Feasibility study confirms viability of ecozone in Iloilo

ILOILO CITY — A feasibility study conducted by the University of Asia and the Pacific (UA&P), as commissioned by Palm Concepcion Power Corp. (PCPC), confirmed the viability of an economic zone in Iloilo province, but not necessarily in the town of Dumangas as planned.

The Philippine Economic Zone Authority (PEZA) approved last year the proposed Dumangas Agro-Industrial Zone (DAIZ), covering a 6.2-hectare area in the coastal town. Another 50-hectare site along the coastal road is also proposed to serve as a container yard, warehouse, and agro-industrial complex.

However, Gov. Arthur D. Defensor, Sr. said the UA&P study — presented recently to the provincial government, Iloilo business sector, and other stakeholders — indicates that the cost of developing the DAIZ might be too expensive due to the soil profile of the coastal town.

Nonetheless, Mr. Defensor said in an interview that the overall findings show that an economic zone may be pursued in other municipalities.

“The indicators show that it is sustainable to put up an economic zone in the province considering that it has an adequate water supply, has a port that can be expanded, enough power supply, stable peace and order, and availability of manpower,” he said.

The governor said he is also looking at establishing the economic zone through a public-private partnership and he will recommend to the provincial board the enactment of a local ordinance for PPP guidelines.

Lea E. Lara, executive director of the Iloilo Business Club (IBC), which participated in the preparation of the UA&P study, also expressed optimism on the potential of an ecozone in the province.

“I think there are a lot of businessmen who can potentially invest, so hopefully more properties will be opened aside from the ones which are already identified,” Ms. Lara said in a separate interview.

The completion of the study, she added, is seen to start the ball rolling for other initiatives by the provincial government towards easing processes for investors.

The IBC is particularly pushing for the development of the manufacturing and industrial sectors, both for food and non-food, according to Ms. Lara.

PCPC President and Chief Operating Officer Roel Z. Castro, for his part, also said the company sought the assistance of UA&P to determine how to move towards strengthening the industry sector of the largely agricultural province.

“The economy of Iloilo is tilted towards agriculture and services. If I’m not mistaken, these two would comprise about 80% of the gross regional domestic product. But we know that for an economy to be strong, it has to stand on three legs such as agriculture, services and industry,” Mr. Castro said.

“So I was telling the governor and the local off icials that it’s about time that we look at the industry sector,” he added, noting that the success of the ecozone project will depend largely on the local leadership.

PCPC operates a 135-megawatt coal-fired power plant in Concepcion town.

Provincial Administrator Raul N. Banias, meanwhile, said the local government is taking into consideration the results of the study as it plans for setting up the project management office that will be in charge of the requirements of an ecozone.

“The advantage of the province,” he said, “is it has good source of manpower, stable peace and order situation, favorable investment climate, and good communication facilities.”

The province recently formed the Iloilo Investment Facilitation Network, composed of 24 national government agencies, which is tasked to provide information on investment opportunities, business procedures, permit requirements, government regulations, and other data needed by investors.