Andrea E. San Juan
October 26, 2023
The Board of Investments (BOI) said it is optimistic of hitting its initial investment approvals target of P1 trillion by the end of October.
During the 2023 Arangkada Philippines Forum held on Wednesday in Pasay City, BOI Managing Head Ceferino S. Rodolfo said the investment promotion agency (IPA) expects to add P300 billion to its investment approvals pie for 2023 within the next two months.
“Realistically, we will probably reach an additional P300 billion for the next two months. But very important will be the composition of these investments,” Rodolfo said.
The BOI official also noted that, “These, I think, are mostly in terms of renewable energy and mostly in terms of foreign investments.”
From January to September, Rodolfo said the BOI already approved P740 billion worth of investments.
“For this month, I think we will reach the, by the end of tomorrow’s board meeting, we will be able to already reach P1 trillion for total approvals,” he said.
The BOI had initially set an investment approvals target of P1 trillion last December 2022. The agency raised its goal after seeing a “strong influx” of investment recognitions in January and February. It adjusted the goal to P1.5 trillion or twice the actual amount of approvals recorded in 2022, which was P729 billion.
“We still have two months to reach that P1.5 trillion new target, but in terms of the old target I think we are done with that,” the BOI official noted.
For his part, Trade Secretary Alfredo E. Pascual, who also chairs the BOI, is optimistic that the P1.5-trillion target will be reached.
“We’re still optimistic. We still have less than a quarter. But we’ve exceeded what was achieved last year,” Pascual told reporters on the sidelines of the 2023 Arangkada Philippines Forum.
The Trade chief noted that renewable energy projects will account for more than 50 percent of the P1.5-trillion investment approvals target for 2023.
“Karamihan renewable. Buhos ‘yung renewables eh when we announced na pwede na 100-percent foreign ownership,” adding that “Most…more than 50 percent will be RE projects.”
Meanwhile, Rodolfo said at a recent briefing in Malacañang that 90 percent of the approved foreign direct investments (FDIs) in January to September are for renewable energy, while the other investments are in telecommunications, mineral processing, among others.
Last Tuesday, Rodolfo said two companies from the People’s Republic of China are expected to infuse $4 billion worth of investments into the Philippines’s wind energy industry.
“They have already gone to the Philippines to look at different locations and I think they are already closing in on one particular location where they might be close to each other,” Rodolfo said.
The BOI managing head said one of the Chinese firms is into manufacturing monopile towers while the other is into manufacturing turbines and blades.
If the investments are approved, Rodolfo said these firms will manufacture products in the Philippines.
The BOI official said the opportunity for the Philippines in RE goes beyond service projects and the development of the projects to deliver RE.
“But very important also is the hub for manufacturing of equipment and components needed (for RE),” Rodolfo said.
Source: https://businessmirror.com.ph/2023/10/26/boi-investment-approvals-to-hit-p1t-by-end-october/