Longer land lease to foreign investors a boon to BCDA

The newly enacted bill liberalizing the lease of private lands to foreign investors will significantly boost economic zones across the country, bolstering their standing as prime investment hubs.

In a statement on Tuesday, the Bases Conversion and Development Authority (BCDA) said this development provides “a major boost to its properties and economic zones.”
In turn, this will strengthen the ecozones’ status as prime investment hubs capable of competing with other Asean (Association of Southeast Asian Nations) economies.

BCDA president and CEO Joshua Bingcang said the new law will level the playing field “by aligning investment policies with other Asean economies.”

“This will help foster stronger investor confidence by providing long-term stability and predictability for foreign investments, and boost the competitive advantage of BCDA-administered properties to attract large-scale investments in several high-value industries,” Bingcang said.

Bingcang also said the impact of the new measure transcends the borders of economic zones.

“Liberalizing lease contracts for foreign investment will translate to thousands of jobs for neighboring communities, stimulate downstream industries and support local businesses—driving inclusive and sustainable growth for all,” he added.

President Marcos last Aug. 29 signed into law Republic Act No. 12252, which amended several provisions of the Investors’ Lease Act to create a more stable environment for foreign investors.

Under the new law, the maximum lease period of private lands is extended to 99 years from 50 years. It also provides for a one-time renewal of up to 25 years.

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It aims to implement a “flexible and dynamic policy” on the long-term leases on private lands for developing industrial estates, factories, agro-industrial ventures, tourism, agriculture, agroforestry and ecological conservation.

Foreign investors are mandated to register their projects under the Foreign Investments Act and the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (Create More) Act.

The newly signed law also required the registration of leases with the local Registry of Deeds and recorded on the property’s title, as well as amended the termination of the lease contract.