Newly inaugurated Philippine President Ferdinand Marcos Jr has vetoed a bill that would create a special economic zone north of the country’s capital Manila, the president’s office said on June 2. In his first legislative bill, Marcos disagreed. Establish Bulacan Airport City Special Economic Zone and Free Port. The area will include urban and industrial development around the $13.4 billion international airport project developed by Philippine conglomerate San Miguel Corporation. In May, the upper house of parliament passed a bill to create economic zones. Written by Senator Imee Marcos,…
Newly inaugurated Philippine President Ferdinand Marcos Jr has vetoed a bill that would create a special economic zone north of the country’s capital, Manila, the President’s Office said on June 2.
In his first legislative bill, Marcos disagreed with the bill establishing the Bulacan Airport Municipal Special Economic Zone and Free Port.
The area will include urban and industrial development around the $13.4 billion international airport project developed by Philippine conglomerate San Miguel Corporation.
In May, the upper house of parliament passed a bill to create economic zones. It was written by Senator Imee Marcos, one of the president’s many political allies in Congress.
“Significant fiscal risk”
In a letter to the Senate signed by Marcos on July 1, he said he could not support a bill to create a new special economic zone that “provides long-term and broad tax benefits for investors.” This would “pose a significant fiscal risk to the country and violate or conflict with the duties and powers of other agencies”.
It is understood that his refusal relates only to economic zones, focusing on certain “deficiencies” in the bill, such as exemptions from audit reviews for SEZs and free ports and legal issues related to the environment.
“The construction of Bulacan International Airport and Aerotropolis is not subject to the veto,” said Marcos’ press secretary, Trixie Cruz-Angeles.
New international airport on track
The privately financed international airport, located 35 kilometers north of Metro Manila, will be designed to handle 100 million passengers per year, while the metropolitan area’s existing main gateway has a capacity of 31 million and will serve as a new main hub for the Philippine capital.
Marcos, who took office on June 30 after a landslide victory in May’s election, inherited more than $200 billion in government debt that had accumulated from his predecessor’s response to the pandemic and the economic fallout.
“Especially at a time when resources are scarce but demand is plentiful, caution must be exercised,” Marcos said in the letter.
