The Board of Investments (BOI) expects its approved investments to hit P1 trillion by the end of October this year, with projects in the critical minerals sector coming in the last two months to help achieve its P1.5 trillion target for the entire 2023.
BOI Managing Head Ceferino S. Rodolfo said on Wednesday, Oct. 25, during the 12th Arangkada Philippines Forum in Pasay City, that the agency expects to reach P1 trillion investment approvals by the end of October, topping the recorded P740 billion total approved investments from January to September this year.
Initially, BOI posed its investment approval target up to P1 trillion in December last year. However, Rodolfo said that BOI raised its new target to P1.5 trillion since it saw a strong influx of investment applications during the first two months of this year.
“Realistically, we would probably reach an additional P300 billion for the next two months, but very important would be the proposition of these investments,” he added, highlighting that these will mostly involve renewable energy (RE) and critical minerals projects.
In a separate interview with the reporters, Trade Secretary and BOI Chairman Alfredo E. Pascual expressed optimism that the P1.5 trillion target can be achieved in the last quarter, emphasizing that the BOI has “exceeded what was achieved last year.”
Last year, BOI had only reached P730 billion worth of investment approvals.
Pascual added that more than 50 percent of the target investment approvals comprise RE initiatives.
To attract more investments into the critical minerals sector, Rodolfo said that BOI is working towards including critical minerals in the Philippine free trade agreements (FTAs) with the Department of Finance (DOF).
For instance, Rodolfo cited the US’ Inflation Reduction Act which states that subsidies for EV buyers can only be provided to those who purchase EV cars with components that are sourced within the US or from an FTA partner company.
With this kind of incentive, the Philippines is getting in touch with the US government to have a critical minerals agreement with the country which boasts an abundance of critical minerals compared to other countries.
One of the advantages of the country is its abundance of critical minerals that are needed to transition to a greener future, particularly those that are essential in battery manufacturing in data centers, and electric vehicles (EVs), among others.
“Unfortunately, the minerals that we now have are mostly exported in unprocessed form. So the basic objective for us is to invite investments into critical minerals processing,” said Rodolfo.
Significantly, he said that investments in critical minerals mostly focus on nickel processing, citing prospects for nickel processing facilities that are aimed to be finalized before the end of the year.