The Cagayan Economic Zone Authority (CEZA) and Sinosun Subic Bay Holdings Corp. signed an agreement on Thursday to develop the Cagayan Special Economic Zone and Free Port (CSEZFP), where a “financial technology (fintech) city” is expected to be established with the help of a Chinese company.
Under the memorandum of understanding signed at CEZA headquarters in Pasig City, Sinosun will commission a feasibility study on infrastructural and economic development to attract future investments in the economic zone.
This study shall include, but not be limited to, power generation; railway links; road networks; port expansion and redevelopment; hotels and resorts; and other industrial, agricultural and tourism-related developments.
Sinosun will also study establishing the fintech city that will cater to fintech establishments, including a blockchain center, cryptocurrency mining farm, fintech start-up incubators and cryptocurrency exchange.
Sinosun and its Chinese partner China Energy Construction plan to put up a 20-megawatt power plant in Sta. Ana town, Cagayan province, this year, because Sinosun Chairman Samuel Lim said “cryptocurrency farming needs a lot of electricity.”
China Energy is still finalizing the cost of the plant, he added, assuring that it would be revealed soon.
The blockchain center will be built beside the plant and will handle the cryptocurrency farming, according to Lim.
Sinosun will start with at least 50,000 cryptocurrency mining machines, he said.
“[Construction of] the power plant will take about eight months, while the [cryptocurrency] mining farm will take a while, as machines will [have to] be imported. If you order 10,000 mining machines, it will take four months [for them] to arrive,” he added.
For his part, CEZA Administrator and CEO Raul Lambino said the economic zone envisions a fully developed CSEZP and a vibrant hub of diverse abd sustainable industries.
“Cagayan already has natural beauty that is hard to resist. What we need to show is that the free port can be an investment jewel in Southeast and East Asia,” Lambino said.
CEZA is a government-owned and -controlled corporation created by virtue of Republic Act 7922. It is tasked to manage and supervise the CSEZFP’s development.