MANILA, Philippines – Investment pledges approved by the Board of Investments (BOI) more than doubled in the first half of the year as sustained investor confidence in the new government led to more power and transportation infrastructure projects.

BOI data released yesterday showed approved investments reached P186.51 billion in the first six months of 2016, a 103-percent jump from the P92.02 billion generated in the same period last year.

The investment commitments were generated from 162 projects which are expected to create some 30,207 jobs when fully operational.

With the numbers already covering the months of May and June, BOI chair and Trade Secretary Ramon Lopez said the triple-digit growth is indicative of continued investor confidence as the country transitions to the Duterte administration.

“Sustained impressive investment performance validates the announced economic policy direction of the new administration,” Lopez said.

According to the BOI, power generating plants and renewable energy projects took up the bulk of  approved investments in the first semester, accounting for 51 percent of total.

Investment commitments in the sector alone soared 402 percent to P95.95 billion from only P19.1 billion in the same period last year.

The energy investments were generated from a total 34 power projects which are expected to provide additional capacity of 1,034 megawatts in most parts of Luzon where most industries are located.

Investment commitments in the transportation infrastructure sector likewise surged 282 percent year-on-year to P31.9 billion, comprising 17 percent of the total investment pledges in the period.

The manufacturing sector, whose growth continues to drive the economy, contributed a total P18.61 billion in the first half, a nine percent jump from last year’s P17.14 billion.

“Investments coming in are really targeted to help the economy grow. Manufacturing resurgence is now happening as evident in the 8.1 percent growth of the sector in the first quarter. We expect further growth of the sector in the next quarters as the agency leads in continuing the implementation of the Manufacturing Resurgence Program. Manufacturing, by generating large numbers of decent jobs, is key to attaining the administration’s inclusive growth agenda,” BOI managing head Ceferino Rodolfo said.

Of the first half investment commitments, domestic sources reached P156.61 billion or 84 percent of total while the remaining 16 percent or P29.9 billion came from foreign sources.

Topping the list of foreign country sources for the six-month period was Singapore with investments worth P9.63 billion, followed by Netherlands with P7.12 billion, Japan with P5.69 billion, British Virgin Islands with P2.02 billion and Germany with P1.96 billion.

The National Capital Region remained the top destination, attracting investments worth P37 billion, closely followed by

Region III with P34.81 billion.

Lopez said BOI is expecting the upsurge in investment registration to continue in the coming months with 30 more projects approximately worth P63.47 billion in the pipeline.

“These projects, of which more than half have already been check-listed and officially accepted, will be coming mostly from sectors that are of strategic importance due to their impact on inclusive growth  and on national competitiveness such as energy and power, manufacturing, and agriculture, forestry and fishing,” Lopez said.

BOI officials earlier said approved investment pledges this year are expected to exceed the agency’s five percent growth target.

Source: www.philstar.com/business