The mayor of Navotas supports the review of the ban on new ecozones in Metro Manila

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Navotas Mayor John Rey Tiangco supported calls for the national government to lift the moratorium on the establishment of economic zones in Metro Manila to spur more economic activity and growth for the entire country.

The Duterte administration in June 2019 issued Administrative Order 18 (AO18), an order for “accelerating rural progress through robust development of rural special economic zones,” effectively banning applications for ecozones in the metro until the Office of the President decides to lift the moratorium.

“While I understand the rationale behind the moratorium, the competitive landscape, investment priorities and the entire global economic situation have undergone seismic shifts since then,” Tiangco said.

“Consider, for example, our case in Navotas. Currently, we do not have any IT parks or ecozones, despite the favorable location of our city. This moratorium effectively deprives us of the opportunity to establish such centers, which could serve as hubs for technological innovation, job creation and economic growth in our region,” he said.

The Legislature then decided to pass RA 11534, also known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, to help the business community recover from the pandemic. The implementing rules and regulations stated that investments in the National Capital Region should be given priority.

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With RA 11534 in effect, the legal presumption was that AO 18 was no longer in effect, as administrative or executive actions should be valid only if they do not conflict with existing laws or the Constitution.

Philippine Economic Zone Authority (PEZA) Director General Tereso Panga wrote to Executive Secretary Lucas Bersamin seeking clarity on the issue, but the Office of the President said the AO18 and its moratorium should be enforced.

Tiangco expressed support for the call by PEZA and other industry groups to lift the moratorium.

“Navotas wrote to PEZA in July 2019 to include our city in their request to the Office of the President for an exemption from the moratorium,” Tiangco said.

The request for a waiver was submitted, but no further action was taken.

“Lifting the moratorium would give us an opportunity to establish IT centers that would not only provide employment but also stimulate other economic activities, which would contribute significantly to the overall development of our city,” he said.

“That is why I respectfully urge a reconsideration of the moratorium or the implementation of alternative measures to allow the establishment of ecozones in our city,” he said.

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