The Armed Forces of the Philippines (AFP) aims to establish defence industry hubs across the country under a new agreement signed with the government's Philippine Economic Zone Authority (PEZA).
A spokesperson from PEZA told Janes on 11 August that the proposed “defence industrial ecozones” will ensure the supply of materiel to the AFP and support both military and defence-industrial modernisation.
Through the memorandum of agreement (MOA), which the spokesperson said was signed in late July, the AFP and PEZA will look to develop military-owned land through private sector, including foreign, investment.
Under the plan, investors can apply for a list of tax and financial incentives if they channel investment in the complexes. They would also be encouraged to transfer technologies to local industry and to support exports. The Philippines hopes that such zones would be utilised by members of the Association of Southeast Asian Nations (ASEAN).
Under the MOA, the AFP, with assistance of PEZA, will identify the scope and location of the zones and their focus of capabilities.
Fort Bonifacio in Taguig City, Metro Manila, has already been identified as a potential location for one of the zones. It is also the site of the Philippine Army's headquarters.
Another zone in Bataan, on the western side of Manila Bay, has been approved in principle but is awaiting presidential approval. The project, led by state-owned firearms specialist Government Arsenal, is known as the Government Arsenal Defense Industrial Estate.
Government Arsenal produces firearms and ammunition, a capability regarded as critical for the AFP, given its long-standing focus on counter-insurgency. Other capabilities likely targeted through the defence industry zones include naval shipbuilding, armoured vehicles, aerospace component manufacturing, depot-level maintenance, repair, overhaul, and upgrade services.
According to Janes Defence Budgets
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