INVESTMENTS registered with the Board of Investments (BOI) rebounded heavily in September, and the agency is now back on track to hit its P680-billion target this year.
The BOI on Thursday reported a 19.3-percent increase on investment pledges after three quarters. Commitments to the BOI now amount to P454.8 billion, from P381.2 billion during the same period last year.
Power projects topped registration performance at P168 billion from January to September, followed by manufacturing at P104 billion, and transport and logistics at P102 billion. The latter registered a whopping 569-percent growth from P15 billion during the same stretch last year.
Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo Jr. said the agency is confident it will hit its P680-billion objective this year. He explained the BOI is just exercising due diligence to ensure that projects comply with necessary requirements.
“After the record-breaking investment approval figures, of P617 billion in 2017, the agency is still pretty confident of hitting its investment target of P680 billion for this year. As of September, we are already surpassing expectations with already two-thirds of our year-end target, and the rest of the year should be pretty exciting and challenging due to the deluge of big projects in the pipeline,” Rodolfo said.
“We are just exercising due diligence to ensure that these projects comply with the necessary requirements,” he added.
Pulangi Hydro Power Corp.’s P38-billion project sustained the strong showing of the energy industry, as it is putting up a 250-megawatt hydroelectric power plant in Bukidnon. Manufacturing was improved by the approval of Petron Corp.’s P82-billion commitment in the condensate- processing complex project in its refinery in Limay, Bataan.
The BOI also gave its nod to the P62.6-billion liquefied natural gas terminal project by First Gen Corp. in Batangas City with a capacity of 5 million tons per year. Other manufacturing projects include Bio Renewable Energy Ventures’s P1.8-billion investment in producing coconut methyl ester and glycerin in Misamis Oriental; Biotech Farms Inc.’s P151-million project for the production of fiber egg trays in South Cotabato; and Conibo Organics Inc.’s P60-million export producer of coconut coir in Camarines Sur.
Philippine Airlines Inc.’s acquisition of six Airbus A321neo amounting to P19 billion to service international routes propelled the transportation and logistics industry. It was also complemented by Cebu Air Inc.’s P11.8-billion purchase of five Airbus A321ceo to make domestic and international flights.
“Investor confidence in the country remains high. The Philippines continues to attract more investments because the economy is strong enough to withstand challenges on both the domestic and international fronts,” Trade Secretary and BOI Chairman Ramon M. Lopez said.
He also expects investment pledges to grow further when the implementing rules and regulations of the Ease of Doing Business law is issued and the road shows of the Strategic Investment Priorities Plan now in full swing.
On the other hand, approved foreign direct investments also accelerated to P37 billion as of September, up by 196 percent from the P12.5 billion during the same period last year. The British Virgin Islands is the top source of FDI at P15.2 billion, followed by Indonesia (P6.4 billion), Malaysia (P2.9 billion), Japan (P2.6 billion) and China (P1 billion).