More power needed to serve Cebu's growing needs - traders

MANILA, Philippines - Cebu businessmen are asking for more support in the power sector especially since there is an expected boom in investments specifically the business process outsourcing (BPO) sector after the Ayala owned Cebu Business Park (CBP) was declared an information technology (IT) Park.

Late last week, the Philippine Economic Zone Authority (PEZA) declared the CBP, one of the flagship projects if Cebu Holdings Inc. (CHI), as an IT Park. This means that IT enterprises in the zone will be given income tax holidays (ITH).

However, CHI President Francis Monera said Cebu has been experiencing rotating brown outs. The power outages are expected to continue until the end of the mont.

“Now Cebu is experiencing an upswing in economic development but the infrastructure should be ahead,” Monera told reporters.

According to him, the BPOs in Asiatown, first IT Park in Cebu also owned by the Ayalas have 200 percent redundancy. This means that the BPOs have generator capacity that is twice the required power requirement in case there is a brownout.

In spite of this, Monera urged the government to put up good infrastructure in Cebu in order to facilitate an environment that is more conducive to business. He said international locators are looking at Cebu given its proximity to tourist areas.

Likewise, he said Cebu has a good pool of talents because it is surrounded by good universities. Also, he said it is more cost efficient to put up a business in Cebu because not only is the land cheaper, the cost of labor is also lower when compared to Manila.

With regards to the IT park, Monera said they have already received a number of inquiries. “Cebu is the number one emerging destination.”

Because of Presidential Proclamation 2053, the CBP became an IT Park. With this, lot owners need not apply for incentives because it is automatically given by PEZA. The ITH for non pioneer IT enterprises is four years while pioneer enterprises receive six years ITH.

Also there is an option to pay a special five-percent tax on gross income earned in lieu of all national and local taxes except real property taxes on land owned by developers and exemption from payment of import duties and taxes on imported machinery and equipment and raw materials.