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Industry
Development Areas
The
industry sector plays a vital role in production land use. By
providing livelihood and employment opportunities for the
people, it generates investments that help reduce the incidence
of poverty and thus, help steer the region toward sustainable
growth.
Since the early seventies, the
government has recognized countryside development as a major
strategy to accelerate regional development. Several programs
were adopted to disperse and re-channel development activities
outside the Metropolis. Limited investments in the countryside,
however, held back the industrial dispersal programs and
policies of the government. The priority given by the national
government on infrastructure development in Metro Manila proved
inconsistent with the objectives of the industrial dispersal
policy, i.e., to decongest Metro Manila and encourage industries
to locate outside the metropolis. Consequently, industries
continued to locate in the metropolis and its suburbs, leaving
the countryside untapped.
The governments countryside
development strategies included the following: (1) the
development of Regional Growth Centers (RGC) popularly known as
Regional Agro Industrial Centers (RAICs); (2) the establishment
of growth networks and corridors to strengthen linkages among
provinces and regions; and (3) the enactment of RA 7916 or the
Special Economic Zone Act of 1995 as amended by RA 8748 and of
RA 7227 or the Bases Conversion and Development Act. The
identified growth centers were envisioned as development hubs of
the underdeveloped regions.
Consistent with those strategies,
Region V identified during the late 1980s the City of Legazpi
as the site for the Bicol Regional Industrial Center (BRIC).
The presence of major infrastructure facilities critical for an
industrial center, like the seaport and airport, were the
primary factors for assigning the location to Legazpi City.
Barangay Lamba, Legazpi City was identified as the site for the
BRIC. A feasibility study conducted under the supervision of
the Regional Development Council (RDC) V revealed that
developing the area would not be financially viable due to high
investment requirements. The RDC V through Resolution No. 13
Series of 1993 approved the transfer of the site by the City
Government of Legazpi to Bgy. Homapon, where the conversion of a
57 hectare agricultural land was approved and a road network was
constructed. The offsite road project was funded under the
Social Development Fund of the President (P7.125M) and DPWH Fund
(P5.0M).
Seven years after, the BRAIC site remains a barren land. The
landowner had not initiated any onsite development because no
investor was willing to locate in the area. Its Conversion
Order signed on September 26, 1996 stipulated that the
development of the area should proceed at the rate of five
hectares per year, not to exceed a total of five years from the
issuance of this Order. It further stated that any violation
of the terms and conditions shall be ground for the recall or
cancellation of this Order. The decision of the PARO on this
matter is still being awaited.
A
corridor-type strategy deemed to accelerate agri-industrial
development in infra-ready areas, thus requiring less government
investments, was conceived by the RDC V in 1993. The project,
dubbed as the Legazpi-Iriga-Naga Growth Corridor (LINGC) covered
the four cities of Legazpi, Ligao, Iriga and Naga, and selected
municipalities in Albay, Camarines Sur and Camarines Norte
(Table 3.06 and Figure 3.08). Later on, it included Daet,
Camarines Norte and was renamed as the Legazpi-Iriga-Naga-Daet
Growth Corridor (LINDGC).
Table 3.06. Coverage of the Legazpi-Iriga-Naga-Daet
Growth Corridor (LINDGC)
by Province, Region V
|
Province |
City/Municipality |
|
Albay |
Legazpi City
Ligao City
Municipality of Daraga
Municipality of Camalig
Municipality of Guinobatan
Municipality of Oas
Municipality of Polangui |
|
Camarines Sur |
Iriga City
Naga City
Municipality of Bato
Mu nicipality of Nabua
Municipality of Baao
Municipality of Bula
Municipality of Pili |
|
Camarines Norte |
Municipality of Daet |
The completion of the LINDGC master plan in January 1999
could pave the way to the rapid development and emergence of
several business centers along the growth corridor. The
implementation of some government projects identified in the
master plan is on going, such as: Pantao Port, Legazpi
Port, Legazpi Airport, Bicol River Basin-related projects
(i.e., the River Basin and Watershed Management Program) and
several solid waste management projects of the LINDGC-member
local government units.
Figure 3.08
Legazpi-Iriga-Naga-Daet Growth Corridor Map
(+) Click
to Zoom
The enactment of the Special
Economic Zone Act in 1995 paved the way to the
identification of several ecozones in the region. Five
areas were initially recognized in Bicol as ecozones,
namely: the cities of Naga and Iriga in the Province of
Camarines Sur; Legazpi and Tabaco in the Province of Albay;
and Sorsogon in the Province of Sorsogon (Figure
3).
In addition, some LGUs also considered other areas in their
municipalities as sites for special economic zones (Figure
3.09). This was consistent with the PEZA Law, which
stipulated that other areas may be identified as ecozones
although they do not meet the criteria set for ecozone
establishments provided that the said area shall be
developed only through local government and/or private
sector initiative without any financial exposure on the part
of the national government, and that the area can be easily
secured to curtail smuggling.
Table 3.07 presents the list of
proclaimed and PEZA Boards approved special economic zones
in the Bicol Region. Notably, only the Legazpi City Special
Economic Zone and the Global Industrial Maritimes Complex in
Jose Panganiban, Camarines Norte had Presidential
Proclamation issued by President Fidel V. Ramos on June 9,
1998 (Presidential Proclamation No. 1249) and by President
Gloria Macapagal-Arroyo on December 2, 2003 (Presidential
Proclamation No. 508), respectively. As in the BRAIC, there
were no locators in Legazpi Ecozone despite some groundworks
undertaken onsite by the City Government of Legazpi. The
other proposed ecozones in the region already have their
PEZA Board Resolutions, however, they have yet to meet other
requirements to qualify for a proclamation by the President
of the Philippines. (Table 3.08).
Table 3.07.
List of Special Economic Zones in Region V
|
PROVINCE |
ECOZONE/
LOCATION/
DEVELOPER |
AREA
(in ha.) |
ESTIMATED
PROJECT
COST |
PREFERRED
INDUSTRIES |
|
Albay |
Legazpi City Special Economic Zone
Sitio Caridad, Banquerohan, Legazpi City
City Government of Legazpi |
33.13 |
PhP206 M |
Food
processing and beverage, light metals industry,
electronics and appliance manufacturing, furniture and
fixtures, garments, textiles and wearables, ceramics &
non-metallic minerals processing, organic chemicals,
gifts, toys and housewares |
| |
Tiwi Ecozone
Bagumbayan, Tiwi
Tiwi Ecozone Corporation |
31.30 |
PhP98.774 M |
Electronics/computer peripherals,
garments, ready-to-wear apparels and wood-based products |
| |
|
41.39 |
$23.0 M |
Minerals |
|
Camarines Norte |
Global Industrial/Maritime Complex
Larap,
Jose Panganiban |
30.00 |
PhP46.28
M |
Agri-business and electronics industries as well as
manufacturers of military supplies/armaments |
|
Camarines Sur |
Bicol Industrial Park
Sitio Banasi, San Jose, Bula
FPI Industrial Park, Inc. |
100.00 |
PhP620 M |
Food
processing, wood products, ceramics, textiles, wearing
apparels, electronics-computers |
| |
Isarog Heights
Special Economic Zone
Cadlan, Pili
Manubay Agro-Industrial and Development Corp. |
124.32 |
PhP799.26 M |
Food
processing/ manufacturing |
| |
Naga Agro-Industrial Center
Pacol. Naga City
Pacol Industrial Development Corp. |
105.00 |
PhP515.91 M |
Light to
medium non-polluting industries like electronics,
electrical, agro-based industries, food manufacturing,
wood products, ceramics, textiles |
| |
Sta. Rita Industrial Park
San Jose & Sagurong, Pili
Sta. Rita Ecozone Corporation |
219.00 |
PhP1.3518 B |
Manufacturers of IT and IT-related products such as
computer motherboards, telephone sets, CD-ROM units,
electronic equipment and peripherals |
Source: Philippine Economic Zone Authority
Figure 3.09
Special Economic Zones Map
(+) Click
to Zoom
Table 3.08. Proposed Industrial Centers in Bicol
Region by Province
(in
ha)
|
Province |
RAIC |
PICs |
PIEs |
TOTAL |
|
Albay |
57 |
|
|
57 |
|
Camarines Norte |
|
30 |
|
30 |
|
Camarines Sur |
|
614.32 |
|
614.32 |
|
Catanduanes |
|
70 |
|
70 |
|
Masbate |
|
100 |
|
100 |
|
Sorsogon |
|
400 |
|
400 |
|
TOTAL |
57 |
1,214.32 |
|
1,271.32 |
Source: Department of Trade and Industry Region V
Bicol Region still has few large
industries. DTI data indicated that there are only eight
large industries and these are mostly located in the
province of Albay. Four are coco-based industries, namely: Cosay Coco Products, Cosay Coco Oil Mills, Legazpi Oil
Company, Inc. and Globe Coco Manufacturing, Inc.; two are
abaca-based (Alindeco and Isarog Pulp and Paper; and two are
mineral-based, in the island of Rapu-Rapu, Albay and Camalig,
Albay (Table 3.09 and Figure 3.10 - Map of large industries
by type).
On the other hand, Bicol Region has 27,256 micro, small and
medium enterprises (MSMEs) that account for 99.93% of the
total 27,732 establishments of the region in year 2002 and
around 3.3% of the total SMEs nationwide. Among its
provinces, Camarines Sur registered the highest number with
8,250 (31%) followed by Albay 6,452 (24%), Masbate 3,743
(14%), Sorsogon 3693 (14%), Catanduanes 2,894 (11%) and
Camarines Norte, having the least number with 2,414 (9%).
Figure 3.11 shows SME dispersion by province in 2002.
Table 3.09 Inventory of Large Industries in
Bicol Region
as of December 2004
|
Province/ Name
of Company |
Specific Location (Bgy., Mun./City,
Province) |
Product Lines |
|
Albay |
|
|
|
Albay
Agro-Industrial Development Coprl. (ALINDECO) |
Balading,
Malinao, Albay |
Pulp and
Paper Products |
|
Cosay
Coco Products |
Bigaa,
Legazpi City |
Coco Products |
|
Globe coco Mfg. Inc. |
Lidong, Sto.
Domingo, Albay |
Coco Products |
|
Goodfound Cement Corp. |
Palanog, Camalig, Albay |
Cement |
|
Isarog
Pulp and Paper Co. |
Kilikao,
Daraga, Albay |
Pulp and
Paper Products |
|
Legazpi
Oil Company Inc. |
Arimbay,
Legazpi City |
Coco oil, copra cake |
|
Rapu-Rapu Processing, Inc |
Rapu-Rapu Island, Rapu-Rapu, Albay |
Metallic
mineral products |
|
Camarines Sur |
|
|
|
Co Say
Oil Mill |
San
Roque, Pili, Camarines Sur |
Various
coco oil based products such as soaps & cooking oil |
Figure 3.10 Large Industries
Map
(+) Click
to Zoom
Figure 3.11 SME Dispersion Map
(+) Click
to Zoom
In terms of Business Sector, services has the highest share of
91%.
Table 3.10 Number
of SME Establishments by Sector
Bicol Region, 2002
|
SECTOR |
Number |
Percent Share (%) |
|
Agriculture |
879 |
3.17 |
|
Industry |
1,607 |
5.8 |
|
Service |
25,230 |
91.03 |
|
TOTAL |
27,716 |
100.00 |
Source:
Department of Trade and Industry Region V
By business activity, Wholesale and Retail Trade had the
most number with 16,723 or 60.34 percent, far second was
Community, Social and Personal Services with 3,423 (12.35%)
and the least was in Agriculture, Hunting and Fishing with
2.23 percent.
Table 3.11 Number of SME Establishments by
Business Activity
Bicol Region, 2002
|
Business Activity |
Number |
Percent
Share (%) |
|
Agriculture, Fishery & Forestry |
619 |
2.23 |
|
Agriculture, Hunting & Fishing |
56 |
0.20 |
|
Fishing |
204 |
0.74 |
|
Mining &
Quarrying |
56 |
0.20 |
|
Manufacturing |
1,052 |
3.80 |
|
Electricity, Gas & Water |
78 |
0.28 |
|
Construction |
414 |
1.49 |
|
Other
Manufacturing NEC |
7 |
0.03 |
|
Wholesale & Retail Trade |
16,723 |
60.34 |
|
Hotel &
Restaurant |
1,055 |
3.81 |
|
Transportation, Communication & Storage |
1,947 |
7.02 |
|
Finance,
Intermediation |
728 |
2.63 |
|
Real
Estate, Renting & Business Activities |
675 |
2.44 |
|
Education |
103 |
0.37 |
|
Health &
Social Work |
139 |
0.50 |
|
Other
Services, NEC |
437 |
1.58 |
|
Other
Community, Social & Personal Service Activities |
3,423 |
12.35 |
|
TOTAL |
27,716 |
100.00 |
Source: Department of Trade and Industry Region V
Problems that inhibit SMEs from expanding are: the high cost
of financing or interest rate, stringent collateral
requirements by financing institutions, inadequate or
inefficient infrastructure support system that contribute to
high cost of doing business in the region, limited market,
poor product design and packaging, lack of access to market
information and poor forward and backward linkages among and
between production sectors.
For the Information and Communication Technology (ICT)
sector, the region houses six companies engaged in Business
Process Outsourcing (BPO), located in the two cities of the
region, namely: Legazpi City (4) and Naga City (2). These
companies are operating in line with data conversion,
medical transcription, web design, digital animation and
maintenance services for US companies. The combined
employment of these companies totals to 1,102, with data
conversion as the highest employer. Almost all companies
started operation in 2003, except for one (1) company which
started in 1999.
Supporting the ICT sector are Bayantel & Digitel, the main
telecommunication providers & Internet Service Providers
(ISPs) in the region with bandwidth ranging from 56kbps to 1
mbps. Both companies can deliver T3 connection (US
standards 48mbps) or a combination of E-1 connections
(European Standards currently used in the Philippines). All
provinces have ISPs with Camarines Sur having the most
number of ISPs (8). There are four (4) companies that cater
to Plain Old Telephone (POTS), using non-digital copper
wiring. There are at least 46 schools and training
institutions which offer ICT-related disciplines ranging
from short-term courses to bachelors degree in computer
science and majority of these are located in the provinces
of Albay and Camarines Sur.
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