Philippine Economic Zone Authority

Philippine Economic Zone Authority (PEZA) promotes the establishment of economic zones in the Philippines for foreign investments. PEZA is also the Philippine government agency tasked to extend assistance, register, grant incentives to, and facilitate the business operations of investors in export-oriented manufacturing and service facilities inside selected areas throughout the country, proclaimed by the President of the Philippines as PEZA Special Economic Zones.

Mandate and Functions

Legal Basis

Republic Act No. 7916 (as amended by Republic Act No. 8748), otherwise known as “The Special Economic Zone Act of 1995”

Mandate

Purposes, Intents, and Objectives

to establish the legal framework and mechanisms for the integration, coordination, planning, and monitoring of special economic zones, industrial estates/parks, export processing zones, and other economic zones;

to transform selected areas in the country into highly developed agro-industrial, industrial, commercial, tourist, banking, investment, and financial centers, where highly trained workers and efficient services will be available to commercial enterprises;

to promote the flow of investors, both foreign and local, into special economic zones, which would generate employment opportunities and establish backward and forward linkages among industries in and around the economic zones;

to stimulate the repatriation of Filipino capital by providing an attractive climate and incentives for business activity;

to promote financial and industrial cooperation between the Philippines and industrialized countries through technology-intensive industries that will modernize the country’s industrial sector and improve productivity levels by utilizing new technological and managerial know-how; and

to vest the special economic zones on certain areas thereof with the status of a separate customs territory within the framework of the Constitution and the national sovereignty and territorial integrity of the Philippines.

Functions

Functions and Powers of PEZA Board

set general policies on the establishment and operations of the ecozones, industrial estates, export processing zones, free trade zones, and the like;

review proposals for the establishment of ecozones based on the set criteria under Section 6 (Criteria for the Establishment of Other Ecozones) and endorse to the President the establishment of the ecozones, industrial estates, export processing zones, free trade zones, and the like. After that, it shall facilitate and assist in the organization of said entities;

regulate and undertake the establishment, operation, and maintenance of utilities, other services, and infrastructure in the ecozone, such as heat, light and power, water supply, telecommunication, transport, toll roads and bridges, port services, etc., and to fix, reasonable and competitive rates, charges therefore;

approve the annual budget of the PEZA and the ecozone development plans;

issue rules and regulations to implement the provisions of this Act in so far as its power and functions are concerned;

exercise its powers and functions as provided for in this Act; and

render annual reports to the President and the Congress.

General Powers and Functions of PEZA 

to operate, administer, manage, and develop the ecozone according to the principles and provisions outlined in this Act;

to register, regulate, and supervise the enterprises in the ecozone in an efficient and decentralized manner;

to coordinate with local government units and exercise general supervision over the development, plans, activities, and operations of the ecozones, industrial estates, export processing zones, free trade zones, and the like;

in coordination with local government units concerned and appropriate agencies, to construct, acquire, own, lease, operate and maintain on its own or through contract, franchise, license, bulk purchase from the private sector, and build-operate-transfer scheme or joint venture, adequate facilities and infrastructure, such as light and power systems, water supply and distribution systems, telecommunication and transportation, buildings, structures, warehouses, roads, bridges, ports and other facilities for the operation and development of the ecozone;

to create, operate, and contract to operate such agencies and functional units or offices of the authority as it may deem necessary;

to adopt, alter, and use a corporate seal; make contracts, lease, own or otherwise dispose of personal or real property; sue and be sued; and otherwise carry out its duties and functions as provided for in this Act;

to coordinate with the National Economic Development Authority (NEDA), the Department of Trade and Industry (DTI), and the local government units and appropriate government agencies for policy and program formulation and implementation; and

to monitor and evaluate the development and requirements of ecozones and recommend to the local government units or other appropriate authorities the location, incentives, essential services, utilities, and infrastructure required or made available for said entities.