V-SHAPED RECOVERY

BOI targets P1.25T worth of investments in 2021

The Board of Investments (BOI) is targeting to secure P1.25 trillion worth of investment commitments this year as it intends to lure investors, banking on the country’s recovery from the COVID-19-induced recession.

“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,” Trade Secretary and BOI chairperson Ramon Lopez said.

The Trade chief noted that the investment promotion agency originally set a P1.25-trillion goal for 2020 but has “re-calibrated” it to P1 trillion due to the economic impact of the pandemic.

Investment commitments approved last year reached P1.02 trillion.

While the approvals secured last year were 11% lower than the P1.14-trillion worth of investment pledges in 2019, the BOI said it is still the second highest in the investment promotion agency’s 53-year history.

Nonetheless, the BOI was able to hit its revised target for 2020.

“Towards the end of 2020, the agency 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,” Lopez said.

The Trade chief said that for this year investments in infrastructure such as roads, ports, telecommunications, water, and power will intensify.

For his part, 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.

“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,” Rodolfo said.

In particular, electricity projects accounted for P199.2 billion to last year’s total investment commitments.

Projects in the transportation and storage sector amounted to P161.6, while real estate activities contributed P32.5 billion to the total.

Investment pledges in the water supply and sewerage sector totaled P27 billion last year, while accommodation and food projects reached P14.4 billion.

Investment commitments in the agriculture sector, meanwhile, stood at P3.8 billion in 2020.

The BOI said for the whole 2020, a total of 311 projects were approved.

The approved investments are expected to generate 55,124 jobs once it becomes fully operational.

Domestic investments accounted for P968.45 billion or 95.3% of the total approved investments figure while foreign investments reached P47.7 billion or 4.7% of the total.

Bulk of investments commitments went to Central Luzon with P576.1 billion due to the Bulacan airport project.

The Calabarzon followed with Php 184.1 billion. The National Capital Region (NCR) was third with P151.3 billion, followed by Northern Mindanao with P31.7 billion and Ilocos Region with Php 13.8 billion.—AOL, GMA News