DAVAO CITY (MindaNews / 29 June) – At least two areas in Davao City are being eyed for conversion into agro-industrial economic zones to attract more investments here, an official of the Davao City Investment Promotions Center (DCIPC) said.
During “Wednesdays Media Forum” at Habi at Kape in Abreeza Corporate Center, Christian Cambaya, head of the Investor Assistance and Servicing Unit of the DCIPC, said that the areas initially being targeted are a 25-hectare property of the National Development Corporation (NDC) in Barangay Daliao, Toril and an 80-hectare privately owned property located in adjacent Barangays Bunawan and Tibungco.
He added that there is an ongoing negotiation for the acquisition by the local government of the property in Daliao from the NDC so that this city can proceed with its plan of establishing its own industrial economic zone.
Cambaya explained that the Philippine Economic Zone Authority (PEZA) requires an area of at least 25 hectares to qualify as an industrial park.
He said the local government acknowledged the need to establish industrial parks that could host foreign firms who choose to invest in the city and take advantage of the fiscal and non-fiscal incentives granted by the national government for locators in identified economic zones.
According to the PEZA, non-fiscal incentives include the granting of special non-immigrant visas with multiple entry privileges for non-resident foreign nationals in a PEZA-registered Economic Zone Enterprise, particularly investor/s, officers, and employees in supervisory, technical or advisory position, and their spouses and unmarried children under 21 years of age; employment of foreign nationals; and long-term land lease of up to 75 years.
It said firms may also avail of fiscal incentives such as income tax holidays of four to seven years; a 5% Special Corporate Income Tax or enhanced deductions for 10 years upon the lapse of the period for income tax holidays; tax-and-duty-free importation of capital equipment, raw materials, spare parts or accessories; value-added tax (VAT) exemption on importation and VAT zero-rating on local purchases for goods and services directly or exclusively used in the registered project or activity of export enterprise for the period of registration of the said project or activity; domestic sales allowance of up to 30% of total sales; and exemption from payment of local government taxes and fees for the duration of the period of availment of special corporate income tax.
There are 22 agro-industrial economic zones in the country, according to PEZA.
Cambaya added that the local government would undertake a pre-feasibility study to give the government officials “a bird’s eye view” of what kind of park and what other areas in the city have potential for conversion into economic zones.
He said the DCIPC hopes to open the competitive bidding for the pre-feasibility study next month, start with the preliminary assessment by September this year, and come out with the initial result by January next year.
He added that a full-blown study will be undertaken next year.
“We acknowledge the need for industrial parks in the city because these are eco zones that are actually needed by investors, especially foreign,” he said.
In his speech delivered during his inauguration on Monday, Mayor-elect Sebastian “Baste” Duterte said he would work with the business community in a bid to increase more investments and explore other areas outside the city center to spread out economic development across the city.
“The local government will be working closely with business sectors, both local and foreign, to explore more investment opportunities here in Davao City. To our partners in the business community, the local government is open and ready to listen to your suggestions and to work with you in enhancing the business climate in the city,” he said. (Antonio L. Colina IV / MindaNews)