MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) will ask Malacañang to provide a longer transition period of at least six months instead of 30 days for the completion of requirements of applications for ecozone developments in Metro Manila that are awaiting Presidential proclamation.
In addition, PEZA will ask to exempt applications already approved by the investment promotions agency, but yet to be endorsed to the Office of the President (OP) from the moratorium imposed on processing of applications for ecozones within the National Capital Region.
PEZA director general Charito Plaza told reporters the agency would ask the OP for its proposed amendments on the transitory provision on the moratorium imposed on the processing of applications for ecozones in Metro Manila under Administrative Order (AO) 18 issued last June 17.
AO 18 states that PEZA will no longer accept, process or evaluate applications for the establishment of ecozones in Metro Manila immediately upon the effectivity of the order and until such time the ban is lifted.
Under the AO’s transitory provision, an application endorsed by PEZA and already submitted to the OP as of the date of the effectivity of the order would not be covered by the moratorium if the application has no deficiency in supporting documents or the OP has notified PEZA of the lack in supporting documents and such are addressed within 30 days from effectivity of the order or receipt of notice of deficiencies.
The order was issued to promote development in the countryside.
Teodoro Panga, deputy director general for policy and planning at PEZA, said the investment promotion agency wants a longer transition period of at least six months and for applications already approved by the PEZA, but yet to be endorsed to the OP to be excluded from the moratorium as the AO’s transitory provision has very limited application and coverage.
He said the longer transition period would allow the information technology (IT) industry which takes up the space in ecozones in Metro Manila to prepare for the impact of the moratorium and for developers with pending ecozone applications to have more time to complete requirements.
With additional requirements being asked by the OP from ecozone developers including land titles, he said more time is needed for applicants to be able to comply.
At present, he said there are 131 applications for ecozone developments in Metro Manila approved by PEZA, but yet to be endorsed to the OP due to lack of requirements.
Of these 131 applications, 121 are for IT centers and 10 are for IT parks.
Meanwhile, there are 22 applications for ecozone developments in Metro Manila which have been endorsed by the PEZA to the OP and are awaiting proclamation.
Plaza said the PEZA would be meeting with ecozone developers, as well as the Information Technology and Business Process Association of the Philippines (IBPAP).
“We want to hear their side so we can incorporate in our request for some amendments to the transitory provisions, the transition period especially those IT industries located in Metro Manila,” she said.
IBPAP president Rey Untal said the group would be in discussions with PEZA to determine how the AO would affect the growth of the industry.