PEZA Rental Fees for Public Economic Zones

Locator enterprises must pay a "good faith deposit" equivalent to three (3) months' rental fees.
Deposit is distinct from current monthly rentals and not credited towards them.
This deposit may be refunded upon lease termination or used to settle obligations to PEZA.
Compliance deadline for payment of the deposit: May 31, 2001.

Aside from the good faith deposit, locator enterprises must regularly pay monthly rental fees for industrial lots and standard factory buildings in the public economic zones.
Failure to pay monthly rentals will lead to appropriate penalties imposed by PEZA.

PEZA Board Resolution No. 97-297 (September 15, 1997):
- New locator enterprises were required to pay rental fees one (1) year in advance for land and buildings.
- Existing locators could pay monthly or opt to pay an annual rental fee calculated as the present value of monthly rentals discounted at 10% per annum.
Challenges reported:
- Difficulty for many locator enterprises to pay annual rentals in advance due to limited capitalization and cash flow constraints during start-up.
- Majority of locators in public economic zones are smaller and have fewer resources compared to private economic zone locators.

To address financial difficulties of locator enterprises, PEZA resolved:
- Rentals to be paid monthly.
- A combined security arrangement requiring one (1) month deposit plus two (2) months' advance rental payment.
This amendment supersedes and modifies the previous Board Resolution No. 97-297.

The amended payment scheme was approved by PEZA Board of Directors on January 15, 2001 (Resolution No. 01-015).
Official adoption date of the memorandum order setting these terms was April 24, 2001.
The order mandates immediate compliance by all locator enterprises within the specified public economic zones.

Directed and signed by PEZA Director General and Corporate Secretary, evidencing formal administrative action by PEZA Board.
Aligns with regulatory oversight by Commission on Audit (COA) rules where applicable, particularly regarding payment calculations and discounts.

"Good faith deposit" functions as a security for rental obligations.
Distinction between new and existing locators in payment terms addressed to balance financial feasibility and PEZA's regulatory objectives.
Amendments reflect responsive governance to economic realities of smaller enterprises in public economic zones.