From the Sidelines
By: Ray G. Talimio Jr.
PEZA backs Northern Mindanao push for power-linked ecozones
A high-level meeting was recently held with Philippine Economic Zone Authority (PEZA) Director General Tereso O. Panga, along with PEZA Department Managers Atty. James Gutierrez and Mr. Ludwig Daza, to advance the creation of Special Economic Zones (SEZs) in key investment corridors of Northern Mindanao specifically in Iligan City and Cagayan de Oro City.
This meeting was an offshoot of the April 22 dialogue between President Ferdinand R. Marcos Jr. and the Regional Development Council for Northern Mindanao (RDC-X), where the President expressed openness to new SEZs as drivers of countryside industrialization.
The dialogue focused on how Northern Mindanao, as a resource-rich and logistics-accessible region, can be positioned as a competitive industrial destination. DG Panga reaffirmed PEZA’s commitment to support the development of SEZs that attract capital-intensive, export-oriented, and job-generating industries especially if anchored on sound planning, power competitiveness, and strategic geographic advantages.
In particular, Iligan City was underscored as a prime location for heavy and intermediate industries, owing to:
• Its historical industrial estate in the former National Steel Corporation (NSC) complex,
• Large contiguous tracts of idle land ideal for clustering industrial locators, and
• Proximity to low-cost hydropower from the Agus-Pulangi Hydroelectric Complex.
The alignment between SEZ creation and stable, affordable energy access was identified as a core strategy in making Iligan viable for steel manufacturing, agro-industrial processing, and clean-tech ventures. PEZA signaled that its technical teams can assist in shaping a proposal that integrates energy, transport, and investment facilitation components.
Meanwhile, Cagayan de Oro City was cited as a potential SEZ host for light industries, logistics parks, and innovation-based manufacturing, given its existing airport, seaport, and urban infrastructure. Its role as the gateway to Northern Mindanao strengthens its case for an ecozone that supports both upstream production and downstream export consolidation.
PEZA outlined the key steps for LGUs and proponents to pursue SEZ applications, including:
• Submission of a Board Resolution or LGU endorsement,
• Completion of a feasibility study and master plan,
• Clear land use classification and environmental compliance,
• Engagement with the Department of Energy (DOE) and distribution utilities to secure aligned power arrangements.
The agency likewise acknowledged the importance of harmonizing SEZ applications with local development plans and the national investment priorities under the Strategic Investment Priority Plan (SIPP).
This meeting with PEZA leadership reinforced the long-held belief that Northern Mindanao is ripe for industrial transformation, and that local governments must now act with boldness and clarity of vision to realize this potential. The alignment of cheap power, land availability, and institutional backing creates a rare window of opportunity for Iligan and Cagayan de Oro to host the next wave of regional industrialization.
We thank DG Theo Panga, Atty. James Gutierrez, and Mr. Ludwig Daza for their hospitality, technical guidance, and enthusiasm to move the conversation from planning to implementation. The path to sustainable economic zones in Mindanao is clear. It’s now up to us to walk it.
Photo Credits: Courtesy of PEZA / RDC-X MSME Development Team
Sources: Author’s meeting notes, PEZA guidelines on SEZ creation, DOE Mindanao Power Outlook
Disclaimer: This article is intended for public information and policy dialogue. The views expressed herein are those of the author and do not necessarily reflect the official positions of the institutions or individuals mentioned.
About the Author: Ray G. Talimio Jr. is Co-Chairman of the Economic Development Committee of RDC-X, Chairman of the MSME Development Council of Misamis Oriental and Cagayan de Oro City, and Chairman of BIMP-EAGA for Northern Mindanao. He is a past president and past chairman of the Oro Chamber and a national officer of PICPA.
