Release of IPP to be delayed

MANILA, Philippines - The government expects a delay in the release of the Investment Priorities Plan (IPP) for this year as it is still drawing up the list of sectors qualified for incentives, an official said.

“We might not (be able to release the IPP) in the first quarter. We are still discussing,” Board of Investments (BOI) governor Lucita Reyes told reporters in a chance interview.

BOI managing head Adrian Cristobal Jr. said earlier the agency intends to release this year’s IPP by next month.

Under Executive Order 226 or the Omnibus Investments Code, the BOI is tasked to prepare the IPP which lists specific activities that can qualify for incentives, every year.

Reyes said this year’s IPP will be different from the previous years, for it will be valid for three years but subject to an annual review.

As the government intends to have an IPP with a sharper focus, she said the list of activities enjoying incentives may be trimmed down.

The government will be using stringent criteria and the industry road maps to determine which economic activities will be promoted.

“Incentives may be by sector or project-specific,” she added.

The 2013 IPP being used now lists the following as preferred activities: agriculture or agribusiness and fishery; creative industries or knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital or medical services; and disaster prevention, mitigation and recovery projects.

It likewise has a mandatory list covering activities which must be given perks as provided under existing laws such as industrial tree plantation; exploration, mining, quarrying, and processing of minerals; publication or printing of books or textbooks; refining, storage, marketing and distribution of petroleum products; ecological solid waste management; clean water projects; rehabilitation, self-development and self-reliance of persons with disability; renewable energy; and tourism.

For instance, she said the electric vehicle industry, a new industry, will likely be part of this year’s IPP.