Taguig, City – Contrary to reports, the Philippine Economic Zone Authority (PEZA) has clarified it did not urge industries to go against the proposed second runway of the Mactan-Cebu International Airport (MCIA), the construction of which would require the relocation of the locator companies at the Mactan Economic Zone (MEZ) I, which is situated in Brgy. Ibo, Lapu-Lapu City.
PEZA Director General Charito Plaza explained that “it was the locators’ own initiative to release a petition for reconsideration of the plans with a lot of things at stake.”
The Mactan Export Processing Zone Chamber of Exporters and Manufacturers (MEPZCEM) Chamber, Inc. and the Japanese Chamber of Commerce and Industry of Cebu Inc. (JCCI-CI) have submitted a joint petition concerning the proposed runway to Mactan-Cebu International Airport Authority (MCIAA) General Manager and CEO Atty. Steve Dicdican last December 19, 2019 and to the National Economic and Development Authority (NEDA)-ICC Secretariat last January 16 for fears it would force industries to locate away from the area. Such event would have both economic and social implications since locators may leave or close operations in MEZ and entail job losses.
“[The report] has produced a perception of uncertainty in the PEZA Ecozone Business environment (…) to the extent that new investments for expansion of present capacities are put on hold and plans to relocate the other countries in Asia are already on the table,” stated in the petition.
MEZ I is the home of 150 MEPZCEM member-locators, which employs a total of 57,000 direct and 285,000 indirect workers. The Lapu-Lapu City Government also shares in the income taxes paid by these locators consisting of 2% of the 5% special income tax rate paid.
“MEZ 1 is one of the biggest contributor to our city’s economy. We cannot afford to lose MEZ 1,” stated Lapu-Lapu City Mayor Junard ‘Ahong’ Chan.
The locators noted that they welcome the project of building second runway. They just express concerns on the current proposal, which endangers investments in the area and the economy as a whole.
“We recommend for a second option for the site of the runway that will not affect MEZ workers and their dependents,” said the Director General.
The PEZA Chief said building the second runway would result in billions of pesos in economic losses as locators are now considering the option of bringing their businesses to other countries.
Should locators be removed from MEZ 1, the locators would demand from the MCIAA compensation of at least US$2.3 billion to cover relocation costs. They said the MCIAA should also shoulder an additional $4 billion for loss of revenue and expired inventory. #