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Cabanatuan City as an ICT-enabled services hub for Central Luzon:
Megacenter the Mall Information Brief
9-2004
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Megacenter the Mall Information Brief9/2004
Chas Realty is primarily responsible for this /information packet and its contents. Knowledge Institute’s (KI’s) assistance was limited to assembling the information, which are based solely on the plans, studies conducted by, and any other information furnished by Chas Realty.
Knowledge Institute (KI) did not examine the underlying assumptions used in the information packet and other data included in it and accordingly, KI does not provide any assurance on the accompanying assumptions. The Knowledge Institute is an affiliate of SGV & Co (a member practice of Ernst & Young Global).
All inquiries, requests for clarification and additional information must be directed to Chas Realty and Development Corporation (c/o Denise Huibonhoa <[email protected]> / Telefax: + 632 810 1625 / Mobile: + 63 918 938 8047).
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Executive SummaryExecutive Summary
• IT enabled industries, such as contact centers and business process outsourcing (BPO) companies, continue to be a “sunshine industry” in the Philippines. While Metro Manila has attracted several top global and local operators, these IT enabled companies are beginning to look beyond Metro Manila and into other locations in the Philippines
• The availability of skilled labor, developed infrastructure, more affordable labor costs, and the lower turnover of employees are some of the factors that have attracted operators to locate in northern and southern Philippines
• Central Luzon provides a closer and attractive option for locators looking to expand or to build new businesses. According to the Department of Trade and Industry, Central Luzon is “one of the most dynamic and aggressive regions in the Philippines…It serves as the gateway for European and American enterprises wanting to penetrate Asia”1
• Nueva Ecija is the largest province in Central Luzon and the “food basket” of the area. It is situated within the “W” growth corridor which defines the key growth areas in Central Luzon. It is a first class province based on income classification
• Cabanatuan City is the most populated area in Nueva Ecija with over 220,000 individuals and is home to Central Luzon’s best educational institutions such as the Nueva Ecija University of Science and Technology (NEUST) and Wesleyan University. The presence of a pool of skilled labor, developed telecommunications infrastructure, continuous power supply and security make Cabanatuan an ideal option for IT enabled industries locating in Central Luzon
• Megacenter the Mall (a development of Chas Realty) in Cabanatuan has 4,000.00 sq. m. of existing, contiguous floor space that is PEZA approved and well suited for IT enabled services looking to locate in the city
• IT enabled industries, such as contact centers and business process outsourcing (BPO) companies, continue to be a “sunshine industry” in the Philippines. While Metro Manila has attracted several top global and local operators, these IT enabled companies are beginning to look beyond Metro Manila and into other locations in the Philippines
• The availability of skilled labor, developed infrastructure, more affordable labor costs, and the lower turnover of employees are some of the factors that have attracted operators to locate in northern and southern Philippines
• Central Luzon provides a closer and attractive option for locators looking to expand or to build new businesses. According to the Department of Trade and Industry, Central Luzon is “one of the most dynamic and aggressive regions in the Philippines…It serves as the gateway for European and American enterprises wanting to penetrate Asia”1
• Nueva Ecija is the largest province in Central Luzon and the “food basket” of the area. It is situated within the “W” growth corridor which defines the key growth areas in Central Luzon. It is a first class province based on income classification
• Cabanatuan City is the most populated area in Nueva Ecija with over 220,000 individuals and is home to Central Luzon’s best educational institutions such as the Nueva Ecija University of Science and Technology (NEUST) and Wesleyan University. The presence of a pool of skilled labor, developed telecommunications infrastructure, continuous power supply and security make Cabanatuan an ideal option for IT enabled industries locating in Central Luzon
• Megacenter the Mall (a development of Chas Realty) in Cabanatuan has 4,000.00 sq. m. of existing, contiguous floor space that is PEZA approved and well suited for IT enabled services looking to locate in the city
1 http://www.dti.gov.ph/contentment/9/60/64/476.jsp
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Outline
• IT enabled industries, such as contact centers and BPO providers are locating
outside of Metro Manila
• Cabanatuan, located in Nueva Ecija (Central Luzon), has favorable factors that support
IT enabled industries
• Megacenter the Mall in Cabanatuan City, has available 4,000 sq. m. of contiguous space
that is PEZA approved and highly suited for IT enabled operations
5
IT enabled services consider several factors in locating in a particular geography
Business Costs
Registration costs
Other fees and dues
Real Estate Expenses
Lease costs
Sale prices
Communication Facilities
Local and long-distance telephone service providers
Postal/package delivery services
Availability of redundant telco providers
Utilities
Cost and reliability of power and water
Transportation
Accessibility
Vehicle and road systems
Investment Incentives
Tax holidays, credits, refunds
Living Conditions
Health
Leisure
Education
Security
Availability of Skilled Manpower
Literacy and ability to speak/understand English
Critical thinking skills
Depth of labor pool
6
While Metro Manila (particularly Makati, Pasig and Eastwood) has been very successful in attracting IT enabled industries, operators are beginning to explore areas outside for several reasons
• There is a presence of a skilled labor pool outside of Metro Manila
• Piracy of human resources in Metro Manila is causing an increase in wages, re-training
time and other indirect costs
• Costs outside of Metro Manila are generally lower and provide companies with higher
margins
• Companies may want to put up several sites for redundancy purposes
7
Source: IT Matters, Company announcements
Baguio
Client Client LogicLogic
DagupanIn discussions
Clark
Cyber City Cyber City AOLAOL Laguna
Advance Contact Advance Contact Solutions, All Asia Solutions, All Asia Customer Service, Customer Service,
Cyber City Teleservices, Cyber City Teleservices, AOL Member ServicesAOL Member Services
Dumaguete
EpixtarEpixtar
CebuPeople Support,People Support,
Sykes, eTelecare, Sykes, eTelecare, Western Wats, Western Wats, Teradyne, Page Teradyne, Page
ComputersComputers
DavaoIn discussions
Several alternatives/complimentary sites to Metro Manila have emerged. Companies have announced their plans to set up in other areas and…
Selected Operators Outside of Metro Manila
…Cabanatuan City, located in Nueva Ecija (Central Luzon), presents itself as an attractive location for IT enabled service providers
8
Outline
• IT enabled industries, such as contact centers and BPO providers are locating outside of
Metro Manila
• Cabanatuan, located in Nueva Ecija (Central Luzon), has favorable factors that
support IT enabled industries
• Megacenter the Mall in Cabanatuan City, has available 4,000.00 sq. m. of contiguous
space that is PEZA approved and highly suited for IT enabled operations
9
Nueva Ecija, the largest province and the “food basket” of Central Luzon, is situated within the “W” Growth Corridor* which defines the key growth areas
* Department of Trade and Industry
AssessmentAssessment
• Central Luzon provides a closer and attractive option for locators looking to expand or to build new businesses. Central Luzon is “one of the most dynamic and aggressive regions in the Philippines…It serves as the gateway for European and American enterprises wanting to penetrate Asia.”*
• Nueva Ecija is a first class province based on income classification with a labor force of over 650,000 individuals (out of 1.6 million inhabitants)
• Central Luzon provides a closer and attractive option for locators looking to expand or to build new businesses. Central Luzon is “one of the most dynamic and aggressive regions in the Philippines…It serves as the gateway for European and American enterprises wanting to penetrate Asia.”*
• Nueva Ecija is a first class province based on income classification with a labor force of over 650,000 individuals (out of 1.6 million inhabitants)
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Aside from having a large population, literacy rates are comparable with Metro Manila while having lower manpower costs
Labor Force
Lower manpower costs – approximately 13% lower than Metro Manila
Minimum daily wages (in US$)
$3.87
$5.35
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Nueva Ecija Metro Manila
Source: Department of Trade and Industry
* Source: Nueva Ecija website, NSO
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Located in the heart of the Province of Nueva Ecija, Cabanatuan City is approximately 117 kilometers north of Metro Manila
Source: Cabanatuan City Planning & Dev’t. Office
AssessmentAssessment
• Cabanatuan has a land area of 282.75 square kilometers and is the most populated city in Nueva Ecija with more than 220,000 inhabitants
• It is the 35th most populous city in the Philippines (out of 114)
• It is home to Central Luzon’s best educational institutions
• The presence of a pool of skilled labor, developed telecommunications infrastructure, continuous power supply and security make Cabanatuan an ideal option for IT enabled industries locating in Central Luzon
• Cabanatuan has a land area of 282.75 square kilometers and is the most populated city in Nueva Ecija with more than 220,000 inhabitants
• It is the 35th most populous city in the Philippines (out of 114)
• It is home to Central Luzon’s best educational institutions
• The presence of a pool of skilled labor, developed telecommunications infrastructure, continuous power supply and security make Cabanatuan an ideal option for IT enabled industries locating in Central Luzon
12
Transport to and from Cabanatuan is primarily land based and is only a few hours away from other major areas
Source: Cabanatuan City Planning & Dev’t. Office
3-4 hours
Clark, 2 hoursSubic,
4-5 hours
13
Cabanatuan is home to Central Luzon’s leading universities…
…which attracts individuals from other nearby areas, contributing to the availability of skilled manpower
UNIVERSITY COMMENT
NEUST has became a symbol of higher learning toward the advancement of vocational and technological education in Central Luzon. Has an average enrollment of over 8,000 students in all academic levels. As a reputable State University, NEUST qualifications are accepted world-wide, including the United States, United Kingdom, Australia, Hong Kong and many other countries for employment in the public and private sector. Has over 3,000 students in management and IT related courses and over 2,000 students in engineering related courses
Nueva Ecija University of Science and Technology
Wesleyan University
Wesleyan University-Philippines has an average enrollment of 6,700 students in all academic levels, employs nearly 500 faculty and staff members, and boasts of some of the best school facilities one can find north of Metro Manila. Over 3,000 students are in the College of Nursing
Source: University websites, university registrar
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Out of the over 28,132 students enrolled in the Cabanatuan-based colleges, a large number are majoring in nursing (26%) or management (20%)
nursing26%
management20%
computer related12%
education11%
criminology8%
others8%
engineering15%
College enrollment profile by course, 2003-2004
AssessmentAssessment
• NEUST, Wesleyan, and Araullo Universities account for 77% of college enrollment. The total graduates of the 3 universities for 2003 was 4,904
• Enrollment breakdown for all:
• nursing 7,352
• management 5,535
• engineering 4,198
• IT related 3,465
• education 3,183
• criminology 2,273
• others 2,126
• NEUST, Wesleyan, and Araullo Universities account for 77% of college enrollment. The total graduates of the 3 universities for 2003 was 4,904
• Enrollment breakdown for all:
• nursing 7,352
• management 5,535
• engineering 4,198
• IT related 3,465
• education 3,183
• criminology 2,273
• others 2,126
Source: University registrars
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CABANATUAN JOB FAIR ENGLISH EVALUATION CHART
Failed50%
W/ accent but trainable
16%
Highly trainable
22%
Desirable12%
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Central Busines
s District
EstablishmentsEstablishments
• 3 Private & Public Universities
• 8 Private & Public Colleges
• 49 Public Primary Schools
• 5 Public Secondary Schools
• 6 Vocational Schools
• 37 Major and Local Banks
• 69 Financing & Lending Investors
• 2,704 Registered Business Establishments
• 6 Private & Public Hospitals
• 78 Medical, Optical, Dental and Skin Clinics
• 61 drug stores and pharmacies
• 3 Private & Public Universities
• 8 Private & Public Colleges
• 49 Public Primary Schools
• 5 Public Secondary Schools
• 6 Vocational Schools
• 37 Major and Local Banks
• 69 Financing & Lending Investors
• 2,704 Registered Business Establishments
• 6 Private & Public Hospitals
• 78 Medical, Optical, Dental and Skin Clinics
• 61 drug stores and pharmacies
Source: Cabanatuan City Planning & Dev’t. Office
MAP OF CABANATUAN CITY PROPER
Universities
Colleges
IT Schools
Business Stations
Aside from being an educational hub, Cabanatuan is also the center for trade and commerce in Nueva Ecija
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Telecommunications infrastructure is developed: fiber optic cables and high speed broadband connections are available. Central Luzon, outside of the National Capital Region (NCR), has the 2nd highest telephone density* (out of 15 regions)
Source: Cabanatuan City Planning & Dev’t. Office* Source: National Telecommunications Commission, 2003
Communication Facilities
TelecommunicationsTelecommunications
Cellular Phone OperatorsCellular Phone Operators
Package DeliveryPackage Delivery
Satellite FeedSatellite Feed
Multinet Cable
TV
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Source: Cabanatuan City Planning & Dev’t. Office
• Cabanatuan City Electric Corporation (CELCOR), a private franchise power firm, is the franchise holder for the operation and provision of electric service in the city. Its source of power comes from its own Bitas Power Plant with ample support from the National Power Corporation
• Nueva Ecija is the location of the largest hydro-electric dam in the country, the Pantabangan Dam (100 MW), which provides ample supply of power, irrigation and potable water to all the towns of the province
• The Cabanatuan City Water District (CCWD) sources water from 15 deep wells within the distribution system. There are presently about 108 kms of distribution piping ranging in size from 50mm to 300mm. This water system has a total of 14 pump houses with a capacity of 800,000 cu.m. per month
There is a stable and reliable supply of power. Power rates in Nueva Ecija are lower by 15% as compared to the NCR
Power and Water
19
Source: Cabanatuan City Planning & Dev’t. Office, Sta Lucia Realty Web Page http://staluciarealty.com/project-LakewdCity.htm, LPHI Web Page http://www.lphi.com.ph/
Living Conditions
Health:Health:
Health facilities are manned by doctors, majority of whom have specialized abroad with well-trained staff and personnel
• 6 hospitals
• 78 clinics
Leisure/Tourist AreasLeisure/Tourist Areas:
The continuing government support in the development of tourist potentials in the city will further improve the commercial climate in the city
• 21 hotels and inns
• Sports facilities, playgrounds, golf courses
Educational System:Educational System:
Institutions for learning in Cabanatuan provide a wide range of educational opportunities to residents and students from neighboring municipalities and provinces
• 49 elementary schools
• 5 secondary schools
• 8 colleges
• 3 universities
• 6 vocational and technical schools
Cabanatuan City also offers excellent living conditions and provides a metropolitan lifestyle
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CABANATUAN CITY OFFICIALS
Hon. JULIUS CESAR V. VERGARA
City Mayor
Hon. Raul P. Mendoza
City Vice Mayor
City Councilors
Hon. Mario R. Seeping
Hon. Voltaire S. Chua
Hon. Aurora E. Golpeo
Hon. Jesus M. Diaz
Hon. Laverene S. Manangbao
Hon. Raqueliza A. Agapito
Hon. Ruben A. Ilagan III
Hon. Ramon S. Garcia
Hon. Angelito G. Saclolo
Hon. Augusto Santiago
Hon. Maricel Garcia
NUEVA ECIJA OFFICIALS
Hon. TOMAS N. JOSON III
Governor
Hon. Mariano Cristino N. Joson IV
Vice-Governor
Provincial Representatives
Hon. Josefina M. Joson
Hon. Eleuterio R. Violago
Hon. Aurelio Umali
Hon. Rodolfo W. Antonino
In addition, a stable and business oriented local government is highly supportive of ICT enabled businesses
21
Outline
• IT enabled industries, such as contact centers and BPO providers are locating outside of
Metro Manila
• Cabanatuan, located in Nueva Ecija (Central Luzon), has favorable factors that support
IT enabled industries
• Megacenter the Mall in Cabanatuan City, has available 4,000.00 sq. m. of
contiguous space that is PEZA approved and highly suited for IT enabled
operations
22
Central Busines
s District
Source: Cabanatuan City Planning & Dev’t. Office
MAP OF CABANATUAN CITY PROPER
Universities
Colleges
IT Schools
Business Stations
Megacenter the Mall is located in
the heart of Cabanatuan City
Megacenter the Mall is located in the heart of Cabanatuan City, 5-10 minutes away from all the major universities and is easily accessible by various means of transport at any time of the day
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Megacenter the Mall is a 5-storey commercial complex on a 5.5 hectare property
Source: Chas Realty
• Megacenter the Mall boasts dynamic, ultra-modern facilities for the ultimate shopping, dining and entertainment experience. In operation since 1998.
• Megacenter the Mall’s emphasis is on the shoppers’ convenience and freedom of circulation coupled with maximum visibility and exposure to the mall’s retail tenants (nearly 400 stores, boutiques and kiosks).
AMENITIES INCLUDE
• 500 free parking slots
• Shuttle service from Megacenter the Mall to Cabanatuan Central Terminal (available until 8PM)
• Tricycle & jeepney rides (available 24 hours)
FEATURES:
• Poulex, Cabanatuan’s most modern department store & supermarket
• A 20-outlet, 1000-seat food court
• 4 theaters with DTS & Dolby Digital Sound
• A family amusement center
• 8 escalators, 2 passenger and 2 freight elevators
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The 5th level offers a 4,000.00 sq. m. space that is PEZA approved and ideal for locating an IT enabled operation
The area offersThe area offers:
• Contiguous and level floor area for easy monitoring of workers / agents
• An attractive space that is secure
• Entertainment, shopping and food areas within easy reach
• Substation generators rated at 1750kw at 460 Volts and 120kw at 230 volts can run for 24 hours at 70% tolerable load
• Mall's telecommunication facilities provided by PLDT and DIGITEL
• Air conditioning system of the mall is provided through four units of water cooled chillers at 375 TR each. All equipment is 100% operational