MANILA, Philippines — Projects approved by the Board of Investments (BOI) declined 23 percent in the first two months this year as some took time in the evaluation process.
Despite the lower figure, the BOI remains optimistic of investments picking up in the first quarter with key projects up for registration in the pipeline.
In a statement yesterday, the BOI said approved investments reached P101.72 billion as of end-February, down from P131.61 billion in the same period a year ago.
Broken down, approved investments in January reached P97.9 billion, while those approved in February amounted to P3.82 billion.
As the amount of investments declined, the number of projects also decreased to 34 in the two-month period this year from 69 the previous year.
Trade Secretary and BOI chairman Ramon Lopez attributed the drop to a timing issue and said the agency sees investments for the first quarter posting more than 50 percent growth from a year ago.
“Some projects got to be considered in March meetings. Thus, [we are] expecting March to show high growth again,” he said.
BOI managing head Ceferino Rodolfo said there are also key projects in the pipeline, particularly in power, which are still being evaluated by the agency.
“Given the projected investment costs, we are very optimistic of a renewed surge in total approvals in the next months,” Rodolfo said.
A large part of the investments approved as of end-February came from domestic sources, which dropped 30.65 percent to P90.79 billion from P130.91 billion in the same period last year.
Investments from foreign sources, meanwhile, surged 1,456 percent to P10.93 billion in the two-month period from P702.28 million a year ago.
Netherlands was the biggest source of foreign investments for the January to February period with P6.848 billion.
Italy came in second with P250.74 million worth of investments, followed by Japan with P202.14 million.
By sector, those which received the biggest investments in the two-month period are power with P49.42 billion; information and communication with P33.14 billion; manufacturing with P12.93 billion; real estate with P2.15 billion; and human health or hospitals with P1.82 billion.
Among the biggest projects approved for the two-month period are the 603-megawatt wind project of Rizal Wind Energy Corp. amounting to P48 billion; the P33.1-billion broadband infrastructure project of Converge ICT Solutions Inc.’s subsidiary Metroworks Construction Inc.; Solid Cement Corp.’s P12.5 billion project; and the P970 million hospital project of Allied Care Experts in Tacloban City.
In terms of employment, the approved investments as of end-February would provide 4,648 jobs, 42.28 percent lower than the 8,052 jobs in the same period last year.
For full-year 2019, the BOI is holding on to its goal to achieve a new record-high of P1 trillion worth of approved investments.
“We remain optimistic of meeting the P1 trillion target set by our chairman, DTI Secretary Ramon Lopez, for BOI this year. It is a timing issue as we cannot and we do not rush project approvals. The BOI makes sure that every peso of approved investments is qualified and is deserving to be registered,” Rodolfo said.
Investments approved by the BOI hit a fresh peak at P907.2 billion last year, beating the previous all-time high of P617 billion in 2017.