The Board of Investments (BOI) is sanguine on the successful conclusion of negotiations with two Chinese wind farm equipment and component manufacturers who look to invest $2 billion each in their proposal to make the Philippines a manufacturing hub.
This was learned from Ceferino S. Rodolfo, undersecretary for industry development and trade policy at the BOI, who told reporters the negotiations should complete before the year is out.
At the sideline of ceremonies formalizing the memorandum of agreement between the Philippine Chamber of Commerce and Industry (PCCI) and the Japan Chamber of Commerce and Industry (JCCI) at the Peninsual Manila Hotel in Makati City Tuesday, Rodolfo said the potential $4 billion worth of investments from China is seeking no more preferential tax incentives than are normally given prospective locators, such as time-bound income tax holidays, among other perks.
According to Rodolfo, the Chinese locators have already identified the location of the manufacturing hub they have in mind and that the BOI is closely monitoring their progress.
The locators are wind farm equipment and component manufacturers whose end products are by nature massive and thus require locations that already have existing logistics infrastructure in place as well the technical expertise and talent pool to make the venture viable.
Rodolfo noted the Philippines particularly suited the locators’ requirements given the country’s ongoing bid to transition to renewable sources of energy as previously mapped by the Department of Energy (DOE).
He said the 79 service contracts the DOE previously issued are effectively the locators’ market for their equipment.
“We’re one of the best locations for renewable energy projects because of the archipelagic composition of the country,” Rodolfo said, quoting the Chinese locators.
According to the DTI, the Philippines has the potential to generate 254,000 megawatts of power from its wind resources alone.
The broader goal is for the Philippines to extract 35 percent of its energy requirements from renewable energy sources like wind by 2030 and at least 50 percent by 2040.
The BOI earlier reported nine-month approved investments aggregating P740 billion, up 104 percent from only P362 billion last year.
