Philippine Business Magazine: Volume 9 No. 4 - Geographics
Strategist
San Fernando City exemplifies best practices in local governance and enhancing business opportunities
By Jose B. Cortez

San Fernando City in the province of La Union has always been associated with beach resorts and native delicacies, such as rice cakes and dried and salted fish. But beyond the delicacies, beyond the natural beauty of the place is a dynamic city, aggressively pushing for both economic and environmental development.

San Fernando City for sometime now has been one of the centers of trade and commerce in the area. It hosts a small airport and a commercial sea port, along with numerous business establishments to rival those found in any developed metropolis.
The city, all of its 105 square kilometers, is nestled on a land rich in natural resources. Thus, amidst its green fields of rice, corn, and tobacco, and numerous fishing and farming areas, the biggest manufacturing companies and a special economic zone have found their niche in San Fernando.

More than 125 kilometers of paved road traverse San Fernando, conveying travelers and commuters within the city and outside major points such as the airport in Brgy. Canaoay (about three kilometers from the main thoroughfare) and to the two seaports, and two timber piers along the city’s outskirts.

Strategy Implementor
San Fernando belongs to the first generation of City Development Strategy (CDS) imple-mentors. The strategy focuses on a city’s livability, competitiveness, bank-ability, and good governance. Together with six other cities — Dapitan, Dipolog, Lapu-Lapu, Olongapo, Roxas, and Sagay – San Fernando serves as a knowledge resource for other cities for best practices in local governance and in enhancing business opportunities in urban areas.

The city is home to numerous industries. Aside from farming and fishing, large manufacturing companies such as Coca Cola, Union Galva Steel, and Soiltech Agricultural Products, have established operations in the area, as well as most of the commercial banks.

The Poro Point Special Economic Zone, under the Bases Conversion Development Authority, is seen as a “sleeping giant.” It is expected to further boost the economic thrust of San Fernando once the area is fully developed.

The indicators of a fast emerging urban zone are seen in San Fernando: from modest skyscrapers, to adequate electricity and water supply, to an enviable telephone density and cable television servicing a population of more than 100,000. Major telephone operators such as PLDT, Digitel, and Smart are all plying their trade in San Fernando.

The employment rate in San Fernando stands at a respectable 92.8%, one of the highest in all of the major cities in the Philippines. These workers generated the bulk of the P251 million worth of revenues collected in the year 2000 alone. With this in mind, city leaders have implemented a notable tax and business scheme aimed at making tax collection more efficient and the establishment of new businesses easier for potential investors. City leaders are proud to report that the city government has taken a proactive stance on tax collection, registering high tax collection rates compared with other cities in the country.

Becoming an Eco-city
While San Fernando is currently enjoying an economic boom, the city wants to streamline its unhindered march towards progress via a number of development and environmental programs. In sustaining its commercial viability, it also aims to balance this by addressing the needs of its fragile ecology. Mayor Mary Jane Ortega says, “Our vision is to make San Fernando the Botanical Garden City of the North as a symbol of our commitment to the environment.” She also reiterates her administration’s resolve to implement programs such as solid waste management, clean air protection, and coastal resources management, among many others.

Mayor Ortega hopes to protect San Fernando’s natural resources, and, in the process, turn the city into a model urban center for others in the region to emulate. She wishes to address the traffic congestion that developing cities usually encounter in its quest for progress. “We have banking centers and trade centers. We have very good communications infrastructure but we still don’t have a commercial airport. The only way to access us is by land. Unfortunately, during peak seasons, traffic usually builds up,” she laments, adding that an airport with regular flights to and from the city will alleviate the situation.

Mayor Ortega shares that San Fernando is also looking at becoming a major player in the information technology industry. “One of our major focus is on services. We have several computer schools here, so we are churning out a lot of computer course graduates hoping we could harness this and make San Fernando an IT capital in the Ilocos Region.”