Consortium investing P50M for GenSan special ecozone

GENERAL SANTOS CITY (MindaNews/26 July)–A consortium here is investing some P50 million for the development of a special economic zone that aims to attract local and foreign investors, a company executive said.

Neil Cachuela, administrator of the GenSan Economic Zone (GEZ), said that President Benigno S. Aquino III has declared the facility as a special economic zone early this month.

“This would be the biggest industrial-type special economic zone that would rise in Southern and Southwestern Mindanao,” he said.

Aquino signed Proclamation No. 820 creating and designating around 47 hectares of land in Barangay Tambler as a special economic zone last July 3.

The Philippine Economic Zone Authority (PEZA) recommended to the President the declaration of GEZ as a special economic zone.

The Damalerio Realtors, Inc. is the operator and developer of GEZ.

Cachuela said that potential investors from the United States, Taiwan and Thailand, besides domestic investors, have already expressed interest to establish business in the special economic zone.

The American firm is interested in putting up an organic fruit beverage manufacturing plant while the Taiwanese and Thai companies would like to establish tuna canneries, he said.

Dubbed the “Tuna Capital of the Philippines,” this city hosts six of the country’s seven tuna canneries.

With the city’s strategic location in the East ASEAN Growth Area, Cachuela said they are hoping that the special economic zone could also attract investors from Brunei Darussalam, Indonesia and Malaysia.

Based on PEZA regulations, the following, among others, are the incentives that locators to the special economic zone can enjoy:
Four years of income tax holiday and extendable up to 8 years;
Upon expiry of the income tax holiday, a five per cent special tax on gross income and exemption from all national and local taxes;
Allows 100% foreign ownership of enterprise;
Simplified profit repatriation;
Tax and duty free importation of production equipment and machineries, spare parts and supplies of the equipment and machineries;
Exemption from export taxes, wharfage dues, impost and fees; and
Value Added Tax zero rating on local purchases of goods and services, including land- based telecommunications, electric power, and water bills. (MindaNews)