UP, Ayala Land agree to build science and technology park

REPORT FROM BUSINESSWORLD After three years of talks, the University of the Philippines (UP) has finally approved Ayala Land, Inc.’s bid to convert a 37.5-hectare idle property owned by the school Quezon City into a science and technology (S&T) Park. The development, to be named the North S&T Park, this will rise on the 98-hectare UP-Diliman property along Commonwealth Avenue. Ayala Land is set to start the construction of a 20,000-square meter facility late this year. "We are still flexible on the total number of buildings for the site but we expect around 10 office buildings only for the 37.5-hectare site since it will be a campus development with lots of greens and open spaces," said Ma. Victoria E. Añonuevo, vice-president for the firm’s corporate business group. The exact investment for the first building was not disclosed. Tenants for the first building will include companies in information technology (IT) software development and business process outsourcing, Ms. Añonuevo said. Some of the tenants will be companies from the nearby five-hectare Technology Business Incubator (TBI) site looking at expanding. The incubation site is a joint project between UP and the Ayala Foundation Inc. Ruperto P. Alonzo, UP vice-president, said they are only awaiting a presidential declaration completing the property’s registration with the Philippine Economic Zone Authority (PEZA). This will allow future locators to enjoy incentives such as income tax holiday and exemption from value-added tax. The PEZA Board last year approved IT economic zone status for 26 hectares of land at the UP-Diliman campus. About five hectares was earmarked for the UP and Ayala Foundation incubation pro-ject while the remaining 21 hectares are portions at the North S&T Park. "We really hope to fast track its implementation because we expect the university to really benefit from the proposed project," Mr. Alonzo said. For one, faculty retention will be assured and private sector and academe collaboration will flourish, particularly in information technology and biotechnology. Over the past years, a number of UP faculty members given up teaching jobs because most of the companies they were working for are located in S&T parks in provinces south of Metro Manila like Laguna, Cavite and Batangas. And unlike the existing UP-Ayala incubation project which caters purely to start-ups, Mr. Alonzo said the North S&T Park is envisioned to attract full-blown commercial companies. "This will be something similar to Eastwood City in Libis and will also include developments similar to Silicon Valley and those S&T parks in China and Korea." -- Maricel E. Estavillo/BusinessWorld