MANILA, Philippines — Enrique Razon-led Primelectric Holdings Inc. is moving to explore a potentially major expansion into Philippine economic zones, partnering with the Philippine Economic Zone Authority (PEZA) to study the development of dedicated electricity distribution systems for selected industrial and business hubs.
The initiative could reshape how future PEZA ecozones prepare for investors, with reliable power infrastructure being considered even before companies commit to setting up factories, facilities or other high-value operations.
PEZA and Primelectric Holdings Inc. signed a memorandum of understanding on September 1 to explore the feasibility of establishing localized electricity distribution networks within selected economic zones. Under the agreement, PEZA will identify priority locations for assessment, while Primelectric will study the technical, commercial and operational viability of providing power distribution services.
Power reliability becomes an investment issue
For PEZA Director General Tereso Panga, the issue goes far beyond keeping the lights on.
“Energy reliability is no longer just a utility concern — it is an investment concern,” Panga said, stressing that investors increasingly look at the availability and reliability of electricity when deciding where to locate their operations.
The proposed partnership aims to address that concern early, particularly in new industrial estates and ecozones that are still under development.
The goal is straightforward: by the time an investor is ready to commit to a PEZA location, electricity infrastructure should no longer be one of the biggest unanswered questions.
If feasibility studies produce positive results, selected economic zones could eventually operate dedicated distribution systems designed around the specific needs of their locators, including manufacturers, exporters and potentially energy-intensive industries.
Why Razon’s Primelectric?
Primelectric is bringing to the partnership its existing experience in electricity distribution through its portfolio of utilities, including MORE Electric and Power Corp., Negros Electric and Power Corp., and Bohol Light Co. Inc.
The agreement, however, does not automatically mean Primelectric will immediately build and operate power networks in all PEZA zones.
The current arrangement is primarily exploratory. PEZA will first identify priority ecozones, while Primelectric will conduct feasibility and operational assessments. Any actual projects would still depend on the results of those studies and the necessary approvals and definitive agreements.
That distinction is important as the proposal could eventually open opportunities for purpose-built distribution infrastructure in carefully selected zones rather than a blanket rollout nationwide.
PEZA ramps up push for future-ready ecozones
The Primelectric initiative is part of PEZA’s broader strategy to make Philippine economic zones more competitive by improving critical infrastructure.
PEZA has been aggressively pushing ecozone expansion and infrastructure development as part of its investment strategy. In March, the agency said ecozone development had emerged as a major growth driver, accounting for 33.18% of cumulative top ecozone locator and developer investments from 1995 to 2025.
The government has also continued expanding the country’s special economic zone network. In July, President Ferdinand Marcos Jr. issued proclamations expanding existing ecozones in Cavite and Batangas and creating a new information technology park in Negros Oriental.
That expansion makes dependable infrastructure—including electricity—an increasingly critical part of the country’s competition for foreign and domestic investments.
Primelectric is not PEZA’s first major power partner
The latest agreement also follows PEZA’s earlier partnership with Meralco.
In December 2025, PEZA and Meralco signed a strategic partnership that could allow Meralco to design, build, own and operate power distribution projects within PEZA-managed ecozones, subject to permits, approvals and definitive agreements.
PEZA said that partnership was intended to support reliable and future-ready infrastructure for advanced manufacturing, data centers, logistics hubs and other high-value industries.
The new Primelectric agreement signals that PEZA is widening its search for power solutions as it develops more economic zones across the Philippines.
Why reliable power matters for investors
The availability of electricity is not just a business convenience for economic zones—it is built into the country’s framework for developing special economic zones.
Under the Special Economic Zone Act and its implementing rules, the availability of electric power supply is among the key infrastructure considerations for ecozone development. PEZA is also empowered to regulate and undertake utilities and infrastructure, including power systems, within economic zones.
PEZA has also publicly emphasized the need for greater energy security inside business enclaves, particularly as the Philippines seeks investments in industries that require stable and substantial electricity supply.
This could become even more important as the country targets advanced manufacturing, logistics and data center investments. A recent report also highlighted growing opportunities for Philippine ecozones as global AI-driven data center demand collides with land and power constraints in more established markets.
Could dedicated power networks become a new selling point?
The potential payoff for PEZA could be significant.
Instead of waiting for power infrastructure concerns to emerge after investors arrive, economic zones could potentially be designed with electricity distribution systems planned around expected industrial demand from the beginning.
For manufacturers and exporters, better reliability could help reduce operational risks. For PEZA, it could strengthen its pitch to investors deciding between the Philippines and competing locations across Asia.
But major questions remain.
Which ecozones will PEZA prioritize? How much investment will be required? What regulatory approvals will be needed? And most importantly, will dedicated distribution networks result in more reliable and competitive electricity for locators?
For now, Primelectric and PEZA are still at the study stage.
But the message from the latest agreement is becoming increasingly clear: in the race to attract the next wave of investments, power infrastructure may become just as important as tax incentives, land availability and location.
And if the feasibility studies move forward, Razon’s Primelectric could soon become a much bigger player in the infrastructure powering the Philippines’ economic zones.
The bigger question now: Which PEZA ecozones will get priority—and could reliable, dedicated power become the next major advantage that finally convinces global investors to choose the Philippines?
WWC ONE MEDIA J.M.S
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