CEBU CITY – The Board of Investments (BoI) is determined in pushing more local government units (LGUs) to initiate economic developments in their area by putting more funds in proactive investments.

“The mayors should deliver more than just political and social services and they should also perform as captains of industry,” said BoI Governnor Oliver Batulid during a presentation of the 2010 Investment Priorities Plan (IPP) held here last Monday.

According to Batulid the “menu of projects” initiated by most LGUs are limited to modernization of public markets, building bus terminals and the like. “But there are so much more projects that these LGUs can take the lead on. They only need to capitalize on what they have; there is, for instance, so much opportunity in tourism,” he added.

Batulid said the BoI is determined to work with the Department of Interior and Local Government (DILG) to train at no cost LGUs keen on investing in projects, especially those anchored in the tourism sector.

A case in point, for instance, is the town of Danao in Bohol province where, through the aggressive efforts of its local leaders, turned what once was a “sleeping municipality” into an emerging tourism destination featuring such extreme tourism sports activities as bungee jumping, zipline and others.
“Now,” pointed out Batulid, “Danao, Bohol is generating as much as P1 million monthly in gross income.”

He lauded other LGUs, particularly Camarines Sur’s which caused the building of world-class water park facilities, and the Cebu City government’s 300-hectare South Road Properties which is poised to become a leading commercial destination in the country.

“We need to awaken the leadership of the mayors in terms of economic development,” Batulid stressed.

Likewise, the BoI Governor said Government is urging those with adequate financial resources to make more long-term direct investments with more productive output for the country rather than merely depositing their money in banks or investing in the stock market.

Citing the experience of China, Butalid said domestic investments are co-related with economic growth and have a greater impact on a country’s economy than foreign direct investments.

For this year, the BoI identified several areas where businesses can take advantage of government incentives. These areas include tourism, business process outsourcing, electronics and mining.

Also encouraged are new industries that are considered innovations as well as all types of exports from manufacturers, export services and activities in support of exports.

Likewise this year, the BoI will also give incentives to projects or activities that, though affected by the global economic crisis, chose to keep their workforce employed.