Infrastructure Account for 45% of P274-B 2006 Investments
Byline: BERNIE CAHILES-MAGKILAT
Investments in the infrastructure sector fueled the investments inflow last year accounting for 45 percent or P124 billion of the P274-billion total investments registered by the Board of Investments and the Philippine Economic Zone Authority (PEZA).
Data showed that investments in the infrastructure sector exponentially increased by 1,648 percent over 2005.
The single biggest project approved last year was the P43.9 billion 600-megawatt coal fired power plant by he Nauru-registered firm GNPower Ltd. Co.
There were also the three big-ticket projects on third-generation radio mobile telephone system (3G) of Smart Communications Inc. worth P33.178 billion, the Digitel Mobile Philippines Inc. worth P6 billion and the Globe Telecom Inc. worth P5.48 billion.
Investments in the manufacturing and service sectors account for 44 percent or P122 billion of the combined investments approved by the government's two major investment generating agencies, the Board of Investments and the Philippine Economic Zone Authority (PEZA).
Total investments registered by these two agencies last year surged 18.5 percent for a total of P274 billion over P231 billion in 2005 spawned by huge investments in the power sector as well relocating and expanding existing enterprises.
"The surge in investments is a reflection of investors' confidence brought about by the improved fiscal position of the country and the enhanced business environment. We are committed to pursue policy reforms to improve further our competitiveness in the global market," said Trade and Industry Secretary Peter B. Favila, who chairs both BoI and PEZA.
As proof of their confidence, Favila cited the local investors for their investments worth P182 billion or 67 percent of the total investment registration while foreign investors' contribution account for P92 billion or 33 percent of total. …