Budget cut seen to hamper Apeco takeoff

CASIGURAN, Aurora, Philippines – The National Economic and Development Authority (NEDA) has warned that the planned cuts in the budget of the Aurora Special Economic Zone (Apeco) in this town will slow down the full economic take-off of the ecozone to the detriment of residents who will be benefited by the economic development and employment that its operations would be able to generate.

In an executive summary of a paper entitled: “Assessment of the Economic Potentials of Apeco and its catchment Area,” a copy of which was obtained by The STAR yesterday, NEDA Director General Arsenio Balisacan said the national government should continue supporting the completion of the necessary infrastructure and facilities of Apeco, both off-site and on-site such as road networks, locator support facilities, housing projects among others.

Balisacan said this would enable Apeco to realize financial returns on its investments. He said there is economic basis for Apeco’s development and expansion as agri-aqua and eco-tourism zone.

“With the completion of the support infrastructure, particularly the road network and the development of a good platform for value-adding activities, the ecozone could generate and spur development of markets not just in the catchment area of Dilasag-Casiguran-Dinalungan in Aurora, but also in nearby municipalities and provinces,” he said.

The NEDA chief came out with the observation after Sen. Sergio Osmena III pushed for a P45.8-million “caretaker budget” for Apeco, saying giving it the full allocation of P251 million would be a “total waste of money.”

Osmeña, who is presiding over the Senate sub-committee on finance hearing the budget of Apeco said there is no chance for a freeport to develop in this town as envisioned given its location. Apeco president Gerardo Erguiza Jr. said the ecozone should be given a chance to take off as it is “very promising.” He said there are many prospective investors who want to set up business once the proper infrastructure and facilities have been set up.

He said of the P9 billion needed to fully develop the area, a meager five percent – or P470 million – have been released.

He said the government will spend considerably less money developing Apeco compared to the Subic Freeport and the Clark special economic zone where P100 billion and P80 billion worth of state funding had been infused before they became fully operational.

Balisacan agreed that the ecozone is teeming with potentials and its raw materials serve as a strong draw for locators to venture in the agri-aqua sector and in related light industries. He said the area also has potentials for eco-tourism development.

He said that the direct economic and social benefits that would accrue from Apeco’s operations are jobs generated by locators and agri-aqua activities, increased local spending by tourists and value-adding of agricultural products.

On the other hand, the indirect benefits include improved living conditions in terms of social, health and educational opportunities among others.

“To be noted here are the multiplier effects of job creation on consumption, trade and income gains that translate to additional economic benefits not only in the catchment area of Apeco but also in neighboring municipalities and provinces,” Balisacan said.