Ecozones & locators’ apprehensions

Last week, Sen. Juan Miguel Zubiri, Chairperson for the Committee on Economic Affairs, sought the advice of some economists of the nineteen (19) proposed economic zones (popularly known as ecozones) in the country. These zones are supposed to be located in Mindoro, Marinduque, Eastern Visayas, Antique and Cebu. One of the most laudable advices he got was from NEDA Secretary Arsenio Balisacan. That a “feasibility study should first be done to determine these zones’ benefit both for the local and national economy.”

However, before we delve into it, we have to know when these zones started. Officially, the Bataan Export Procession Zone became the first one in the country. It was created on November 20, 1972 through Presidential Decree 66. Then, in 1979, President Ferdinand E. Marcos Sr. signed Proclamation Nos. 1811 and 1825 which established the Mactan Export Processing Zone (MEPZ) in Mactan, Cebu and the Baguio City Export Processing Zone (BCEPZ) in Baguio City, respectively. On May 30, 1980 the Cavite Export Processing Zone was created through Proclamation No. 1980. Then a year after, on June 5, 1981, the Pampanga Export Processing Zone through Proclamation No. 2089 was established.

Then on February 21, 1995, during the incumbency of President Fidel V. Ramos, the Export Processing Zone Authority (EPZA) became the Philippine Economic Zone Authority (PEZA) due to the enactment of Republic Act 7916. As expressly provided for under the Special Economic Zone Act of 1995, these areas are “chosen based on its development or its potential to be developed as an attraction for investors.” Supposedly, these “ecozones could become a center for the following industries: agro-industrial, industrial tourist/recreational, commercial, banking, investment and financial centers.”

As of today, according to the Philippine Economic Zone Authority (PEZA), there are already 419 ecozones in different industries in the Philippines. We, Cebuanos, need not look that far. We are hosting several ecozones in the province and have truly enjoyed the benefits. What about the countryside? Not that much.

So that when President Ramos signed into law Republic Act No. 7916 (amended later by Republic Act No. 8748) in 1995, there was so much enthusiasm. Notably, in Section 5 of this act, some areas in the countryside were already initially identified as possible economic zones.  These identified areas cut through several provinces in Luzon, Visayas and Mindanao.  In Central Visayas, for instance, a portion of Lapu-lapu in the Island of Mactan, and the municipalities of Balamban and Pinamungahan and the cities of Cebu and Toledo and the Province of Cebu were singled out. Likewise, a portion of Dumaguete City and Negros Oriental were also identified.

So, we may ask. Since 1995 until today, have we successfully developed economic zones in Pinamungahan and Toledo? By the same token, have we also successfully developed economic zones in Dumaguete City or anywhere in Negros Oriental? The answer is a big “NO”.

The reasons are too obvious. First, the lack of infrastructure. These places are far from an international port. If they have to go by land to the international port, the roads are narrow and traffic jams are horrible. Simply put, should locators dare to situate in an ecozone situated in Negros Oriental, they must dare to cross Ta?on Strait and brave the long and winding road from Santander to Sibonga and the traffic jams from Carcar to Cebu’s international port. Not to mention, the health care facilities for expats are so inadequate and unreliable.

Yes, a couple of years ago (during Pres Duterte’s term), such realities were considered in a workshop in Cebu. Together with representatives from the national government agencies and the local government units, they sat down and tackled their needs in infrastructure, transportation, power and water utilities, and telecommunications. If there were progress in that workshop, we do not know. What is certain though is the existing and prospective locators’ apprehensions on the government’s tendencies of changing horses in midstream.

To recall, when the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE Act) was yet deliberated, the locators in the ecozones threatened to leave. The reason?  Their incentives or perks (the main reason they established their factories here) were trivialized.

Now, with such sentiment obtaining, can we still expect new entrants to come and locate in these proposed economic zones?