Loren bill aims to establish Gen San special economic zone

Senator Loren Legarda has filed a bill that seeks to create a special economic zone and free port area in the tuna capital of the Philippines, General Santos City.

Under Senate Bill No. 1091 authored by Loren, the special economic zone to be established in General Santos will be managed and operated by a free port authority to be created.

If passed into law, Loren said her proposal would accelerate the economic growth of General Santos as the government will be tasked to provide the special zone with transportation, telecommunication and other facilities needed to attract foreign investments.

Loren pointed out that the establishment of special economic zones is a declared policy of the state to promote a balanced industrial, economic and social development of the country's provinces and cities.

"I envision a decentralized, self-reliant and self-sustaining economic hub for General Santos City, which will realize the full potential of its industries, recreational and tourism attractions and agricultural sector," Loren said.

The bill calls for the General Santos special economic zone and free port to be operated as a separate customs territory to facilitate the free flow of machinery, goods, articles and capital within, into and exported out of the zone.

Loren clarified though that exportation or removal of goods, articles and capital from the zone to the other parts of the Philippines shall be subject to customs duties and taxes under the customs and tariff and other applicable laws.

The bill gives the free port authority the power to acquire either by purchase, negotiation or condemnation proceedings any private lands within or adjacent to the zone for the purposes of consolidation of lands for zone development, acquisition of right of way and the protection of watershed areas and natural assets of the zone.

Goods to be manufactured by enterprises inside the zone shall be made available for immediate retail sale in the domestic market, subject to the payment of taxes and applicable regulations.

To prevent problems being encountered in other special economic zone from being repeated in the proposed General Santos free port area, Loren's bill provides for the continuous updating of a "negative list" of enterprises operating in the free port.

"Enterprises in the negative list, including those who will be found to have violated zone regulations, will not be barred from selling their products locally," she said.

"This measure is intended to protect domestic industries," she said.