80% of BOI Projects Actually Realized; Conversion Rate into Enterprises Higher Than 55% in 1993-1998.(business)

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Byline: BERNIE CAHILES-MAGKILAT

At least 80 percent of the projects registered with the Board of Investments were converted into enterprises, a review on the agency's project approvals' realization rate showed.

Trade and Industry Secretary Manuel A. Roxas II, also chair of the BOI, said the review covered project registrations in the past 18 months or mostly during his stint as DTI chief.

"Based on the review of approvals, 80 percent of those projects approved were converted into brick and mortar or enterprises," Roxas said.

The review result is a great improvement from the 55 percent conversion rate reported by the BOI for projects registered between 1993 and 1998.

The higher conversion rate only points to the quality of the project approvals by the BOI in the past 18 months as against the registered projects in 19931998.

Preliminary figures for the period 1993 to 1998 audit showed only P1.17 trillion of the P2.13 trillion registered with the BOI materialized.

Many of these projects were government contracts or projects under the buildoperate-transfer scheme with the private sector.

BOT projects are mostly infrastructure projects whose funding are advanced by the private sector. These projects normally take years to complete.

Other projects registered during that period were also shelved or postponed following the 1997 Asian financial crisis.

Earlier, however, Roxas urged for a better system by which to come up with a more accurate indicator.

This can be done by combining figures of the Securities and Exchange Commission which captures the capital infusion, the Bangko Sentral ng Pilipinas which reports the dollar inflows and the portfolio investments and the DTI whose line agencies measure their investments based on approvals. …