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BuCor, PEZA Sign Agreement for Palawan Economic Zone

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Iwahig_Prison_and_Penal_Farm.jpg

File photo for reference only

 

The Bureau of Corrections (BuCor) and the Philippine Economic Zone Authority (PEZA) signed a joint memorandum circular (JMC) to establish a special economic zone at Iwahig Prison and Penal Farm (IPPF) in Palawan. BuCor Director General Gregorio Pio Catapang Jr. and PEZA Director General Tereso O. Pangan formalized the agreement, marking a significant step in transforming the area into a business and investment hub. This development is poised to impact the local economy by attracting potential investors and generating jobs.

 

The JMC allows the transfer of exclusive use of a designated IPPF area to be developed as an Ecozone, subject to a Presidential Proclamation. This collaboration aims to form the Palawan Mega Economic Zone, enhancing the region's economic potential. The circular was signed on November 20, laying the groundwork for required legal and environmental clearances.

 

Experts suggest that this initiative could drive economic growth in Palawan by fostering industrial development, while also benefiting the correctional facility through revenue sharing. Under the agreement, PEZA is responsible for returning 90% of the generated rental fees from leased properties to BuCor, retaining a 10% management fee. This arrangement aims to provide sustainable funding for both entities.

 

Looking forward, the next steps involve securing a Presidential Proclamation to officially designate the zone. BuCor must ensure it holds the necessary legal titles and government clearances, while PEZA will prepare the required documentation and coordinate efforts with a Technical Working Group. The successful establishment of this economic zone could set a precedent for similar developments in other regions, reported Manila Bulletin.

 

Key Takeaways

  • The agreement initiates the development of a special economic zone at Iwahig Prison.
  • BuCor will receive 90% of rental fees, enhancing its revenue.
  • A Presidential Proclamation is needed to officially designate the zone.

 

Click here for more Philippine stories

 

image.png  Adapted by ASEAN Now from Manila Bulletin 2025-11-20

 

 

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