Mindanao investments up 133.8% in first semester

DAVAO CITY – Mindanao continues to attract investors despite perceived problems on peace and order in certain parts of the island.

The new investments poured in despite the continued military operations against the Abu Sayyaf extremist group and rogue elements of rebel groups on the strife-torn island.

According to the Mindanao Economic Development Council (Medco), Mindanao registered an increase of 133.8 percent in investments during the first semester this year compared to the same period last year.

At least 18 new projects worth P4.315 billion were reportedly registered with the Board of Investments (BOI) in Mindanao during the first semester, most of them in the power sector.

It was noted though that the bulk of the new investments actually comes from local investors, accounting for 97 percent or P3.340 billion of the total investments for the first semester.

Foreign direct investments, however, went down by as much as 80 percent at only P115 million for the first semester, compared to P603.55 million in the same period last year.

Chinese investors ventured into joint projects for chromite and ore exploration in Eastern Mindanao, while Japanese and South Korean investors infused new capital for activated carbon manufacturing and coconut peat processing.

The new projects are expected to generate 2,206 jobs, especially in Southern, Eastern and Northern Mindanao.

The P2.663-billion power generation project of Hedcor Tamugan Inc., a subsidiary of Aboitiz Equity Ventures, accounts for 78 percent of the total new investments for the first semester.

Located in Sta. Cruz, Davao del Sur, the project is expected to help boost the power supply in Southern Mindanao.

The Phividec Industrial Estate in Northern Mindanao, meanwhile, attracted P1.194 billion in new investments, while the food, fruit and meat processing sectors got at least three percent of the new capital.

Medco officials said other new investment projects are expected to materialize before the year ends.