German gov't funds study of Cebu ecozone proposal

The German government through the German Technical Cooperation (GTZ) is allocating 10,000 to 20,000 Euro or roughly P600,000 to P1.2 million to fund the study on the Cebu Ecozone Proposal, initiated by the Cebu Chamber of Commerce and Industry (CCCI).

The CCCI led by its president Francis O. Monera, and the Cebu Ecozone Study chairman Gerry Sta. Ana, signed a memorandum of agreement (MOA) yesterday with GTZ, for the latter to provide technical assistance and financial assistance for the extensive and comprehensive study in making the entire Cebu province into an economic zone.

"GTZ has come to our rescue. We had two main problems in pursuing this project-we needed some technical assistance, and funding," Sta. Ana said.

Sta. Ana said that the study is expected to be completed by the end of November, and that a series of roadshows will be done by the group to introduce the concept to the different local government units (LGUs) within the province.

The CCCI Board of Trustees passed a Resolution No. 031-2006 on April this year Creating a Study Group to evaluate the viability of proclaiming the entire Mega Cebu Province as an EcoZone. The proclamation of Cebu as an EcoZone is envisioned to encourage the influx of more investments into the province by building up necessary capabilities, creating an enabling environment and reducing the cost of doing business in the area.

Although, this has not been done anywhere else in the Philippines, the Cebu private sector, through CCCI believes that this concept can be started in the Philippines, but a comprehensive and extensive study must be done first in order to back up this ambitious plan.

GTZ, through its Small and Medium Enterprise Development for Sustainable Employment Program (Smedsep) is going to provide foreign technical experts to focus on the study, together with local experts on economic zones setting in the Philippines.

The study shall provide the decision makers in the Government and stakeholders with sufficient information to justify acceptance of the proposed proclamation of the entire Province of Cebu into a Special Economic Zone.

Smedsep program director Martina Vahlhaus said GTZ, which is a result-oriented agency, will see to it that the study could strongly back-up further works to pursue the plan.

Discussions will be explored on the advantages and disadvantages of the concept, implications of this move with other provinces, how to justify Cebu as a test or trial area, implication of this move to the proposed mega regions, among others.

The study would also look into an appropriate model to follow for the Cebu Special Ecozone proposal, either Penang model, Hong Kong, or Singapore.

Although, this move is expected to go through several scrutiny, both from LGUs and national government, as it still has to pass through the Congress' , and other bureaucratic red tapes, Cebu private sector prime movers are confident that it can be done.

"We are optimistic that we could come up with very good study [for the sake] of the Mega Cebu Province," Sta. Ana said.