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 Brief
9/2004
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 <denisehuibonhoa@yahoo.com> / Telefax: + 632 810 1625 / Mobile: + 63 918 938 8047).
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Executive 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
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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
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IT enabled services consider several factors in locating in a
particular geography
Availability of Skilled Manpower

Literacy and ability to speak/understand
English

Critical thinking skills

Depth of labor pool
Communication Facilities
 Local and long-distance telephone service
providers
Real Estate Expenses
 Lease costs
 Sale prices
Transportation
 Accessibility
 Vehicle and road systems
Investment Incentives
 Postal/package delivery services
 Availability of redundant telco providers

Tax holidays, credits, refunds
Utilities
Business Costs
 Cost and reliability of power and water
Living Conditions
 Registration costs
 Other fees and dues
 Health
 Leisure
 Education
 Security
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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
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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
Dagupan
In discussions
Cebu
People Support,
Sykes, eTelecare,
Western Wats,
Teradyne, Page
Computers
Baguio
Client
Logic
Dumaguet
e
Epixtar
Clark
Cyber City
AOL
Laguna
Advance Contact
Solutions, All Asia
Customer Service,
Cyber City Teleservices,
AOL Member Services
Davao
In discussions
…Cabanatuan City, located in Nueva Ecija (Central Luzon), presents
itself as an attractive location for IT enabled service providers
Source: IT Matters, Company announcements
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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 4,000.00 sq. m. of contiguous
space that is PEZA approved and highly suited for IT enabled operations
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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
Assessment
• 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)
* Department of Trade and Industry
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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$)
$6.00
$5.35
$5.00
$4.00
$3.87
$3.00
$2.00
$1.00
$0.00
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
Assessment
• 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
Source: Cabanatuan City Planning & Dev’t. Office
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Transport to and from Cabanatuan is primarily land based and is
only a few hours away from other major areas
Clark,
2
Subic, hours
4-5 hours
3-4 hours
Source: Cabanatuan City Planning & Dev’t. Office
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Cabanatuan is home to Central Luzon’s leading universities…
UNIVERSITY
Nueva Ecija University of
Science and Technology
Wesleyan 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
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
…which attracts individuals from other nearby areas, contributing
to the availability of skilled manpower
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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%)
Assessment
College enrollment profile by
course, 2003-2004
criminology
8%
others
8%
nursing
26%
• 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
education
11%
7,352
• management 5,535
computer related
12%
management
20%
engineering
15%
• 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
Desirable
12%
Highly
trainable
22%
Failed
50%
W/ accent but
trainable
16%
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Aside from being an educational hub, Cabanatuan is also the
center for trade and commerce in Nueva Ecija
Establishments
• 3 Private & Public Universities
• 8 Private & Public Colleges
• 49 Public Primary Schools
Central
Business
District
• 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
Universities
Colleges
IT Schools
MAP OF CABANATUAN CITY PROPER
Business Stations
• 78 Medical, Optical, Dental and Skin
Clinics
• 61 drug stores and pharmacies
Source: Cabanatuan City Planning & Dev’t. Office
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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)
Communication Facilities
Telecommunications
Cellular Phone Operators
Package Delivery
Satellite Feed
Multinet
Cable
TV
Source: Cabanatuan City Planning & Dev’t. Office
* Source: National Telecommunications Commission, 2003
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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
• 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
Source: Cabanatuan City Planning & Dev’t. Office
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Cabanatuan City also offers excellent living conditions and
provides a metropolitan lifestyle
Living Conditions
Health:
Leisure/Tourist Areas:
Educational System:
Health facilities are manned by
doctors, majority of whom have
specialized abroad with welltrained staff and personnel
The continuing government support in
the development of tourist potentials in
the city will further improve the
commercial climate in the city
Institutions for learning in Cabanatuan
provide a wide range of educational
opportunities to residents and students from
neighboring municipalities and provinces
• 6 hospitals
• 21 hotels and inns
• 49 elementary schools
• 78 clinics
• Sports facilities, playgrounds, golf
courses
• 5 secondary schools
• 8 colleges
• 3 universities
• 6 vocational and technical schools
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/
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In addition, a stable and business oriented local government is
highly supportive of ICT enabled businesses
CABANATUAN CITY OFFICIALS
NUEVA ECIJA OFFICIALS
Hon. JULIUS CESAR V. VERGARA
Hon. TOMAS N. JOSON III
City Mayor
Governor
Hon. Raul P. Mendoza
Hon. Mariano Cristino N. Joson IV
City Vice Mayor
Vice-Governor
City Councilors
Provincial Representatives
Hon. Mario R. Seeping
Hon. Josefina M. Joson
Hon. Voltaire S. Chua
Hon. Eleuterio R. Violago
Hon. Aurora E. Golpeo
Hon. Aurelio Umali
Hon. Jesus M. Diaz
Hon. Rodolfo W. Antonino
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
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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 4,000.00 sq. m. of
contiguous space that is PEZA approved and highly suited for IT enabled
operations
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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
Megacenter the
Mall is located in
the heart of
Cabanatuan City
Central
Business
District
Universities
Colleges
IT Schools
MAP OF CABANATUAN CITY PROPER
Business Stations
Source: Cabanatuan City Planning & Dev’t. Office
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Megacenter the Mall is a 5-storey commercial complex on a 5.5
hectare property
• 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
Source: Chas Realty
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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 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
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