Iloilo’s first ecozone hopes to spark economic boom

By Joseph B.A. Marzan

The first economic zone (ecozone) in Iloilo province was inaugurated Monday, April 18, 2022 and officials hope that this would inspire other towns to establish their own zones to generate economic growth.

The Iloilo Gateway Cyberscape, a 5-floor information technology-business process outsourcing (IT-BPO) facility just beside Gateway Hotel, is the first ecozone in Pavia and the province to be registered with the Philippine Economic Zones Authority (PEZA).

PEZA approved the building’s status as an IT ecozone on Dec 14, 2021.

Iloilo Gateway Development Corporation President Angel De Leon said a foreign IT-BPO company will occupy all five floors of the building.

De Leon said the new ecozone will set the pace for all other towns especially those within the Metro Iloilo Guimaras Economic Development Council (MIGEDC) area.

Aside from Pavia and Iloilo City, the MIGEDC area, which was created by Executive Order No. 559 in 2006, also includes the Iloilo towns of Oton, Leganes, Santa Barbara, Cabatuan, San Miguel, Zarraga, Dumangas, Alimodian, Maasin, and New Lucena, and all 5 towns in the neighboring island province of Guimaras (Buenavista, Jordan, Nueva Valencia, San Lorenzo, and Sibunag).

“The [Gateway Cyberscape] will set the pace to all other towns around the city, particularly the MIGEDC area, (sic) to come up with economic zones if they are doable. The logistics of [Iloilo] City is accessible to the next towns through the highways. It will stir economic growth,” De Leon said.

“We are the first ecozone outside [Iloilo] City, so this is something that I think the PEZA office would make [as a] statement to all other [local governments] that it is possible outside of the city,” he added.

De Leon also expressed their intention of expanding to an eco-park, citing 10 hectares of unused land in the area.

Iloilo Governor Arthur Defensor Jr. said that the project will create new jobs for Ilonggos and further economic activity in the ecozone’s immediate vicinity.

He hopes that ecozones could multiply in the province soon.

“This is the first special economic zone in the province of Iloilo, and the time has come that the inevitable spill of commerce and business from the city going out to the province. This is very significant because we can have an investment area where you grant fiscal incentives. Activity will increase in this area. This will become a growth area. Other businesses will also have a pull from the needs of those who work here,” Defensor said.

“We encourage businessmen to discover special economic zones and their variations, because they are vehicles for delivering fiscal incentives, which are underutilized. Most businessmen don’t know that you can have special economic zones inside one building only. It must be known to the business sector so they can take advantage of that,” he added.

The governor added, however, that for other towns, they still have the challenge of improving their utility services and systems to attract businesses in their localities.

“We have to start with the fundamentals, [like] power, internet connectivity, and other utilities. Once you have that, then you are, for a great part of it, ready to invite business, because [ecozones] are a privilege granted by the national government. If you have the environment, the facilities, and the infrastructure, it will be easier to lay down,” the governor said.

In a press conference, PEZA Director General Charito Plaza said that the new facility was a symbol of Iloilo’s competitiveness in the region and in the country.

The Gateway Cyberscape is the 7th ecozone within the city and province of Iloilo, and the 24th overall in the region. The new ecozone also makes Pavia the 111th local government unit with ecozones present in the country.