BOI project approvals up 27.7% to P304 B

MANILA, Philippines — Investments for projects registered with the Board of Investments (BOI) grew 27.7 percent in the first semester from a year ago with the power and manufacturing sectors getting the biggest share of total investments. 

With more projects expected to be registered, the BOI remains confident the P1-trillion target for approved investments would be achieved this year. 

Trade Secretary and BOI chairman Ramon Lopez told reporters yesterday investments approved by the agency reached P304.4 billion in the January to June period, up from P238 billion in the same period last year. 

Power projects accounted for bulk of the total approved investments as of end-June with P192.4 billion, rising 77.8 percent from the previous year’s P108.2 billion. 

Manufacturing took the second spot with investments amounting to P45.3 billion which surged 128.7 percent from P19.8 billion a year ago.  

Other sectors with notable investments are information and communication which grew 9,680 percent to P33.2 billion in the first half from just P340 million last year, and tourism accommodation  which jumped 617 percent to P8.6 billion in the first semester from the previous year’s P1.2 billion.

Among the latest projects approved by the BOI are the 19.7-megawatt (MW) hydropower project of Citicore Power Inc. unit Rio Norte Hydropower Corp. in Isabela with P4 billion worth of investments; the acquisition of new Airbus planes by Cebu Pacific operator Cebu Air Inc. worth P4.7 billion; and the 15-MW thermal power plant of DMCI Masbate Power Corp. valued at P2.3 billion.

By source of investment, those coming from domestic firms went up five percent to P235 billion in the January to June period from P224 billion a year ago. 

Investments from foreign sources, meanwhile, posted a 392 percent growth to P69 billion as of end-June from P14 billion in the same period last year. 

Among foreign sources of investments, Singapore continued to have the largest share with P35.4 billion as of end-June. 

Netherlands came in second with P9.2 billion, followed by Thailand in third spot with P8.5 billion. 

Japan, which accounted for P5.8 billion worth of investments, placed fourth, followed by the US of fifth place with P2.4 billion. 

In terms of project locations, Region IVA or Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) remained the preferred investment destination with P201.2 billion worth of investments. 

On the second spot was Region III or Central Luzon with P27.7 billion, followed by the National Capital Region at third place with P11.3 billion. 

The two others in the top five are Region II or Cagayan Valley with P8.7 billion and Region VII or Central Visayas with P7.7 billion. 

While the latest tally of approved investments is just 30 percent of the P1-trillion target this year, Lopez said the agency is sticking with the goal.

“There are a lot of infrastructure projects in the pipeline. That is why we are still looking at P1 trillion investment target,” he said. 

Apart from infrastructure, Trade Undersecretary and BOI managing head Ceferino Rodolfo said there are also projects expected in the power sector, as well as in modernization of transport. 

“There are big-ticket projects in the pipeline, but we are exercising – as we do in all cases – prudence in diligently assessing their eligibility for incentives,” he said. 

Lopez said he is also set to visit China by the end of the month to meet with up to three Chinese companies planning to make investments in manufacturing projects in the country.