Philippines as an Investment Destination for Infrastructure Projects

8/7/2019 Philippines as an Investment Destination for Infrastructure Projects

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PhilippinesAs an Investment Destination

For Infrastructure Projects

USEC. CRISTINO L. PANLILIO

Vice Chairman & CEOBoard of Investments


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Presentation OutlinePresentation Outline

Trade and Investments PerformanceTrade and Investments Performance

Creating an Attractive Environment for InvestmentsCreating an Attractive Environment for Investments

The Philippine AdvantageThe Philippine Advantage

PPP as cornerstone strategy for developmentPPP as cornerstone strategy for development

OutlookOutlook


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Php231.0

Php271.3

Php349.1

Php299.5

Php98.9

Php249.0

Php443.1

0

100

200

300

400

500

2005 2006 2007 2008 2009 Jan-Aug

2009

Jan-Aug

2010Project Cost

Exports and Investments: Growing in 2010Exports and Investments: Growing in 2010

BOI-PEZA Approved Investments; in Php billions


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Exports and Investments: Growing in 2010Exports and Investments: Growing in 2010

$41 3

$47 4

$50 5 $49 0

$38 3

$46 0

20 0%

-21 9%

-2 9%

6 5%

14 9%

4 0%

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 Targe

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

Amoun in US$ Mn (lh ) Gr owth Rate (rh )

Export Performance; in US$ millions


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Actual Targets3/

20092010

Latest2010 2011

Real DP rowth (%) 1 1 7 9(Jan-Jun) 5 0 - 6 0 7 0-8 0Headline Inflation (%) 3 2 4 0( ug) 3 5 - 5 5 3 0 - 5 0

Exports rowth (%) 1/ (22 3) 43 5(Mar) 15 0 13 0

Imports rowth (%) 1/ (24 1) 34 0(Mar) 20.0 18.0

OFW Remittances 2/

Amount ( $ Bn)

rowth Rate 17.35.6 9.1(Jun)

6.9(Jun)18.78.0

20.28.0

Balance of Payments ( $ Bn) 5.3 3.3(Jul) 3.7 n.a.

IR( $ Bn) 44.2 49.6(Aug) 49.0 - 50.0 n.a.1/ Based on Balance of Payments (BOP) concept2/Remittances coursed through banks3/Based on forecasts adopted by the Development Budget Coordination Committee (DBCC) on July 9, 2010

Robust Economic Outlook for 2010 and 2011Robust Economic Outlook for 2010 and 2011


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20102010 SectoralSectoral TargetsTargets

BOI-PEZAApproved Investments: $10 B

Merchandise Exports: $46 B

Remittances: $19 B BPO / Call Center: $9.4 B

Electronics / Semicon: $25 B

Tourism: 3.3M foreign visitors


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Ensure ease of doing business

Provide competitive investment incentives

Improve infrastructure through enhancedimplementation of the Public-Private Partnership(PPP) Programs

Creating Better Business EnvironmentCreating Better Business Environment


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Full implementation of Business Name RegistrationSystem (BNRS)

Implementation of the Philippine Business Registry (PBR)

Improve Business Permits and Licensing System (BPLS)at the local government level

Nationwide support for National Economic Research and

Business Assistance Centers (NERBAC)

Ensuring Ease of Doing BusinessEnsuring Ease of Doing Business


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Investment Facilitation ServicesInvestment Facilitation ServicesDue diligence assistance

Information support

Visit program development & investment briefing

Business matching

Business registration facilitation

Fast tracking of applications for registration

Assistance with Local overnment Unit (L U) requirements

Aftercare Service Presence of government network to quickly respond toconcerns

Supervision & monitoring


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Fiscal

New Projects (Pioneer)-6 years

New Projects (Non-Pioneer)-4 years

Expansion-3 years(New & Expansion) Located in LDA-6 years

Exemption from taxes and duties on imported spareparts, genetic and breeding materials

Exemption from wharfage dues and export tax, duty,

impost and fees

Zero-Duty on Capital Equipment, Spare parts andAccessories by virtue of EO 528

Additional Deductions from Taxable Income

Non-Fiscal

Employment Of Foreign Nationals

Simplification of customs procedures

Importation of consigned equipment

The privilege to operate a bondedmanufacturing/ trading warehouse subject

to customs rules and regulations

Competitive Investment IncentivesCompetitive Investment Incentives


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Reorganizing the BOT Center into the PPP Center

Focus on infrastructure support facilities for tourism,

agriculture, social services and growth centers

Provide incentives to stimulate private resources

Ensure competition, fairness and transparency

Provide assistance in preparation of business case, pre-FS, full FS, detailed engineering, tender document, etc.

Fast-track project approval process

2011Rollout/Tender: 10 Projects

2012 & beyond: 73 projects

PublicPublic--Private PartnershipsPrivate PartnershipsCornerstone strategy of national development


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Public-Private PartnershipsCornerstone strategy of national developmentProject Name Project Cost

(2010 Prices in PhP Million)

MRT/LRT Expansion Program: Privatization of LRT 1 Operation & Maintenance

(DOTC/LRTA)

7,700

LRT Line 2: East Extension Project (DOTC/LRTA) 11,300

MRT/LRT Expansion Program: Privatization of MRT 3 Operation & Maintenance

(DOTC/LRTA)

6,300

MRT/LRT Expansion Program: LRT 1 South Extension Project (DOTC/LRTA) 70,000

New Bohol Airport Development

(DOTC/MIAA/CAAP)

7,600

Puerto Princesa Airport Development

(DOTC/MIAA/CAAP)

7,600

New Legaspi (Daraga) Airport Development

(DOTC/CAAP)

3,200

Privatization of Laguindingan Airport Operation &Maintenance (DOTC/MIAA/CAAP) 1,500

NAIA Expressway, Phase 2 (DPWH) 10,590

CALA Expressway Cavite Side Section (DPWH) 11,790


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Government Support to BOT ProjectsGovernment Support to BOT Projects

Fiscal Incentives

Projects costing more than P1 billion are entitled to

incentives under Omnibus Investments Code (OIC) uponregistration with the Board of Investments

Projects costing P1 billion and below can avail incentivesunder OIC subject to inclusion in the current InvestmentPriorities Plan

L Us may provide additional tax incentives, exemptions,or reliefs, subject to the provisions of the Local

overnment Code and other pertinent laws


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Government Support to BOT ProjectsGovernment Support to BOT ProjectsCost-Sharing

Projects with difficulty sourcing funds may be partiallyfinanced from direct government appropriations (GAA)

and/or Official Development

Assistance (OD

A)

Financing from GAA or ODA not to exceed 50% of projectcost

Other Government Undertakings

Include credit enhancements such as take or pay, currencyconvertibility, etc.

Direct government subsidy or equity


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Strategic Location in Asia

Available Quality HumanResources

Reliable infrastructure support

Hospitable Lifestyle

The Philippine AdvantageThe Philippine Advantage


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Good access to the important 550million people ASEAN market

Reachable within 4 hours by planefrom Asian key cities

Tokyo - 4 hrs

Shanghai - 3.25 hrs

Singapore - 3 hrs

Taipei - 2 hrs Bangkok - 3 hrs

Macau - 2 hrs.

Jakarta - 3.25 hrs

Kuala Lumpur - 3.5 hrs

Strategically Located in AsiaThe Philippine AdvantageThe Philippine Advantage


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Available Quality Human ResourcesAvailable Quality Human ResourcesHighly educated

92.6% literacy rate,70% fluency in English

36 million labor force

450,000 college graduates per year

40,900 IT/ Computer Sciences / Engineering

98,120 Commerce / Business-related

125,000 Medical & Allied / Natural Sciences

62,000 Engg & Architecture/FineArts

English proficient

Strongly customer service oriented

Excellent in the practice of professions

Highly trainable and with fast learning curve

Adaptable to universal cultures

High level of commitment and loyalty


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Reliable Infrastructure SupportReliable Infrastructure SupportSuper Regions InfrastructureDevelopment

Network of roads, railways,

waterways & airportsInvigorated Aviation Industry

Fast-tracking of PortDevelopment

Connection to the world24/7


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Friendly people

Value-for-money housing

Modern recreational facilities

First-rate educational institutions

Presence of international schools (e.g. Brent

School, International School Manila, British

School)

A growing favorite tourist destination

8.7% increase in tourist arrivals (3.09 million)

41% increase in tourist spending

Hospitable LifestyleHospitable Lifestyle


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Thank You!

Documents

Philippines as an Investment Destination for Infrastructure Projects