P150B LOSS IF MEZ IS RELOCATED

THE Philippine Economic Zone Authority (Peza) has estimated P150 billion in losses if the 150 locators in the Mactan Economic Zone (MEZ) 1 are relocated to pave the way for the construction of the airport’s second runway.

In the Memorandum Circular No. 2019-004 issued by Peza director general and zone administrator for MEZ Charito Plaza, she said they have not been formally and officially presented with the Mactan-Cebu International Airport Authority’s (MCIAA) proposal.

“At the very least, no details have been provided where and how the locators will be relocated (or compensated, if at all). Not having received a written, comprehensive and detailed proposal from the MCIAA, there is nothing in the Peza’s table to officially consider,” the memorandum said.

The MCIAA, in a statement issued on Sept. 18, 2019, said the proposed reclamation area will be developed into a “smart city.” It will have direct access to a proposed cargo terminal in the airport.

A second runway will boost local economic activity “even far beyond the economic zone” was how MCIAA General Manager Steve Dicdican said it.

Construction of the second runway and the proposed reclamation are seen to be completed in seven to 10 years.

“Our proposed new home for MEZ 1 will be a ‘smart city’ boasting (of) state-of-the-art facilities that will maximize the capacity for production of companies, especially those in the information technology industry,” Dicdican said in an earlier report.

‘Jitters’

Peza’s Plaza said the MCIAA press statement sent waves of jitters among the MEZ locators.

“The proposed relocation of MEZ locators and MCIAA’s use of the MEZ area as the site for its second runway is an unsolicited proposal that forms part of the airport authority’s 50-Year Integrated Development Plan,” she said.

With this impending relocation, Peza feared for the 60,000 direct jobs generated by the locators.

“It is a challenge to transfer,” an officer of one of the MEZ locators that stand to be displaced by the construction of a second runway told SunStar Cebu.

“The companies have full production, so you can’t stop that. What will you do if you transfer? You create another building, fill it up with machineries and train new sets of manpower,” the locator said.

Easy replacement

Given the cutthroat competition for cheap labor production among Asian countries, US sources can easily replace a locator that stops export delivery with another supplier, the MEZ locator said.

“The moment you can’t deliver, they can just order it from somebody else. You’re not the only manufacturer of that product. We have a lot of competitors that are manufacturing identical products and are even cheaper than us,” the locator said.

Plaza urged the MCIAA to consider putting the second runway parallel to the eastern side of the existing runway.

“While sadly, about 12,000 families may be affected by this option, MCIAA should also weigh the implication of locating the second runway in the MEZ area. More than the 60,000 direct workers will be affected and the losses of Peza and its locators may go as high as P150 billion, at least. Not just the social cost, as there would be one whichever option, but the long-term economic implication of the proposed transfer of the MEZ locators should be given great weight,” Plaza said.

4th District

Another option is the proposal from former congressman Benhur Salimbangon, who is now the consultant of the Provincial Government, for the fourth district of Cebu to be turned into an economic zone.

Salimbangon is eyeing the fourth district, which covers the city of Bogo, and the towns of Bantayan, Daanbantayan, Madridejos, Medellin, San Remigio, Sta. Fe, Tabogon and Tabuelan, to be the relocation area of those locators affected by the runway’s construction in the next 24 years.

“He (Dicdican) said MCIAA has 150 locators that they have to negotiate with to have them removed from Mactan. There’s little to no space to accommodate these locators in Mactan anymore. I told him that there are 5,000 to 6,000 hectares (of land) available in the district. If you can help me convince them to relocate to our district, we are willing to provide help,” Salimbangon said in an earlier interview.