ECOZONES IN MINDANAO

Decades ago, the lack of infrastructure facilities was the major bottleneck of investment promotion and acquisition in Mindanao. The cost of transportation and communication made doing business in Mindanao very expensive, if not prohibitive.

Infrastructure in place
That problem is not exactly a thing of the past. There is still more to be done. However, the improvement of Mindanao’s infrastructure facilities speaks for itself. Road networks, airports, seaports, telecommunications, and other facilities are now in place. This improvement not only cuts the cost of doing business, but also makes it more convenient and profitable.

Getting more investments on the ground has always been a tough challenge for the government and the private sectors. Even if facilities are already in place, they have to contend with the ‘image problem’ of Mindanao, particularly with regard to peace and order situation. But these constraints were all effectively addressed through appropriate investment promotion and acquisition strategies.

The strategies in promoting Mindanao as an investment destination are consistent with the overall investment promotion program of the country. Among these strategies implemented is the creation of economic zones or ecozones.

As defined in Republic Act 7916, otherwise known and the “The Special Economic Zone Act of 1995,” ECOZONES are selected areas with highly developed or which have the potential to be developed into agro-industrial, industrial tourist/recreational, commercial, banking, investment and financial centers.

An ECOZONE may contain any or all of the following: Industrial Estates (IEs), Export Processing Zones (EPZs), Free Trade Zones, and Tourist/Recreational Centers.

The Special Economic Zone Act provides that the government shall actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and social development of the country in order to provide jobs to the people specially those in the rural areas, increase their productivity and their individual and family income, and thereby improve the level and quality of their living condition through the establishment, among others, of special economic zones in suitable and strategic locations in the country and through measures that shall effectively attract legitimate and productive foreign investments.

Among the privileges for locators in ecozones is the exemption from national and local taxes which is stipulated in republic Act No. 7916.

Mindanao Ecozones
There are twenty one (21) ecozones in the whole island of Mindanao which is registered at the Philippine Economic Zone Authority (PEZA).

In Western Mindanao (Region IX), the 50-hectare Ayala de Zamboanga Industrial Park in Zamboanga City is ready for locators, preferably light to medium scale, non-pollutive industries.
In Northern Mindanao, the Misamis Oriental Ecozone in Jasaan, Misamis Oriental, prefers oleochemical industries. The Pueblo de Oro IT Park in Carmen, Cagayan de Oro City prefers IT-related industries.

Development is still in progress at the First Cagayan de Oro Business Park in San Martin, Villanueva, Misamis Oriental.

The 61-hectare Sarangani Economic Development Zone in Polomolok, South Cotabato, prefers food and vegetable processing, meat processing, quick frozen products, corn, flour, and starch.
In Barangay Calumpang, General Santos City, the 19-hectare SRC Calumpang Economic Development Zone is also ready for locators.

Development is in progress in five (5) other ecozones of the region: Apo Estates Special Economic Zone in Barangay Madaum, Tagum City; Filinvest Technology Park General Santos in Tambler, General Santos City; General Santos Special Economic Zone, also in Tambler, General Santos City; Sarangani Economic Development Zone in Matinao, Polomolok, South Cotabato; and Tiger Valley Industrial Estate in Klinan 6, Polomolok, South Cotabato.

Three (3) ecozones are being developed in Iligan City of Central Mindanao (Region XII). These are the CIIP Agro-Industrial Park, Global Ispat Industrial Park, and NSC Special Economic Zone.

In the Caraga Region, the Philnico Industrial Estate in Nonoc Island, Surigao del Norter is ready for locators, preferably nickel refinery operations, service and utility providers, support industries to the nickel refinery and downstream industries.

The Shannalyne Technological & Environmental Park in Milagros, Esperanza, Agusan del Sur is ready for investors in pulp, paper, and other wood-based industries.

In Tubay, Agusan del Norter, the Tubay Agro-Processing Center is also ready for locators.
In the Autonomous Region in Muslim Mindanao (ARMM) the Maguindanao Ecocity is being developed in Parang, Maguindanao.

Invest in Mindanao
With these ecozones, Mindanao offers ready-to-occupy locations for investors who want to do business in the country’s second largest island according to their preferred investment areas. These ecozones make doing business in Mindanao very convenient.

Furthermore, they offer opportunity for investors to be part of the peace and development efforts for the island and the country.