BoI-approved investment pledges up 27% in Feb.

The Board of Investments (BoI) approved PHP 36.5 billion worth of investment pledges in February, mainly driven by investment commitments in the renewable energy (RE) sector.

In a statement on Sunday, the BoI said February approvals were 27.2% higher than the PHP 28.7 billion recorded in the same month last year.

The number of approved investment projects in February jumped to 21 from the six projects recorded a year earlier.

The BoI greenlit PHP 20.4 billion worth of investment pledges in the RE sector, accounting for 55.9% of the total approved pledges.

By location, PHP 21.5 billion worth of investments will go to Central Luzon, followed by the National Capital Region with PHP 4.2 billion, and the Ilocos Region with PHP 3.5 billion.

In the first two months of the year, the BoI approved 35 projects worth PHP 47 billion, up from the eight projects approved in the same period last year.

Foreign investments during the period surged by 943.4% to PHP 3.1 billion from PHP 300 million recorded last year, which the BoI said signaled “growing investor interest” in the country.

Singapore was the top source of foreign investments as of end-February, accounting for PHP 1.8 billion or 55.2% of the total. This was mainly driven by the 85% Singaporean-owned Intramuros Solar Energy Corp., which pledged PHP 1.7 billion worth of investments.

It was followed by China at PHP 500 million (16.8% of the total pledges), while Canada (6.5%), Australia (6.3%), and the United States (5%) each contributed around PHP 200 million.

The energy sector, which includes RE, accounted for the largest share of approved investments at PHP 22.4 billion or 47.7% of the total in the January-to-February period.

Accommodation and food service activities attracted PHP 7.6 billion in investment approvals, followed by real estate activities (mass housing) with PHP 6.4 billion, manufacturing with PHP 5.3 billion, and transportation and port storage with PHP 3 billion.

Central Luzon received the largest share of approved investments with PHP 21.5 billion as of end-February. This included a PHP 16.4-billion solar power project of Aboitiz-led Cleanergy 2 Power, Inc.

The second-largest recipient of investment pledges was Central Visayas (PHP 8.2 billion), followed by the National Capital Region (PHP 4.5 billion), Ilocos Region (PHP 3.7 billion), and Mimaropa (PHP 2.9 billion).

“The strong increase in BoI-approved projects reflects growing investor confidence in the Philippines and the continued inflow of high-value investments that support our economic priorities,” Trade Secretary and BoI Chairman Ma. Cristina A. Roque said in a statement.

She noted that the uptick in energy-related investments align with the need to boost energy security amid uncertainties in the global oil supply.

“Notably, the significant investments in renewable energy will play a crucial role in strengthening our energy security amid current challenges, while accelerating the country’s transition to a more sustainable and resilient energy future,” Ms. Roque said.

RE accounts for 25% of the country’s energy mix. The Philippines is looking to raise the share of renewables in the power generation mix to 35% by 2030 and 65% by 2050.

BoI Investments Promotion Services Executive Director Evariste M. Cagatan said the latest approvals reflect confidence in the Philippines as an investment destination.

“The increase in BoI-approved projects reflects strong investor confidence in the country’s evolving investment environment, driven by CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, and our efforts to build a greener and more competitive economy,” she said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said RE‑related investments are expected to account for a bigger share of the country’s investment pledges in the future.

“RE-related pledges have been among the largest foreign investments into the country over the past two years and could still continue, as there is greater imperative for more RE supply to further reduce reliance on imported petroleum products,” he said in a Viber message. — Beatriz Marie D. Cruz, Senior Reporter