By BERNIE CAHILES-MAGKILAT
A 250-hectare Bacolod City Special Economic Zone with an investment of P1.844 billion is promoting its development as a free trade zone to attract light manufacturing operations for the export market.
The Philippine Economic Zone Authority (PEZA) has already approved the project entitling it to a package of incentives such as income tax holiday incentives, duty-free importation of capital equipment, among others.
Tommy de Leon, director for business development of the project developer Bacolod Real Estate Development Corp., said the project is being developed into a mixed-use economic zone.
The project’s major components include a manufacturing zone, free trade zone, information technology hub, medical tourism and retirement zone.
De Leon, however, said that the first phase of the development is being marketed as a free trade zone to be able to attract light manufacturing industries.
De Leon explained that in a free trade zone the local value added of the products that would be manufactured for the exports market require only light or semi-manufacturing processes such as mere assembly and packaging.
"We are positioning it as a free trade zone because that is the most practical and realistic way of marketing our ecozone now because with the global financial crisis it would be difficult to attract manufacturing operations," he said.
The free trade zone is also located at the back of an international and domestic seaport with existing warehouses.
The project is expected to start commercial operation in June this year. The operator is targeting investors from Asia and European countries.
"We are still putting the final touches of our marketing plan," De Leon said.
The project is being bankrolled through 60 percent equity contribution from major stockholders and 40 percent loans.
It is owned by Negros Occidental-based businessmen led by Atty. Simplicio A. Palanca, the company chairman and president.
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