2013 BOI-approved investments hit P466 billion, up 29%

2013 BOI-approved investments hit P466 billion, up 29%

 

The Board of Investments (BOI) posted investment approvals of Php466.03 billion in 2013, up 29% from the Php360.35 billion recorded in 2012.  282 projects were approved and are expected to generate 38,100 jobs when fully operational.

Sustained interest from domestic investments registered Php345.39 billion or 74% of the aggregate investment figure with the remaining 26% or Php120.65 billion coming from foreign sources which have continued to remain bullish and upbeat, reflecting an increase of 63% from 2012.

“What we aim for, however, are investments in sectors to directly impact on the generation of more stable and decent jobs,” Trade and Industry Undersecretary and BOI Managing Head Adrian S. Cristobal Jr. “In terms of sectors, the growth drivers will most likely be the whole manufacturing sector, construction, BPOs, telecommunications, wholesale and retail trade, consumer durables, housing, and tourism,” Cristobal added.

Foreign direct investments (FDIs) are expected to continue to steadily increase with focused interest on the country’s political and economic stability, while strong consumption of the domestic market, reconstruction and infrastructure spending, the country’s stable macroeconomic condition, among others, will drive growth in the domestic front.

 

Domestic Investments

The increase in domestic investments came as a result of the approval of big power projects like Redondo Peninsula Energy, Inc. (Php62.86 Billion), GNPower Ltd. Co., Pagbilao Energy Corporation (Php39.90 Billion), San Miguel Consolidated Power Corporation (Php25.84 Billion), FDC Misamis Power Corporation (Php31.94 Billion), SMC Consolidated Power Corporation (Php25.51 Billion), First Natgas Power Corp. (Php21.83 Billion), Minenergy Coal Corporation (Php14.55 Billion) and Petron Corporation (Php11.18 Billion), among others.

As expected, such power projects largely made up the Electricity, Gas, Steam and Air Conditioning Supply Sector, which recorded the biggest  share of investment commitments at Php331.10 Billion or 71% of the total figure, followed by Transportation and Storage with Php67.66 Billion (or 15% share), Real Estate Activities, specifically, the Mass Housing sub-sector with Php42.10 Billion (or 9% share), Manufacturing sector with Php13.79 Billion (or 3% share) and the Accommodation and Food Service Activities composed primarily of hotels, resorts and other accommodation facilities with Php4.81 Billion (or 1% share).

 

Foreign Investments

The British Virgin Islands (BVI) topped the foreign list with committed investments worth Php61.51 billion or 51% share of the total foreign investments in 2013. The notable project from BVI is the approval of Energy City Philippines Holdings, Inc. (100% BVI) located in Bataan, with investments worth Php45.65 Billion.

The United States came in second with investments amounting to Php41.76 Billion or 35% of the total investment approvals from foreign sources during the period.  The bulk of these investments were from the approved project of GNPower Limited Co. with Php41.23 Billion (80% share), a 100% American-owned company, for the operation of its 2X150MW coal-fired power plant (GNPower Phase II project) in Mariveles, Bataan.  The Netherlands placed third with Php5.98 Billion (5% share), followed by South Korea (Php2.26 Billion or 2% share), and Australia (Php1.82 Billion or 2% share) rounding up the top five. (END)