House economic committee backs Sarangani special ecozone

KIAMBA, Sarangani (September 8, 2009) – The House Committee on Economic Affairs has expressed support to the creation of the Sarangani MAKIMA-IT (Maasim-Kiamba-Maitum Industrial Triangle) Special Economic Zone Authority or SMITSEZA.

“This committee is very supportive of the special economic zone,” said committee chair Rep. Ramon "Red" Durano IV (5th District, Cebu) during a public hearing here Thursday (September 3).

Committee members consulted provincial and municipal officials, business, youth and various community sectors and organizations.

Durano said SMITSEZA will be the third special economic zone to be approved by Congress following Samal and Surigao Del Sur.

“I’m very happy to inform you this morning that House Bill 5877 has already been unanimously approved last August 5, 2009 jointly by the committee on economic affairs as well as the committee on trade and industry subject only to refinement,” said committee vice chair Marc Douglas Cagas IV (1st District, Davao Del Sur).

Durano led the party with senior majority floor leader Jesus Crispin Remulla (Cavite, 3rd District), Cagas, Antonio Lagdameo Jr. (Davao Del Norte, 2nd District), and committee secretary Jannalenna Sheng-Olladas.

SMITSEZA was authored by Sarangani lone district Rep. Erwin Chiongbian under House Bill No. 5877.

The House Committees on Economic Affairs and Trade and Industry chaired, respectively, by Durano and Antonio Alvarez (1st District, Palawan) had approved House Bill No. 5877 to effectively respond to the urgent national effort to minimize, if not eradicate poverty in the region.

In a press statement, Chiongbian said the economic zone seeks to transform the area into a self-sustaining, industrial, commercial, financial, investment and tourism/recreation center.Chiongbian said the ecozone will create employment opportunities in and around the special economic zone and effectively encourage and attract legitimate foreign investments that are vitally and sorely needed in his province."The proposed measure will realize the objective of providing jobs to my constituents particularly those in the countryside, increase their productivity and individual incomes and improve the level and quality of their living conditions," Chiongbian said.Chiongbian said the special economic zone intends to maximize the full economic potential of the Municipalities of Maasim, Kiamba and Maitum (MAKIMA). "This will serve as a venue to fully utilize the tremendous resources in the area such as the rich and arable agricultural land and diverse marine life," Chiongbian said."It will increase economic activity not only in MAKIMA municipalities but also province wide and within the region where raw materials for production and support services shall come from increased incomes and Gross Domestic Product (GDP)," Chiongbian added.The measure retains MITSEZA as the governing authority to provide a clear identity of the corporate entity."If enacted into law, tremendous economic progress would be realized not only for the province but for the entire SOCSKSARGEN region as well," Chiongbian said.

SOCSKSARGEN stands for South Cotabato, Sultan Kudarat, Sarangani and General Santos City.

Cagas said “as far as technicalities are concerned, there is no any means of hindrance to the further approval of the bill.”

“We are planning today for a better tomorrow,” Governor Migs Dominguez said. “With the support of this committee, we will be able to achieve our dream of economic development.”

Governor Dominguez reported big investments such as a $7-million reforestation program, a $5-million shipyard expansion and a $450-million coal plant project that are coming into the MAKIMA area.

“We are very excited because it is the first time that a special economic zone will be institutionalized here,” said Bronx Hebrona, president of Sarangani Chamber of Commerce and Industry.

For the Mindanao Economic Development Council, Undersecretary Virgilio Leyretana said the “council is a virtual oversight of the economic and social development programs in Mindanao. As such, we support the establishment of the SMITSEZA within the ambit of the three towns.”

MAKIMA-IT is an inter-local government cooperation aimed at harmonizing and integrating the development plans of the three towns.

It is a public-private sector partnership with the local governments taking lead and the local private sector as the engine of growth.

SMITSEZA is a response to the growing investment interest in the MAKIMA area as a decentralized, self-reliant and self sustaining industrial, commercial, financial and investment center.

It is a separate customs territory ensuring free movement of goods and capital within, into and out of MAKIMA with tariff-related incentives such as duty-free importation of raw materials, capital and equipment and incentives to registered enterprise.

“This for sure has a big impact to our lives specially on livelihood,” Benjamin Donato, a representative from the indigenous people, said. “We share the same belief to uplift our people above the poverty threshold.”

After the consultation, Durano and party made an ocular inspection in Kalaong, Maitum, with a 150-hectare area for rubber plantation and processing as part of SMITSEZA development plan.

In Kamanga, Maasim town, the committee visited the SM 200 coal plant project. The plant uses a state-of-the-art technology for the $450-million project seen to operate for 35 years.

“At least now questions are answered,” Remulla noted.

Remulla who had been visiting coal plants abroad asked on “what to do with the heavy metals.”

Project manager Gregorio Gonzales said its modern technology using electrostatic precipitator filters these particulate matters. “And all we can see is only the white ashes,” Gonzales said.

“The next thing you should do is to build a big cement factory where the ashes are useful,” Remulla said.

“This is a huge development in the three neighboring towns,” Vice Governor Steve Chiongbian Solon said. “Other special economic zones in the country offer investments but not cheaper power.”

“We commit to pass this bill the soonest possible time,” Remulla said. “It is a long and arduous task for Sarangani. A bill is not enough to solve our problems. It depends so much on the political will, leadership and commitment of the people of Sarangani.” (Russtum G. Pelima/SARANGANI INFORMATION OFFICE)