MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) plans to expand the Mactan Economic Zone (MEZ) in Cebu on reclaimed land of the ecozone’s coastal area to accommodate existing and new locators.
The development comes as the agency is opposing the proposed second runway for the Mactan-Cebu International Airport (MCIA), which would require moving MEZ 1 locators to another site.
“We are now applying for a reclamation because we want to expand the land of MEZ,” PEZA director general Charito Plaza said.
She said at least 200 hectares could be added to MEZ, which currently covers 150 hectares.
Development cost for the expansion has yet to be finalized.
PEZA deputy director general Tereso Panga said the agency has already informed to the Philippine Reclamation Authority (PRA) and started exploratory meetings on the planned reclamation.
“Once this is approved by the PRA, we will look for a developer who will do the reclamation,” Plaza said, noting the developer would account for 60 percent, while the remaining 40 percent would be under PEZA.
PEZA is planning the expansion amid lack of available space within the MEZ for existing locators looking to beef up operations, as well as new firms intending to set up shop.
“It’s really filled up. And then, many of our existing locators would want to expand. So, we really have to look for new areas and ideally, we want to be just in that area. We will just reclaim land,” Plaza said.
Even as PEZA is planning to expand MEZ, the agency is firm in its position to go against the proposed second runway for the MCIA which if pursued, would entail having firms within MEZ 1 move to another location.
GMR-Megawide Consortium, which operates the country’s second busiest airport, has proposed a second runway for MCIA to increase the airside capacities of the airport amid growing passenger traffic.
“We oppose it because of the damage. Ultimately, our locators might leave because it will affect their operations,” Plaza said.
Based on a survey conducted by the Mactan Export Processing Zone Chamber of Exporters and Manufacturers (MEPZEM) Chamber Inc. and the Japanese Chamber of Commerce and Industry of Cebu Inc. (JCCI-CI) covering six locators of MEZ 1, total relocation cost is estimated at $2.3 billion.
If all 150 affected locators of MEZ 1 would be counted, MEPZEM and JCCI-CI said the relocation cost is expected to be significantly higher.
“You have to consider not just the physical damage. Every day that will delay the operations will affect the buyers. They might lose their buyers. They don’t want to have disruptions. And then, the social implications, those who will be losing jobs because the locator left,” Plaza said.
MEZ 1’s 150 locators employ 57,000 direct workers and 285,000 indirect laborers.
GMR-Megawide Consortium spokesperson Jason Torres earlier said studies show the most feasible area for MCIA’s second runway includes the current location of the MEZ 1 in the north side of the airport.
This, as construction in the south side of the airport would displace close to 12,000 households.