ARMM brings in PEZA to shore up region’s ecozones

THE Philippine Economic Zone Authority (PEZA) said that it is set to sign today a memorandum of understanding (MoU) giving it authority over the economic zone programs of its counterpart in the Autonomous Region in Muslim Mindanao (ARMM).

PEZA Director- General Charito B. Plaza said earlier this week that PEZA will sign the agreement today after consulting ARMM Governor Mujiv S. Hataman, amid concerns the economic zones in the ARMM are “not working.”

“We will be coming up with a MoU with ARMM on Dec. 2 with Governor Hataman because ARMM wants to partner with PEZA in the creation of economic zones. They have economic zones but they are not working,” she told reporters on Nov. 28 in a briefing.

“PEZA will now handle their economic zone programs, not REZA,” she said, referring to the Regional Economic Zone Authority (REZA).

The economic zones, she said, may be of interest to investors from the Middle East seeking to produce halal products.

“We have so many Middle East investors that want to put up the Halal Hub — I mean the industry on Halal food, cosmetics,” and all related products subject to Islamic dietary rules, she said.

According to its website, REZA oversees a handful of economic zones in ARMM, in areas such as in Tawi-Tawi, Sulu, and Lanao del Sur.

REZA was created under Republic Act 9054, which amended Republic Act 6734 — ARMM’s enabling law.

Under the law, PEZA no longer has any authority over REZA, with the latter assuming the national agency’s powers as defined by the Special Economic Zone Act of 1995.

“Once the Regional Economic Zone Authority is created by the Regional Legislation, the Philippine Export Authority shall no longer authorize any other economic zone within the autonomous region, any corporation, firm, or Zone Authority, shall be placed under the jurisdiction of the Regional Economic Zone Authority and shall continue to enjoy the benefits granted to it by the Philippine Export Zone Authority,” the law reads.

The dynamics of this relationship is set to change, however, with the memorandum of understanding. —