Logistics, public infra among PH investment priority areas over next 3 years

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ID-100220198Logistics and public infrastructure has been identified as one of the eight preferred investment sectors eligible for fiscal and non-fiscal incentives within the next three years under the Philippines’ 2014 Investment Priorities Plan (IPP).

The seven other sectors are manufacturing, agribusiness and fishery, services, economic and low-cost housing, hospitals, energy, and public and private partnership (PPP) projects.

The 2014 IPP was approved by President Benigno Aquino III last October, according to Trade Undersecretary Adrian Cristobal.

Investment activities in the public infrastructure and logistics sector include development of airports and seaports (including roll-on/roll-off [RORO] ports) for cargoes and passengers; purchase of new ships, aircraft, sea planes, and RORO vessels; LNG storage and regasification facility; and bulk water treatment and supply.

During the Nov 21 public consultation on 2014 IPP guidelines, BOI director Ma. Corazon Dichosa explained that the government decided to offer income tax holiday only to brand-new ships in order to push fleet modernization among domestic carriers.

In a statement, the Board of Investments (BOI) said the new IPP aims to “clearly target investment opportunities and needs to fill gaps in the supply or value chain, boost sectors with latent or obvious competitive advantage, and offset market imperfections.”

It added that the 2014 IPP has “innovative features” such as the principle of geographical application, in which the relevance and impact of an economic activity in a particular region, province, or cluster of local government units will be considered to maximize utilization of incentives so their benefits are cascaded in the target locality.

Moreover, the 2014 IPP will be a rolling three-year plan reviewed annually for effective implementation, as opposed to the annual planning previously. BOI said this ensures continuity, consistency, and predictability—factors “seriously considered by domestic and foreign investors.”

Furthermore, new mechanisms for coordination and convergence among relevant government agencies will be established to ensure the 2014 IPP is effectively and efficiently executed, as well as for the provision of venues for enhanced partnership and cooperation with the private sector.

The government has yet to publish the 2014 IPP document. Position papers on the proposed guidelines are expected until November 28 from concerned stakeholders.

Last year, 13 sectors were identified under the 2013 IPP, namely, agriculture/agribusiness and fishery; creative industries/knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital/medical services; and disaster prevention, and mitigation, and recovery projects.– Roumina Pablo

Image courtesy of Vichaya Kiatying-Angsulee at FreeDigitalPhotos.net