BOI grants pioneer status to P285-million IT project

The Board of Investments (BOI) has granted a pioneer status to the P285-million information technology (IT) project of debis IT Services Philippines, Inc. (dISP).

Spun from the Daimler Chrysler subsidiary Temic Telefunker Microelectronics (Phils.), dISP started commercial operations in November 1998 for applications management, network and desktop services. It applied for pioneer status under Executive Order 226 as a new IT service firm in the field of application service provider (ASP).

As an ASP company, dISP would offer individuals or enterprises access over the Internet to applications and related services that would otherwise have to be located in their own personal or enterprise computers.

ASP services are important alternatives, not only for smaller companies with low budgets for IT, but also for larger companies as a form of outsourcing and other services.

dISP’s paid-up capital is P12.9 million, which is equivalent to 32 percent on its first year project cost. To fully finance the ASP project, dISP plans to borrow from Deutsche Bank.

To finance phase II of the project, dISP will secure funding through a combination of an increase in paid-up capital stock and a foreign currency loan.

The paid-up capital stock will amount to P17 million. The balance will be financed via inter-company loan from the corporate headquarters T-Systems Global Treasury Group of Deutsche Bank AG. Credit availment would be paid out over a period of three years with interest computed at 8.5 percent per annum.