Tuesday, November 06, 2007 Ledesman: Peza for Davao was GMA promise By Jun Ledesma Sunbursts
IT'S incredible, but despite the fact that it is the commercial and trading hub and the veritable communications center of Mindanao, Davao City has yet to have an export processing zone.
It is about time that the city and the provincial governments and the business community bond together to work for the establishment of a Private Export Processing Authority to give our local entrepreneurs a competitive advantage enjoyed by other growth centers in Luzon and Visayas. If Zamboanga City has one, I do not see any reason why Davao, where huge volumes of exports in Mindanao emanates, should not have one.
The first time I met Gloria Macapagal-Arroyo was when she was secretary of Trade and Industry. It was at the time when she was popularly perceived to run for the Senate.
At the "Bulwagan Hall", in the corporate offices of Regional Development Council Chairman Jesus V. Ayala, the DTI secretary made the promise that she will personally work for the establishment of a PEZA in Davao City. In fact they went on to identity the Panacan area as the site. Real estate developer Cora Malanyaon, now incumbent governor of Davao Oriental, invested a fortune acquiring lands in anticipation for the realization of the plan.
GMA went on to become senator while Cora proceeded to develop the area and then got a PEZA nod. GMA then became Vice President and then catapulted to the presidency courtesy of people's power. The processing zone however never came to full fruition.
In hindsight, it was a mistake to establish a processing zone right next to a cement factory. No "locators" had wanted to set up processing plants where daily they are assured of a daily dose of lime powder from the cement factory complex.
Cora lost a fortune, but her fighting spirit never ebbed. She went on to become a congresswoman and now governor. I know that she still is wiggling out of her obligations but in due time this sparkplug from Oriental will be back in the business arena in due time. But that is another story.
President Arroyo is busy going in and out of the country but I hope that one day she visits Davao, not for a political visit but to spend instead a working session with Davao businessmen.
After all, Pastor Apollo C. Quiboloy has graciously offered his Tamayong Prayer Mountain as the President's own Camp David for free. If PGMA travels by land from the airport to Tamayong (skirting Bankerohan bridge) she will be awed by the bounty derived from the rich agricultural lands of Calinan alone. From Davao's vast expanse of fertile agricultural lands came a variety of fruit crops. There is more to Cavendish bananas that Davao is famous for.
Davao del Norte Governor Rodolfo del Rosario said that we are now on the threshold of exporting processed fruits other than Cavendish. Davao City Mayor Rodrigo Duterte, who is now comfortable with the government style of Vice Mayor Inday Sara Duterte, has started to embark on trade promotions in Nanning, China, the sister city of Davao, in anticipation for direct trade with that city. Why not? With almost two billion mouths to feed, China needs all the food it can buy. The nearer the source the better. With Nanning as our big sister, we can look forward to a fruitful trade with that city.
I had a talk with Ferdie Maranon from whom I first heard of the idea of setting up an Agri-Export Processing Zone Authority in Davao City. He said that a PEZA in Davao will result in a dramatic growth of agro-industry in this parts.
Ferdie stressed that locators in PEZA enjoys tax-free privileges. Ferdie speaks from where he stands. He is the only Davao-based businessman who has a factory in Laguna registered with the PEZA there. He said he imports equipment tax free, an advantage that is denied Davao City businessmen.
Like Governor del Rosario, businessman Ferdie Maranon looks into the near future where small landowners tending to their native lakatan, cardaba and durian fruits will derive better income all year round. They too are looking at the possibility of exporting frozen marine products from inland ponds to fish cages from the coastal areas of Davao city and provinces. Realizable dreams given the experience of these two entrepreneurs. But we need an EPZA to transform this to pulsating realities. And you need President Gloria Macapagal Arroyo to fulfill revive that project.
There is that rundown Daratex property in Toril. Go farther south or farther north and you find ideal real estate where a PEZA can be established. If the President can just give us a day of her time I am sure that the agri-based industries in Davao can really take off beyond everybody's wild expectation.