GENERAL SANTOS CITY INVESTMENT PRIORITIES PLAN · GENERAL SANTOS CITY INVESTMENT PRIORITIES PLAN...

GENERAL SANTOS CITYINVESTMENT PRIORITIES PLAN

GENERAL SANTOS CITYINVESTMENT PRIORITIES PLAN2016-2018

FOREWORDA prelude to the GSCIPP showing its history, rationale and objective

ACRONYMSA list of abbreviations and initialisms

MESSAGEMessage from the Chairman of the Board

RESOLUTIONBoard resolution approving the GSCIPP 2016

DEFINITION OF TERMSThis section defines the commonly used terminologies

GENERAL SANTOS CITY INVESTMENT PRIORITY AREASThe overview of coverage, description and entitlement to incentives of the enterprises

GENERAL POLICIESThe general policies shall cover, but not limited, location restriction policy, multi-phased projects with multiple locations, corporate social responsibility and projects critical to environment

SPECIFIC GUIDELINESThis is where specific guidelines on the GSCIPA including, but not limited to, specific type of business activities, documentary requirements to comply with relevant laws and compliance to applicable standards are provided

LOCATIONAL POLICIESThis contains provisions regarding locational restrictions

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CONTENTS

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The role of private sector is significant in spurring economic development and growth of the city. Their involvement has long been instrumental in achieving the development of community goals which the government alone cannot provide due to limited resources. The institutionalization of the public-private partnership is a proof of this beneficial relationship.

The government being the enabler of development has a primordial duty to create a business environment conducive for investments to grow and expand so that private investments and its multiplier effect will become the catalyst of business growth in the city.

The General Santos City Investment Priorities Plan (GSCIPP) which is the meat of the General Santos City Investment Code of 2015 (Code) contains the General Santos City Investment Priority Areas (GSCIPA) where the specific areas for investments are developed for prioritization. It reflects the city’s primordial goal towards attaining an economically diversified community. The technical provisions which cannot be found in the Code are laid comprehensive. It provides a more specific outline by which an industry may avail of the incentive.

The economy is fluid as the demands of market and community varies though time specifically in the digital age. Thus, GSCIPP will be developed biannually to capture the necessities and to improve the city’s economic strategies.

Taking best efforts, General Santos City will be proactive in its pursuit in developing a more competitive business environment. It may undergo scientific and technical approaches like value chain analysis and feasibility studies, to the most, to look into the viability of projects taking into account the economies of scale. It will continue to develop, adapt, and capitalize on ventures which it sees beneficial to its private partners and consequently to its constituents as a whole.

FOREWORD

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Foreword

ACRONYMS


AITECH Accreditation of Indigenous Technologies for HousingBHFS Bureau of Health Facilities and Services BP Batas Pambansa BPO Business Process Outsourcing CoR Certificate of Registration CRO Clinical Research Organization DOE Department of Energy DOH Department of Health DOST Department of Science and Technology EMB Environmental Management Bureau EO Executive Order GSCIC General Santos City Investment Center GSCIPA General Santos City Investment Priority Areas GSCIPP General Santos City Investment Priorities Plan HLURB Housing and Land Use Regulatory Board ICT Information Commmunication Technology ITES Information Technology Enabled Services ITH Income Tax Holiday LBT Local Business Tax LTS License to Sell NUDHF National Urban Development and Housing FrameworkPNRI Philippine Nuclear Research Institute PPP Public Private Partnership R&D Research and Development RA Republic Act RPE Real Property Exemption THW Toxic Hazardous Waste

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Warmest greetings to our investors!

General Santos City takes pride in being one of the solid investment destinations in Mindanao. And investing in our city is indeed a rewarding experience for we have created a business environment keen to your needs and sensitive towards business essentials.

We mean real business as we shake a leg to deliver the General Santos City Investment Priorities Plan (GSCIPP). This plan identifies the investment priority areas and corresponding incentives for a specific industry. There is a primal focus on nurturing, diversifying and expanding your investment.

And as your business partner, we did not only create a leverage to achieve greater growth by providing incentives and economic advantages. We also created the General Santos City Investment Center (GSCIC) purposely to provide you with the technical assistance from gathering data to business referrals.

So, let’s explore, talk about your business and experience a Gensan investment!

Your partner,

RONNEL C. RIVERACity Mayor

MESSAGE

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Message

EXCERPT FROM THE MINUTES OF THE REGULAR MEETING OF THE GENERAL SANTOS CITY INVESTMENT BOARD HELD ON JUNE 17, 2016 AT THE CITY MAYOR’S CONFERENCE ROOM, GENERAL SANTOS CITY

RESOLUTION NO. 01Series of 2016

RESOLUTION APPROVING THE GENERAL SANTOS CITY INVESTMENT PRIORITIES PLAN OF GENERAL SANTOS CITY

WHEREAS, it is the goal of the City of General Santos to promote the inflow of foreign and local investment capital in the city to sustain socio-economic development, generate job opportunities, increase productivity and improve the quality of lives of its constituents;

WHEREAS, there is a need to grant investment incentives to qualified enterprises to enhance its business environment and attract more foreign and local investors;

WHEREAS, the General Santos City Investment Board (Board), a body created under Ordinance No. 16 series of 2015 otherwise known as the General Santos City Investment Code of 2015, is empowered to establish a favorable and stable policy for business, encourage and support private sector investment and business retention and expansion;

WHEREAS, the Board shall grant fiscal and/or non-fiscal incentives to investors, both local and foreign, particularly in identified General Santos City Investment Priority Areas (GSCIPA), to attract new investors and keep and retain existing investments as well as encourage their expansion, in addition to generally creating and maintaining a business-friendly environment;

WHEREAS, the incentives shall be extended only to enterprises whose business activities are included in the GSCIPA and enumerated in the General Santos City Investment Priorities Plan (GSCIPP) based on a long-term comparative advantage;

WHEREAS, the Board, through the General Santos City Investment Center (GSCIC), has identified the GSCIPA upon series of reviews and consultation with public and private stakeholders, to wit: (1) Agriculture, Agribusiness and Fishery; (2) Creative Industries or Knowledge-Based Services; (3) Disaster Prevention, Mitigation and Recovery Projects; (4) Green Projects; (5) Halal Industry; (6) Health Facilities; (7) Housing Projects; (8) Industrial Service Facilities; (9) Infrastructure; (10)Manufacturing Industry; (11) Public-Private Partnership Projects; (12) Research and Learning Institutions; (13) Retail Industry; and (14) Tourism;

WHEREAS, the Board, after thorough deliberation, adopts the proposed General Santos City

RESOLUTION


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Investment Priorities Plan together with the general policies, specific guidelines and the General Santos City Investment Priority Areas;

NOW THEREFORE, on motion of Engr. Riza Marie T. Paches of the General Santos City Investment Center/City Economic Management and Cooperative Development Office duly seconded by Mr. Rodilon C. Lacap of the City Treasurer’s Office, be it;

RESOLVED, AS IT IS HEREBY RESOLVED, to approve the General Santos City Investment Priorities Plan of General Santos City.

RESOLVED FURTHER, to furnish a copy of this resolution to all departments of the City Government of General Santos for a synchronized and integrated implementation; chamber of commerce and other private stakeholders.

Done this 17th of June, 2016 at General Santos City, Philippines.

Approved by:

(SGD) MR. RONNEL C. RIVERA (SGD.) MR. RAYMUND K. SALANGSANGrepresented by MR. DAVE R. ARREGLADO GSC Chamber of Commerce & Industries, Inc.Chairperson, City Mayor’s Office (SGD.) ENGR. RIZA MARIE T. PACHES (SGD.) BRO. ROBERT B. MCGOVERN, FMSGSC Investment Center / City Economic Notre Dame Business ResourceManagement & Cooperative Dev’t. Office Center Foundation, Inc.

(SGD.) MR. RODILON G. LACAP (SGD.) ENGR. ARNEL V. SAYCO City Treasurer’s Office represented by MS. CHRISTIE DELA ROSA Department of Trade and Industry - Gensan

(SGD.) ENGR. NAEL JOSEPH CRUSPERO (SGD.) MR. LEONARDO E. DINOPOLrepresented by ENGR. CARMENCITA BAUTISTA represented by NEMROD BALABATCity Planning and Development Office City Assessor’s Office (SGD.) MR. VALIENTE J. LASTIMOSO (SGD.) MR. BRIX TANrepresented by MR. RONALD O. MERCADO represented by MR. RONAN VILLAGONZALOCity Environment & Natural Resources Office SP - Committee on Trade & Commerce

(SGD.) MR. KERWIN Y. CUE (SGD.) MS. ELIZABETH B. BAGONOCrepresented by MS. ROFIL MAE RILLO represented by TERESITA M. DEMETRIO So. Cot. Filipino-Chinese Chamber of SP - Committee on Climate Change & Commerce, Inc. Adaptation and Mitigation

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Resolution

a) Business Process Outsourcing (BPO) - a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Components of the BPO industry may be:

1. Contact center which provides a number of inbound and outbound services for sales, technical support, directory, etc.;

2. Software development which includes analysis, design, customization, etc. of systems software;

3. Animation services which includes the process of giving illusion of movement to cinematographic drawings or models thru 2D, 3D, etc.;

4. Creative services;5. Computer programming;6. Data transcription which includes the provision of transcription services for

interpreting oral dictation of health and legal professionals;7. Back office processing which includes services related to finance and accounting, and

human resource administration; and8. Engineering design which includes design for civil works, buildings, electronics, etc.

b) Diversification Project - refers to a project of an existing enterprise that involves the introduction and production of a distinct line of products or services by an existing enterprise, whether or not a registered enterprise; provided, that to be considered distinct, it should require new investment in terms of machinery or equipment or would involve the use of new skills set not currently used in the existing product or services; provided further, that a new service or product may constitute a diversification even if such service or product is already within the scope of its original or existing business purposes.

c) Existing Business – are businesses legally operating in the city.

d) Expansion Project - refers to a project of an existing enterprise involving installation of additional facilities/equipment that will result in the increase of the production capacity. Expansion for additional capacity shall be eligible for incentives if applicant has attained 85% utilization of its existing capacity.

e) Modernization or Rehabilitation Project - refers to projects of an existing enterprise, that involves improvements in systems, processes equipment and/or facilities that must result in any of the following:which projects are registrable and thus, eligible to incentives if any of following conditions are met:

1. At least twenty-five (25%) substantial reduction of production cost / cost of provision of the service; or

2. Upgrading of product/service quality or classification of the facility (e.g. hospitals, hotels, resorts) to a higher class in accordance with accreditation standards applicable to the industry concerned.

DEFINITION OF TERMS


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f) Multiplier Effect- refers to the increase in economic activity and interrelationships generated and stimulated by the investment.

g) New Project - refers to a project/activity listed in the GSCIPA that has not started commercial operation or has operated for not more than one year within General Santos City as maybe determined by the Board, undertaken by:

a. A newly organized/formed enterprise that: i. has no common stockholders in any existing enterprise; or ii. has common stockholders in the existing enterprise but own not more than fifty

(50) percent of equity in the new enterprise; or iii. has common stockholders but will engage in an entirely distinct and separate

activity.b. An existing enterprise that shall engage in:

i. An entirely distinct and different activity acting from its existing business operation; or

ii. The same activity provided it shall establish a new facility in an area not contiguous to the premises of its existing project and with new investments.

h) Public-Private Partnership - is a form of legally enforceable contract between the city and a private sector proponent, requiring new investments from the private sector proponent and transferring key risks to the private sector proponent in which payments are made in exchange for performance, for the purpose of delivering a service provided or intended to be provided by the city. PPP shall also include dispositions of an asset, facility, project owned, or entity created by the city to a private sector proponent; procurement of a service; assumption by a private sector proponent of a proprietary function of the City; grant of a concession or franchise to a private sector proponent by the city; or usage by the private sector proponent of public property owned or possessed by the city.

i) Storage - refers to the business of receiving/discharging and storing petroleum crude and/or products of others for compensation or profit. Storage projects are limited to those establishing new facility i.e. depot or storage tanks.

j) TSD (treatment, storage, and disposal) Facilities - are the facilities where hazardous wastes are stored, treated, recycled, reprocessed, or disposed of.

l) Upgrading - refers to the improvement of the facility/infrastructure by adding or replacing components. This may be treated as an expansion/ modernization project.

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Definition Of Terms

GENERAL SANTOS CITY INVESTMENT PRIORITY AREAS Pursuant to Section 15, Title V of the General Santos City Investment Code of 2015, the General Santos City Investment Priority Areas (GSCIPA) are hereunder listed.

LIST OF GENERAL SANTOS CITY INVESTMENT PRIORITY AREAS

1. Agriculture/Agribusiness and FisheryThis covers commercial production and processing of agricultural and fishery products including their by-products. It also covers agriculture and related activities such as irrigation and postharvest facilities.

2. Creative Industries/Knowledge-Based Services This covers business process outsourcing (BPO) activities and IT and IT-enabled services that involve original content.

3. Disaster Prevention, Mitigation and Recovery ProjectsThis covers projects that will prevent, mitigate or rehabilitate adverse impacts of calamities and disasters.

4. Green ProjectsThis covers the manufacture/assembly of goods and the establishment of energy-related facilities where either utilization of which would significantly lead to either the efficient use of energy, natural resources or raw materials; minimize or prevent pollution; or reduce greenhouse gas emissions. This also covers developers of renewable energy facilities, including hybrid systems.

5. Halal IndustryThis covers the production and processing of products under Muslim or Islamic Law.

6. Health FacilitiesThis covers hospitals and other health facilities, including health clubs.

7. Housing ProjectsThis covers subdivision development which may either be low-cost housing packages, medium cost packages, and open market housing, including retirement villages.


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8. Industrial Service FacilitiesThis covers testing and quality control laboratories, trainings and demonstration centers, tool shops and similar facilities, metal casting, metal working, ceramics and food processing, petrochemical complex and industrial gases.

9. InfrastructureThis covers warehouses, waste management facilities, telecommunication facilities and land transportation.

10. Manufacturing IndustryProcess manufacturing is the production of goods that are typically produced in bulk quantities, as opposed to discrete and countable units. Process manufacturing industries include (1) clothing and textiles, (2) petroleum, chemicals and plastics, (3) electronics, computers and transportation, (4) metal manufacturing, and (5) wood, leather and paper.

11. Public Private Partnership (PPP) ProjectsThis covers projects implemented under Ordinance No. 09 series of 2014 otherwise known as the General Santos City Public-Private Partnership Code.

12. Research and Learning InstitutionsThis covers Research and Development (R&D) activities and the establishment of research/ testing laboratories, Centers of Excellence (COE) and technical vocational education and training institutions.

13. Retail Industry This covers store-based retail centers and shopping centers.

14. TourismThis covers the establishment of tourism-related facilities (e.g. tourist accommodation facilities and tourist transport facilities) subject to the guidelines developed by the city, the tourism council and the Department of Tourism

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General Santos City Investment Priority Areas

All enterprises must undergo registration procedure under the supervision of the General Santos City Investment Board through the General Santos City Investment Center before being issued with the Certificate of Registration. Certain post-registration requirements are likewise to be complied with to avoid penalty. I. QUALIFICATIONS

To qualify for registration, the applicant must comply with the following:1. Business type is eligible for registration2. Business activity is included in the GSCIPA List3. The place of operation or production shall be in General Santos City4. Undertake to employ at least eighty percent (80%) of construction

workers and employees during business operations who are residents of General Santos City, except in cases, as verified and approved by the Board, when the expertise required is not available in the locality

5. Proof of operational capability and financial capacity to undertake the project

6. In case of single proprietorship, that he is a citizen of the Republic of the Philippines. In case of partnership, corporation, association or cooperative, that it is organized under existing Philippine laws

II. TYPES OF REGISTRABLE PROJECTS

The following are the types of projects eligible for registration, provided that they involve business activities included in the GSCIPA List:

1. New Projects2. Expansion Projects3. Modernization or Rehabilitation Projects4. Diversification Projects

III. REQUIREMENTS

The requirements for application for local incentives shall vary depending on whether or not the applicant has a Certificate of Registration from a registering agency pursuant to an incentive law.

GENERAL POLICIES


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A. GENERAL REQUIREMENTS

a. New Project

1. Official receipt issued by the City Treasurer as payment of a non-refundable filing fee

2. Three (3) copies of fully accomplished and notarized application form3. Three (3) copies of project study to include list of branches, subsidiaries

and or sister companies engaged in similar activity of the proposed investment and list of officers of the corporation and the persons responsible for the project

4. For corporations, Board Resolution or Letter of Intent of applicant enterprise authorizing the filing of the application for incentives with the Board and designating a representative for purpose

b. Expansion / Diversification / Modernization or Rehabilitation

1. All requirements for new project2. Mayor’s permit of the existing enterprise3. Certified true copy of the registration of the applicant to do business

in the Philippines as issued by the DTI, SEC, or the CDA, whichever is applicable

4. Latest Audited Financial Statement acknowledge by BIR5. List of buildings, improvements and machineries used directly and

exclusively in the registered activity or activities of enterprise and copy of their tax declarations

6. Such other information and or documents that the Board may require.

B. ADDITIONAL REQUIREMENTS FOR THOSE REGISTERED UNDER AN INCENTIVE LAW

1. Certified true copy of Certificate of Registration with the appropriate registering agency pursuant to the applicable incentive law granting applicant’s business, investment incentives, including the terms and conditions of the same.

2. Copy of the feasibility study/project study submitted to the registering agency.

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General Policies

IV. APPROVAL OF APPLICATION FOR REGISTRATION

The approval of application for registration under this plan is subject to the registration procedure provided under section 24 of the General Santos City Investment Code. The General Santos City Investment Board, for its part, shall consider the following criteria before a Certificate of Registration shall be issued:

1. The extent to which materials and other resources obtained from indigenous sources are utilized;

2. The extent to which direct employment for residents of the city is generated;3. The location and business address of the enterprise is within General Santos

City and is aligned to the pursuit of dispersal of industries in less-developed-areas of the city; and

4. The extent of environmental impact.

V. INCENTIVES

A. FISCAL INCENTIVES

a. Local Business Tax Exemption Registered enterprises shall enjoy exemption from local business tax that is otherwise due on their gross receipts in accordance with the General Santos City Revenue Code. The exemption shall be for a term of at least three (3) years but not more than five (5) years which is to be determined by the Board based on projected number of local staff, local raw material content, capitalization, pollution factor and location.

CRITERIA MAXIMUM OF 5 YEARS

MAXIMUM OF 4 YEARS

MINIMUM OF 3 YEARS

Projected number of local staff

Over 75 51-75 10-50 except for Micro Enterprises or BMBEs

Local raw material content

More than 20% More than 15% but less than 20%

less than 15%

Capitalization Php100,000,001 and up

Php15,000,000,001 to Php100,000,000

up to Php15,000,00

Pollution factor Negligible Minimal Average but fully compliant or higher than average but compliant

Location Based on locational policy


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b. Real Property Tax Exemption

Buildings, improvements, machinery and equipment, excluding land, otherwise subject to real property tax directly and exclusively used in the activity of registered enterprise are exempted. The duration of the real property tax exemption shall be the same to that of the local business tax exemption.

B. NON-FISCAL INCENTIVES Non-fiscal incentives referred to in Section 28 of the General Santos City Investment Code may also be availed. Moreover, an enterprise may also avail such incentives should they locate their business in a Special Economic Zone and Tourism Enterprise Zone within the city.

VI. CONDITIONS FOR AVAILMENT OF INCENTIVES

Once an enterprise is registered, it is bound to comply with the continuing conditions of the General Santos City Investment Code, the terms and conditions provided in the Certificate of Registration, and such other conditions as may be provided by this book.

VII. MULTI-PHASE PROJECTS

Projects of an enterprise with multiple phases/locations may be registered per phase/location.

VIII. CORPORATE SOCIAL RESPONSIBILITY

A registered enterprise is enjoined to undertake CSR activities from the programs urban renewal, greening or regreening, social projects and other CSR programs that the Board may allow.

IX. LOCATIONAL POLICY

In the promotion of a sporadic and orderly growth of the community, the Board shall limit incentives to firms which shall locate in the identified location pursuant to the Land Use Plan of the City.

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General Policies

X. PUBLIC WELFARE CONSIDERATION

Subject to the criteria for approval, the Board may deny the application for registration for reasons of public health and morals or for any other reasons as the Board may deem just and reasonable.

XI. ENVIRONMENTAL CONSERVATION

A registered enterprise is required to conduct certain environmental enhancement programs through growing in habitat restoration areas, river stabilization areas, eco-parks, roadside beautification areas and arboretum with a minimum of 100 trees. Tree growing shall be maintained by the enterprise concerned as part of climate change adaptation campaign.

Furthermore, environmentally critical enterprises in critical areas are required to abide environmental laws and other related issuances. Strict regulations must likewise be observed by enterprises involved in handling, transporting, processing and storing of toxic, hazardous substances or nuclear wastes.

XII. PENALTIES

When an enterprise have committed or omitted any of the grounds for cancellation and revocation of registration, penalties may be resorted to only upon proper procedure has been religiously complied with pursuant to section 40 of the General Santos City Investment Code.


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SPECIFIC GUIDELINES This part shall contain the specific guidelines on the GSCIPA providing qualifications and requirements on a certain investment area.

1. AGRICULTURE, AGRIBUSINESS AND FISHERY

This covers commercial production and processing of agricultural and fishery products including their by-products. It also covers agriculture and related activities such as irrigation and postharvest facilities.

This priority area may only be availed if the location of the enterprise is within the Agricultural, Agro-Industrial, Commercial, Industrial, and Infrastructure and Utilities Zone.

a. Commercial Production This covers the production of agricultural (crops, poultry and livestock) and fishery products.

b. Commercial Processing This covers the following: 1. Conversion of agricultural and fishery products, its by- products and wastes, to a

form ready for further processing or final consumption; 2. Extraction of higher value substances from agricultural and forest-based

materials through bioprocessing as endorsed by the concerned government agency; and

3. Production of animal and aqua feeds

Processing of agricultural products should involve domestically produced raw or-processed products, unless the raw or-processed materials are not locally produced (NLP) or not in sufficient quantity (NISQ).

c. Infrastructure in Support of Agriculture, Agribusiness and Fishery

1. Irrigation This covers irrigation system primarily intended to render service to agricultural farms. Irrigation system shall include water source, distribution lines and control mechanisms. The system may also include prime movers, pumps, generators and transformers.

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Specific Guidelines

2. Post-Harvest Facilities

This covers the establishment and operation of the following facilities: a. Cold storage; b. Freezing; c. Bulk handling and storage; d. Packing houses;e. Trading centers;f. Ice plants; andg. AA slaughterhouses that may be upgraded to AAA, as endorsed by the National Meat Inspection Service (NMIS).

2. CREATIVE INDUSTRIES OR KNOWLEDGE-BASED SERVICES

This covers creative industries or knowledge-based services with original content such as, but not limited to, software development, animation, engineering and architectural design, and game and applications development. In which case, an applicant must submit proof of ownership or rights over the intellectual property concerned, such as copyright filed with National Library/Supreme Court Library or their deputized agencies prior to registration.

Other major components of Business Process Outsourcing (BPO) are also included. These include:

a. Contact center which provides a number of inbound and outbound services for sales, technical support, directory, etc.;

b. Software development which includes analysis, design, customization, etc. of systems software;

c. Animation services which includes the process of giving illusion of movement to cinematographic drawings or models thru 2D, 3D, etc.;

d. Creative services;e. Computer programming;f. Data transcription which includes the provision of transcription services for

interpreting oral dictation of health and legal professionals;g. Back office processing which includes services related to finance and accounting,

and human resource administration; andh. Engineering design which includes design for civil works, buildings, electronics, etc. This priority area may only be availed if the location of the enterprise is within the Commercial Zoe and Infrastructure and Utilities Zone.


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3. DISASTER PREVENTION, MITIGATION AND RECOVERY PROJECTS

This covers projects that will prevent or mitigate adverse impacts of calamities and disasters (e.g., installation of flood control systems, dikes, installation of early warning systems for typhoons, earthquake occurrences, tsunami, volcanic eruptions, etc.).

This also covers projects to rehabilitate areas affected by calamities and disasters (e.g., rebuilding of roads and bridges after earthquakes/floods, volcanic eruptions, oil spill clean-up, etc.).

It covers the manufacture and assembly of equipment and goods that will be used for disasters, calamities and emergencies, the provision of rescue and retrieval services, the provision of information services related to disaster management, the provision of specialized equipment and services needed to restore vital public services in a fast and efficient manner, the provision of training services for first responders and any other activity that will contribute to the goals of mitigating risks to public safety caused by disasters, calamities and emergencies.

Salvaging pertains to the rescue of a seriously damaged/ incapacitated ship that may include refloating and towing of the ship to a safe place. It also pertains to the removal of a sunken or wrecked ship, derelict or hazards including cargoes thereof.

In this area, enterprises locating in whatever zone are allowed.

4. GREEN PROJECTS

a. Manufacture or assembly of goods and establishment of energy-related facilities This covers the manufacture/assembly of goods and the establishment of energy-related facilities (such as district cooling systems), where either utilization of which would significantly lead to either the efficient use of energy, natural resources or raw materials; minimize/prevent pollution; or reduce greenhouse gas emissions.

Mere installation of energy efficiency-related/device/ fixtures shall not qualify for registration. It also covers manufacturers, fabricators and suppliers of locally-produced renewable energy (RE) equipment and components.

To qualify for registration, assembly operations must be integrated with the manufacture of at least one part/component for use in the assembly.

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Specific Guidelines

b. Renewable energy This covers developers of renewable energy facilities, including hybrid systems. Regardless of the grid capacity installed, renewable energy allowed may be from sectors of hydro, biomass, wind, solar and geothermal energy.

If the applicant is already registered with the Board of Investments pursuant to RA 9513 otherwise known as the Renewable Energy Act of 2008, copy of the issued certificate of registration shall also be attached as one of the requirements prior to registration. If not, copy of the Renewable Energy Service Contract and Environmental Compliance Certificate shall be necessary.

5. HALAL INDUSTRY

This covers the production and processing of products certified as Halal by accredited agencies under Muslim or Islamic Law. Incentives may be availed when the enterprises are located in Industrial Zone.

All applicants for registration must show certificate of accreditation duly facilitated by Halal International Chamber of Commerce and Industries of the Philippines, Inc., Mindanao Halal Authority or Muslim Mindanao Halal Certification Board, Inc.

6. HEALTH FACILITIES

a. Hospitals and clinics Hospitals and other health facilities are classified according to whether they are general or special facilities and their service capability. General health facilities provide services for all types of ailment, disease, illness or injury. Special health facilities, on the other hand, render specific clinical care and management, ancillary and support services. The incentive covers general hospitals and special health facilities which specialize in a disease or condition or in one type of patient. (e.g. kidney centers, lung centers, rehabilitation centers).

Prior to start of commercial operation, the registered enterprise must submit copies of License to Operate issued by the DOH and Philhealth Accreditation.

Health facilities can avail incentives when they are located in Commercial Zone, Institutional Zone and Residential Zone.


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b. Health Club Any health club which includes fitness club, fitness center, health spa or fitness gym may be eligible for registration. They must present certificate of accreditation from the National Accreditation Board for Hospitals and Healthcare (NABH) providers as additional requirement.

7. HOUSING PROJECTS

This covers subdivision development which may either be low-cost housing packages, medium cost packages, and open market housing, including retirement villages.

For this purpose, retirement village or retirement community refers to an integrated gated community planned for the purpose of catering to older people who no longer work in their country of origin and are restricted to those over sixty (60) years of age pursuant to the Expanded Senior Citizens Act of 2010.

Incentives for expansion projects will only be availed if the project will locate adjacent or contiguous to an existing mass housing project owned by the same entity and shall share common facilities including access to the existing project.

This priority area may only be availed if the location of the enterprise is within the General Residential Zone and Socialized Housing Zone.

For all housing projects, the following additional requirements shall be necessary:

a. Locational Clearance issued by the Housing and Land Use Regulatory Boardb. Building Permit issued by the Office of the Building Official proponents of construction

projectsc. Environmental Compliance Certificate issued by the Environmental Management

Bureau (EMB) of the Department of Environmental and Natural Resources (DENR)d. Drainage Plane. Sewage Disposal Planf. Garbage Disposal Plan

a. Low-Cost Housing Packages

i. Socialized HousingPrice range: Php400,000 and below (HUDCC MC 1, s. 2008)

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Specific Guidelines

ii. Economic Housing• Level 1-B – Price Range: above Php400,000 to Php 500,000 (HUDCC MC 1, s

2008 & HUDCC MC 5, s. 2007)• Level 2 – Price Range: above Php 500,000 to Php 1,250,000.00 (HUDCC MC

5, s. 2007)• Level 3 – Price Range: above Php1,250,000 to Php 3,000,000.00 (HUDCC MC

5,s. 2007)• Low-cost housing must conform to BP 220 and other related laws and

issuances

b. Medium Cost Medium Cost – Price range: above Php 3,000,000.00 to Php 4,000,000.00 (HUDCC MC 5, s. 2007)

c. Open MarketOpen Market – Price Range: above Php4,000,000.00 (HUDCC MC 5, s. 2007)

Except for Socialized Housing, all housing projects must be in vertical development to avail of incentives.

8. INDUSTRIAL SERVICE FACILITIES This covers testing and quality control laboratories, trainings and demonstration centers, tool shops and similar facilities, metal casting, metal working, furniture, ceramics and food processing, petrochemical complex and industrial gases.

Metal working may include electroplating, foundry, forging, machining, heat treatment and brass making.

For furniture, it will include kiln drying and treatment and processing facilities. For ceramics it includes kiln and glazing activities. Food processing is meant to include bottling and canning of distilled water/mineral water, industrial salt, and vapor heat treatment.

Availment of incentives may be granted if the enterprise should locate in Industrial Zone.

9. INFRASTRUCTURE This covers warehouses, waste management facilities, telecommunication facilities and land transportation.


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Incentives may only be availed if the enterprise should locate in Infrastructure and Utilities Zone, Agricultural Zone, Agro-Industrial Zone and Industrial Zone.

a. Warehouses This covers the establishment of automated warehousing facilities with automated retrieval systems, conveyors, cranes and other cargo handling equipment. This also covers distribution or fulfillment centers.

b. Waste Management Facilities This covers the establishment of toxic and hazardous waste (THW) treatment facilities. The following are the qualifications for registration: i. Must involve treatment, storage and disposal (TSD); ii. Must be capable of handling THW; andiii. Must handle only locally generated wastes.

Prior to start of commercial operation, the registered enterprise must submit a copy of its TSD Registration Certificate issued by the EMB of the DENR. If handling radioactive wastes, the registered enterprise must submit a copy of the License to Operate a Radioactive Waste Management Facility from the Philippine Nuclear Research Institute (PNRI) of the Department of Science and Technology (DOST) in addition to the TSD Registration Certificate.

c. Telecommunications Infrastructure This covers the establishment of new telecommunications utilizing at least fiber optic technology.

d. Land Transportation This includes establishing transport terminals, renovating stations, modernizing fare collection systems, upgrading facilities and services for buses and vans, and improving the accessibility of the entire system for people of all abilities.

10. MANUFACTURING INDUSTRY

Process manufacturing is the production of goods that are typically produced in bulk quantities, as opposed to discrete and countable units. Process manufacturing industries include (1) clothing and textiles, (2) petroleum, chemicals and plastics, (3) electronics, computers and transportation, (4) metal manufacturing, and (5) wood, leather and paper.

Manufacturing of clothing and textiles include the processing of raw wool, cotton and flax. It also applies to using of wool cloth to make clothes, outerwear, upholstery fabrics and bedding.

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Specific Guidelines

The process of turning chemicals, coal and crude oil into usable products, along with the making of soaps, resins, paints and pesticides and medicines also to process manufacturing.

Electronics, computers and transportation manufacturing include the processing of all appliances and microprocessors, semi-conductors, chips, all audio-visual equipment, automobiles, communication equipment and apparatus, office computing and accounting machinery, medical equipment devices, metal working and wood working machinery, special purpose industrial machinery, and all types of machinery including their engines or motors.

The production of metals includes all forms of iron, aluminum and steel manufacturing, as well as forging, engraving, coating and stamping.

Wood production includes all forms of manufacturing floors or housing, as well as sawing and laminating. Under leather industries, are tanning and curing, but the creation of leather clothes falls belongs to clothing and textiles. The paper production process is typified by the cleansing of raw wood pulp into paper products of various kinds.

Manufacturing enterprises can only avail incentives in Industrial Zone.

11. PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS

This covers projects implemented under Ordinance No. 09 series of 2014 otherwise known as the General Santos City Public-Private Partnership Code.

12. RESEARCH AND LEARNING INSTITUTIONS

This covers Research and Development (R&D) activities and the establishment of research/ testing laboratories, Centers of Excellence (COE) and technical vocational education and training institutions.

The incentives for R&D may be availed should it locate in Forest Zones for ecological programs, General Residential Zone, Social Housing Zone, Commercial Zone, Institutional Zone, Agricultural Zone, and Agro-Industrial Zone.

a. Research and Development This covers all Research and Development activities including the establishment of research/testing laboratories (e.g., for pharmaceuticals, electronics, construction, etc.).


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This also covers the establishment and operation of facilities for the conduct of clinical trials (e.g. Clinical Research Organization or CRO). The registered CRO must submit a copy of Permit for Clinical Investigational Use (PCIU) issued by Food and Drugs Administration (FDA) before the conduct of each clinical trial.

Application for registration must be accompanied by an endorsement from the DOST or other concerned agency, as may be deemed necessary.

b. Center of Excellence This covers the establishment of entrepreneurial, technology, business incubation centers and common service facilities.

c. Training/Learning Institution This covers the establishment of institutions specializing in the technical vocational education and training (e.g., engineering, culinary arts, etc.).

The following are the requirements for registration: 1. The curriculum must be approved by either the Technical Education and Skills

Development Authority (TESDA) for training courses or the Commission on Higher Education (CHED) for degree courses or other concerned government agencies/authority.

2. The registered education/training/learning institutions must provide training laboratories and equipment, if applicable.

13. RETAIL INDUSTRY

a. Retail Centers Retail centers eligible for incentives include only store-based retailers. The components under store-based retailers are grocery retailers and non-grocery retailers.

For grocery retailers, these include convenience stores, hypermarkets and supermarkets. Non-grocery retailers on the other hand include apparel and footwear specialist retailers, electronics appliance specialist retailers, drugstores and pharmacies, department stores and hardwares.

No incentives may be availed by retail centers leasing or occupying within the registered shopping centers or malls.

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Specific Guidelines

b. Shopping Center Shopping centers or malls are covered in a complex with common services which are often created around an anchor store like supermarket that represents the main attraction for participating businesses and the clientele including cinema, entertainment or fitness facilities, catering establishments, atrium, car parks and logistics facilities such as loading and unloading bays, warehouses, lifts, heating and air conditioning, cleaning, toilet and children’s entertainment, among others.

In addition to the general requirements, applications for shopping center must be coupled with:1. Traffic Impact Assessment with projection for 30 years; and 2. Drainage Management Plan.

No incentives may be granted for new projects located in Dadiangas North, Dadiangas East, Dadiangas South, Dadiangas West and along Jose Catolico Sr. Avenue, Brgy. Lagao, General Santos City.

14. TOURISM This covers the establishment of tourism-related facilities (e.g. tourist accommodation facilities and tourist transport facilities) subject to the guidelines developed by the city, the tourism council and the Department of Tourism.

This covers tourism enterprises that are outside the tourism enterprise zones (TEZs) and are engaged in the establishment and operation of: a. Accommodation establishments such as but not limited to hotels, resorts,

apartment hotels, tourist inns, motels, pension houses, private homes for homestay, ecolodges, condotels, serviced apartments, and bed and breakfast facilities;

b. Convention and exhibition facilities or “meetings, incentives, conventions and exhibition” (MICE) facilities;

c. Amusement parks; d. Adventure and ecotourism facilities; e. Sports facilities and recreational centers; f. Theme parks; g. Health and wellness facilities such as but not limited to spas; andh. Agri-tourism farms and facilities; and tourism training centers and institutes.

Tourism-related projects can avail the incentives is they are located in Commercial Zone, Institutional Zone, Parks and Recreation Zone and Tourism Zone.


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LOCATIONAL POLICIESThe dispersal of economic activities to the rural barangays is encouraged. The aim is to enhance sporadic dispersal of economic opportunities to other areas for multiplier effect.

Accordingly, all registered enterprises must avow to the Comprehensive Land Use Plan of the city. With respect to each investment priority area, the map zones in the comprehensive zoning ordinance shall be used.

GENERAL SANTOS CITYINVESTMENT PRIORITY AREAS

LOCATIONAL RESTRICTION

Agriculture/Agribusiness and Fishery Agricultural Zone, Agro-Industrial Zone, Commercial Zone, Industrial Zone, Infrastructure and Utilities Zone

Creative/Knowledge-based services Commercial ZoneInfrastructure and Utilities Zone

Disaster Prevention, Mitigation and Recovery Projects

No locational restriction

Green Projects No locational restriction

Halal Industry Industrial Zone

Health Facililties Commercial Zone, Institutional Zone,Residential Zone

Housing Projects General Residential ZoneSocialized Housing

Industrial Service Facilities Industrial Zone

Infrastructure Infrastructure and Utilities Zone, Agricultural Zone, Agro-Industrial Zone and Industrial Zone

Manufacturing Industry Industrial Zone

Public-Private Partnership Projects No locational restriction

Research and Learning Institutions Forest Zones for ecological programs, General Residential Zone, Social Housing Zone, Commercial Zone, Institutional Zone, Agricultural Zone, Agro-Industrial Zone

Retail Industry No locational restriction

Tourism Zone Commercial Zone, Institutional Zone, Parks and Recreation Zone and Tourism Zone

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Locational Policies

GENERAL SANTOS CITY INVESTMENT PRIORITIES PLAN · GENERAL SANTOS CITY INVESTMENT PRIORITIES PLAN...

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