President Rodrigo Duterte has imposed a moratorium on the processing of applications for economic zones (ecozones) in Metro Manila in a bid to spur rural progress through development of special economic zones in the countryside.
Under Administrative Order No. 18 signed last June 17, the President likewise ordered different government agencies to hasten human capital and infrastructure development, as well as to provide needed interventions to strengthen ecozones in the countryside so as to ensure the development of backward and forward linkages of industries in and around such ecozones.
The same AO also cited the need to promote rural development, ensure inclusive growth in the countryside and create robust economic activity and wealth generation outside Metro Manila.
“To complement existing strategies and policies on rural development, the PEZA (Philippine Economic Zone Authority) shall no longer accept, process or evaluate applications for the establishment of ecozones in Metro Manila immediately upon the effectivity of this Order and until such memorandum is lifted,” read the AO, a copy of which was only released to Malacanang reporters on Saturday (June 22).
However, the moratorium will not prevent locator companies from commencing their operations on existing ecozones in Metro Manila.
An application endorsed by PEZA and already submitted to the Office of the President as of the date of effectivity of the order shall not be covered by moratorium if the application is already pending with the OP is found to be without deficiencies in its supporting documents; if the OP, even prior to the effectivity of the order, has already notified PEZA of deficiencies in the supporting documents, and PEZA satisfactorily addresses such deficiencies within 30 days from the effectivity date of this order; and if the OP, after the effectivity of the order, notifies PEZA of deficiencies in the supporting documents and PEZA satisfactorily addresses the noted deficiencies within 30 days from receipt of notice of such deficiencies.
The order also noted that the exclusion of an application from the moratorium shall not be construed as a guarantee that the same will be granted.
Those tasked to provide development and support for ecozones in the countryside were Department of Information and Communications Technology, Department of Trade and Industry, Department of Transportation, Department of Public Works and Highways, Technical Education and Skills Development Authority and the Philippine Economic Zone Authority (PEZA).
The signing of the AO is in line with the 0+10 Socioeconomic Agenda of the Administration calling for the promotion of rural and value chain development toward increasing agricultural and rural enterprise productivity and rural tourism, as well as investing in human capital development through matching skills and training, to meet the demand of businesses and the private sector.
The AO shall take effect immediately after its publication in a newspaper of general circulation.