Gov’t eyes more economic zones in rural areas

MANILA, Philippines — President Rodrigo Duterte has directed government agencies to expedite the development of special economic zones in rural areas to spur economic growth outside of Metro Manila.

The President signed Administrative Order No. 18 on June 17 to spur “rural progress through robust development of special economic zones in the countryside.”

Peza mandate

The presidential directive tasked the Philippine Economic Zone Authority (Peza) and other government agencies to accelerate the human capital and infrastructure development in rural areas.

“There is a need to promote rural development, ensure inclusive growth in the countryside and create robust economic activity and wealth generation in areas outside Metro Manila,” the AO order read.

Agencies involved

The Peza, the Department of Information and Communications Technology, Department of Trade and Industry, Department of Transportation, Department of Public Works and Highways and the Technical Education and Skills Development Authority were told to provide interventions to strengthen ecozones in the countryside, and ensure the development of linkages of industries in ecozones.

Under the directive, the Peza will no longer accept, process, or evaluate applications for the creation of ecozones in Metro Manila until the moratorium is lifted.

However, the moratorium will not prevent locator companies from beginning their operations in existing ecozones in Metro Manila.

Existing applications endorsed by the Peza which were already submitted to the Office of the President are not included, as long as the applications have sufficient documents.

Moratorium terms

Applications with insufficient documents will not be covered by the moratorium if the Peza was notified of the deficiencies and addressed these within 30 days from the effectivity of the administrative order.

The exclusion of an application from the moratorium will not be a guarantee that the application will be approved.

The administrative order will take effect immediately upon its publication in a newspaper of general circulation.