P-Noy approves Investment Plan

MANILA, Philippines - The Office of the President has approved the Investment Priorities Plan (IPP) for 2013 which lists the priority activities for investments which can qualify for incentives from the government.

Memorandum No. 59 published in the newspaper yesterday, contains the 2013 IPP approved and signed by President Aquino and Executive Secretary Paquito Ochoa on Nov. 13, 2013.

The 2013 IPP is a carryover of the IPP released last year.

Under the 2013 IPP, the following were identified as preferred activities: agriculture or agribusiness and fishery; creative industries or knowledge-based services; shipbuilding; mass housing; iron and steel; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital or medical services; and disaster prevention, mitigation and recovery projects.

The 2013 IPP also has a mandatory list covering activities which require their inclusion in the IPP as provided under existing laws such as industrial tree plantation; exploration, mining, quarrying, and processing of minerals; publication or printing of books or textbooks; refining, storage, marketing and distribution of petroleum products; ecological solid waste management; clean water projects; rehabilitation, self-development and self-reliance of persons with disability; renewable energy; and tourism.

Aside from the lists of preferred activities and mandatory activities, the IPP covers export activities as well as those identified as priorities by the Regional Board of Investments of the Autonomous Region in Muslim Mindanao (RBOI-ARMM).

The RBOI-ARMM lists the following as priority activities: export; agriculture, agribusiness or aquaculture fishery; basic industries; consumer manufactures; infrastructure and services; industrial service facilities; engineering industries; logistics; BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East Association of Southeast Asian Nations Growth Area) trade and investment enterprises; tourism; health and education services and facilities; and halal industry.

“This Order shall take effect 15 days after its publication in a newspaper of general circulation as required under Article 31 of the Omnibus Investment Code of 1987,” the Memorandum Order read.

The order noted though that the entitlement of incentives of the activities listed by the 2013 IPP need to be defined and clarified in the guidelines to be issued by the BOI.

“The extent of entitlement of incentives shall be based on the project’s net value-added, job generation, multiplier effect and measured capacity,” the Memorandum Order stated.

BOI officials could not be reached for comment as of press time yesterday as to when the guidelines for the IPP would be released.

Earlier BOI chairman Gregory Domingo said the agency wants to introduce major changes to the 2014 IPP instead of this year’s list.

The agency likewise intends to have the 2014 IPP ready by January of next year.