The Board of Investments (BOI), the Philippine premier investment generation agency, has set a P1.25 trillion investments target in 2021, following the approval of P1.02 trillion in committed investments last year.

“We are working hard for a V-shaped Philippine economic recovery in 2021 and are hence targeting the original 2020 pre-pandemic goal for investments,” said Trade and Industry Secretary Ramon M. Lopez, who is also BOI Chairman. Following 2019’s record approval of P1.14 trillion, BOI originally set a P1.25 trillion for 2020 but has re-calibrated it to P1 trillion due to the pandemic. 

Towards the end of 2020, the BOI was able to achieve this target with the endorsement of the Department of Energy (DOE) of two strategic power projects and the approval of a critical water supply and distribution project which is especially crucial in ensuring water security and contributing to flood-control. Approval for 2020 reached P1.02 trillion, which while 11 percent lower than 2019 actual approvals, is still the 2nd highest in BOI’s 53-year history. 

For the whole of 2020, BOI reported a total of 311 projects approved. These projects are expected to  generate 55,124 jobs once fully operational.

BOI data showed that domestic investments accounted for P968.45 billion or 95.3 percent of the total approved investments figure while foreign investments reached P47.7 billion (4.7%). Among foreign investors, the United States was the pace-setter with P11.2 billion, up 303 percent from P2.8 billion in 2019.  The Netherlands finished second with P2.7 billion followed by Singapore with P2.2 billion. France and Japan completed the five biggest investors with P1.6 billion and P1.2 billion, respectively. 

For December, among the project approvals were the Excellent Energy Resources, Inc.’s two power projects in Batangas worth Php 41.7 billion and P36.6 billion, respectively, involving phase one and two of 850 megawatts (MW) each; WAWAJVCO Inc.’s water supply project in Wawa Dam worth P24.5 billion; H&WB Asia Pacific (PTE LTD) Corp.’s P2.8 billion 96.35 MW Pinugay Solar Power Plant; and the three Battery Energy Storage System (BESS) Component of Integrated Renewable Power Facility Hubs (R-HUB) projects of Universal Power Solutions, Inc. worth P2.4 billion each across different locations. 

Central Luzon (Region III) topped all regions in 2020 with P576.1 billion on the strength of the mammoth Bulacan airport project. Calabarzon (Region IV-A) placed second with P184.1 billion. The National Capital Region (NCR) was third with P151.3 billion. Northern Mindanao (Region X) with P31.7 billion and Ilocos Region (Region I) with P13.8 billion rounded out the top five host regions. 

In addition to infrastructure, other sectors that contributed to meeting the 2020 recalibrated target include power (electricity) which was able to commit P199.2 billion worth of projects and the transportation and storage sector mounted a remarkable performance with P161.6 billion or a 382 increase from just P33.5 billion in 2019 due to the strong demand of cargoes and deliveries and the rise of online transactions. 

The Water Supply and Sewerage sector surged with P27 billion (from a mere P845 million in 2019).

Tourism got a boost with accommodation and food projects totaling P14.4 billion, a 46 percent jump from  P9.9 billion a year before. Real estate activities even improved with P32.5 billion, a 6 percent improvement from P 30.6 billion and last but not the least, the agriculture sector rose nearly 13 percent with P3.8 billion from P3.4 billion the previous year.

“We thank the business community for, despite the pandemic, continuing to invest in mid-to-long-term strategic projects that will significantly contribute towards a more modern and efficient, industrial Philippines,” added Lopez. 

“Moving forward to 2021, we expect that investments in these types of projects will intensify particularly in infrastructure (road, ports and telecoms), water and power.” 

The Philippines is one of the countries to buck a severe contraction of global Foreign Direct Investment (FDI) inflows which declined by 42 percent. In contrast, based on a report by the United Nations Conference on Trade and Development (UNCTAD), FDI inflows to the Philippines increased by 29 percent. 

Trade Undersecretary and BOI Managing Head Ceferino Rodolfo highlighted the role of investment facilitation to meet the Agency’s target particularly due to the effects of the Pandemic. He stressed, “BOI—working with other government agencies—is committed to extending support so existing businesses stay afloat and operating; and guiding new investors to facilitate their entry.” 

He cited the Power sector as an example: Following enactment by Congress of the Energy Virtual One-Stop Shop (EVOSS Act), the Department of Energy (DOE) leads a whole-of-government approach in streamlining the processing of power projects with the creation and establishment of an online platform where prospective developers can apply, monitor, and receive all the needed permits and applications, submit all documentary requirements, and even pay for fees. 

Rodolfo added that partnership with DOE goes beyond investment facilitation but also covers support for important initiatives that not only develop greater power supply but also promotes more sustainable energy sources. 

Rodolfo, however, emphasized that “While there is a constant flow of investment leads and applications, the BOI as a prudent administrator of incentives puts primacy in a rigorous assessment of these projects. Government agencies however have been putting extraordinary efforts to have efficient coordination in removing obstacles to business endeavors, particularly the strategic and critical projects.” 

“We welcome the passage in the Congress bicameral committee of the Corporate Recovery and Tax Reform (CREATE), which will be a game changer. It will definitely remove uncertainties in the incentives regime and give a big boost in attracting investments for the country. We thank the Senate and House of Representatives for making this possible,” Lopez concluded.