PEZA declares JY Square area as Information Technology zone

The Philippine Economic Zone Authority (PEZA) has declared the 10,000-hectare JY Square property in Lahug as Information Technology (IT) Zone.

This means that IT related companies that are planning to hold offices in the two infrastructure building located in the properly are bound to avail of the tax incentives and holidays.

Because of this declaration, the developer of JY Square commercial complex, and JY Square Discovery Mall, the Jovina Management and Development Corporation is set to build a seven-story commercial center to accommodate IT-related companies that wanted to take advantage of these tax incentives granted to declared IT Zones.

According to JY Square Discovery Mall Internal/External Affairs executive Elouiza G.

Sandalo, the construction of the third JY Square commercial complex will start soon, and is expected to host IT-related firms in the last quarter next year.

She said even as the building construction is still on the way, there are already a number of interested call centers, and other Business Process Outsourcing (BPO) companies, which signified interest.

In fact, the fourth to seventh floor of the upcoming building will be occupied by a 500-seat call center company.

The defunct Hotel La Nivel, which is used to operate in the JY Square Commercial Complex, is now converted into a Korean Language School, while the ground floor of the building is fully utilized for the expansion of the JY Square Supermarket.

The first three floors of the upcoming building will be served as an extension of the JY Square Discovery Mall.

"We are 90 percent occupied, we need to develop more spaces for interested tenants," Sandalo said.

On the other hand, Cebuano developers are now taking advantage of Cebu's position as the IT hub in the Philippines, aside from JY Square property, there are now several buildings, and developed commercial areas that are applying to become IT Zones to attract IT-based locators.

Aside from the official declaration of PEZA, for a property or building to become an "official" IT Zone, it still has to acquire a Presidential Proclamation, after which its IT-based locators can immediately enjoy of the tax holidays.

Early this year, Vicsal Development Corporation president Jack Gaisano announced that the company has developed another IT Park in Cebu, called the "Taft IT Zone".

The opening of these smaller IT Zones answers the call of IT related investors like call center and BPO operators for the lack of building infrastructure facilities here to accommodate interested companies that wanted to set up operations in Cebu.