MANILA, Philippines - The Board of Investments (BOI) is aiming to complete the guidelines for the 2014 Investment Priorities Plan (IPP) by next month.
“We intend to complete (the guidelines) in the first week of December and then publication so we can start clean slate in January,” BOI managing head Adrian Cristobal Jr. said during the public consultations for the proposed guidelines of the 2014 IPP yesterday.
The 2014 IPP, which provides a list of sectors being promoted by the government and entitled to fiscal and other incentives, was approved by President Aquino last month.
“The IPP means we have a document that puts direction to grow our industries not just through incentives but also through other policy interventions and initiatives,” Cristobal said.
The 2014 IPP lists the following as preferred activities: manufacturing (motor vehicles,parts and components, body stamping as well as motor and batteries for electric vehicles), agribusiness and fishery, services, economic and low-cost housing, hospitals, energy, public infrastructure and logistics, and Public-Private Partnership projects.
Last year’s IPP had a longer list of preferred activities covering the following: agriculture or agribusiness and fishery; creative industries or knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital or medical services; and disaster prevention, mitigation and recovery projects.
While the 2014 IPP’s list of preferred activities has been trimmed, it retained the previous year’s export activities list as well as the list of special laws.
Export activities cover the manufacture of export products, services exports and activities in support of exporters.
The list of special laws cover industrial tree plantation; exploration, mining, quarrying and processing of minerals; publication or printing of books or textbooks; refining, storage, marketing and distribution of petroleum products; rehabilitation, self-development and self-reliance of persons with disability; renewable energy; and tourism.
Unlike in previous years in which the IPP is valid for one year, the 2014 IPP will be effective for three years but subject to annual review.
The review is intended to ensure continuity, consistency and predictability which are key concerns of both domestic and foreign investors.
The new list will also take into account geographical considerations in evaluation of projects to be qualified for incentives, based on regional development plans, industry roadmaps, industry clustering strategies and other government initiatives to fill in the gaps of supply chains.