Press Release
April 30, 2008

Loren wants feasibility studies
on proposed ecozones

Senator Loren Legarda cited yesterday the important role played by special economic zones in fast-tracking rural development, luring foreign investments into the country and creating much needed jobs.

Legarda issued the statement in opening the public hearing conducted by the Senate Economic Affairs Committee, which she chairs, on seven of eight bills proposing the establishment of special economic zones.

"It is in this sense that proponents of the bills creating the economic zones, which the committee shall review, promote the establishment of the same to make certain that areas that need economic activities are made attractive to investors," she said.

The eighth bill, Legarda's SB 2218, seeks to convert the Bataan Economic Zone located in the municipality of Mariveles, Bataan into the Bataan Special Economic Zone and Free Port.

Legarda's committee also opened an inquiry into the construction of two condominium buildings inside the Subic Bay Freeport Zone, on the strength of Senate Resolution No. 32.

On the issue facing the Subic Bay Metropolitan Authority and Hanjin Heavy Industries Ltd., Legarda maintained that compliance with laws, specifically related to the environment, should be strictly observed.

She requested the Department of the Environment and Natural Resources (DENR) to determine compliance with pertinent environmental laws in the construction of the condominiums and to recommend actions that may be undertaken, if needed.

While acknowledging the potential contributions of economic zones, Legarda stressed the need to look into the necessity, urgency, viability and feasibility of establishing more economic zones.

Regarding this, she reiterated Professor Felipe Medalla's recommendations for proponents to come up with feasibility and viability studies, as well as the adoption of a co-financing scheme wherein capitalization of the ecozones should not be wholly financed by the national government.

She said her committee will hold more hearings, preferably on the sites of the proposed economic zones, namely:

  • Northern Samar, covering the municipalities of San Jose, Bobon and Catarman;

  • Surigao del Sur, in the municipalities of Carrascal, Cantilan, Madrid, Carmen and Lanuza';

  • Sulu;

  • General Santos; and

  • Southern Palawan

  • Ilocus Sur

"Economic zones fast-track rural development, create jobs and lure foreign investments into the country. They also boost the infrastructure development of their host and nearby communities as industrial estates require roads, railways, telephones and ports," Legarda said.

The ecozone bills tackled by the committee were SB Nos. 127, 128, 1082, 1091, 1228, 1605, 1982 and 2218.

Senator Legarda, through SB 1605; and Senator Juan Ponce Enrile, through SB 1228, are both proposing the creation of the Southern Palawan Special Economic Zone and Free Port Authority.

Legarda said that Republic Act 7916, otherwise known as the Special Economic Zones Act, has established the legal framework for integration, operation and monitoring of economic zones, as well as identifying.

The law has also identified over 35 areas as suitable hosts of economic zones, she said.

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