Cement issues delay completion of IPP guidelines

MANILA, Philippines - The guidelines for the 2010 Investment Priorities Plan (IPP) is almost ready but the Board of Investments (BOI) is still having some discussions with the cement industry with regards to the planned inclusion of clinker in the IPP.

In an interview over the weekend, BOI managing head Elmer C. Hernandez said the IPP guidelines is 60 percent complete but they are still in talks with the cement industry.

In a separate interview, Cement Manufacturers of the Philippines (CEMAP) president Ernesto Ordonez said that they did not agree to make the cement more affordable if the government agrees to remove the clinker in the 2010 IPP. Ordonez said they will again meet with the BOI on Wednesday to discuss their position.

According to Ordonez, there is no need to provide incentives to new players in the cement industry because the existing companies are able to meet the demand of the market. There has been some question on the price of cement. Last year, former Trade Secretary Peter B. Favila ordered a crack down on overpriced cement.

Meanwhile, Hernandez said they are finished with the power provision and they will now allow tax free importation of generators to everyone even schools and commercial establishment. The only restriction to this is to trading.

Hernandez said this special provision will stand until the government announces that the power crisis is over.

The IPP serves as a guide for the government and investors. This lists down areas where the government provides fiscal incentives for investors.