Mindanao investments surge high in first semester
Quezon City (1 October) -- Mindanao investment performance posted a record-high of 133.8 percent increase during the first half of the year on robust inflow of local investments, particularly buoyed by the power sector.
Data processed by the Mindanao Economic Development Council (MEDCo) revealed here recently a total influx of Php4.315 billion worth of investments from 18 investment projects registered with the Board of Investments (BOI) and the Phividec Industrial Estate during the first semester, a remarkable increase of 133.8% from last year's first semester figures.
The double-digit growth in Mindanao investments also revealed a boost in local investor confidence with most of the BOI-registered investments coming from local investors. The said projects are expected to generate 2,206 jobs. Southern Mindanao posted the biggest investment value at Php 2.792 billion followed by Php 1.194 billion worth of investments in the PHIVIDEC Industrial Estate in Northern Mindanao.
Most of the investments during this period came from existing establishments undergoing expansion or rehabilitation of their business operations. MEDCo data also show a total of Php 3.340 billion or 97% of the total investments registered with BOI came from the local investors which translate to 168.9% increase for this period. However, foreign direct investments went down by as much as 80% from Php 603.55 million in the 1st semester 2006 to Php 115 million in 2007 of the same period.
The bulk of foreign investments came from Chinese investors venturing on mineral exploration projects particularly on chromite ore. Some of the investors will tie up with some of the local mining corporations in the exploration projects in the municipalities of Loreto and San Jose in Dinagat Island.
Other foreign investments came from Japanese investors who are into activated carbon manufacturing and South Korean investors who are operating in the coco peat industry.
The power generation sector got the biggest chunk of investment share with Php 2.663 billion or 78% of the total investment value. Responsible for this notable increase is the putting up of the hydroelectric plant in Tamugan, Davao del Sur by HEDCor Tamugan Inc., a subsidiary of the Aboitiz Equity Ventures.
Following the power sector is the exploration of Chromite Ore, Sand and Concentrates which had a total value of Php 333.354 million or 10% of the total investments. The processed fruits and vegetables, processed meat and investments in cold storage facility each registered a 3% in investment share.
Two expansion projects of the Philippine Sinter Corporation involving the construction of a processing plant and the development of a power generation plant contributed largely to the increase in PHIVIDEC-registered investments. PHIVIDEC investments contributed to Php 1.169 billion or 98% of the industrial estates total investment value.
The impressive investment performance clearly shows that we are right on track in our efforts to fast track trade and investment promotions in Mindanao as indicated by the sharp increase in investment growth.
Undersecretary Virgilio Leyretana, chair of the Mindanao Economic Development Council. He said that he is optimistic that the growth will give a positive signal especially to foreign investors in Mindanao to pour in more investment projects in the island-region.
He also lauded the confidence shown by the local investors in putting up more projects in Mindanao citing the remarkable contribution of the latter in Mindanao total investment performance for the region.
Aside from Philippine Sinter, another expansion project is the development of an agro-industrial complex by the Limketkai Manufacturing Corporation. The said project is expected to generate around 500 job opportunities. Rubenori Incorporated, a new investor in the industrial estate, will put up a facility on the recovery of recyclable materials which is pegged at around Php 25 million. (MEDCo) [top]