BOI confident of passing last year’s investment figure

MANILA, Philippines - The Board of Investments (BOI) is optimistic of exceeding last year’s P369 billion worth of approved investments this year, even as it expects the result to be lower than the P400 billion goal, coming from a high base a year ago and amid a slowdown in registration of mining and energy projects, an official said.

Trade undersecretary Cristino Panlilio told reporters at the sidelines of the seminar on United Kingdom (UK) Technologies for Smart Living yesterday, approved investments by the BOI may not meet this year’s P400 billion target coming from a high base in 2011.

“It’s been more difficult (to meet the target) this year because first, the baseline is much higher now,” he said.

Approved investments by the BOI reached P369 billion in 2011, up 22 percent from the P302 billion in the previous year.

Panlilio also said it is hard to achieve this year’s target given slowdown in registration of mining and energy projects.

“These (mining and energy projects) are the big ticket boys. With that (slowdown) we have to temper our expectation for registration,” he said.

A moratorium on approval of mining permits under the government’s new mining policy has stalled investments in the sector.

Under Executive Order 79 released in July, the government will not grant mining permits until a law rationalizing the revenue-sharing scheme is put in place.

Approval of registration of energy projects, meanwhile, has also been difficult amid opposition from environmentalists.

But while the approved investments of the BOI this year may be lower than the target, Panlilio said the government is still optimistic the result would be higher than last year’s.

He said approved investments by the BOI may reach P370 billion to P380 billion this year.

“Hitting P370 billion is very doable because we have in the pipeline for registration a good number of big ticket projects,” he said.

He noted that among the projects with pending applications for registration with the BOI are the Shell group’s modernization of its refinery in Batangas, a natural gas pipeline project and a new depot in Mindanao.

He said that approved investments are now approaching the P300 billion level.

For next year, he said the BOI has yet to firm up a target but noted that they may keep the P400 billion goal.

Meanwhile, British Ambassador Stephen Lillie said in the same event the seminar was held to bring British and Filipino firms together and look at trade opportunities in creating smart cities as the Philippines faces urban challenges.