NDC packages P3.5-B IT investment program

The National Development Co. (NDC) is packaging a P3.5-billion investment program for information technology (IT), including a P2.5-billion fiberoptic cable network that would connect the country's biggest IT parks in Luzon.

The Philippines is trying hard to catch up with its closest competitor in the race to become the IT hub in Asia and the Estrada administration said the program would help propel the country as the IT center of choice.

The program is being prepared by NDC the state investment arm, which is eyeing private sector participation, especially in laying out the planned fiberoptic network.

Instead of developing a single IT corridor, NDC general managing Samie Lim said government's strategy would be to transform all existing IT parks into an island-wide network linked by fiberoptic connections.

He said part of the plan, is to convert 156 hectares of its 1,000-hectare estate in Central Luzon, the site of the Centennial Expo.

According to Lim, this area will be developed into one of the more inexpensive IT parks in the country. NDC plans to attract private developers to undertake the vertical development work needed to transform the raw land into an IT facility.

Lim said one of the main features of the IT park would be the fiberoptic network that would link it to the other privately-owned IT parks in Luzon, an undertaking estimated to cost at least P2.5 billion.

"We are looking at the possibility of getting private companies to undertake this under our build-operate-transfer (BOT) scheme or other similar mechanisms, including joint-venture with the NDC," said Lim. "We are optimistic enough that we are willing to put up the seed money to get this underway."

Lim said the NDC is also earmarking P1 billion to finance various over IT ventures such as 24-hour call centers, back office operations, content and software development, e-commerce and various IT services, including medical transcription services, legal databases and insurance claims processing.

He added that NDC is willing to back private corporations to get certain government incentives from various government agencies.

The Philippines already hosts a number of companies and their backroom operations such as America On-Line, Andersen Consulting, Caltex, Procter & Gamble, Bechtel, Fluor Daniel, Northwest Airlines, Sea Land, Barnes & Noble, UPS and some 30 Japanese companies led by Mitsubishi Heavy Industries, Sumitomo Corp., Chiyoda Corp. and Omron.