BOI-approved investments up 12 pct
MANILA, Philippines - Total investments approved by the Board of Investments (BOI) rose 12 percent this year compared to a year ago on the back of the country’s improving economic conditions.
BOI managing head Adrian Cristobal, Jr. told reporters yesterday total investments approved by the agency reached P403.17 billion for the year, up from the P360.35 billion in 2012.
“The investments were for a total of 281 projects which is expected to generate 37,885 jobs once at full operations,” he said.
The bulk or 74 percent of the investment pledges amounting to P298.24 billion, came from domestic firms, posting a growth of 0.4 percent from last year’s P286.3 billion.
Foreign investment pledges, which accounted for the remaining 26 percent, reached P104.93 billion, 42 percent higher compared to the previous year’s P74 billion.
Topping the list of foreign country sources for investments is the British Virgin Islands which had a 44 percent share amounting to P45.80 billion.
A large part of these investment pledges came from the Energy City Philippines Holdings, Inc. which will operate a liquefied natural gas storage facility in Bataan, with pledged investments worth P45.65 billion.
The United States came in second with investments amounting to P41.76 billion or 40 percent of the total investment approvals from foreign sources during the period, while the Netherlands placed third with P5.98 billion or a six percent share.
South Korea and Australia placed fourth and fifth with its P2.26 billion and P1.82 billion worth of investments, respectively.
Cristobal said a large part of the approved investments by the BOI were for power projects.
Aside from Energy City Philippines, among the firms with big investment commitments for power projects are American-owned GNPower Ltd. Co. which intends to pour in P41.23 billion to operate two 150-megawatt (MW) coal fired power plants in Bataan; and the Pagbilao Energy Corp. which will spend P39.90 billion for the 400 MW coal fired power plant in Quezon.
In terms of investment pledges by sector, electricity, gas, steam and air conditioning supply, which covers power generating plants and renewable energy projects, recorded the largest share of investment commitments at P268.24 billion, representing a 67 percent share.
This was followed by transportation and storage with P67.66 billion which had a 17 percent share; real estate activities, specifically, the mass housing sub-sector with P42.10 billion (10 percent); manufacturing sector with P13.79 billion (three percent), and accommodation and food service activities composed primarily of hotels, resorts and other accommodation facilities with P4.81 Billion (one percent).
While investment commitments approved by the BOI rose year-on-year in 2013, Cristobal said the challenge to attract more investments in the manufacturing and agriculture sectors.