate our request for the following cities to be excluded from the coverage of AO 18 to allow them to host at least two IT (information technology) centers that can provide employment to their constituents: Manila, San Juan, Marikina, Las Piñas, Malabon, Caloocan, Pateros, Valenzuela and Navotas,” Plaza said. 

PEZA is seeking the exemption of the nine cities from the moratorium as the cities either do not have any or just host one IT park, at present. 

As of June, Metro Manila has the highest number of operating IT parks and centers among the country’s regions. 

Of the total 278 operating IT parks and centers nationwide, 167 are located primarily in Metro Manila’s central business districts with approved investments of P286.35 billion.

Out of the 167 IT parks and centers in Metro Manila, 45 are in Makati, 35 are in Quezon City, 24 in Pasig, 19 in Taguig, 18 in Mandaluyong, 13 in Muntinlupa, five in Parañaque, four in Pasay, and one each in Manila, San Juan, Marikina and Las Piñas.

“We note that the said AO is already in effect and therefore must be complied to the letter. However, we are still appealing that our request for additional time for our IT developers to comply be granted,” Plaza said. 

In an earlier letter to Medialdea dated July 1, Plaza asked for a transition period of at least six months to allow developers with pending applications for IT parks in Metro Manila more time to comply with requirements to secure PEZA status. 

AO 18, which was issued on June 17, provided a 30-day transition period.

While PEZA supports the goal of AO 18 to promote growth in rural areas, the request was made given tight supply in available IT building spaces under PEZA with the forecasted IT office space take-up of 450,000-square meters (sqm) this year against the available 214,000-sqm in Metro Manila. 

Meanwhile, real estate services firm Colliers International Philippines said the government should reconsider the ban on processing of new ecozone applications in Metro Manila as it puts pressure on the supply and demand situation in the National Capital Region and would lead to PEZA-registered firms competing for remaining PEZA-registered spaces, as well as for rental rates for such spaces to go up. 

At present, few locations outside of Metro Manila are equipped to meet the demands of the outsourcing industry in terms of PEZA-registered buildings and available talent pool. 

Citing the PEZA’s list of ecozones, Colliers said only Cebu City, Iloilo City, Pampanga City, Cagayan de Oro City and Naga City have available PEZA-registered buildings.