PH Government Allotted ₱58 Billion in Budgetary Support for IPAs

The government has provided investment promotion agencies (IPA) with budgetary support amounting to ₱58 billion, to be utilized for their capital outlays and maintenance spending. On Monday, it was reported that the Bases Conversion and Development Authority (BCDA) — consisting of Clark Development Corp., John Hay Management Corp., and Poro Point Management Corp. — received ₱7.47 billion between 2017 and 2021 making it the recipient of the largest volume of government support, according to the Fiscal Incentives Review Board (FIRB).

Finance Assistant Secretary and FIRB secretariat Juvy Danofrata added that the Authority of the Freeport Area of Bataan (AFAB), on the other hand, bought new assets using the budgetary support in an effort to attract more investors in Bataan. Meanwhile, the Subic Bay Metropolitan Authority (SBMA) and the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) earmarked 100% of the financing they received to enhance operational activities.

IPAs have since been urged by Finance Secretary and FIRB chairman Carlos Dominguez to continue to assist the post-pandemic recovery of the economy by advancing their investment campaigns. “This report only shows that the Philippine government has always been supportive of our IPAs in their operations and investment promotion efforts,” Dominguez elaborated.

“It is only right that they maximize the budgetary support they get from the national government, and translate their efforts into attracting more economically stimulating and productive foreign investments, especially in this time of the pandemic, that would create jobs and supercharge our economy,” he affirmed.

Other IPAs that also received budgetary support from the government include the Aurora Pacific Economic Zone and Freeport Authority (APECO), the Board of Investments (BoI), the Cagayan Economic Zone Authority (CEZA), and the Zamboanga City Special Economic Zone Authority (ZCSEZA). Two IPAs — namely, the Philippine Economic Zone Authority (PEZA) and the PHIVIDEC Industrial Authority (PIA) — however, did not receive financing since they were already listed as self-sufficient.

Over the past three years, investment approvals made by IPAs have decreased in light of the challenges brought about by the global pandemic. In 2021, approved investments were at ₱1.14 trillion signaling a significant drop compared to the pre-pandemic level of ₱1.31 trillion the year prior.

Source: PhilStar