The Board of Investment (BOI) is considering giving incentives to investors who would do business in Marawi City and other war-afflicted areas.
The BOI intends to do this by registering Marawi and the others as less developed areas (LDAs).
“Listing these areas as LDAs will encourage more investors, both local and foreign, to seriously explore investment opportunities there,” said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo in a statement yesterday.
The BOI said proponents of investment projects in LDAs were entitled to maximum incentives provided under the Omnibus Investments Code including a 100-percent deduction from taxable income of necessary and major infrastructure works.
The investment projects, however, have to be businesses specified under the BOI’s Investment Priorities Plan (IPP), the list of government-preferred investment activities.
In 2016, the BOI Board, through Resolution No. 1902 Series of 2016 and adopted by Memorandum Circular No. 2016-003, approved the inclusion of 134 calamity-stricken cities and municipalities, including those devastated by Super Typhoon “Yolanda,” in the list of LDAs in the 2014-2016 IPP.
The initiative aims to stabilize and fast track the socio-economic rehabilitation and redevelopment in the areas devastated by Yolanda which hit the country in 2013.
The BOI had approved a total of 92 projects worth P141.36 billion in areas affected by the super typhoon from November 2013 to October 2017. These investment projects will create about 12,622 in new jobs at full operations.
About 83 percent of the approved investment projects were power projects and 27 of which were renewable energy, two bunker-fired power plant, one diesel fired power plant, one energy storage and one energy source exploration.
The economy of Marawi, according to BOI, has been largely based on agriculture, particularly rice and corn, and exportation of handicrafts.