PEZA proceeds with processing of bid for big Pangasinan ecozone

The Philippine Economic Zone Authority (PEZA) yesterday said there is no stopping in the processing of the application of First Pangasinan Industrial Corp. (FPIC) despite Taiwan’s allegation that the proponent of the proposed $360-billion project is a “fugitive” and an “economic criminal” for alleged embezzlement of funds.

In a press conference, PEZA Director-General Charito B. Plaza stressed there is “no bearing” the allegations hurled by the Taiwan Economic and Cultural Office (TECO), the de facto Taiwan embassy in Manila. The Philippines, which is aligned with the One-China policy, does not have diplomatic relations with Taiwan, but economic relations of both economies are represented by the TECO and the Manila Economic and Cultural Office (MECO).

According to Plaza, PEZA has pre-qualified on August 24, 2017 the FPIC, developer of the 3,000 proposed Philippine Chinese Industrial Economic Zone in Dasol, Pangasinan.

“The pre-qualification stays, there is no stopping in the processing of the FPIC,” Plaza said. During this pre-qualification stage, Plaza said FPIC, which is 60 percent owned by a Filipino group (which has yet to be identified) and 40 percent Singaporean-Taiwanese group, will have to submit other documents such as the description of the land, which the group is still consolidating; environmental clearance, among others.

Normally, it takes 10 to 12 months for an applicant to complete all the PEZA requirements. Once these are all done, PEZA will endorse the application to Malacañang for the issuance of a Presidential Proclamation creating the special economic zone. Only after the Presidential Proclamation has been issued that the investor can start with the project implementation.

Plaza also clarified that the pre-qualification clearance does not include the proposed 85-story IT building along Roxas Boulevard with R12-billion investments to be undertaken by the same group’s subsidiary Unilink Land Properties, Inc.

Responding to the derogatory statement issued by TECO against Xianglu Dragon Group (XDG) Chairman You Hao Chen, Plaza read a long statement detailing the circumstances of the project and the PEZA processes, including the conduct of a due diligence study of project proponent that even brought Plaza and other PEZA officials to Chen’s manufacturing facilities in Xiamen, China.

Apparently, PEZA did not see anything wrong with the huge project proposal and even submitted a comprehensive report to President Duterte, Trade and Industry Secretary Ramon Lopez and the Department of Foreign Affairs. Plaza also urged other members of the Board such as DTI, which chairs PEZA; the National Economic and Development Authority; Department of Finance; Department of Science and Technology; and Department of Labor and Employment to conduct their own due diligence on the proposed investment.

Based on the long standing practice of PEZA in evaluating their project proponents, “We give the proponent the benefit of the doubt and we want to extend the same to FPIC.”