$366M ready for investment in Mindanao
HOLDING ON TOGETHER A business forum on the Bangsamoro Basic Law at Dusit Thani Hotel in Makati City brings together Economic Cluster of the National Peace Summit head Jaime Augusto Zobel Ayala II, Moro Islamic Liberation Front chief peace negotiator Mohagher Iqbal and Philippine Business for Social Progress chair Manuel V. Pangilinan. RICHARD A. REYES
The private sector is ready to invest $366 million (P16.3 billion) to develop conflict areas in Mindanao despite delays in the passage of the Bangsamoro Basic Law, or BBL.
The amount, to be backed by the World Bank and the Japan International Cooperation Agency (Jica), was announced during a briefing on the sidelines of the Bangsamoro Business Forum organized by the Philippine Business for Social Progress and the World Bank.
The event, which focused on investment opportunities, drew more than 80 participants from the government and the private sector, including Philippine Long Distance Telephone Co. chair Manuel V. Pangilinan and Ayala Corp. chair and CEO Jaime Augusto Zobel de Ayala.
“What we have are hard commitments from a number of companies that will total up to about [$366 million] in investments. That will be in bananas, pineapples, coffee and cacao,” said John Perrine, chair of Unifrutti Group Philippines.
“There are some fears that no one will go, no one will invest. These are people who are ready to invest today, without waiting any longer as soon as the funds are available,” Perrine said.
Motoo Konishi, World Bank country director, told reporters they were committing with Jica at least $250 million in financing to support the private sector.
“There were 40 development partners also present—that show support for the BBL, as well as the peace process [and] the whole discussion on how to get investments in Bangsamoro,” Konishi said.
Perrine noted that the investments, which he described as an initial figure, would create around 22,000 jobs across 18,000 hectares of land. Filipino companies like San Miguel Corp. earlier expressed interest to invest in conflict areas in Mindanao.
The amount would bring fresh development to the area, even without the passage of the BBL, Perrine said.
The law has suffered delays due to questions over its constitutionality and the Jan. 25 clash with Moro rebels in Maguindanao that led to the “massacre” of 44 Special Action Force commandos.
“We have 12,000 combatants with the MILF [Moro Islamic Liberation Front] and other armed groups. The biggest problem is lack of jobs and livelihood. This is something that will provide for them directly,” Perrine said.
Also being evaluated are infrastructure projects to facilitate the flow of investments to the Bangsamoro, Richard Bolt, Asian Development Bank country director, said.
He cited the Western Mindanao Road Project, which will cover about 500 kilometers of road rehabilitation and upgrades. Bolt said other projects were being evaluated, adding the need was “massive.”
