BOI sees delay in drafting of IPP

MANILA, Philippines - The Board of Investments (BOI) is releasing the draft of the country’s investment promotions blueprint later than earlier planned.

“We don’t have the first draft of the IPP (Investment Priorities Plan) yet...I want to see the first draft before the consultations,” BOI chairman Gregory Domingo told reporters.

With the first draft of the IPP for consultations not yet available, he said the release of the draft will be delayed.

Earlier, the BOI said it wants to have the IPP ready within the first quarter of the year.

Under EO 226 or the Omnibus Investments Code, the BOI is tasked to prepare the IPP, which should be submitted to the President after consultations with appropriate government agencies and the private sector not later than March.

BOI governor Lucita Reyes said earlier this year’s IPP will be different from the previous years as it will be valid for a longer period of three years but subject to annual review.

The list of economic activities which may enjoy incentives from the government under the IPP will also be trimmed as sectors are carefully selected.

Domingo said earlier he wants broad categories removed from the IPP.

“My preference is, when we define a sector, the category doesn’t have to be very broad...We have to be more selective to those that are really important to us so that’s why I want to get away with our broad categories in the IPP,” he said.

The sectors that will make it to this year’s IPP will be determined based on an analysis of measured capacity, demand and the gap between the two.

“The reason why it becomes a priority is because there is a gap...There is a big gap with what we need and what is available so you support that to encourage entry of investors to fill in the gap,” Domingo said.

While the IPP will have a different list this year, no changes to the incentives structure will be made yet.

“If we combine changing who should receive incentives with changing the structure of the incentives, the debate will be so complicated and we will end up with the result of what we’ve done in the past 20 years, nothing,” Domingo said.

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