BOI grants fiscal incentives to Iglo

The Board of Investments (BOI) has approved the re-filed application of Iglo Philippines Inc. for registration, finally entitling the country’s first multi-temperature controlled facility to fiscal incentives.

However, the approval, according to BOI managing head Elmer C. Hernandez is subject to the condition that Iglo must maintain a 60 percent Filipino equity ownership during the life of its BOI registration.

Iglo, Hernandez explained, had previously applied for BOI registration and had been denied because it was geared only for domestic services.

However, under the 2005 Investment Priorities Plan (IPP), investments in logistics and cold storage facilities has been included as a preferred investment.

Iglo, thus, reapplied with the BOI on Nov. 23 this year for registration after also undergoing a corporate restructuring which boosted its Filipino-owned equity to 60 percent.

Iglo project cost for its cold storage facility is P56.63 billion.

The BOI, Hernandez warned, would periodically check on Iglo’s equity structure as filed in its annual report.

Hernandez pointed out that there is an existing BOI policy that requires domestic-oriented firms in non-pioneer activities to maintain a Philippine nationality ownership of 60 percent and only up to 40 percent for foreign ownership.

To maintain their registration, domestic oriented firms must submit an undertaking with the BOI to maintain a majority Filipino nationality structure, otherwise their registration could be subject to cancellation, Hernandez said.

Earlier this year, Iglo spent P130 million for a third expansion of its cold storage facility.

Iglo Philippines is a joint venture between local partners Horizon’s Realty, Inc. and Triple Eight Holdings, Inc. owned by the Concepcion Family and by Iglo International Ltd.