BY IRMA ISIP
[ Malaya.com.ph ] July 22, 2010
Newly-created Freeport Area of Bataan (FAB) is being groomed as another logistics, tourism and manufacturing hub with incentives to locators far superior than what other economic zones offer, including the power to lease land to foreign investors.
In his presentation at the general membership meeting of the Financial Executives Institute of the Philippines (FINEX) yesterday at the New World Hotel in Makati City, Deo G.P. Custodio, chairman of the Authority of Freeport Area of Bataan, said the conversion of the former Bataan economic zone as a Freeport will restore its status in the 1970s as a premier industrial site and elevate it as the Freeport of choice by 2020.
Formerly the Bataan ecozone under the Philippine Economic Zone Authority (PEZA), FAB was created by virtue of Republic Act 9728 last October. FAB includes the entire Mariveles town which would allow the authority to offer a wider area to investors.
The main zone has 1,750 hectares with 400 hectares facility earmarked for the industrial site.
"Times have changed. Bataan ecozone is one of the few government zones and received little focus and attention. Now we can focus our energy on its development and maximize its potential," Custodio said.
The first public ecozone, Bataan ecozone was primed to have a seaport and airport in the 1970s but these did not push through.
Custodio said AFAB would pursue the seaport capitalizing on the fact that FAB is the only Freeport within Manila Bay, within 30 to 40 nautical miles (less than an hour away) from Manila ports and makes it ideal for transshipment.
Custodio said AFAB would start off with a ferry service from Mariveles town to Mall of Asia within the year through built-operate-transfer (BOT) scheme.
He, however, clarified FAB will not compete with but would complement Subic as a logistics hub, as the potential for logistics business in Asia-Pacific is about $1 trillion.
AFAB would tap official development assistance for he seaport development.
AFAB has a budget of P500 million per year from the general appropriations for the first five years of operation.
Custodio said FAB can also be promoted as a tourism destination due to its beaches and geographical advantages. AFAB would invite investors to build hotels, duty free complex, resorts and an ecopark, gaming infrastructures (such as PAGCOR operated specialty casinos, Bungee Championships, etc.
FAB is near the landmark Mt. Samat Shrine of Valor and the white sand beaches of Camaya Coast.
Custodio said FAB is also ideal for manufacturing because as a customs territory, goods that come into the area are duty-free.
AFAB is now talking to 20 potential partners from government and private sector to jumpstart the Freeport’s development, such as Department of Science and Technology for the establishment of the Innovation Center, the technology for the training center as well as port operators, oil companies, among others.
There are 43 registered companies in Bataan ecozone, led by Mitsumi Electronics, Dunlop and a number of garments and electronics firms, with total employment of 13,400.
To revitalize the area, AFAB is granting the best incentives to domestic and foreign investors.
Custodio said that companies located inside the FAB enjoy numerous financial and personal benefits that are unique to special economic zones.
"Among these are tax incentives such as income tax holiday for four years expandable to 8 years after which a 5 percent income tax on gross; exemption from duties and taxes on imported capital equipment, spare parts, other supplies and raw materials; and exemption from wharfage dues, export taxes, imposts and fees."
FAB offers permanent resident status for foreign investors and immediate family members, and tax-free importation of personal equipment for use within the Freeport.
Custodio said FAB is the only Freeport that can buy and sell property as opposed to long-term leases in other ecozones to corporations under 60-40 rule.
"If investors consider owning land a big deal, this will entice investors to register within the Freeport, but the investment has to be compelling, -- it is advantageous and strategic for the Freeport and long-term. We will look at not only the magnitude of the investments but it should create a lot of jobs," Custodio said.
He said the implementing rules and regulations of the law provides no diminution of incentives for locators and absorption of qualified PEZA workers.
According to Custodio, the authority will commission a masterplan for the proper use of the Freeport which AFAB would present to prospective investors.
_____________________________________________________________
