The Philippine Economic Zone Authority (PEZA) plans to transform the Iwahig Penal Colony in Palawan into an economic zone (ecozone) where advanced industries will be located, a top official said over the weekend.
PEZA director-general Tereso Panga said the investment promotion agency (IPA) was in talks with the Bureau of Corrections (BuCor) for the proposed utilization of Iwahig as an economic zone.
“We are finalizing a memorandum of agreement with BuCor for the use of the property,” he said, adding that the huge expanse of land covered by Iwahig is an ideal location for a mega-ecozone.
Based on initial plans, the mega-ecozone will cover at least 26,000 hectares of land to host big-ticket manufacturing projects. High-value projects and technologically-advanced industries like automotive and electric vehicle manufacturing are among the industries eyed as possible locators.
The proposal is undergoing due-diligence, Panga said.
PEZA is studying the viability of the mega-ecozone model, the planned take-over of the property and the relocation of the inmates from the so-called “prison without bars”.
Financing is still being worked out, said Panga, but the agency is hoping to get support from major banks.
“There is no definite project cost yet, but we can always offer our land as equity. On that note we really don’t have to spend that much,” Panga said.
He said the planned mega-ecozone would be built on sustainable platform using renewable energy. It will also adopt environmentally-sound measures that will require locators to be more conscious and responsible of their operations.
“If there’s anything we want to highlight, we want to see a cluster of industries in an area where the ecosystem can be developed to facilitate the whole supply chain of manufacturing. This can host the vertical integration we are lacking right now,” he said.
He said that once the property was acquired, PEZA would get the services of a developer to masterplan the project and develop it into one of the best economic zones in the region.
Panga said while the business model is already existing in the Philippines with the likes of John Hay Special Economic Zone, PEZA wanted to have a public economic zone where it could directly assist locators.
The Philippines has five public economic zones, including the Baguio Economic Processing Zone, Bataan Economic Processing Zone, Cavite Economic Processing Zone and Mactan Economic Processing Zone in Cebu.