BOI-approved investment pledges declined by 52% in Q1 to P47B

MANILA, Philippines—Investment pledges approved by the Board of Investments slumped by 52 percent to P47 billion in the first quarter of the year from the P97.19 billion registered in the same quarter in 2013.

The decline was due to the approval of the P62.86-billion coal-fired power project of Redondo Peninsula Energy Inc. in the first quarter last year.

No investment of the same magnitude was approved in the first quarter of 2014.

Trade Undersecretary Adrian S. Cristobal Jr. reported that mass housing projects accounted for 38 percent of investment commitments during the quarter at P17.96 billion, followed by the construction sector with P11.05 billion (24 percent).

The electricity, gas, steam and air conditioning supply sector (e.g., power generating plants, renewable energy projects) contributed 23 percent of the investments with P10.55 billion; transportation and storage with P4.47 billion (10 percent share); while investments in the manufacturing sector stood at P2.09 billion (4 percent) in the first quarter.

Among the biggest projects approved for the quarter include those of Citicore Megawide Consortium Inc. (P8.5 billion); SM Development Corp. (P5.9 billion); Prime Meridian Powergen Corp. (P5.57 billion); Cebu Air Inc. (P3.9 billion); Agusan Power Corp. (P3.66 billion); and Bright Future Educational Facilities Inc. (P2.5 billion).

According to Cristobal, the majority of the investments approved—or about 90 percent (valued at P42.08 billion)—came from domestic sources, while the remaining 10 percent (P4.69 billion) are from foreign sources.

In terms of domestic investments, the National Capital Region attracted the most investments with P19.86 billion in investments, followed by Region 4 with P8.32 billion; Region 13 with P3.66 billion; Region 8 with  P1.36 billion; Region 3  with P0.78 billion.

Topping the list of foreign country sources was the United Kingdom with investments amounting to P1.46 billion, for a 31-percent share of total foreign investments during the quarter.

Investments from Japan amounted to P874.78 million (19 percent); the Netherlands contributed P492.50 million (10 percent); Thailand, P237.28 million (5 percent); and Taiwan, P16.08 million (0.34 percent).

According to Cristobal, the BOI-approved projects in the first quarter are expected to generate a total of 11,636 jobs should these push through.

“The steady progress of the government’s policy reform program and industry development initiatives provide a favorable environment for meaningful investments in sectors that directly impact on increasing employment opportunities,” he explained.

The Industry Development Program (IDP), launched in January 2012 by the Department of Trade and Industry, encouraged strategic partnerships with industry stakeholders to develop sectoral road maps containing the industry’s vision, goals/targets, and strategies for the short, medium, and long term growth of their industries.

“The industry road map project reflects the actual needs of industry as seen through the more than 27 industry road maps completed last year. These include investment gaps and more importantly, the need to revive the manufacturing industry, with its high impact on jobs generation,” Cristobal added.