CBP to build IT buildings after PEZA proclamation

CEBU, Philippines - Following the official proclamation of the 50-hectare Cebu Business Park (CBP) as Special Information Technology (IT) zone, about 100 lots are expected to be developed wherein multiple buildings will be constructed in the area.

The Philippine Economic Zone Authority (PEZA) officially declared CBP as a special IT Zone, which will automatically entitle all IT related businesses operating inside CBP to avail of the six to eight years income tax holiday, and five percent gross income tax discount thereafter.

Presidential Proclamation 2053, signed by President Gloria Macapagal-Arroyo last May 4, 2010 officially designated the CBP as an IT Zone upon recommendation of PEZA.

As provided by R.A. 7916 or The Special Economic Zone Act of 1995 (as amended), investors and locators in PEZA-accredited IT Parks will be entitled to certain fiscal and non-fiscal incentives to encourage investments.

The 50-hectare CBP, developed by Ayala Land Inc. (ALI affiliate Cebu Holdings Inc. (CHI) is master-planned to be the central business district in Cebu that integrates business, high rise condominiums, shopping, and sports and recreational activities.

CHI president Francis O. Monera said there are a total of 100 lots available for developments, although these are already owned by private individuals and companies.

“A good number of these lots are in the hands of lot owners,” Monera said adding that if there is a need for CHI to build its own building, the company is also considering to build IT-related building once the market is there.

However, even before the company announced PEZA and Presidential proclamation of the CBP as an IT Zone, the company has already received several inquiries from big ticket investors, Monera said.

PEZA director-general who was in Cebu Thursday to officially announce and personally awarded the certificate declaring CBP as an IT Zone, said that a number of technology-related companies in Manila are now eyeing Cebu for their expansion plans.

According to De Lima, Metro Manila does not have enough space to accommodate bigger space requirements from big ticket technology investors, and Cebu still has the area to accommodate them.

"Even before the proclamation, we have already received number of inquiries. We expect more vibrant economic activities here as more buildings are constructed," Monera said.

CHI, a mother company of the Cebu Property Ventures and Development Corporation (CPVDC), the developer of the 24-hectare Asia Town IT Park, has taken advantage of the robust demand for IT buildings, thus the conversion of the CBP to an IT Zone.

 “We are enlarging our menu of options to IT investors. Any spill-over from Asia Town IT Park, can be accommodate in CBP,” Monera said.

CBP lot owners, such as the FLB Industries Inc. and Enrisson Development Corporation expressed interest to construct IT buildings in the area as soon as there is an interested locator.

FLB Industries Inc. president Samuel Chioson said once the company ink deal with an investor, “we will build right away.”

De Lima said this development will boost PEZA’s efforts to attract more investments.

PEZA is targeting a 15 percent increase in new investments, especially from the IT and electronics sectors this year.