Professional Documents
Culture Documents
1
TABLE OF CONTENTS
A. Background ………………………………………………….. 1
• Objective …………………………………………………………….. 1
• Activities ……………………………………………………………… 2
B. Economic Baseline and Investment Potentials Analysis ……... 3
1. Background in Silay’s Industry, Trade and Tourism Performance …… 3
1.1 Industry: Sugar Production …………………………………….… 3
1.2 Trade: Commercial Establishments ……………………….…….. 4
1.3 Tourism: Paris de Negros …………………………………….….. 5
2. Competitiveness Ranking ………………………………………….…. 6
3. Investment Potentials Analysis ……………………………………….. 9
3.1 Airports as National and Regional Economic Motors …………… 10
3.2 The Creative Industries ……………………………………….…. 11
3.3 Cultural-Historical and Adventure Tourism …………………….. 12
3.4 Medical and Health Tourism ………………………………….…. 12
3.5 Ethanol Production ………………………………………...…….. 13
3.6 Conclusions …………………………………………………...…. 13
C. Proposed Economic Development Strategy ………………….. 14
1. Strategic Goals ……………………………………………………..…. 14
2. Agro-Industrial Development ………………………………………… 15
3. Tourism Development …………………………………………..……. 15
4. Technology Promotion …………………………………………….…. 16
D. Suggested Types of Investment ………………………………. 17
E. Fiscal and Non-Fiscal Incentives ……………………………... 18
• Investments-Incentives Matrix ……………………………………..…. 19
Annexes ……………………………………………………………………...20
1. Draft Investment Incentive Code …………………………………………..20
2. Proposal for a Special Economic Zone …………………………………….55
1
A. BACKGROUND
I nhome
2007, Silay Ciy will be
to the new Bacolod
Airport which is now under
construction. In preparation
for this, the Silay City Gov-
ernment has formulated a
long-term development
framework plan to guide the
city’s further growth espe-
cially around the airport
site. With the completion of the airport, the Silay City Government also antici-
pates the emergence of related challenges, particularly:
1. The need to be selective in accommodating new investments and eco-
nomic enterprises that would be attracted by the airport, in order to secure
those which offer the best potentials for generating employment and local
economic prosperity without damaging the natural environment; and
2. The further intensification of growth in the city’s established as well as
emerging activity centers, which will need to be guided in order to maxi-
mize economic and social benefits and to mitigate the negative effects of
unplanned growth.
In view of these challenges and to reinforce the development framework plan,
the Silay City Government has decided to establish an economic development
strategy, a Special Economic Zone (SEZ), and a city-wide investments incentives
code. This report contains the recommendations relative to these, as well as the
basis for these recommendations.
Objectives
T hislyzingreportthe issocial
based upon the result of a comprehensive study aimed at ana-
and economic benefits from new investments that the new
airport is anticipated to attract, while ensuring that at the same time these are en-
vironment-friendly. Its specific objective is to formulate an economic develop-
ment strategy, a Special Economic Zone (SEZ) proposal and an investments in-
centives code in order to attract the kinds of investments and investors with the
highest potentials for generating employment and local economic prosperity to
locate in Silay City.
1
Activities
2
B. ECONOMIC BASELINE AND
INVESTMENT POTENTIAL
ANALYSIS
S ilay City, just like the rest of Negros Occidental, is highly reliant on the
sugar industry. Therefore, its economic situation is determined by the gen-
eral performance of the sugar industry in both national and international markets.
In terms of business profitability in the city, the peak season of the sugar industry
or during the milling season could prove to be highly profitable and could cover
up losses of the past off-peak season.
Figure 1 describes the production of raw
sugar by mills located in Negros Occiden-
tal where Hawaiian-Philippines Company,
located in Silay City, is among the top five
producers. In particular, Table 1 displays
the sugar production of Hawaiian-
Philippines Company from crop years
One of Silay’s many sugarcane fields. 2000 to 2005.
Metric Tons
1,200,00
1,000,00
800,00
600,00
400,00
200,00
0
1999-2000 2000-2001 2001-2002 2002-2003 2003-2004
3
Table 1. Sugar Production, Hawaiian-Philippine Company, 2000-2005
Crop Year Tons Milled Sugar Produced Lkg/TC
2000-2001 1,088,079 1,847,415 1.70
2001-2002 1,004,385 1,814,060 1.81
2002-2003 1,136,184 2,042,228 1.80
2003-2004 1,143,405 2,113,102 1.85
2004-2005 1,130,955 2,315,222 2.05
Source: AHSSI Bulletin and CPDO-Silay City
A side from the sugar industry of Silay City, there are manufacturing sub-
sectors that are existent, namely: Ceramics, Food Processing, Metalwork-
ing, Garments and Fish Processing. These sub-sectors are mostly home-based
and micro-asset-sized firms (PhP1.5 Million and below) and are unregistered
(informal).
In 2005, trade in Silay City had a total of 2,190 commercial establishments ac-
cording to the City License Division (CLD) and City Planning and Development
Office (CPDO). A large number of the said establishments are in the retail trad-
ing business mostly based in the Poblacion area.
Figure 2 shows the growth of commercial establishments registered with the Si-
lay City’s CLD and CPDO. Continuous growth is observed with constant in-
crease of registered businesses. This growth of business in Silay City simply im-
plies that there are huge investment potentials in the City.
250
0
200
0
150
0
100
0
50
0
0
2001 2002 2003 2004 2005
4
1.3 Tourism: Paris de Negros
I nitstherichtourism sector, Silay City has tourist resources that are characterized by
history, culture and arts, as well as its natural environmental amenities.
Known as the “Paris de Negros”, Silay City boast of a number of ancestral
houses, the historic San Diego parish church, and cultural activities, all of which
providing a great potential to attract prospective domestic and foreign tourists.
In addition, the natural
amenities and historic
sites in the outlying
barangays of Kapitan
Ramon and Patag present
potentials for adventure
tourism, such as white-
river rafting, mountain
trekking, and camping.
Patag in particular has a
rich diversity of flora and
fauna as well as numer-
ous springs and water-
falls. A number of caves
The Balay Negrense
used by Japanese soldiers
during World War II can also be found in Patag’s forested mountains.
But in spite of all these tourism potentials, Silay City has not been able to gener-
ate substantial share of tourist arrivals. Table 2 compares the tourist accommoda-
tion and other related facilities of different Negros Occidental LGUs including
that of Silay City. The apparent lack of a tourism development program, tourist
accommodations and other related facilities in Silay City poses a hindrance to
further development of the tourism industry potentials of Silay City.
Pension/Lodging Tourist
LGUs Resorts Hotels
Houses Inn
Bacolod City 4 11 10 8
San Carlos City 6 1 7 2
Sagay City 0 0 4 0
Silay City 0 0 2 0
Talisay City 1 0 0 0
Source: National Statistics Coordination Board
5
2. City Competitiveness Ranking
Every year, the Asian Institute of Management (AIM) conducts the Philip-
pine Cities Competitiveness Ranking Project (PCCRP). In 2005, Silay City
was included in the PCCRP under the Small Cities category. The PCCRP as-
sesses the general ability of the city to attract investments, entrepreneurs, and
residents and, through this, establishes benchmarks that can aid individual cities
in measuring its competitiveness. It uses seven (7) indicators or “drivers” in its
assessment: 1) cost competitiveness; 2) Dynamism of local economy; 3) Link-
ages and accessibility; 4) Human resource and training; 5) Infrastructure; 6) Re-
sponsiveness of LGU; and 7) Quality of life.
Silay City was one of 37 small cities included, where San Fernando City, La Un-
ion was considered the most competitive in 2005. The following discussions
delve into each driver/variable providing the quantitative and qualitative bases
for the ranking result of Silay City. For each driver, the raw Score and current
Ranking of Silay City are given (the Score of 10 and the Rank of 1 means that it
is the most competitive) and notable quantitative or qualitative variables are
highlighted accordingly.
6
2.2 Dynamism of Local Economy
(Score: 4.52 & Rank: 26)
I nAlthough
terms of Silay City’s economic vigor, there is much promise and potential.
it is like the rest of Negros Occidental, reliant on the sugar industry,
the completion of the New Bacolod Airport in Barangay Bagtic, Silay City poses
the opportunity for economic diversification and vitality. It must be stressed that
Silay City’s economic performance is highly determined by the performance of
the sugar industry, both in the national and world markets. Business profitability
in the City is profitably high during peak seasons for the sugar industry, or dur-
ing the milling season that could readily cover-up for certain losses of the previ-
ous off-season.
Out of the seven drivers, this variable on local economic vigor is the lowest. But,
it must be seen that certain quantitative factors such as the local inflation rate
and the growth of registered businesses from 2003 to 2004, provided the City
some bright spots in this driver of the Survey. This easily implies the promise
and potential of Silay City for further growth and energy of its economy. Fur-
thermore, this bright qualitative feature on tourism as an industry is a vibrant
sector apparently establishes tourism as one of the cornerstones of Silay City’s
future development and economic vitality.
T helocated
qualitative feature on raw materials and other production inputs are
th
near the city ranked 6 among 37 cities. This implies the accessi-
bility of major inputs for production for firms in the City. This further entails an-
other one of the cornerstones of Silay City’s future economic development and
economic vigor, i.e., agro-industrial production.
Another qualitative factor on international entry and exit points such as airports,
seaports, and other transshipment points located near the City ranked 16th
among other cities. This feature will definitely change as soon as the New Ba-
colod Airport is completed and completely operational.
7
2.4 Human Resources and Training
(Score: 6.13 & Rank: 19)
2.5 Infrastructure
(Score: 6.26 & Rank: 16)
8
2.6 Responsiveness of LGU to Business Needs
(Score: 6.45 & Rank: 9)
I n100,000
the area of Quality of Life, quantitative factors such as incidence of theft per
population and incidence of murder per 100,000 population ranks Si-
lay City at number 1 for both features. These variables indicate the livability of
Silay City.
2.8 Conclusions
S ilay City’s scores in the 2005 Competitiveness Study suggest that the city
has room for improvement, particularly in the areas of (1) Dynamism of
the local economy; (2) Human resources and training; and (3) Infrastructure.
Therefore, to further strengthen Silay City’s competitiveness, it needs to focus its
efforts on these areas, even as the new airport is expected to catalyze new eco-
nomic activities.
9
3.1 Airports as National and
Regional Economic Motors
T hemaking
presence of airports are said to be “absolutely essential” to businesses
location decisions. Airports that have good connectivity can act as
powerful magnets for potential investors. In a study in the United Kingdom
(UK), there are thirteen (13) economic sectors (out of 35) that make most inten-
sive use of air transport for passengers or freight. These are: Insurance; Banking
and Finance; Communication; Coke, Petroleum and Nuclear Fuel; Printing and
Publishing; Extraction; Transport; Computer Activities; Precision and Optical
Instruments; Research and Development; Other Means of Transport; and, Other
Business Activities.
Emerging from all these possible industries that would prosper with the comple-
tion of the New Bacolod Airport, Petroleum (through ethanol production) and the
Creative Industries (such as Printing and Publishing, Computer Activities
through Multimedia) would be possible investment priorities for the City.
In any nation, air transport is the principal means by which tourists, both domes-
tic and foreign, access the country and various attractions in the country. Tour-
ism is a major growth sector for both developed and developing countries. There-
fore, the completion of the New Bacolod Airport poses numerous tourism devel-
opment opportunities for Silay City.
The succeeding discussion will focus on potential industries that could be suc-
cessful once the New Bacolod Airport is completed and fully functioning.
10
3.2 The Creative Industries
T hedustries”
concept of “Creative In-
came about in
Australia in the early 1990s, but
was given much attention by pol-
icy makers in the United King-
dom in the late 1990s. The UK
Creative Industries Taskforce de-
fines Creative Industries as “those
industries which have their origin
in individual creativity, skills and
talent and which have a potential
for wealth and job-creation through the generation and exploitation of intellec-
tual property”. The United Nations notes that industries or areas of activity that
constitute Creative Industries can be identified as the following: the recording
industry; music and theatre production; the motion picture industry; music pub-
lishing; book, journal and newspaper publishing; the computer software indus-
try; photography; commercial art; and the radio, television and cable broadcast-
ing industries.
In terms of economic contribution, Creative Industries are globally estimated to
have contributed about more than seven (7) percent of the world’s gross domes-
tic product (GDP) and are expected to grow at an average of ten (10) percent an-
nually. In terms of numbers, Creative Industries actually contributed about
US$1.4 trillion to the world’s economy. However, data on the economic contri-
bution of Creative Industries in the Philippines is yet to be created and estab-
lished.
The goal of attracting Creative Industries to Silay City would be a good comple-
ment to Silay’s reputation as “Paris de Negros”. As the “Intellectual Center” of
Negros Occidental, the location of Creative Industries would revive and boost
the production of local talents in various fields, such as in the music, arts, archi-
tecture and journalism.
To induce Creative Industries to locate in Silay City, the provision of a special
economic zone that is geared toward attracting these industries should be in
place. The said economic area should be presented and marketed along the lines
of Silay as the “Paris de Negros” and/or the “Intellectual Center” of Negros Oc-
cidental.
11
3.3 Cultural - Historical and Adventure Tourism
A sbalaon
cited in the Development Vision for Silay City, the general area of Guim-
presents good potentials for retirement communities which can be
further developed together with golf courses or leisure farms. The area of Patag,
on the other hand, offers good potential for mountain resorts and related tourist
activities.
Health-related industries, such as spa,
relaxation and health recovery centers
and clinics, have great potentials due to
the fact that our neighboring countries’
population, such as South Korea, Japan
and China, are quickly ageing. Thus,
with greater accessibility of Silay City
through the New Bacolod Airport, these
potential tourists from the abovemen-
Bgy. Guimbalaon would be good for resorts.
tioned nations would definitely consider
coming to Silay City’s health rejuvenation attractions.
12
3.5 Ethanol Production
A lthough there are mixed prospects about the Philippine sugar industry in
general, the production of ethanol as an additive to gasoline is fast becom-
ing a necessity because of the continuing rise of crude oil prices in the world
market fanned by the instability in the Middle East.
Sugarcane, being one of the cheapest feedstock among other possible crops capa-
ble for ethanol production, is seen as the most ready raw material to provide the
required supply. House Bill 4629 filed by Bukidnon Rep Juan Miguel Zubiri was
earlier approved by the Lower House and is expected by the Sugar Regulatory
Administration (SRA) and industry stakeholders to be passed within 2006. This
proposed bio-ethanol program will bring economic benefits to the country since
it is cheaper compared to imported fuel. It is also found out to be compatible
with almost all car engines especially after 1986 model at 10% blend keeping the
environment clean. Once this program is implemented, it will create jobs in the
countryside.
3.6 Conclusions
13
C. PROPOSED ECONOMIC
DEVELOPMENT STRATEGY
1. Strategic Goals
T henamely:
proposed economic development strategy has three main strategic goals
economic, poverty alleviation, and environmental goals. The spe-
cific goals are the following: 1) to increase Gross Domestic Product (GNP)/
output of Silay City (economic); 2) to generate more jobs for the people of Silay
(poverty alleviation); and, 3) to improve the livability of the City
(environmental).
These goals are hinged on two (2) basic strategies. These are: 1) to provide in-
centives to landowners who will initiate urban development in their properties
(must be based on the Comprehensive Land Use Plan or CLUP in terms of land
use and location); and, 2) to provide incentives to locators who will bring invest-
ments to Silay City. This distinction is being made because of the difference be-
tween the inputs of landowners and of locators/investors, although a landowner
may also be an investor.
As part of this proposed economic development strategy, there is a need to align
with the National Government’s (NG) development priorities for complementar-
ity. It must be pointed out that the 2006 State of the Nation Address (SONA) of
President Gloria Macapagal-Arroyo (PGMA) outlined the enhancement of the
competitive advantage of natural “Super Regions” of the Philippines. These Su-
per Regions are: 1) North Luzon Agribusiness Quadrangle; 2) Metro Luzon Ur-
ban Beltway; 3) Central Philippines; 4) Mindanao; and, 5) Cyber Corridor.
Silay City is located within the Central Philippines Super Region that is poised to
be developed as a major tourism area with various airports being constructed in-
cluding the Silay City airport. There will be a total of PhP1.71 trillion, 4.45% of
the total GDP of the Philippines, slated for numerous infrastructure spending.
The establishment of the Silay City Special Economic Zone (SEZ) will direct
and focus efforts at economic development in the City. The SEZ will facilitate
significant economic benefits while addressing social and environmental impli-
cations. Therefore, the immediate identification and approval of the site for an
SEZ will key to reaping actual economic gains.
The succeeding discussions focus on the three strategic investment areas that are
being proposed to form the backbone of Silay’s Economic Development Strat-
egy.
14
2. Agro-Industrial Development
S ilay City, as earlier pointed, has been a mono-crop economy solely reliant
on the sugarcane industry. To help Silay City diversify its mono-crop eco-
nomic base, agri-business firms should be encouraged to locate in the SEZ or in
other areas slated for agro-industrial development. Given the City’s traditional
sugarcane-based economy, it is appropriate to build upon this base, as a resource
complement, in enhancing the city’s economy. Value-added sugar-based prod-
ucts, like ethanol, ethyl alcohol, rum and confectionary are possible industries
that could be accommodated in the City.
Aside from taking advantage of the abundant resource like sugarcane, other agro-
industrial enterprises and
various small-scale indus-
tries should as well be en-
couraged. These industries
such as cut-flower produc-
tion and pot-making should
be further supported and
developed to help the econ-
omy diversify into other
agro-based enterprises.
3. Tourism Development
4. Technology Promotion
16
D. SUGGESTED TYPES
OF INVESTMENTS
T heeconomic
following are the list of specific investment types under each proposed
development strategy discussed previously:
1. Agro-Industrial Investments
1.1 Sugarcane By-Products (Sweets,
Candies, Condiments,
Confectionary)
1.2 Cut-flower Production
1.3 Wines and Spirits Distillery
1.4 High-Value Crops
2. Tourism Investments
2.1 Retirement Villages
2.2 Hotels and Pension Houses
2.3 Mountain Resort Development
2.4 Adventure and Eco-Tourism
Facilities
There are non-fiscal incentives that are being offered as well. To wit:
A. Urban Planning and Zoning Privileges
1. Technical support by the City to the enterprise in land use conversion
process, initial validation by the City of site development plans to fast
track approvals, and special review of specific details by concerned
City departments to facilitate permits, etc.;
2. Facilitation of requests for zoning revisions in sites zoned as areas in
transition; and,
3. Exemption from New Development Fees imposed on strategic areas
earmarked, or being considered by the City for development.
B. Infrastructure and Utilities Support
1. Prioritization of City infrastructure and utilities provision for con-
cerned area development; and,
2. Special arrangements for negotiated link with, or joint use of, exist-
ing City infrastructure/utility.
C. Site Development Construction Support
1. Joint venture development with the City for prospective public infra-
structure (roads, drainage, bridge, etc.) features within the private en-
18
terprise’s project area;
2. Facilitation of negotiations for site resettlement requirement/s;
3. Facilitation of negotiations with concerned parties for specific devel-
opment trade-off proposals (such as common facilities like sewage
treatment plants, parking, etc.) and rights-of-way; and,
4. Technical support in negotiations for land consolidation and/or read-
justment requirement.
There are other incentives that may be offered aside from fiscal and non-fiscal
incentives already stated. This is with regard to donation of land or real property.
For example, persons donating land or real property to the City for its priority
projects shall be entitled to tax credits which can be used to pay tax obligations
to the City Government. Priority projects contemplated herein include but not
limited to: housing projects, resort and spa projects, public markets, bus termi-
nals, health and other recreation projects, educational institutions, government
centers, and other sports facilities.
19
Annex 1
20
CHAPTER I
The City recognizes the important role of the private sector as the prime
mover of economic progress with the City Government.
1. Lay down the legal framework and mechanism for integrating the investment
21
incentives laws of the National Government with the local development initia-
tive;
2. Promote and enhance the image of Silay City as a preferred investment desti-
nation;
5. Transform selected areas of Silay City into highly developed Tourist, Agro-
Industrial, Human Resources and IT-related Centers of the Province of Negros
Occidental, the Region and the country.
22
CHAPTER II
DEFINITION OF TERMS
2. CITY – shall refer Silay City covering all the areas within its territorial juris-
diction as provided for by law and its charter.
3. BOARD/SCIB – shall refer to the Silay City Investment Board created under
this Ordinance.
5. BONA FIDE RESIDENT – shall refer to a person with at least six (6) months
residency in Silay City.
8. NATIONAL LAWS – shall refer to decrees, executive orders (EO) and all
laws passed by the National Congress such as the following:
9. BOI – shall refer to the Board of Investments under Executive Order No. 226,
otherwise known as the OIC of 1987.
23
11. SEC – shall refer to the Securities and Exchange Commission.
25
CHAPTER III
Members:
SP Member, Committee Chairman on Trade and Industry
Two (2) Representatives from the Private Sector duly accredited by the SP
Provided further, that the two (2) Private Sector representatives and their
alternates shall be recommended by the sectors and organizations they represent
and shall be appointed by the City Mayor for a term of two (2) years.
26
3. Establish and oversee the Silay Investment Promotions Center (SIPC);
a. The eligible enterprise suffered operational force majeure that has im-
paired its viability;
b. The eligible enterprise has not fully enjoyed the incentive granted to it
for a reason beyond its control; and,
c. The eligible enterprise has not commenced its commercial operation.
5. Decide on any controversy or issues that may arise from the grant of tax in-
centives, relief and privileges provided for in this Code and its decision shall be
final and executory;
8. Review and implement the Silay City Local Economic Development Plan;
12. Recommend to the SP through the Chairman budget and/or identifying fund-
ing alternatives for the effective implementation of the provisions of this Code;
and,
13. Exercise and assume all powers and duties necessary or incidental to attain
the purpose of this Code.
1. Call and preside over the regular and special meetings of the Board;
2. Appoint new Members subject to the approval of the majority of the Members
of the Board in case of vacancy due to resignation of incapacity of any Member;
11. Exercise such other powers and perform such duties as the Board may direct
or authorize from time to time.
1. Keep a journal and complete record of all proceedings of every meeting in the
form of minutes duly approved by the majority of the Members present;
2. Keep and act as custodian of the records of the minutes of the Board meeting
and other official records of the Board;
28
CHAPTER IV
3. Serve as business center between SCIB and those who wish to transact offi-
cial business with the SCIB;
4. Assist the Board in the promotional aspect of the Code such as: establish busi-
ness linkages and networking, conduct and coordinate investment missions and
economic briefings, and prepare trade and investment promotion collateral;
8. In the event the application is approved by the Board, furnish the City Treas-
urer and the City Assessor, copies of the Board resolution granting incentives
and Certificate of Eligibility, for their information and guidance in the imple-
mentation thereof;
9. Have custody and responsibility of filing and safekeeping of all records and
documents;
12. When appropriate, as when a registered business has violated the Code, rec-
ommend the cancellation or revocation of the Certificate of Eligibility and with-
drawal of all incentives initially granted; and,
30
CHAPTER V
1. Conduct studies and research, gather data, provide and supply pertinent data
to the Board and SIPC for reference and input into future decision-making;
2. Assist the Board and SIPC in technical and legal matters; and,
31
CHAPTER VI
32
• Telecommunications
Creative Industries (Animation, Publishing)
Provided that:
2. Labor-intensive enterprises;
6. Services-oriented enterprises.
33
1. Manufacture of Handicraft Products such as but not limited to:
• Toys
• Pottery and Ceramics
• Furniture-making (Lumber, Bamboo, Plastics, Metals and Others)
Garments
Provided that the Board shall review these additional investment areas every two
(2) years and may remove an area from the list if it deems sufficient investment
in the area has been attained and when extension would adversely affect the in-
terest of the City and the Public.
34
SECTION 5 – DELISTING OF PRIORITIZED/PREFERRED TYPES OF
INVESTMENT – The Board may likewise remove, subject to approval of the
SP, any areas from the list of existing preferred areas of investment, if:
1. Sufficient investment in the preferred area of the activity has been attained as
determined by the Board;
3. The investment or the activity does not attract investors within a reasonable
length of time or may result in an unfavorable and uncompetitive business cli-
mate.
35
CHAPTER VII
INVESTOR/INVESTMENT QUALIFICATION
3. Other investors with initial capital investment of not less than three million
pesos (PhP3,000,000.00) for Filipino investors and one hundred thousand dollars
(US$100,000.00) for foreign investors. Provided it must be proven that the re-
quired investment has been remitted to a bank in Bacolod City and/or in any
other bank in Silay. Provided further that in case of a corporation, capitalization
shall mean fully paid-up capital of a minimum of five million pesos
(PhP5,000,000.00).
36
CHAPTER VIII
a. At least three million pesos (PhP3,000,000.00), but not more than fif-
teen million pesos (PhP15,000,000.00) for small-scale enterprises;
b. At least fifteen million pesos (PhP15,000,000.00), but not more than
one hundred million pesos (PhP100,000,000.00) for medium-scale enter-
prises; and,
c. More than one hundred million pesos (PhP100,000,000.00) for large-
scale enterprises. Provided, in case of a corporation, that the capitaliza-
tion shall mean fully paid-up capital of a minimum of five million pesos
(PhP5,000,000.00); and,
5. The new enterprise shall have at least fifty percent (50%) of its labor force
hired from bona fide residents of Silay City.
1. The business enterprise must have complied with all the requirements man-
dated under existing local and national laws and the Philippine Constitutions;
a. Relocate its principal office from other places in the Philippines to Si-
lay City; and,
37
b. Expand its existing production capacity or construct new buildings or
other civil works which will result in an increase in production capacity
or output.
a. At least three million pesos (PhP3,000,000.00), but not more than fif-
teen million pesos (PhP15,000,000.00) for small-scale enterprises;
b. At least fifteen million pesos (PhP15,000,000.00), but not more than
one hundred million pesos (PhP100,000,000.00) for medium-scale enter-
prises; and,
c. More than one hundred million pesos (PhP100,000,000.00) for large-
scale enterprises. Provided, in case of a corporation, that the capitaliza-
tion shall mean fully paid-up capital of a minimum of five million pesos
(PhP5,000,000.00); and,
5. The expansion shall have at least fifty percent (50%) of its labor force hired
from bona fide residents of Silay City.
38
CHAPTER IX
4. A copy of the complete project study of the proposed investment showing that
the said project is economically, technically and financially feasible and should
include particular anti-pollution strategies, when and if applicable;
1. Period of filing of applicants – All applicants shall file before start of con-
struction or commencement of business operation, but in no case later than six
(6) months after commencement of business operation;
39
2. Venue for filing of applicants – All applicants shall be filed with the Board
through the SIPC;
4. Processing Time – The Board shall act upon the application, ten (10) working
days from the official acceptance of the said application. Otherwise, the applica-
tion shall be deemed approved;
41
CHAPTER X
3. Take the fullest possible account of the need of the investors for sta-
bility, growth and profit in the operations in the formulation or modifications of
policies and ordinances that effect investment;
5. Resolves all doubts concerning the benefits and incentives granted un-
der the ordinances enacted for the purpose of encouraging investment, in favor of
the investor.
2. Change of the Directors within thirty (30) calendar days from the
change;
3. Report of alien officers or employees within thirty (30) days from the
date of registration or from the appointment of their alien/replacements. Provided
that such aliens are registered as such with the Bureau of Immigration and De-
portation (BID) and with the Department of Labor and Employment (DOLE);
43
CHAPTER XI
44
CHAPTER XII
1. Exemption from Local Licenses, Fees, and Dues – From the start of
commercial operation, an eligible enterprise under this Code shall be fully ex-
empt from the Mayor’s Permit Fee, Building Permit Fee, Business Sales Tax,
Transfer Tax and other kinds of local licenses, dues, imposts, except for the regu-
latory fees:
However, all eligible enterprises are still required to secure licenses and
permits necessary to operate their business.
Technical support by the City to the enterprise in land use conversion process,
initial validation by the City of site development plans to fast track approvals,
and special review of specific details by concerned City departments to facilitate
permits, etc.;
Facilitation of requests for zoning revisions in sites zoned as areas in transition;
and,
Exemption from New Development Fees imposed on strategic areas ear-
marked, or being considered by the City for development.
Joint venture development with the City for prospective public infrastructure
(roads, drainage, bridge, etc.) features within the private enterprise’s project area;
Facilitation of negotiations for site resettlement requirement/s;
Facilitation of negotiations with concerned parties for specific development
trade-off proposals (such as common facilities like sewage treatment plants,
parking, etc.) and rights-of-way; and,
Technical support in negotiations for land consolidation and/or readjust-
ment requirement.
SECTION 3 – INCENTIVES GIVEN TO AN ELIGIBLE ENTERPRISE
UNDER PREFERRED TYPES OF INVESTMENTS – An eligible enterprise
under this category shall be exempted from the payment of the City Business
Tax and License and Real Property Tax as defined in Section 2 of Chapter XII,
provided that the following capitalization and employment generation require-
ments are complied with at the start of its commercial operations:
It must be the priority of the eligible enterprise to hire bona fide residents of Si-
lay City whenever additional workers would be needed.
46
SECTION 5 – ADDITIONAL INCENTIVES – An eligible enterprise shall
likewise be granted additional exemptions if it shall relocate its main office to
Silay City, depending on the amount invested and employment generated.
47
CHAPTER XIII
OTHER INCENTIVES
Land swapping and pure donations contemplated under Batas Pambansa 220
and Presidential Decree 957 are excluded in the coverage of the above Section.
2. The Board shall submit the resolution approving the grant of incentive to-
gether with the Deed of Donation to the SP for ratification; and,
3. The donors shall avail of the tax credits within five (5) years from the date the
donation is ratified by the SP.
48
CHAPTER XIV
MANDATE APPROPRIATION
49
CHAPTER XV
TRANSITORY PROVISIONS
SECTION 1 – NEW INVESTORS – New investors may apply with the SCIB
for incentives availment before or within ninety (90) calendar days after its com-
mercial operations. After the lapse of the said period, the enterprise is considered
to have waived its rights to avail of the incentives as provided for under Section
2 of Chapter XII of this Code.
3. Certification that the application has complied with all the requirements of the
concerned national agency.
50
CHAPTER XVI
MISCELLANEOUS PROVISIONS
1. Existing enterprises that are ratified for the purpose of availing this incentive
program shall not be allowed to apply under this Ordinance; and,
2. The incentives and the privileges granted to eligible enterprises are not trans-
ferable except that in the event of death and permanent incapacity where the
privileges shall be transferred to the heir of the descendant in accordance with
the law of succession.
51
CHAPTER XVII
FINAL PROVISIONS
1. 1st Violation – PhP3,000.00 for every violation plus PhP300.00 per day of
continued non-compliance;
2. 2nd Violation – PhP10,000.00 for every violation plus PhP500.00 per day of
continued non-compliance; and,
52
CHAPTER XVIII
The Certificate of Eligibility, as provided under the Code, may also be cancelled
or revoked due to failure to commence actual project development within one (1)
year from registration as an eligible enterprise under this Code.
The Board may cancel or revoke the Certificate of Eligibility of the concerned
business enterprise through a formal written notice. The revocation shall become
effective on the 16th day from receipt of such written notice.
53
CHAPTER XIX
AMENDMENTS
Any amendments made to this Code in the future shall and will not affect the
incentives already granted to eligible enterprises prior to the amendment. How-
ever, eligible enterprises may claim the additional benefits/incentives made
available with the approval of the amendment/s through a written formal request.
Approval, therefore, will be subject to the deliberation and proper recommenda-
tion of the Board to the SP for their final approval.
54
Annex 2
Background
T heexplored
Economic Development Strategy and Investment Incentives Code Study
the potentials for the establishment of a Special Economic Zone
(SEZ). This study showed that indeed a SEZ in Silay would be advantageous es-
pecially in providing investors with a specific site within which to establish spe-
cific economic activities and, by doing so, be entitled to incentives from national
government agencies such as BOI and PEZA.
T heinvolves
requirements for the establishment of the Special Economic Zone (SEZ)
a process that entails:
1. Assessment by PEZA of the proposal and, if found worthy, endorse-
ment of the Secretary of the Department of Trade and Industry (DTI)
for further review;
2. Review of the Office of the Secretary of DTI of PEZA’s recommen-
dations, and, if deemed worthy, endorsement to the Office of the
President for proclamation;
3. Review by the Office of the President of the DTI Secretary’s recom-
mendation, and issuance of the Presidential Proclamation for the SEZ.
This process can begin only when a specific site (minimum 25 hectares) has been
identified because the details of the proposal relate specifically to such site (for
example, commitment of landowner and developer, and management system for
the SEZ itself).
As of the moment, no specific landowner has specified any interest in having his/
her property developed into a SEZ. However, the owners of Hacienda Naga men-
tioned their intention to develop their property into a light industrial zone which
is in accordance with the updated Silay City Comprehensive Land Use Plan
(CLUP). Said owners may be interested in having their property accredited as a
SEZ.
55
Recommendation
Rationale
56
Location of the Silay Special Economic Zone
T heof thelocation of the SEZ is proposed to be within a three (3) kilometer radius
New Bacolod Airport. The land area of the said SEZ will be a mini-
mum of twenty-five (25) hectares.
T heZone.”
name of the SEZ is proposed to be: “The Silay City Special Economic
It is a combination of an Industrial Estate, Agro-Industrial Estate,
Free Trade Zone or Export Processing Zone.
Approval Process
9. MISCPED Group Manager / DDG endorses the recommendation, is en-
dorsed by the Director General to the PEZA Board of Directors.
10. The final evaluation report, together with the recommendation, is en-
dorsed by the Director General to the PEZA Board of Directors.
11. The Deputy Director General presents the recommendation to the Board
for approval.
58
12. If the recommendation is approved, the PEZA Corporate Secreatry is-
sues the corresponding Board Resolution within a reasonable period of
time.
13. EDD informs the proponent of the Board decision and correspondingly
advises the applicant to take the appropriate course of action:
a. If action on the application is deferred, the applicant is advised of the
reason/s for deferment;
b. If the application is approved, the applicant is advised to submit the
documentary requirements for Presidential Proclamation.
59
17. EDD Manager, upon final review, endorses all documents to DDG for
endorsement to the Director General for signing.
18. Director General signs endorsement letter and forward it to the DTI Sec-
retary for endorsement to the President.
19. President signs proclamation.
20. Office of the President transmits a copy of the Presidential Proclamation
to the Office of the Director General.
Office of the Director General furnishes the proponent a copy of the
Presidential (Annex D).
21. EDD Division Head reviews draft proclamation and submits to EDD
Proclamation.
Stage 3 – Registration
22. Proponent submits the following documentary requirements for the sign-
ing of the Registration Agreement:
a. Development plans of the economic zone; and
b. Other documents as may be requires by PEZA.
23. EDD checks completeness of documents
a. If documents are not complete, EDD notify proponent using PEZA
EDD Form No. 004 (Annex B-6).
b. If documents are complete, EDD issues the Order of Payment
(PEZA-EDD Form No. 002, Annex B-4) for the registration fee and
the proponent shall pay the fee prior to the actual signing.
24. EDD requests the Legal Services Group (LSG) for the preparation of the
Registration Agreement.
25. LSG prepares the draft Registration Agreement and provides EDD with
a draft to be forwarded to the developer / operator for comments.
26. EDD arranges the date of signing of the Registration Agreement with the
Office of the Director General and the proponent.
60
PEZA EDD Form No. 001A-1
____________________________
Date
Madam:
Pursuant to sections 5 and 6 of Republic Act 7916, otherwise known as the Special Economic Zone Act of
1995, as amended by RA 8748, I am applying for the development of an area of
_________________________________________________________________ square meters
located at ______________________________________________________________________
into a special economic zone to be known as __________________________________________
The undersigned attest that the documents/information submitted are true and are correct and that I assume
full responsibility for any misrepresentation and/or violation thereof.
__________________________________
President/CEO
TIN No.
61
Republic of the Philippines
PHILIPPINE ECONOMIC ZONE AUTHORITY
Roxas Blvd. cor. San Luis Street
Pasay City, Metro Manila
Philippines
Application No.
Date Filed
O.R. No
A. NATURE OF ECOZONE
Name of Ecozone
Type of Ecozone Industrial Estate Tourist and Recreational
Agro-Industrial Estate Free Trade Zone
Information Technology Park Export Processing Zone
Other (please specify)
B. APPLICANT
Name
Address
Telephone No.
Fax No.
Email Address
Name of Company
Address
Telephone No.
Fax No.
Email Address
C. AUTHORIZED REPRESENTATIVE
Name
Address
Telephone No.
Fax No.
Email Address
62
PROJECT BRIEF
The Proponent
1. Name of Company
2. Company Address
3. SEC Registration Cert. of Registration No.
Date
Amendment (if any)
Nature :
Date :
4. Nature of Business
5. Incorporators
NAME OF INCORPORATORS NATIONALITY AMOUNT OF AMOUNT OF PAID-UP
6. Principal Officers
NAME POSITION
Chairman of the Board
President
8. Affiliate Company
NAME OF COMPANY CAPITALIZATION
63
9. Other Project Involvements
NAME OF PROJECT YEAR DESCRIPTION
The Land
1. Location
2. Land Area
3. Existing Land Uses
a. Agricultural (indicate crops planted)
6. Boundaries North
East
West
South
64
10. Off-Site Infrastructure, Facilities & Utilities (brief description)
b. Telecommunication System
i.) Telephone provider
ii.) Other communication services
c. Power System
i.) Power source :
ii.) Power franchisee
iii.) Power transmission and distribution :
d. Water System
The Project
TOTAL
Use separate sheet/s if necessary
If fully developed
i.) date established
ii.) status of occupancy
iii.) line of business of occupants :
If under development
i.) percentage completion
ii.) date started
iii.) expected date of completion
b. if new development
i.) date of commencement
ii.) expected date of completion
65
3. Proposed/Existing On-Site Facilities and Utilities
b. Power System
i.) Power source :
ii.) Power Franchisee
iii.) Power transmission and distribution :
iv.) Back-up power generation
1.) Source
2.) Capacity
c. Telecommunication System
i.) Telephone provider :
66
4. Proposed Community Development Project
TOTAL
8. Sources of Funds
9. Preferred Industries/Locator
67
b. Solid Waste Management Plan
IV. OTHER INFORMATION
Affiant
Designation
_________________________________
Notary Public
Until December 31, 20______
Doc. No.
Page No.
Book No.
Series of
68
A. BACKGROUND
1
B. ECONOMIC BASELINE
AND INVESTMENT
POTENTIALS ANALYSIS
1
C. PROPOSED ECONOMIC
DEVELOPMENT STRATEGY
1
D. SUGGESTED TYPES
OF INVESTMENT
1
E. FISCAL AND NON-FISCAL
INCENTIVES
1
ANNEXES