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What is APECO?
APECO, or the Aurora Paci ic Eco!o"ic #o!e a!$ Free%ort Authorit&, is a '(,)(*+hectare s%ecia, eco!o"ic -o!e a!$ ree%ort curre!t,& .ei!/ .ui,t i! the "u!ici%a,it& o Casi/ura!, Aurora0 First created as the Aurora Special Economic one !ASE A" #y the passa$e of %&A& '4'0 in 200() and amended throu$h %&A& 100*3 in 2010) A+E,- today encompasses five !." #aran$ays /ithin ,asi$uran0 o +arcel 1 on Aurora mainland composed of 2r$ys& 3i#et 4 Esteves !4'5 hectares"6 o +arcel 11 on the San 1delfonso +eninsula coverin$ 2r$y&s San 1delfonso) ,o7o and ,ulat !12)42( hectares"& 8he #uddin$ transshipment hu# aims to attract enou$h local and forei$n investment to transform the municipality into a self9sustainin$ industrial) commercial) a$ro9 industrial) tourist) financial and investment centre& +roponents claim A+E,- /ill alleviate poverty in ,asi$uran) $enerate employment for province of Aurora) improve livin$ conditions of residents) raise local economic productivity and spur industriali7ation throu$hout :ortheastern +hilippines&
o AcAuisition of a#out 1.0)000 m2 lot as site of A+E,- ,ampus o +lannin$B3esi$n9A+E,- Site 3evelopment +ac?a$e o Nayon alikasan >ousin$ +ro@ect /ith :ational >ousin$ Authority !:>A" 6i"u,ta!eous,&, %ro1ects 4ere a,so .ei!/ u!$erta=e! .& APECO that uti,i-e$ u!$s ro" other /o7er!"e!t o ices, &et %ro"ote$ i! the "e$ia as its o4!& 8hese undeclared pro@ects) costin$ a%%ro9i"ate,& P'0)5 .i,,io!) include0 o APECOs P142-million 1.2 km airstrip in 2r$y& Esteves) ,asi$uran) funded #y the 3epartment of 8ransportation and ,ommunications and ,ivil Aviation Authority of the +hilippines !to #e follo/ed #y a +'29million 0&39?m airstrip extension" o APECOs P63-million port improvement project in 2r$y& 3i#acon$) ,asi$uran) funded throu$h the +hilippine +orts Authority !to #e follo/ed #y a +2&49#illion international seaport construction pro@ect" o The P1.66- illion !aler-Casi"#ran hi"h$a% leadin$ to/ards A+E,-) funded #y loans from the Corean Economic 3evelopment ,ooperation Fund& o A P3&.&-million 'loo( control project implemented in ,asi$uranDs ,ala#$an river throu$h the provincial 3+E>) /hich involved Auarryin$ operations that provided mineral materials for A+E,-Ds airstrip o A P1&.&-million maric#lt#re 'ish ca"e park initiated /ith the 2ureau of Fisheries and AAuatic %esources) and promoted as an A+E,- livelihood pro@ect o The P3).&-million ho#sin" project funded #y the ,on$ressional Funds of the Fone 3istrict of Aurora) promoted locally as an A+E,- pro@ect for indi$enous peoples&
CONC>U6ION? A+E,-Ds existence) from its creation to its implementation) has #een characteri7ed #y a visi#le disre$ard for due process& 8he Auestiona#ility of its le$islation and the non9transparency of its #ud$et disclosures is indicative of ho/ A+E,- has failed #asic $overnance standards of transparency) accounta#ility) inclusiveness and effectiveness more $enerally&
and the 3E:%9GJ2 attest that most areas in ,asi$uran are prone to flash floods) landslides and road /ash9outs that isolate the area for /ee?s& o -#lnera ilit% o' Corporate Camp#s. 8he same studies from the ,asi$uran FJI sho/ed the corporate campus is hi$hly prone to soil erosion and liAuefaction /ithin 2. years) endan$erin$ not only the residents #ut the personnel of A+E,-& A+E,-Ds location /ithin trade routes hampers its accessi#ility and the feasi#ility for investors to set up shop /ithin the eco7one& o .ocation /emoteness an( ,on-Pro0imit% to 1arkets. 8ravelin$ to ,asi$uran ta?es very lon$ hours) on avera$e 10911 hours per trip) due to its isolated location and the rou$h) undeveloped roads o .an( Con'licts. 8he FJI) residents) and concerned sectors said that A+E,too? over private lands) not pu#lic lands& Gultiple affidavits from the residents of ,asi$uran and the San 1delfonso +eninsula illustrate the rampant disre$ard for existin$ and to9#e processed applications for ,ertificates of Ancestral 3omain 8itle !,A38s") ,ertificates of Fand -/nership and AcAuisition !,F-As") and the Inte!rate" #ocial Forestry Certificates of #te$ar"s%i& Contracts !1SF9,S,Ds"& 8hese competin$ land claims may li?ely place hi$her uncertainty amon$ investors as to the ready accessi#ility of land for their proposed pro@ects& ,ontrary to A+E,-Ds pro@ections) there is a severe lac? of demand for the eco7oneDs offerin$s and services /ithin its position in the island of Fu7on) not to mention its position /ithin the tradin$ routes of the Asia9+acific re$ion& o 1ismatche( .a or 2#ppl%. %esidents do not have appropriate s?ills for the ?ind of employment A+E,- /ill provide& Fi?ely @o#s to #e offered to the residents !such as construction9#uildin$" are merely contractual) /hich do not promise sta#le employment& A+E,-Ds plans to outsource Aualified employees) as su$$ested #y former ,E- %o#erto Gathay in the Senate >earin$ of 03 -cto#er 2011) co!tra$icts the e9%ress "a!$ate o the ,a4 to %ro7i$e e"%,o&"e!t to resi$e!ts& o *mpracticalit% 'or Cons#mers an( To#rists' A+E,-Ds distance and inaccessi#ility /ill most li?ely drive consumers to simply floc? to more accessi#le free ports or eco7ones) such as the Su#ic 2ay Free +ort or ,lar? 3evelopment ,orporation&
CONC>U6ION? 8he non9existence of necessary feasi#ility studies and comprehensive plans for A+E,- su$$est that it is not economically via#le& ,ompared to its proponentsD optimism) various o#stacles place dou#ts that A+E,- /ill succeed as a free port&
,o o e(ience to set (irections an( plans. 1n the same Senate 2ud$et >earin$ of 11 -cto#er 2011. former ,E- Gathay admitted that A+E,exceeded ori$inal location !i&e& mainland" and operated in municipal /aters& %&A& 100*3 stipulated that A+E,- is only supposed to cover the mainland& o ,o ECC5 no permits5 no st#(ies. FJIs of the affected municipalities reported that A+E,- #y9passed $overnment reAuirements for conductin$ studies and acAuisition of necessary permits for various su#pro@ects of the eco7one& 8here /as) moreover) no approved @oint @urisdiction of municipal /aters #et/een A+E,- and FJIs& For a,, its h&%e a!$ %u.,icit&, the %ro1ects o%erate$ .& the eco-o!e ai,e$ to ta=e o a!$ re"ai! !o!+o%eratio!a,0 o Casi/ura! @aricu,ture Par= Pro1ect a!$ 6ea4ee$ Pro1ect APECO R%etoric? 1n a 1' Fe#ruary 2013 press statement) former ,E%o#erto Gathay said #oth pro@ects aim to help fisherfol? increase income #y raisin$ $rouper species !e&$& #an$us and tilapia" and plant sea/eeds& In Reality1 A+E,- does not o/n) has not funded) and did not operate the pro@ect& 1t merely too? credit from a partner initiative that the ,asi$uran FJI had /ith the 2ureau of Fisheries and AAuatic %esources !2FA%" /hose former local head /as current A+E,- ,E- Galcolm Sarmiento& Eorse) the mariculture par? pro@ect /as %re7ious,& assesse$ as $a!/erous #y the municipal $overnment of ,asi$uran) after the fish ca$es /ere put up& 1t has induced #ro/nish colorin$ of its ad@acent areas) prolon$ed floods /ithin ,asi$uran and /orsened pollution of surroundin$ /aters& As per present testimonies of the ,asi$uran FJI and residents) the fish ca$es /ere dama$ed #y 8yphoon +edrin$ durin$ Septem#er 2011& 8he promised additional fish ca$es have not #een erected to this day& o 6er7icea.i,it& o the Air%ort APECO R%etoric1 8he eco7oneDs official /e#site and Senator An$araDs press release in the +hilippine 3aily 1nAuirer reported that the airport /ill #oost the accessi#ility of Aurora for #oth domestic and international air traffic& In Reality0 Studies commissioned #y the ,asi$uran FJI said the airstripDs measurement is not at par /ith international standards& Ex9,EGathay admitted in a Senate 2ud$et >earin$ last 11 -cto#er 2011 that the airport did not have feasi#ility study and that it /as desi$ned to #e prepared for floodin$ !i&e& <#uilt on stilts"& 8he stilts) it /as claimed) /ere <miti$atin$ en$ineerin$ solutions&= 8here are conflictin$ advertisements re$ardin$ its actual len$th in the A+E,- /e#site and Senator An$araDs press release& A confidential report to the office of Senator Ser$io -smeHa 111 sho/ed via Joo$leGaps that the proposed expansion of 1&5 ?ms& /ould a ect the Casi/ura! shore,i!e at .oth e!$s, ha"%eri!/ the !atura, ,o4 o ti$e a,o!/ the shores& 8he airstrip suffers from safety issues& 1t is unadvisa#le to have an airstrip straddlin$ the shoreline especially if air%ort is i! the T&%hoo! Be,t& 1n a Senate >earin$ held on 03 -ct 2011) Gathay admitted that the maximum capacity has not #een reached) #ecause there 4ere !o re/u,ar ,i/hts 4ithi! the airstri% si!ce (22:0 o
8he construction of the airport has $is,ocate$ a !u".er o isher o,= a"i,ies, 4ith o!,& a ,i"ite$ a"ou!t o re,ocatio! & Accordin$ to residents as /ell as a Senate 8estimoney #y Fr& +ete Gontallana) parish priest of the municipality of 3in$alan) in a Senate >earin$ on 11 :ovem#er 2010) the area #ecomes less ha#ita#le due to freAuent floodin$ caused #y the airstripDs #loc?a$e of the /aterDs natural flo/& CONC>U6ION? 8he pro@ects pursued #y A+E,-) despite claimin$ to promote the interests and /elfare of the people of ,asi$uran) have failed to live up to initial expectations& 8he lac? of consultation and the incompati#ility of A+E,-Ds pro@ects to ,asi$uranDs necessities illustrate their severe ne$lect of plannin$) competence and accounta#ility&
A+E,- leaders do not a$ree if a #ud$et /as allotted to this pro@ect& Ehile Senator An$ara claims there is a #ud$et for a resettlement area) A+E,- ,E- Sarmiento contradicted him in a Senate >earin$ last 05 Septem#er 2012) sayin$ he ?ne/ of no such funds allotted for a resettlement area& 1n a letter to the 3+E> %e$ional 3irector dated 05 Gay 2012) ,asi$uran Gayor %eynaldo 2iton$ /rote that there /ere no Gulti9 +urpose 2uildin$s #uilt as promised #y the pro@ect& 8estimonies #y San 1delfonso 1+s attest the housin$ provided for them /as inappropriate /ith their traditional /ay of livin$) and they /ere deprived of access to sources of livelihood !e&$& sea"& 8hey also claimed some of them /ere #ri#ed #y A+E,- to serve as the eco7oneDs=forest ran$ers=) as /ell as consent to A+E,-Ds implementation) despite continuous protests from the numerous 1+ communities in 2r$ys& San 1delfonso and ,ulat&
CONC>U6ION? A+E,-Ds actions reveal serious non9transparency) Auestiona#le methods and ar#itrariness& Ehile its proponents maintain they are consistent /ith the $overnin$ principles of %&A&s '4'0 and 100*3) their trac? record sho/s #latant disre$ard for due process) as reflected in the discrepancies #et/een its $oals and present status&
CONC>U6ION? 8he offer of tax #rea?s #y eco7ones has hardly assured the stimulation of investment in eco7ones& A+E,-Ds <cut9and9paste= tax incentives points to a serious lac? of foresi$ht and deli#eration on the part of the pro@ectDs proponents&
undervaluation of shipment and the misclassification of $oods to incur lo/er tariffs and duties& 8he most infamous smu$$lin$ dens amon$ free ports are the 6u.ic Ba& Free%ort Area and the Ca/a&a! 6%ecia, Eco!o"ic #o!eDPort Ire!e 0 o Earlier in * ;anuary 2013) +ilipinas Shell Vice +resident for ,ommunications %o#erto Canapi reported on oil smu$$lin$ /ithin Su#ic 2ay Freeport) contri#utin$ to annual losses to revenue amountin$ to around E'02* .i,,io!0 o Academics from the Cyoto Iniversity Jraduate School of Economics) +rofessor >iromi Shio@i and ,andy Fim ,hiu) G2A also reported in a 200( study that used car smu$$lin$ in Su#ic 2ay has < $e rau$e$ the Phi,i%%i!e /o7er!"e!t o P' .i,,io! a &ear i! ore/o!e re7e!ue&= o 8he ,a$ayan Special Economic one Authority !,SE A" or +ort 1rene) created #y incum#ent Senate +resident ;uan +once Enrile) has #ecame notorious for importation of used cars into the country& A 200* report #y the American ,ham#er of ,ommerce reported that over :,222 use$ cars /ere smu$$led into the country from ;une 200. to Gay 200*& o 8he importation of used cars in +ort 1rene seems to have continued despite a Supreme ,ourt rulin$ last ;anuary ( upholdin$ a #an on used car importation from ,SE A& Fatest reported shipments include (22 use$ cars last 14th of Fe#ruary) 2013 and 55F "ore in Fe#ruary 23& 8hese threats of smu$$lin$ and massive fiscal losses have not $one unvoiced throu$hout the process of A+E,-Ds creation& o 3urin$ the sin$le) 309minute Senate >earin$ conducted in Septem#er 200' on issues pertainin$ to the esta#lishment of A+E,-) the 4e&art*ent of Finance ,4OF- reiterated its position that there should #e a moratorium on the creation of more free ports in the country& 1ts rationale /as #ased on concerns over fore$one tax la/s and smu$$lin$&
CONC>U6ION? Free ports in the +hilippinesD complicity to smu$$lin$ have made them $reat lia#ilities to the $overnmentDs fiscal position& Should A+E,- #e fully implemented) such pro#lems on smu$$lin$ /ill li?ely crop up in the future as /ell&
CONC>U6ION? +hilippine o#li$ations to the ASEA: Economic ,ommunity render the fiscal and customs incentives of A+E,- moot and academic& ,ontinued pourin$ of pu#lic funds into A+E,- ma?es poor economic sense for the $overnment&
,T%is "oc2*ent is only t%e "raft e5ec2ti)e s2**ary of an econo*ic 3riefin! an" &osition &a&er 3ein! &re&are" 3y Task Force Anti-APECO on t%e APECO contro)ersy. an" is not for 62otation 3y *e"ia. researc%ers an" ot%er $riters' For *ore infor*ation a3o2t t%e 3riefin! &a&er an" t%e APECO iss2e. &lease e*ail 7erik'cr289!*ail'co*-
,Task Force Anti-APECO is a coalition consistin! of &ro*inent ci)il society !ro2&s. s2c% as t%e Cat%olic Bis%o&s Conference of t%e P%ili&&ines-National #ecretariat for #ocial Action. :2stice an" Peace ,CBCP-NA##A-. #i*3a%an! (in!ko" n! Bayan ,#(B-. PA I#AMA1 T%e National Confe"eration of #*all Far*ers; an" Fis%ers; Or!ani8ations. t%e #a)e #ierra Ma"re Net$ork Alliance ,##MNA-. t%e Fait%-Base" Con!ress A!ainst I**oral 4e3t ,FCAI4-. t%e Association of Ma7or Reli!io2s #2&eriors. an" ot%er or!ani8ations< to!et%er $it% t%e Prelat2re of Infanta' Con)ene" since +=>=. $e ai* to raise a$areness on t%e sit2ation of *ore t%an ?=== fa*ilies in A2rora t%reatene" 3y t%e A2rora Pacific Econo*ic Zone'-