The City Council passed a resolution that endorsed the application of Damosa Land Incorporated with the Philippine Export Zone Authority (PEZA) to develop "Damosa Information Technology Park" in a 23-hectare area in Lanang, about six kilometers northeast of downtown Davao.
A PEZA accreditation would require a city council endorsement where prospective investors would be granted with tax holidays and other incentives.
The park would have two information technology buildings, a data building, and a commercial and a utility building that would have an unlimited power supply.
The first phase of the construction of the technology park would accommodate companies like call and medical transcription centers, the Damosa Land Incorporated said in a statement. This phase would cost P20 million.
The IT building, based on DLI's presentation, would be equipped with high-speed fiber-optic telecommunication backbone and high-speed international gateway facility or wide-area network.
DLI said that the company would need P150-million to construct the second phase of the park.
The part is expected to benefit the local information technology sector but also it will "spur economic growth in the city," DLI's Ed Villaber told the City Council in a committee hearing last month. This would be the second IT park in Mindanao. Pueblo de Oro was the first IT park established in Cagayan de Oro City.
Councilor Peter Laviña was quoted in the committee report as saying that many call centers had backed off from investing in the city because of the absence of a PEZA-approved area where they could avail of incentives.
The development of the park, according to the report of the council's committee on trade, commerce and industry; will stimulate peripheral business and generate more employment in the city.
The project is expected to initially hire 400 employees.