PEZA, PNOC study off-grid self-generating industrial parks

PEZA has collaborated with the Philippine National Oil Company (PNOC) in exploring the development of a Self-Generating Industrial Park (SGIP) particularly in off-grid areas across Visayas and Mindanao. With PNOC, NPC and DOE working together to bring cost-effective and sustainable energy solutions to geographically isolated and disadvantaged areas (GIDA), PEZA can support this strategy through the establishment of an ecozone that is self-sufficient/self-sustaining in terms of basic utilities such as power and water— both are essential components in the manufacturing process of a finished product.

The PNOC-coined SGIP is akin to PEZA’s Renewable Energy Park (REP) model that generates its own energy inside the zone. Pursuant to the eco-industrial development framework, PEZA aims to push for ecozones that have an embedded renewable or alternative energy generation/distribution facilities, and subscribe to energy efficiency, low carbon and micro-grid systems. The common goal of SGIPs and REPs is to provide for an adequate, reliable, affordable power supply to locator companies that will engage in clean and green production.

In targeting the off-grid islands in Visayas and Mindanao for the SGIPs, this will complement PEZA’s mandate to spread the creation of ecozones particularly in rural and new growth areas. Currently, PEZA is managing the operations of 427 economic zones nationwide: 300 in Luzon, 85 in Visayas, and 42 in Mindanao. In the recent PSA report on the Top 10 Largest Provincial Economy (outside NCR), the richest provinces are mostly located in Luzon (except for Cebu, ranked 6th), and all are hosting ecozones. Thus, PEZA wants to prioritize ecozone development in isolated/off-grid areas in Visayas and Mindanao islands—including energy connectivity to stimulate economic growth through their integration into the ecozone value chain.

An equally important goal of SGIPs is to transform the industrial landscape of the Philippines, and to attract energy-intensive industries such as agro-processing, semiconductor and EV manufacturing. These are the most promising, strategic, and high-impact sectors across ASEAN. For this purpose, PEZA and PNOC have teamed up in evaluating the government-initiated SGIP in Tawi-Tawi. The provincial government—together with the host municipalities, national and regional government offices, BARMM officials, local and foreign investors, and other stakeholders—have all expressed their full support for the project.

Among those from the visiting delegation was Pertamina—a global LNG player and the third-largest crude oil producer in Indonesia. It is now studying the viability of setting up an LNG-powered generation facility to address the energy challenges in Tawi-tawi and to jump start the proposed SGIP in an off-grid island. In the inter-agency planning and stakeholders’ consultation meeting, all the participants were unanimous with their support to the SGIP and in pushing for aqua/agro-processing and eco-tourism as their priority industry for investment attraction.

Tawi-Tawi as the next frontier for investment, yes to more BARMM ecozones!

PEZA is assisting the BARMM with capacity building and training for the establishment of more ecozones in Tawi-Tawi and other provinces within its jurisdiction. For Tawi-Tawi, we are exploring the Aqua-Marine park model to allow for mariculture, marine energy generation, and hydrogen/oxygen production (for refueling of marine vessels given Tawi-Tawi’s strategic location as a transshipment hub in the region). Mariculture is most promising as it involves the farming of marine organisms for food and other products such as pharmaceuticals, food additives, dietary supplements, animal feed, cosmetics, jewelry (e.g., cultured pearls), etc.

Tawi-Tawi is known as the "Seaweed Capital of the Philippines" because it is the country's top producer of seaweed. It's also known as the "Carrageenan Capital of the World". (Search Labs). Through the aqua-marine park, the integrated processing of seaweed and other aquatic resources can now be done in Tawi-Tawi. This will also attract our ecozone locators into processing of carrageenan and other global investors to set up facilities in Tawi-Tawi. This province is ripe for becoming the next frontier in ecozone development and as a prime investment destination in the BIMP-EAGA area.

In 2022, Tawi-Tawi was one of the top 10 fastest growing economies in the country in terms of Gross Value Added Growth Rate of Agriculture, Forestry, and Fishing.