Tagum to double infrastructure spending this year

TAGUM CITY, Philippines — The city government has shelved an ordinance that grants more perks to investors, as officials noted spending on infrastructure facilities could lure investors more. Mayor Rey T. Uy said in a recent interview here that the city council has decided that the city government should spend P200 million this year for infrastructure projects, particularly in areas where roads are unpaved. "No investor will [put his money] in a place when he or she will not make a profit," he explained, adding that the city government spent P100 million on infrastructure last year. Mr. Uy said that incentives are good for a short period, but good infrastructure attract investors more because these are projects that create and link markets. He noted that, to build a kilometer of concrete road, the city government needs P12 million. Mr. Uy’s idea is shared by Joji Ilagan-Bian, Mindanao representative to the Export Development Council and former chairman of the Mindanao Business Council. In an earlier interview, Ms. Bian said investors will just ignore incentives offered by local governments if they believe they cannot make money in these areas due to the high cost of doing business. Mr. Uy said two shopping malls are being built in the city, in addition to two others already in operation. One of the malls belongs to the Gaisano Grand Group of Cebu, which opened another mall in the nearby Panabo City, also in Davao del Norte, in the last quarter. The SM Group is also reportedly interested in putting up a shopping mall here in the next two years. — BusinessWorld