CEBU, Philippines - Although the Cebu Economic Development Zone (CEDZ) is a good proposal, the probability of having it approved into law is near to “impossible”.
Cebu Investment and Promotions Center (CIPC) managing director Joel Mari S. Yu believes that the national government will not allow it to happen, because it will become a very big “revenue risk.”
According to Yu, the proposal is very good for Cebu, specifically that the multinational firms in the manufacturing sector are now looking at the Philippines again, as their alternative investment destination, but pushing the CEDZ bid may be a waste of time.
“The chances of it happening are very low. If the national government should do it, it would not be in Cebu. They will do it to a depressed province, rather than Cebu,” said Yu.
However, he said Cebu doesn’t need to push for the approval of the CEDZ to make it more attractive to investments, especially to light manufacturing sector, as it can lure investors regardless of the existence of the law, but it has to solve the problem of infrastructure, high power cost, and bureaucracy.
“It’s not true that the way to bring in investments is through incentives, but rather improving the environment of doing business,” Yu said in an interview yesterday.
While the law is needed now, as Cebu now lacks the availability of vacant economic zones to host interested investors, PEZA’s requirement of five-hectare ecozone development could solve the problem, just like what Mitsumi in Danao is doing.
The CEDZ is envisioned to be a paradigm of an effective and functioning Public-Private Sector Partnership with the private sector taking the lead and government providing infrastructure and institutional support and contributing part of the needed resources.
The bill was initiated by the Cebu Chamber of Commerce and Industry (CCCI) and supported by Cebuano congressmen.
House Bill 1319, creating the Cebu Special Ecozone and Free Port, has already passed through the House's economic affairs committee, some four years ago.
The bill was authored by all the eight congressmen from Cebu and is jointly supported by local business groups.
On the other hand, as the original author of the Cebu province-wide economic zone proposal, Cebu first district Representative Eduardo Gullas made a vow to Cebuanos that he will continue to push the realization of the bid.
“I will continue with the advocacy because I believe in the validity of the idea,” Gullas said in an earlier interview with The Freeman.
Gullas reiterated that he is serious in pushing this province-wide economic zone proposal for Cebu, as this is his third time he filed the same bill in the Congress.
Gullas filed similar Bill in the Congress, even before the joint CEDZ or House Bill No. 1319 was filed and passed to the Senate level during the 14th Congress.
He crafted and filed similar bill in the 13th Congress (2004-2007), in his vision to make Cebu a more competitive investment destination.
In the 14th Congress, a joint and collaborative effort of passing the Bill with the CCCI and all Cebuano Congressmen, including him to further push the passage of the concept into law.
“The idea of making the entire Cebu province as an economic zone, including its two islands-- Bantayan and Camotes was conceived by me. I want to put the truth on its proper light,” Gullas further clarified.
Gullas admitted though that this proposal will again go through a very difficult journey. However, he is determined to continue with his advocacy and promised not to stop fighting.
The Congressman said that Cebu has all the merits becoming a province-wide economic zone.
Gullas expressed strong determination to take on the fight, and sincerely hopes that other Congressmen, who wanted to make Cebu a world-class investment destination, will join with him.
Just like his advocacy to provide Cebu with the LRT (Light Rail Transit), Gullas said he is also equally passionate in pursuing the realization of the province-wide ecozone proposal although it means a tougher fight--only to make Cebu a truly world-class province. (FREEMAN)