An out of the box Investment Priorities Plan (IPP) is being mulled by the Board of Investments (BoI) wherein the annual list of projects that the government will prioritize for promotion and granting of incentives would only consist of a portfolio of specific projects in specific locations.
BoI Executive Director Raul Angeles said this strategy would further trim down the IPP listing to consist only of what the government wants to promote and where.
"This way, we will have a portfolio of specific projects in specific locations that we present to investors every time we conduct investment promotion," Angeles said.
For instance, Angeles said, if we promote IT hubs we specify the locations and alternatives. The minimum economic size, the employment and project cost should also be specified.
"This will make investment promotion direct and very specific," he said.
The existing IPP and past ones consist of lists of various economic activities that the government is prioritizing for promotion and development and therefore entitled to a package of incentives. Over the years though the BoI has tried to trim down the IPP to make it a more focused one.
Angeles, who heads the Industry Development Group, said that the idea of having an IPP that is project and location specific was raised as the BoI is starting to craft the 2006 IPP framework.
The 2006 IPP Core Group had an initial meeting last September and agreed that next year’s IPP to still follow the priority areas identified in the 2004-2010 Medium Term Philippine Development Plan wherein the IDG shall identify specific projects or value propositions for the industries under their purview.
The proposed them is "Beat the Odds towards a Strong Republic" based on the President’s battle cry and agenda for the next five years which is "Beat the Odds."
Aside from being project and location specific, the role of the 2006 IPP shall continue to espouse the administration’s outlined policies and programs to fight poverty.
The draft 2006 IPP Framework still consists of the Mandatory Inclusions of activities from eight laws specifically on industrial tree plantation; iron and steel; exploration, mining, quarrying and processing of minerals; publication or printing of books or textbooks; refining, storage, marketing and distribution of petroleum products; ecological solid waste management; the Clean Air Act; and the rehabilitation, self-development and self-reliance of disabled persons and activities covered under bilateral agreements.
The proposed IPP has also retained the 12 priority areas: agriculture; healthcare and wellness products and services; information and communications technology; electronics; motor vehicle products; energy; infrastructure; tourism; shipbuilding/shipping; jewelry; fashion garments;and the so-called RED (retention, expansion, diversification) program.
