MANILA, Philippines - Investment commitments approved by the Board of Investments (BOI) in the January to October period grew by 18 percent from a year ago on strong business confidence amid favorable economic conditions.
In a statement yesterday, the BOI said investment commitments approved by the agency as of end-October amounted to P314.3 billion, up from the P266.3 billion in the same period last year.
The bulk or 84 percent of the total investment commitments for the 10-month period came from domestic sources which reached P263.2 billion, seven percent higher than the P245.1 billion in the same period last year.
Investment pledges from foreign sources meanwhile, surged 141 percent to P51.1 billion as of end-October from the P21.2 billion in the comparable period in 2012.
The US was the biggest source of foreign investments for the period, accounting for 82 percent or P41.76 billion of the total foreign investment approvals during the period.
South Korea came in second with P2.26 billion, followed by Australia with P1.79 billion.
The Netherlands which committed to invest P1.34 billion, and Singapore which pledged to pour in P492 million, got the fourth and fifth spots respectively.
By company, the bulk of foreign investments, or P41.2 billion, came from the approved project of American firm GNPower Limited Co.
GNPower Limited Co. will operate its two 150-megawatt (MW) coal-fired power plants (GNPower Phase II project) in Mariveles, Bataan.
Other big projects for the year are the locally-owned 400-MW coal plant of Pagbilao Energy Corp. with a project cost of P39.9 billion; the P31.9 billion 405-MW coal plant of another local firm FDC Misamis Power Corp.; the 300-MW coal-fired power project of San Miguel Consolidated Power Corp. in Malita, Davao del Sur worth P25.8 billion; and SMC Consolidated Power Corp.’s coal-fired power plant in Limay, Bataan (300MW) worth P25.5 billion.
The BOI is encouraging power projects to support the country’s rising power needs.
The energy sector is among the preferred activities listed in the current Investment Priorities Plan (IPP), the country’s investment promotions blueprint.
Sectors listed in the IPP qualify for fiscal and non-fiscal incentives.
“Once fully operational, these projects will be crucial in sustaining the power needs of the country’s modernization and industrialization in the years ahead,†BOI executive director Efren Leano said.
By sector, the electricity, gas, steam and air conditioning supply sector which covers power generating plants as well as renewable energy projects garnered the largest share of committed commitments at P252.8 Billion, followed by real estate activities, specifically, the mass housing sub-sector with P36.1 billion.
Meanwhile, investments in the transportation and storage sector amounted to P11 billion. Funds committed for the manufacturing sector reached P5.05 billion and investments pledged in the accommodation and food service activities composed primarily of hotels, resorts and other accommodation facilities reached P 4.51 billion.