Power projects drive up 9-month investment pledges

The Board of Investments on Wednesday said it had approved P309.7 billion worth of investments from January to September this year, up by 25 percent from P248.2 billion a year ago.

The BOI’s investment registration performance was boosted by big power projects led by the P41.23-billion, 600 megawatt plant of GNPower Ltd. Co. in Mariveles, Bataan.

Of the total, local investors accounted for P258.7 billion in investments, a 12-percent increase from last year’s P230.5 billion. Foreign investors have pledged P51 billion, up by 185 percent from the P17.9 billion approved in the same period last year.

The United States topped the list of foreign investment sources, accounting for P41.7 billion, or 82 percent of the total foreign investment projects approved during the period. American firm GNPower’s P41.23-billion power project was the biggest project registered during the period.

South Korea contributed P2.26 billion, primarily from its P803 million capital in Mirae Asia Energy Corp.’s (MAEC) solar project in Ilocos Norte and the P284 million infusion in Daesang Ricor Corp.’s glucose syrup project in Cagayan de Oro City.

Australia invested P1.79 billion, mostly from Mindanao Mineral Processing and Refining Corp., which plans to invest P1.78 billion as an expanding export producer of gold bullion with other metal contents in its plant in Agusan del Sur.

The Netherlands committed P1.33 billion in investments through Philnewenergy Inc.’s solar power project in Davao del Sur.

Singapore contributed P492.1 million.

Another major energy project registered was the locally owned 400-MW coal plant of Pagbilao Energy Corp. worth P39.9 billion, followed by the P31.9-billion 405 MW coal plant of FDC Misamis Power Corp., another Filipino-owned company.

Joining the list are the coal-fired power project of San Miguel Consolidated Power Corp. in Malita, Davao del Sur (300 MW), worth P25.84 billion and SMC Consolidated Power Corp.’s coal-fired power plant  in Limay, Bataan (300 MW), worth P25.51 billion.

Both San Miguel Consolidated Power Corp. and the SMC Consolidated Power Corp. are 100-percent Filipino-owned and are controlled by one of the country’s biggest conglomerates, San Miguel Corp.

Trade Undersecretary and BOI managing head Adrian S. Cristobal Jr. said in a statement the said power projects were important in supporting the country’s rising power requirements.

The electricity, gas, steam and air-conditioning supply sector (e.g., power generating plants, renewable energy projects) got the largest share of investment commitments by sector at P250.69 billion, or 80 percent; followed by real estate activities, specifically the mass housing sub-sector, with P34.1 billion, or 11 percent share.