philippines as an investment destination for infrastructure projects
TRANSCRIPT
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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!