BOI to invest in new electro-dip coating facility

MANILA, Philippines - The Board of Investments (BOI) is planning to use a portion of a P9-billion budget to develop an electro-dip coating facility to support the assembly of eco-friendly public utility vehicles (PUV) under the government’s modernization program.

BOI managing head Ceferino Rodolfo said the facility would form part of the perks which participating companies may enjoy upon joining the agency’s new program that seeks to encourage the local the assembly of eco-friendly PUVs.

“For us in the BOI, we’re trying to see if we can provide a local manufacturing solution to the demand of modernizing jeepneys. We will base (the incentives) on what is the need in this program. For this program, what we see as a very expensive component is the electro-dip facility,” Rodolfo said.

“The government can invest in this type of facility because we want the useful life of these vehicles at 15 years so their bodies should not be prone to rust. For them to do that, they need an electro-dip, just like cars. We see this as the most expensive component which a single company would find hard to afford and at the same time, critical to extend the life of the vehicles,” he said.

The BOI has scrapped the search for a third participant in its Comprehensive Automotive Resurgence Strategy (CARS) program and instead decided to utilize the P9-billion portion of the scheme’s budget for a new program that will support the assembly of eco-friendly PUV.

The program’s details are still being discussed and finalized, but its target participants are vehicle body builders.

It is in line with the Department of Transportation’s program aims to modernize PUVs in the Philippines which, as a result, will not only decongest the roads but will provide safer, cleaner, healthier, and fuel-efficient transport system for Filipino commuters.

The government initially seeks to modernize 220,000 public utility jeepneys  across the country as part of government efforts to provide a safer transport system for commuters while mitigating the effects of climate change.

Rodolfo said the BOI is also providing incentives under the country’s new Investment Priorities Plan to companies that can put up a materials recovery facility for the old jeepneys that will be phased out under the modernization plan.

“I believe firms can see business in that because what will you do to those phased out jeepneys? These old jeepneys also have a scrap value. The private sector can do that then they can sell that to steel plants,” he said.

The Department of Trade and Industry’s Bureau of Philippine Standards last month came out with a draft Philippine National Standard (PNS) on PUVs under the government’s modernization program.

The draft PNS, which is eyed to be finalized by September, includes the dimensional standard for PUVs, including specifying dimensional limits such as the vehicle’s overall height, width and length, wheelbase and front and rear overhang, cabin, seat and seat lay out, step board, service door and emergency exit.