Philippine Standard Time - Tuesday, May 21, 2024,

Mandate and Functions

Legal Basis

Republic Act No. 7916 (as amended by Republic Act No. 8748) otherwise known as “The Special Economic Zone Act of 1995”


Purposes, Intents and Objectives

  • to establish the legal framework and mechanisms for the integration, coordination, planning and monitoring of special economic zones, industrial estates / parks, export processing zones and other economic zones;
  • to transform selected areas in the country into highly developed agro industrial, industrial, commercial, tourist, banking, investment, and financial centers, where highly trained workers and efficient services will be available to commercial enterprises;
  • to promote the flow of investors, both foreign and local, into special economic zones which would generate employment opportunities and establish backward and forward linkages among industries in and around the economic zones;
  • to stimulate the repatriation of Filipino capital by providing attractive climate and incentives for business activity;
  • to promote financial and industrial cooperation between the Philippines and industrialized countries through technology-intensive industries that will modernize the country’s industrial sector and improve productivity levels by utilizing new technological and managerial know-how; and
  • to vest the special economic zones on certain areas thereof with the status of a separate customs territory within the framework of the Constitution and the national sovereignty and territorial integrity of the Philippines.


Functions and Powers of PEZA Board

  • set general policies on the establishment and operations of the ecozones, industrial estates, export processing zones, free trade zones, and the like;
  • review proposals for the establishment of ecozones based on the set criteria under Section 6 (Criteria for the Establishment of Other Ecozones) and endorse to the President the establishment of the ecozones, industrial estates, export processing zones, free trade zones and the like. Thereafter, it shall facilitate and assist in the organization of said entities;
  • regulate and undertake the establishment, operation and maintenance of utilities, other services and infrastructure in the ecozone, such as heat, light and power, water supply, telecommunication, transport, toll roads and bridges, port services, etc. and to fix just, reasonable and competitive rates, charges and fees therefore;
  • approve the annual budget of the PEZA and the ecozone development plans;
  • issue rules and regulations to implement the provisions of this Act in so far as its power and functions are concerned;
  • exercise its powers and functions as provided for in this Act; and
  • render annual reports to the President and the Congress.

General Powers and Functions of PEZA 

  • to operate, administer, manage and develop the ecozone according to the principles and provisions set forth in this Act;
  • to register, regulate and supervise the enterprises in the ecozone in an efficient and decentralized manner;
  • to coordinate with local government units and exercise general supervision over the development, plans, activities and operations of the ecozones, industrial estates, export processing zones, free trade zones,and the like;
  • in coordination with local government units concerned and appropriate agencies, to construct, acquire, own, lease, operate and maintain on its own or through contract, franchise, license, bulk purchase from the private sector and build-operate-transfer scheme or joint venture, adequate facilities and infrastructure, such as light and power systems, water supply and distribution systems, telecommunication and transportation, buildings, structures, warehouses, roads, bridges, ports and other facilities for the operation and development of the ecozone;
  • to create, operate and/or contract to operate such agencies and functional units or offices of the authority as it may deem necessary;
  • to adopt, alter and use a corporate seal; make contracts, lease, own or otherwise dispose of personal or real property; sue and be sued; and otherwise carry out its duties and functions as provided for in this Act;
  • to coordinate with the National Economic Development Authority (NEDA), the Department of Trade and Industry (DTI), and the local government units and appropriate government agencies for policy and program formulation and implementation; and
  • to monitor and evaluate the development and requirements of ecozones and recommend to the local government units or other appropriate authorities the location, incentives, basic services, utilities and infrastructure required or to be made available for said entities.