Friday, October 06, 2006 Ecozone status won’t hurt IT parks - exec
THE proclamation of Cebu as an economic zone (ecozone) will not affect the business ventures of developers of information technology (IT) parks like the Ayala-led Cebu Property Ventures and Development Corp. (CPVDC).
Instead, the Cebu ecozone will complement the development of IT parks in Cebu, as this would prompt investors to invest in IT infrastructure in the province, thereby, encouraging more IT and IT-related companies to locate in Cebu, said Francis Monera, CPVDC chief operating officer.
The Cebu ecozone, an undertaking of the Cebu Chamber of Commerce and Industry (CCCI), aims to convince the National Government to proclaim the entire province of Cebu as an ecozone.
Influx
It is envisioned to encourage the influx of more investments into the province by building up necessary capabilities, creating an enabling environment and reducing the cost of doing business in the area.
A feasibility study, funded by GTZ-Small and Medium Enterprise Development for Sustainable Employment Program, on the project is now ongoing.
Investment
Monera said IT companies, especially those that do not want to invest on their own building and infrastructure, will still locate in IT parks.
He said the Cebu ecozone is more suited for companies that are willing to invest on its own building and infrastructure, such as Bigfoot Global Solutions Inc. and Lexmark Research and Development Corp.
Earlier, Lexmark president and chief executive officer Stan Combs said the location-based incentives of the government is one of the factors that hinder the development of the country’s IT potential, especially in software development.
He said some IT companies could operate efficiently even outside economic zones.
“Some IT companies, especially software developers, could operate, even without the facilities of an ecozone. The incentives should be given to the company. The companies would then have the choice on where they want to operate,” Combs said in an interview.
Proclamation
Meanwhile, Cebu eco-zone study group chairman Gerry Sta. Ana said Cebu has already been “informally” proclaimed by the government an ecozone when it created the Philippine Economic Zone Authority through a Republic Act, which specified Cebu as one of the provinces that can be proclaimed an ecozone.
Feasibility
“This is part of our study. We are looking at the effect of this law on our Cebu ecozone proposal,” he said.
The Cebu ecozone feasibility study is expected to end in November.
“We will have to study our next move—whether to ask a congressman to sponsor a bill or other options—once we are done with the study,” Sta. Ana said.
Monera said the chamber has already had initial talks with some local government executives, assuring them that the Cebu ecozone project will not affect local taxes, so as not to affect the income LGUs.
“The idea is to get a win-win solution. We saw positive initial reactions, especially from LGUs that are also looking into the possibility of having ecozones of their own in their areas,” he said. (JBN)
