DTI in talks with Korean, Japanese firms for $1-B investment in Baguio ecozone

The Department of Trade and Industry (DTI) is in talks with Korean and Japanese firms for a possible $1-billion investment in the Baguio City Economic Zone (BCEZ).

In an interview, Trade Secretary Peter B. Favila said businessmen from both Korea and Japan have expressed interest in investing in the country.

However, Favila said there is no more space in BCEZ. Instead of passing up this investment opportunity, the government is considering closing down the only airport in Baguio and make it an extension of the ecozone.

Favila said there is no more available land in Baguio. The Loakan Airport sits near the BCEZ. The other government property in the area is the Philippine Military Academy (PMA). Favila said getting land from PMA is not an option.

According to Favila, it is logical to convert the airport into an economic zone given that it is underutilized and is very near the existing ecozone. He said the closure of the airport will not affect the tourism in the country’s summer capital given that most visitors travel by land.

Favila said only Asian Spirit use the airport for its four times a week flight from Manila. Flying cuts the six-hour drive to the province to only 45 minutes.

The secretary said they need the approval of the local government before they can remove the airport.

"We are encouraging the leaders to do that," Favila said. He said the National Government is not expecting any objections from their local counterpart although the approval may come after the midterm elections on Monday.

As an alternative to Loakan Airport, Favila said travelers may opt to use the San Fernando Airport which was already classified as an international standard airport.

Months back, the Philippine Economic Zone Authority (PEZA) leased a portion of the Camp John Hay Military Reservation at Barangay Kadaclan in Baguio City from the Bases Conversion and Development Authority (BCDA) to obtain more land for investors

The 25-year lease of the 65,253 square meter area also known as Lot 15, was undertaken by PEZA to accommodate both existing and prospective locators.

The term of the lease by BCDA to PEZA of the expansion area shall be for 25 years with the option to renew for another 25 years.