BOI confident of hitting P1.6-T investment approvals target for 2024

The Board of Investments (BOI) has expressed optimism that it will achieve its target of P1.6 trillion worth of investment pledges approved for the entire year, banking on the expected influx of foreign investments in the country’s renewable energy and infrastructure sectors.

“We're confident that we will reach the P1.6-trillion [target],” Trade Undersecretary and BOI managing head Ceferino Rodolfo told reporters on the sidelines of the 2024 Investment Policy Forum organized by the International Institute for Sustainable Development in Pasay City on Wednesday.

From January to September 15, 2024, the BOI approved P1.35 trillion worth of investment pledges, marking an 82% increase from P741.98 billion approvals in the same period last year.

The biggest share of approvals came from the energy sector, which accounted for P1.29 trillion, followed by real estate activities including mass housing with P20.28 billion, manufacturing with P12.13 billion, and agriculture, forestry, and fishing with P10.05 billion.

For the remainder of the year, Rodolfo said, “There are renewable energy and infrastructure [projects] coming in."

The BOI head said that renewable energy projects seeking green lane endorsement alone could help the investment promotion agency hit its goal for the year.

As of September this year, some P4.13 trillion worth of investments secured green lane certifications, over a year since an executive order creating green lanes to fast track processing of strategic investments was released.

A total of P3.74 trillion worth of projects in the green lane pipeline are in the renewable energy sector.

In February 2023, President Ferdinand Marcos Jr. issued EO 18, which mandated the creation of green lanes as part of efforts for ease of doing business and promoting strategic investments.

Obtaining green lane status expedites permit and license issuance, including resolving strategic investment issues.

Investment in renewable energy has surged after the Philippines allowed full foreign ownership in the exploration, development, and utilization of the country’s renewable energy resources through the Energy Department's Circular No. 2022-11-0034 issued in November 2022.

The government aims to increase renewable energy’s contribution to the power generation mix to 35% by 2030 and to 50% by 2040. —VBL, GMA Integrated News