2014 Annual Accomplishment Report - Rboi...

RBOI 2014 Annual Accomplishment Report

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Regional Board of Investments-ARMM

I. MANDATE

I.1. LEGAL BASIS

1.2. The Omnibus Investment Code of 1987- Executive Order No. 226 Registration of investments with incentives pursuant to E.O. 226 otherwise known as the OmnibusInvestments Code of 1987.

EXECUTIVE ORDER NO. 458.

Devolving the powers and functions of the Board of Investments over investments within the Autonomous Region In Muslim Mindanao to the Autonomous Regional Government and for other purposes signed by then President Corazon C. Aquino on May 17, 1991.

Section 27, Article XIII of Republic Act No. 6734, otherwise known as the Organic Act of the Autonomous Region in Muslim Mindanao (ARMM) provides that the Autonomous Regional Government (ARG) shall regulate and exercise authority over the foreign investments within its jurisdiction in accordance with its goal and priorities, subject, however, to the Constitution and National policies.

I. 2. MANDATE

a. Investments Promotion in the ARMM

a. Develop investments promotion strategy for the ARMM

b. Build effective partnerships towards investments promotion with the LGUs

c. Target, anticipate and generate investments

d. Identify effective marketing approaches; and

e. Services investments client’s needs

b. Development of Industries

a. Register, monitor and administer investment incentive to registered enterprises

b. Coordinate activities aimed at creating an investor friendly business environment

including after care services to investors

c. Prepare positions on industry and investment related concerns

d. Oversees the development and promotion of industries and sectors that are not

under the jurisdiction of any government agency; and

e. Formulate guidelines for the rationalization of certain industries


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II. EXECUTIVE SUMMARY II.1. Introduction The Regional Board of Investments (RBOI) is the agency responsible in the promotion and generation of investments. It also grants incentives to qualified investors engaged in projects that boosts economic activities in the region. The agency is geared towards increasing investment and employment generation. These projects are expected to bring about gainful employment, provide income for the people of ARMM, address security issues and most importantly sustain the economic growth of the region. II.2. Investment Generation RBOI facilitated investment projects in the region complementing the economic programs of the Hataman Administration.

(Table 1.) 2014 Annual Target vs. Actual Accomplishment

Performance

Indicator

Annual Target

Actual

Accomplishment

Percentage of

Accomplishment

Remarks

No. of applications approved/evaluated

16 22 138% 11 approved 11 evaluated

Value of Investments Generated

Php700 M Php3.867B 552% Exceeded target by 3.167B

Jobs Created 700 3,433 490% Exceeded target by

2,733

As of end of December 2014, RBOI registered eleven (11) firms namely, 1).Lamsan Power Corporation, 2).SR Languyan Mining Corporation, 3).ABSCOR Multi-Trading Company,4).Agumil Philippines Inc. 5).Green Earth Enersource Corporation, 6).Philippine

Trade Center,Incorporated7).Power-Up Ventures Inc.8)Darussalam Mining Corporation 9).Al-Mujahidin Agro Resources and Development Inc. (AMARDI), 10).Bangsamoro Oils and Fuels Cooperation and 11).PaxLibera Mining Incorporated This figure shows that the agency surpassed its 2014 annual investment target of Php700 million by 552%. The agency recorded 3,433 jobs created, exceeding its target of 700 by 490%.


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RBOI-ARMM Registered Firms as of JANUARY-DECEMBER 2014

No.

Name of Firm Project/Activity Capacity Investment Cost (Php)

No. of Jobs

Created

1 Lamsan Power Corporation

Biomass Renewable Energy 15 MW 921 M 310

2 ABSCOR Multi Trading Company

Import & Export Trading Per Activity 10 M 153

3 S.R. Languyan Mining Corp.

Nickel Ore Mining & Quarrying

1,000,000 MT 520 M 650

4 Agumil Phil. Inc. Palm Kernel oil & Palm Kernel Copra

40-80 Tons/Hr.

170 M 554

5 Green Earth Enersource Corporation

Biomass Renewable Energy

4.5 MW 366 M 54

6 Philippine Trade Center

Biomass Renewable Energy

3 MW 486 M 30

7 Powerup Ventures Incorporated

Distribution of Petroleum Products

50 Million Liters/Year 50 M 33

8

8. Darussalam

Mining Corporation,

Languyan, Tawi-Tawi,

Mining and quarrying

operation of nickel ore for

export to China

830 Wet

Metric

Tons/year

192.87 M 310

9 9.Bangsamoro Oil

and Fuels Corp.

Importation, distribution

and sales of petroleum

products

9.6 million

liters/year 85.85 M 33

10

10. Al Mujahidun

Agro-Resources and

Development, Inc.

Cavendish bananas

plantation 550 hectares 570 M 867

11. PaxLibera Mining

Incorporated Nickel Ore Mining

500 Wet

Metric

Tons/year

495.37 M 439

TOTAL

Php3.867 3,433


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The signing of the Comprehensive Agreement on the Bangsamoro (CAB) between the Philippine Government (GPH) and the Moro Islamic Liberation Front (MILF) early this year encouraged more businessmen to invest in the region and take advantage of the positive business conditions and relative stability brought about by the signing. These developments has able the agency to reach a record high of about P3.8billion investment mark this 2014.

(Table 2.)Number of Registered Firms, Value of Investments Generated, and Jobs Created from CY 2012, 2013, 2014 (during Hataman Administration)

Performance Indicator

Registered Firms


(Php)

Jobs Created

2012 1 569 M 1,016

2013 4 1.463 B 1,743

2014 11 3.867B 3,433

TOTAL 16 5.899 B 6,192

(Table 3.)Comparative Performance Report, CY 2013 vs. 2014

Performance Indicator

CY 2013 CY 2014 Difference/ Increase

Percentage Increase

Registered Firms 4 11 7 175%


PhP1.463billion PhP3.867billion 2.404billion 164%

Jobs Created 1,743 3,433 1690 97%

RBOI registered eleven (11) firms this 2014 or higher by 175% as compared to the previous year. The investments generated with the total value of Php3.867B billion are up by 164% compared from the whole of last year’s P1.463 billion. In the end of this year, employment created increased by 97% or 1,690 higher as compared to last year’s 1,743.


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II.3. Monitoring of Registered Firms One of the assistance of RBOI to its registered firms is the after care services. The agency has monitored eighty-eight (88) registered firms consistent with the provisions of Executive Order No. 226 to check and monitor the firms’ compliance to the terms and conditions of its registration and policies promulgated by the Board. The monitoring of registered firms was done through actual visits, telephone calls, text messages and emails by the monitoring team. Nine (9) incentives were dispensed to RBOI registered firms. These incentives are in the forms of Income Tax Holidays, Equipment Importation, Unique Reference Number and VatTax Clearance.

Performance Indicator Annual Target

Actual Accomplishment

Percentage of Accomplishment

(annual)

Firms Monitored 88 88 100%

Incentives Monitored/ Supervised

8 9 113%

II. 4. Investment Promotion RBOI has formulated the ARMM Investment Priorities Plan (IPP) for 2014 which is a carry-over of the 2013 ARMM IPP. This was approved by President Benigno S. Aquino III on October 28, 2014. To promote the business potentials and opportunities of the region, several meetings, consultations, fora and CEO dialogues were participated by RBOI. One of these events is a consultation with Malaysian companies in conjunction with the Trade and Investment Mission of the Honourable Dato'Sri Mustapa Mohamed (Minister of International Trade and Industry, Malaysia) to the Philippines on 22 May 2014 at Fairmont Hotel, Makati City. RBOI Chairman and Managing Head, Atty. Ishak V. Mastura attended the Investment Forum in Kuala Lumpur, Malaysia on February 27-28, 2014 representing ARMM on the occasion of H.E. President Benigno S. Aquino’s visit to Malaysia. During the 1st ARMM International Business Conference on June 17-18, 2014 in Bongao, Tawi-Tawi, the RBOI Chairman also made a presentation on ARMM Investments and Incentives. The office also led the business matching session in the said international event. A CEO dialogue was also organized for Eoil & Gas Co., Inc. from Maguindanao and Franklin Baker on June 14, 2014 in Davao City for a possible coconut processing venture.


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On June 20, 2014 in line with the Cotabato City Foundation Anniversary, the City Government of Cotabato conducted the Investors’ Forum. In this event, RBOI assisted in the business matching session of foreign investors (Malaysian) and local counterparts mostly from Maguindanao. RBOI conducted several investment promotion events during the period and some were in preparation for the Bangsamoro Government. These activities were as follows: 1). Investment consultation at Garden Orchid Hotel in Zambonga City on February 12, 2014; 2). Business Connectivity Consultation for Central Mindanao: Cotabato Airport and Polloc Port”on February 24, 2014 at Estosan Garden Hotel; Cotabato City, 3). Forum on the Implementation of Polloc Freeport and Ecozone on March 20, 2014 at Al Nor Complex, Cotabato City; and 4). Bridging ARMM Investment Promotions towards Bangsamoro Seminar-Workshop on April 29-30, 2014 at Alnor Complex, Cotabato City. RBOI also provided technical services to several entities and individuals regarding ARMM investments and RBOI registration procedures. Some of the individuals assisted were Malaysian Government Senior Director on Economic Planning, Mr. Mohammad Yunos, Managing Director of Gintong-Agri, Mr. Alexander Fergusson, and JICA Consultant and former DTI-Undersecretary, Ms. Merly Cruz. To strengthen investments promotion activities, RBOI has continuously partnered with other institutions. RBOI Admin Chief, Jaime A. Nartatez made a presentation on “How to Do Business in Mindanao: Policies, Guidelines and Incentives” during the Investment Forum on Agri-Enterprise Development in ARC Clusters on August 28-29, 2014 at Crown Regency Residences, Davao City. RBOI Support Services Chief Larzon Santos made a presentation on” Development Opportunities in ARMM” during the Forum on Development Opportunities and the Comprehensive Agreement on the Bangsamoro on September 23, 2014 at the Intercontinental Hotel in Makati City. In support to the growth of the agri-industry in the region, the office signed a Memorandum of Agreement (MOA) for the creation of the ARMM Agricultural and Aquamarine Resource Research and Development Consortium (ARMMAARRCEC). RBOI provided financial assistance to ARMMAARRCEC. In the 2nd BIMP-EAGA-IMT-GT Trade Fair and Business Leaders Conference on October 23-26, 2014 held at SMX Davao Convention Center in Davao City, one of the highlights is a Business to Business (BtoB) Meeting. RBOI staffs and MinDA facilitated the BtoB of local investors in the ARMM with local and foreign investors. Further, RBOI Chairman/Managing Head, Atty. Ishak V. Mastura presented on “ARMM Investments and Opportunities” during the business forum simultaneous with the BtoB. RBOI Chair, Atty. Ishak V. Mastura represented the Philippines as official delegate to the UNIDO Conference on Fostering Entrepreneurial Youth on November 11-13, 2014 at Vienna, Austria.


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III.1. TECHNICAL/PHYSICAL REPORT 3. Investment Generation 3.1. Approved Investment Projects

In 2014, RBOI has approved the registration of the following investment projects:

1. Lamsan Power Corporation based in Sultan Kudarat, Maguindanao registered a pioneer biomass renewable energy project costing Php 921 million. The power plant will utilize rice hull, corn husks, cobs and other agricultural wastage from its own cornstarch plant with a capacity of 15 megawatts (MW). It is expected that this will reduce the commercial power consumption of its cornstarch operations. This will also augment power reserves of the National Power Corporation and the Mindanao Grid since Lamsan Power will be selling 11.5 MW to these power companies. Lamsan Power employed 310 workers for this project.

2. SR Languyan Mining Corporation invested Php 520 million for a nickel ore mining project with a capacity of 1 million metric tons (WMT) per year in Brgy. Darussalam, Languyan, Tawi-Tawi. The company created 650 jobs.

3. ABSCOR Multi-Trading Company based in Port Holland, Maluso, Basilan has put-in Php

10 million investment for an import and export trading business. The company transacts its business undertakings in the geographic areas of the countries of Brunei, Indonesia, Malaysia and the Philippines that are under the East ASEAN Growth Area, more commonly known as the BIMP-EAGA. The company was able to employ 153 workers.

4. Agumil Philippines Inc., is set to put-up an Oil Palm Kernel Crushing Plant in Buluan, Maguindanao with a project cost of Php170 million. In the process of Agumil’s operation until to date, the company has accumulated a sizable amount of quality palm kernels which is enough to process into Palm Kernel Oil (PKO) for export and Palm Kernel Cake (PKC) for animal feeds. This prompted the company to construct a crushing plant also near the milling plant to make profitable use of these kernels. The Palm Kernel Crushing Plant is expected to generate 554 jobs.

Palm Oil Milling Plant of Agumil Philippines

Inc.in Buluan, Maguindano


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5. Green Earth Enersource Corporation, a subsidiary company of Agumil Philippines Inc., will establish Biomass Renewal Energy Project worth Php 366 million at the Agumil Compound, Buluan, Maguindanao. The Biomass Power Plant with a capacity of 4.5 megawatts (MW) will support the energy needs of Agumil’s milling and crushing plants in Buluan, Maguindanao while the excess power will be sold to the national transmission grid. The plant is estimated to generate 54 local employment

6. Power-Up Ventures Inc. The company will mainly engage in the importation and distribution of petroleum products and construction of depots in Polloc, Parang, Maguindanao. The company has invested P50 million for the project. The five oil depots to be constructed in Parang, Maguindanao have a total capacity of 5 million liters. It is expected to generate 33 local jobs.

7. Philippine Trade Center, Incorporated has put up their own power plant to fuel their existing Cornstarch Milling Plant at Sultan Kudarat, Maguindanao for the company to reduce its energy cost. The Renewal Energy Project with a cost of Php 486 million has a capacity of 3 megawatts (MW). At present, out of the 3MW produced by the power plant, the milling plant consumed only 1.3MW and so the excess of 1.65 MW will be sold to the Cotabato Light and Power Company. PTC has hired 30 direct employees.

8. Al Mujahidun Agro Resources & Development, Inc. (AMARDI) at Ampatuan,

Maguindanao is engaged in Banana Cavendish plantation with initial land development of five hundred fifty hectares. The total project cost is five hundred seventy million pesos (Php 570 M) to generate employment of 867 workers.

PTC Power Plant at Sultan Kudarat, Maguindanao

RBOI Chairman, Atty. Ishak V. Mastura (2nd right)

handed the RBOI Certificate of Registration to Power-Up

Ventures Inc. represented by its Chief Finance Officer,

Antonio T. Santos Jr. (2nd left) witnessed by RBOI Board

of Governors Salip Aloy Jainal (1st left) and Muctar C.

Muarip (1st right).


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9. Bangsamoro Oil and Fuels Corporation, a distributor of petroleum product in Autonomous Region In Muslim Mindanao and nearby provinces located in Polloc, Parang, Maguindanao. The total cost of project is eighty five million and eight hundred fifty thousand pesos (Php85.85 M) and to generate 33 jobs.

10. Darussalam Mining Corporation based in Tumbagaan, Languyan, Tawi-Tawi engaged in

a Php 192.87 million mining and quarrying operation of nickel ore for export to China. The company is to create 310 local jobs.

11. PaxLibera Mining Corporation based in Barangay Bakong, Languyan, Tawi-Tawi engaged in a Php495.37 million mining and quarrying operation of nickel ore for export to China. The company is to create 439 local jobs.

3.2. 1. Investments in the Pipeline for 2015 Here are the lists of projects that are now being initially evaluated by RBOI. These firms are on the process of complying the requirements for RBOI registration.

1. Tawi-Tawi Petroleum Trading Corporation to establish an oil depot in Tawi-Tawi worth P50 million

2. Chan C. Mining Incorporated – Mining and Quarrying of Mineral Ore at Barangay Buan, Panglima Sugala, Tawi-Tawi worth of P700 Million

3.2.2. Investment Leads for 2015. The following are prospective inventors who signified interest to invest in ARMM;

1. La Frutera Inc., is proposing to develop a banana Cavendish plantation in Talayan, Maguindanao as part of their expansion plans.

2. Mr. Manuel Tan to invest in a Warehousing and Logistics Projecttobe located at the old Eversun Co. building at Brgy. Sarmiento, Parang, Maguindanao;

3. ALNOR Corporation intending to put up a warehouse and oil depot at Polloc, Parang, Maguindanao

4. Lim Solar Philippines to construct a Php4.7 billion solar power plant at Barangays Malimono and Matampay-CormataninMarawi City. And;

5. GintongAgri Corporation – to establish a 1,500 hectare oil palm plantation in Datu Odin Sinsuat, Maguindanao

6. CICC Philippines Inc. – to establish a testing laboratory in ARMM to cater to the testing needs of mining companies

7. Nissey Delica to develop a buckwheat (soba) plantation in Bumbaran, Lanao del Sur

8. Lamsan Power Corporation to expand their power plant capacity to 3MW at Simuay,

Sultan Kudarat, Maguindanao


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3.3. Monitoring of Registered Firms One of the assistance of RBOI to its registered firms is the after care services. The agency has monitored eighty-eight (88) registered firms consistent with the provisions of Executive Order No. 226 to check and monitor BOI registered firms ’in compliance to the terms and conditions of its registration and policies promulgated by the Board. The monitoring of registered firms were done through actual visits, telephone calls , SMS messages and emails by the monitoring team. Nine (9) incentives were dispensed to RBOI registered firms this 2014.These incentives are in the forms of Income Tax Holidays, Equipment Importation, Unique Reference Number (URN) and Vat Tax Clearance.

Incentives Dispensed/Services RBOI Registered Firm

1. Unique Reference Number Wao Development Corporation

2. Unique Reference Number Mount Kalatungan Agri Ventures Inc.-2

3. Certificate of Entitlement for availment of Income Tax Holidays

Mount Kalatungan Agri Ventures Inc.- (MKAVI2)

4. Unique Reference Number Agumil Philippines Inc.

5. Importation of Capital Equipment Agumil Philippines Inc.

6. Certificate of Entitlement for availment of Income Tax Holidays

Agumil Philippines Inc.

7. Importation of Capital Equipment Delinanas Development Corp.

8. Vat Tax Clearance La Frutera Inc.

9. Certificate of Authority to Import Capital Equipment

Lamsan Power Corporation

3.4. Investment Promotion In anticipation to the transition of the new Bangsamoro entity in 2015 and in preparation of the challenges ahead, RBOI recognizes the importance of a favorable business environment. Hence, the agency continued its thrust of generating more investments in the region through relentless and strengthened investment promotion strategies and campaigns. 3.4.1. ARMM Investment Priorities Plan (IPP) 2014 The ARMM Investment Priorities Plan (IPP) for 2014 has been approved by President Benigno CS. Aquino III. The IPP lists the priority activities for investments which can qualify for incentives from the ARMM government. The ARMM IPP lists the following as priority activities: export; agriculture, agribusiness or aquaculture fishery; basic industries; consumer manufactures; infrastructure and services;


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industrial service facilities; engineering industries; logistics; BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East Association of Southeast Asian Nations Growth Area) trade and investment enterprises; tourism; health, education, services and facilities; and halal Industry. RBOI is also an active member of the Philippine Investment Promotion Plan (PIPP) Team. Through the PIPP, the agency is able to work with the Subic Bay Metropolitan Authority (SBMA), Philippine Economic Zone Authority (PEZA), Clark Development Export Zone (CDC) and other Investment Promotion Agencies (IPAs) in the country. This will enable the region to widen its investment reach both domestic and foreign, broadened its network and linkages of investors, partner agencies and institutions. The PIPP is the blueprint for all IPAs to synchronize strategies in investment promotion. 3.4.2.Investment Promotion Activities

1. Conducted Investment Consultation at Garden Orchid Hotel in Zambonga City on February 12, 2014. About 75 members of the business community from the island provinces of Basilan, Tawi-Tawi and Sulu as well as Zamboanga City participated in the event. Some of the guest participants were businessmen from Malaysia.

2. RBOI Chairman/Managing Head, Atty. Ishak V. Mastura attended the Investment Forum

(Outbound Mission) in Kuala Lumpur, Malaysia on February 27-28, 2014to represent region ARMM on the occasion of H.E. President Benigno S. Aquino’s visit to Malaysia.

3. The problem of no daily flights at the Awang Airport affected negatively the flow of business and government transactions in Cotabao City and ARMM. RBOI, also concern of the situation, since part of its functions is to provide a conducive business environment to investors, was compelled to act on the call of the private sectors to address the issue. Thus, RBOI conducted the Business Connectivity Consultation for Central Mindanao: Cotabato Airport and Polloc Port” on February 24, 2014 at Estosan Garden Hotel, Cotabato City.

RBOI in partnership with ABSCOR Multi-Trading Company

organized an Investment Consultation to inform the businessmen

about the importance of registering their businesses to avail of government services and incentives.


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Business Connectivity Consultation for Central

Mindanao: Cotabato Aiport and Polloc Port on February

24, 2014 at Estosan Hotel, Cotabato City. RBOI Chairman,

Atty. Ishak V. Mastura (center) led the passing of a

resolution for the resumption of daily flights at the Cotabato

Airport. Presenters were Mr. Hexan Mabang (left) of Polloc

Port and Atty. Roslaine Maniri of DOTC-ARMM (right)

Seventy-two (72) representatives from the business, government, military, airlines, shipping lines and media actively participated in the said consultation. A resolution was passed by the participants appealing for the resumption of the DAILY flights at the Cotabato Airport. The resolution was submitted to Congresswoman Bai Sandra Sema and Congressman Jesus Sacdalan and to concerned national government agencies such as DOTC and CAAP and responsible regional offices in the ARMM

4. As a follow-up to the Business Connectivity Consultation for Central Mindanao: Cotabato Airport and Polloc Port” on February 24, 2014 RBOI assisted MinDA and the Office of the Executive Secretary –ORG organized a meeting with DOTC- Central Office, Assistant Secretary Lino H. Dhabi and Executive Director Janet Lopoz of the Mindanao Development Authority (MINDA). The meeting was attended by representatives from the business sector, airline companies, VTL Construction and concern government agencies on March 24, 2014 at the Office of the Regional Governor-OES,

Cotabato City.

As a result of the said meeting, the Civil Aviation Authority of the Philippines (CAAP) after careful study and finding measures to solve the issue, the CAAP informed the public on April 3, 2014 on the RESUMPTION OF DAILY FLIGHTS at the AWANG AIRPORT every Tuesday, Wednesday and Thursday from 12:00 to 4:00PM while there were no changes of flight schedules every Friday, Saturday, Sunday and Monday. After the CAAP notice, PAL Express (Philippine Airlines) resumed their regular flights on April 15, 2014 while Cebu Pacific on July 1, 2014. At present, air connectivity in ARMM and Cotabato City and business operations is back in track.

Meeting of officials from ARMM, MINDA DOTC

National and the business sector on the resumption of

daily flights at Cotabato Airport at the NEDA Bldg,,

Cotabato City on March 24, 2014.


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5. RBOI sponsored a Meeting of the Guild of

Information Officers (GIO) organization on March 19, 2014 at the office’s board room. The members of the Guild were updated about the status of investments generation in the ARMM by RBOI Chairman/Managing Head, Atty. Ishak V. Mastura. The GIO were asked to help disseminate information about the positive developments in the region particularly the increase of investments in the region which can be contributed to gaining investor’s trust in the present administration and the favorable conditions brought about by the on-going peace process.

6. RBOI organized a Forum on the Implementation of Polloc Freeport and Ecozone on March 20, 2014 at Jehan Hall, Alnor Complex, Cotabato City in partnership with DTI-ARMM, Regional Economic Zone Authority (REZA) and Freeport of Polloc. The activity was participated by 76 representatives from the business sector, concern government agencies and other stakeholders. The forum was aimed at promoting the operationalization of Freeport of Polloc and REZA and to harmonize Polloc port arrastre/tariff rates for it to be competitive to other ports in the

country.

RBOI Chair Atty. Ishak V. Matura (center)

making a report to GIO members on the

current status of investments in the ARMM

Forum on the Implementation of Polloc

Freeport and Ecozone on March 20, 2014 at

Jehan Hall, Alnor Complex, Cotabato City


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7. Over 70 participants attended the Bridging ARMM Investment Promotions towards Bangsamoro Seminar-Workshop on April 29-30, 2014 at Alnor Complex, Cotabato City. The activity was organized by the Regional Board of Investments (RBOI) in cooperation with the Japan International Cooperation Agency (JICA). It was attended by members of the Economic Cluster of the ARMM Regional Government mostly were information and planning officers, as well as representatives from the business community, non-government organizations and the media. The seminar-workshop is part of RBOI’s way to help capacitate ARMM personnel particularly those who work closely with RBOI and those involved in investment promotion, generation and servicing. The activity was anchored under the ARMM, Comprehensive Capacity Development Project of JICA. Through the activity, the participants were exposed to the current issues, opportunities and challenges of investments in the ARMM towards Bangsamoro.

The seminar-workshop highlighted on the SWOT analysis of the current ARMM investment climate and Branding the Bangsamoro as an economic region. The workshop outputs will served as inputs of the present regional government to improve its investment promotion strategies which can be turned-over to the Bangsamoro government.

Thumbs Up! Speakers, guests, participants and organizers

(RBOI and JICA) took a group photo after the closing

ceremonies.

Bridging ARMM Investment Promotions towards

Bangsamoro Seminar-Workshop on April 29-30, 2014 at

Alnor Complex, CotabatoCity. The activity was organized by

RBOI in cooperation with JICA.


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8. RBOI Chairman/Managing Head, Atty. Ishak V. Mastura presented on the topic ARMM Investments and Incentives during the 1st ARMM International Business Conference (IBC) on June 17-18, 2014 in Bongao, Tawi-Tawi. RBOI also led the business matching in the said international event where foreign and local investors meet to explore business opportunities.

Some of the notable explorative discussions during the IBC-Business Matching in Tawi-Tawi were as follows:

a) ABSCOR Multi-Trading company and RFN Trading on a P72 million importation of grains business (sugar, flour, etc).; b) Panglima Sugala Business Council and Franklin Baker on putting up a coconut processing plant provided that the municipality and its adjacent areas can supply 5,000 fresh/whole coconuts to Franklin Baker to be processed into virgin coconut oil, coco juice, charcoal briquettes and coco coir peat.; c) People’s Alliance for Progress MPC and Scintillan Trading Inc. for a P1.6 million civit coffee and robusta coffee business agreement; d)Panglima Sugala Business Council and BIMP-EAGA Malaysia Business Council- exploring talks on importing petroleum products from Malaysia to Tawi-Tawi; and e) ABSCOR Multi-Trading Co. and Nurani, SDN, BHD – exploring talks on the business of importation of petroleum products

RBOI Chairman, Atty. Ishak V. Mastura presented on

“ARMM Investments and Incentives” during the 1st

ARMM International Business Conference in Bongao,

Tawi-Tawi on June 17-18, 2014.

ABSCOR Multi-Trading Co. and Malaysian company

Nurani, SDN, BHD exploring talks on the business of

petroleum importation and distribution during the business

matching led by RBOI as part of the International Business

Conference on June 17-18, 2014 in Bongao, Tawi-Tawi.


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Other Activities Organized/Participated 9) RBOI personnel participated in the Development Academy of the Philippines series of Workshops and Seminars for the Autonomous Region in Muslim Mindanao, at Pagana Restaurant, Cotabato City.

10) Oplan Governor’s Initiative Strategic Assessment (GISA)- Mid-Year Cabinet Reporting on July 22, 2014 at the RBOI Board Room, Cotabato City . 11) The agency staffs provided information to Mr. Romeo Almanzor on their query on what are the documentary requirements to apply for RBOI registration. Mr. Almanzor is a Consultant of Gintong Agri Corporation, a company proposing to develop a 500-hectare of oil palm plantation at Datu Odin Sinsuat (DOS), Maguindanao.


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12) RBOI extended technical assistance to Malaysian Government Senior Director on Economic Planning, Mr. Mohammad Yunos who came to the region on August 19-20, 2014. RBOI Chairman Mastura and staffs accompanied Mr. Yunos and party visit some registered firms in the ARMM and briefed them about the operations of these companies. The Polloc Port in Parang Municipality and the Sand & Gravel Quarrying in Simuay, Sultan Kudarat Municipality were also visited by the group. 13) RBOI represented by Admin Chief, Jaime A. Nartatez made a presentation on “How to Do Business in Mindanao: Policies, Guidelines and Incentives” during the Investment Forum on Agri-Enterprise Development in ARC Clusters on August 28-29, 2014 at Crown Regency Residences, Davao City.

14) RBOI participated in the ARMM 5S Clean-Up Day on September 2, 2014 held at the ARMM Complex, Cotabato City. The agency was awarded MOST ACTIVE 5S CORE TEAM by the Office of the Regional Governor (ORG), Development Academy of the Philippines (DAP) and Japan International Cooperation Agency (JICA) for actively implementing 5S principles and activities in the agency.

15) The Mindanao Development Authority (MinDA) organized a pre-Business to Business (BTB) Meeting on September 16, 2014 in Davao City of which RBOI participated. ARMM potential investors/LGU officials/ land owners were invited during the activity for them to be briefed on the requirements for the BtoB in preparation for BIMP-EAGA and IMT-GT Trade Fair and Business Leaders Conference on October 23-26, 2014 in Davao City.

RBOI was recognized/awarded as MOST ACTIVE 5S

CORE TEAM by the Office of the Regional Governor,

DAP and JICA during the ARMM Clean Up Day.


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16) Assisted in the invitation of participants to the Forum on Development Opportunities and the Comprehensive Agreement on the Bangsamoro on September 23, 2014 at the Intercontinental Hotel in Makati City. RBOI through Chief Larry Larzon made a presentation on “Development Opportunities in ARMM”. 17) RBOI is a signatory in the Signing of a Memorandum of Agreement (MOA) and Oath Taking Ceremony of Consortium officers on September 29-October 1, 2014 in line with the creation of the ARMM Agricultural and Aquamarine Resource Research and Development Consortium (ARMMAARRCEC) organized by DOST. The agency provided and contributed financial support for the operations and achievement of the goals of ARMMAARRDEC. 18) Extended technical assistance to Mr. Alexander Fergusson, Managing Director of Gintong-Agri. RBOI Chair, Atty. Mastura briefed Mr. Fergusson on how to register and avail of incentives in the ARMM. He was also provided with technical information on Palm Oil Industry and Land Development. 19) RBOI extended technical assistance through a dialogue with JICA Consultant and former DTI-Undersecretary Merly Cruz, regarding proposed Bangsamoro Fund Facility. Assisted Ms. Cruz to conduct dialogue with RBOI registered firms for data gathering/survey mapping.

Atty. Ishak V. Mastura briefs Mr. Alexander Fergusson (1st

left), Managing Director of Gintong-Agri regarding ARMM

investments and RBOI registration procedures and incentives.

RBOI Chair, Atty Ishak V. Mastura

discusses some points with JICA

Consultant and former DTI-

Undersecretary Merly Cru z (1st left) ,

regarding proposed Bangsamoro

Fund Facility.


=====================================================================================


20) The agency participated in the 2nd BIMP-EAGA-IMT-GT Trade Fair and Business Leaders Conference on October 23-26, 2014 in Davao City. Part of the international event is a Business to Business Meeting of local investors in the ARMM with local and foreign investors where the RBOI staffs together with MinDA facilitated. Further, RBOI Chairman, Atty. Ishak V. Mastura presented on “ARMM Investments and Opportunities” during the Business Forum simultaneous with the business matching sessions. According to MinDA, major investment leads during the business-matching sessions included the proposed coffee plantation in Sultan Kudarat and the oil palm plantation in North Cotabato amounting to P1.5 billion each, an oil depot in the ARMM worth P440 million, a coconut buying stations in Lanao del Sur, and a corn processing facility in South Cotabato amounting to P350 million.

21) Atty. Ishak V. Mastura, RBOI Chair participated as official delegate of the Philippines to the UNIDO Conference on Fostering Entrepreneurial Youth on November 11-13, 2014 in Vienna, Austria.


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III.2. FINANCIAL REPORT

The Regional Board of Investments – ARMM has an approved budget of P21,093,000 broken down as

follows :

Personal Services - P14,328,000 (68%)

MOOE - 6,765,000 (32%)

The approved budget is intended to attain its target of promoting and generating investments of at least

700 Million to 1 Billion Pesos for Fiscal Year 2014 . Apparently, the approved budget is too low from the

proposed budget which the office have submitted to DBM and this poses a big problem on how to

allocate the meagre funds inorder to achieve its goals . The Board has to fully support its investments

promotion activities such as the conduct of investment forums, investment missions both local and

foreign and the supervision and monitoring of registered firms which entails expenditures for travelling

expenses and other related expenditures considering limited funds. Out of the MOOE which is about

32% of the budget (P6,765,00) about 30% is devoted to address the need for the office maintenance

and other administrative expenses and the remaining 70% will be to finance the operation in

investments promotion.

The office of the Regional Governor recognizing the importance of the office in the investment

generation in ARMM has granted a Local Fund support in the amount of P 4,001,000 to augment its

operation, broken down as follows :

PS - 1,026,000 MOOE - 1,000,000

CO -1,975,000

The local fund is intended to finance the contractual employees in support of its administrative services

considering lack of approved plantilla positions from DBM such as an accountant, budget officer, HRMO

and for other administrative aides. The MOOE is to augment expenses to support its investment

promotion activities and the needed capital outlay for the procurement of a vehicle while still to be

released has long been proposed by the office to support the operation as well as for administrative

purposes.

With the limited funds for the operation, the board has to judiciously allocate funds to support priority activities that can really deliver results. With appropriate budget support it could be expected that the Board can generate more investments in ARMM through sustained investment promotion and follow through of investments leads.


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IV. SPECIAL CONCERNS

4.1 . Compliance to Good Governance Conditions The office revised and updated its Citizen’s Charter with the technical assistance of the Development Academy of the Philippines (DAP) and Japan International Cooperation Agency (JICA). At present, the RBOI Citizen’s Charter is already approved by the agency head upon recommendation of the DAP. It is now posted at the RBOI’s website: http://www.rboi.armm.gov.ph/citizencharter and placed at the entrance area of the office as information bulletin. All RBOI personnel had complied with their Sworn Statement of Assets and Liabilities and Net Worth (SALN). The SALNs were submitted to the Office of the Regional Governor-Office of the Executive Secretary and Office of the Ombudsman. The office has complied with the requirements for the Strategic Performance Management System (SPMS) and was duly approved by the CSC-ARMM. All SPMS forms were submitted to the Office of the Regional Governor copy furnished to the Civil Service Commission-ARMM. The agency also has registered with PhilGEPS for its procurement transactions.

RBOI was the TOP agency with 100% score during the 2014- 2nd Quarter ARMM Websites Assessment. In the third and last quarter website assessments, RBOI also got 100% score. This means that the agency has consistency complied with Sec. 93 (Transparency Seal) R.A. No. 10155 (General Appropriations Act FY 2012).

The agency has posted the requirements (financial reports, physical plans, accomplishment reports, etc.) in the Seal of Transparency page of the RBOI website for public information. This can be accessed through http://www.rboi.armm.gov.ph/transparencyseal

http://www.rboi.armm.gov.ph/citizencharter

http://www.rboi.armm.gov.ph/transparencyseal


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4. 2. Governance and Administration

The Board of Governors is composed of four members to include the chairman who were appointed by the present administration. The present composition led by the Chairman and three members is active and working closely to fulfill the Board’s functions and responsibilities as the policy making body of RBOI. The Board meets every quarter and holds special meetings when there are urgent concerns that need to be decided

promptly. The Board approves or denies applications for registration based on Executive Orders 226 and 458. This year, the Board had five meetings approving eleven projects with total cost of P3.867B. The agency also has a working Management Committee (ManCom) assisting the Board in their policy making decisions at the same time assisting the Managing Head/Chairman in the daily operations of the office. The Board of Governors and ManCom work hand in hand to achieve the goals of the agency.

Moreover, the Management Committee (ManCom) is headed by the Executive Director, while three Division Chiefs, two Investment Supervising Specialists, and one Administrative Officer III act as members. The head and members of the ManCom, deliberate on the legality and feasibility of the applications for incentives. The ManCom reviews and evaluates the applications of these companies in relation to the applicability of their investment projects in ARMM. After careful deliberation, the ManCom will then submit the findings and recommends to the Board of Governors the decision to approve or deny an application for registration. Moreover, the ManCom supervises and monitors the firms registered with RBOI to ensure they adhere to the agreements and reportorial requirements of the agency. The ManCom also decides on matters in line with the daily operations of the agency with final approval of the Chairman/Managing Head. It convenes once every month or when there are urgent matters that require immediate action. The Grievance Machinery is also being coursed through the ManCom.

The first RBOI Board of Governor’s Meeting in

2014 was held on February 13 at Garden Orchid

Hotel, Zamboanga City. During this meeting, the

application of Lamsan, SR Languyan and ABSCOR

were approved by the Board.


=====================================================================================


4.3 Agency Communication Plan The RBOI office is regularly being visited by people from different sectors such as businessmen inquiring on RBOI registration while others look for business partners or opportunities. Other guests are from government and non-government agencies, members of the media and students doing research work on issues and information pertaining to doing business in the region. Some inquire through phone calls, text messages and emails.

The personnel prefer to meet the clients or researchers personally so that important information is explained well to ensure understanding of the processes/issues. Some of the queries were answered through phone calls and emails. The agency uses mass and multi-media in the

dissemination of important information on investments. This

period, five (5) radio interviews were aired over DXMS DXMY and DXAE. Five(5) TV interviews were covered through TV Patrol, ABS-CBN- Cotabato City, and Zamboanga City also with PTV4. The agency enhanced its website, “ www.rboi.armm.gov.ph”which now has a new look and a responsive design which allows better functionality and appearance on desktops, loptops, tablets and smartphones. This can also be link to other social networking sites like facebook and twitter.

Press releases were published in local newspapers namely Kotawato Express, Mindanao News Star and Mindanao Cross also in national news daily, Manila Bulletin, Philippine Star, among others. These press releases were also published in the online news websites of Manila Times, MindaNews Zamboanga Times, Business World, Rappler, and in the official portals of the ARMM government and Philippine Information Agency. The agency also has given out over fifty (55) copies of ARMM-Investment and Incentive Primer as information material readily available to investors and researchers.

http://www.rboi.armm.gov.ph/


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4.4. Cluster Convergence

RBOI is Chair of the Economic Growth and Linkage Cluster created through Executive Order No. 06 signed by RG MujivS. Hataman. The Cluster is tasked to deliver Key Result Areas (KRA) with focus on the promotion or rapid, inclusive, and sustained economic growth by increasing agricultural productivity, income, and employment and increase in infrastructure and investment generation in different ARMM

industries.

The Cluster had its first meeting on June 2, 2014 and for its second on October 9, 2014 both held at the RPDO Office. During the first meeting, it was agreed by the Cluster member to pass a resolution recommending to the Regional Governor the creation of a Technical Working Group (TWG) to study the feasibility of establishing Bongao, Tawi-Tawi as a Special Economic Zone (SEZ) with Free Trade Zone. The composition of the TWG will be headed by the Regional Economic Zone Authority (REZA) while, DPWH, DTI, RBOI,DENR/EMB, DAR, DAF, RPDO, HLURB and Water Utility Board will serve as members. The Chairman also reminded the members to look back at their actual accomplishments to see if they meet their targets and review on how far they have gone with their commitments. The members were also informed that each agency should define their transition issues most important is on their agencies’ sustainability. This issues and concerns should be reflected in the preparation of reports. As for RBOI’s cluster deliverables for the 2014, the agency reached 22 or 138%, of its 16 target broken as (8) for approved and (8) for evaluated. It has exceeded by 552% or PhP3.617 billion investments against its target of PhP700 million. RBOI is also above its employment target of 700 by 2,733 (490%) or has recorded 3,433 jobs created.

RBOI Chairs the Economic Growth and Linkage Cluster.

RBOI Chair at the same time Economic Cluster Chair, Atty.

Ishak V. Mastura emphasizing some points to the members

during the Cluster’s 2014 First Regular Meeting on June 2,

2014 at the RPDO Office, Cotabato City.

2014 First Regular Meeting of the Economic Growth

and Linkage Cluster, June 2, 2014 at the RPDO

Office, Cotabato City


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4.5. ARMM HELPS As to the ARMM Convergence Program, RBOI has proposed to facilitate a 2- hectare oil palm demo farm at Brgy. Tubak, Ampatuan, Maguindanao subject to the buy-in of the different constituencies of the project including other ARMM agencies in 2013.However, since the proposed project is not feasible in the area considering the location, transportation and marketing issues it was agreed to cancel the proposed project. At present, the RBOI is assigned to provide technical assistance through marketing and promotion of products produced by the beneficiaries. 4.6. Data Management

RBOI requires all registered firms to submit their reportorial commitments every quarter. Usually, reports submitted by the registered firms are in hard copies. Important data are being culled and encoded in the computer. Each Division, the Technical, Research and Administrative are provided with internet ready computers and printers. This is to ensure that important data such as communications and reports related to technical, administrative and financial are properly recorded and kept. Reports are generated, stored and retrieve through the computer. Data on the list/profiles of RBOI registered firms, both active and inactive are prepared and saved in Microsoft wordand Excel formats in the computer. The agency also maintains a Human Resource Information System (HRIS) for easy access, updating and reporting of personnel data. 4.7. Gender and Development The office has proposed to conduct livelihood trainings on fish, meat and fruit processing as part of its Gender and Development (GAD) activities. This is to enhance the skills of men and women in the office by undertaking other sources of income. Another proposal is the conduct of an Orientation Seminar on GAD related laws that would apply in the daily lives of the men and women in the office. Presently, the RBOI personnel are into regular de-stressing activity or workout/exercise which is done every Wednesday of the week at 4PM. This is to promote healthy lifestyle among the personnel in the office so they could also be productive not just in the office but also in their daily lives.


=====================================================================================


V. Personnel Report The Regional Board of Investments-ARMM is only accorded twenty plantilla positions since its creation last May 17, 1991 by the Department of Budget and Management. Apparently there is an imbalance of personnel distribution between the Technical and Administrative Division which is manned only by three (3) staff. Despite persistent request to create new but essential positions in the Administrative Division, such as : Accountant, Budget Officer and HRMO, excluding Utility, Messenger and Driver, the same was not given due consideration. These positions being requested are essential since it carries an exclusive responsibility and accountability which cannot be endowed to a contractual employee nor totally imposed to a designated personnel within the organization. The designation of additional functions to other technical staff to fill up gaps in administrative and finance work requirements have burdened affected staffs because of multi-tasking.


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Personnel Summary

As of December 31, 2014

Plantilla Positions Total Filled Unfilled Reason for

Vacancy

Regular

Chairman 1 1 0

Board Members 3 3 0

Executive Director 1 1 0

Admin Position 3 2 1 Death of incumbent

AO 111 as of Aug.

30, 2013

Technical 12 12 0

VACANCIES*** 1 Death of Incumbent

Total 20 19 1

LOCAL FUND

Contract of Service 12 12 0


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VI. FY 2012-2014 Physical/Financial Accomplishment

Program, Projects

and Activities

Physical Accomplishment

Financial Accomplishment

2012 Actual P 569

Million

2013 Actual

P

1.463 Billion

2014

2012 Utilizati

on

2013 Utilizati

on

2014 Budget )P’000)

Actual Target

P700

Million

Actual Accomplishment as

of December 31, 2014

P 3.867 Billion

%

Released

Disbursed

%

MFO7 1.No. of Applications/Approved/Evaluated 2. Amount of Investment Generated 3. No. of Job Creation 4. No. of Firms Monitored/Supervised 5. Percentage (%) Incentives Monitored/Supervised

1

P 569 M

1,016

68

6

4

P 1.463

B

1,743

76

9

16

P 700 M

700

88

8

22

3.867B

3433

88

9

138% 552% 490% 100% 113%

18,863,000

19,629,000

20,520,494

20,520,494

100%


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VII. 2015 Work and Financial Plan

Programs, Activities and

Projects (PAPS) Expected Outputs

Schedule of

Implemen-tation

2015 Budget

Source of

Funds

Remarks

MFO-7 I. Investment Regulatory Services 1. No. of application for registration evaluated/approved 2. % of clients that rated the services as satisfactory or better 3. Worth of Investments Registered 4. No. of jobs created 5. Percentage (%) of application for registration acted upon within 5 days

8

100%

P 700 M 700

100%

2/qtr

P 175 M/qtr 175/qtr

21,208

General Fund

II. Firm Monitoring and Supervision 1. No. of firms monitored/ Supervised 2. Percentage ( %) of firms compliant to Terms and Conditions of the registration 3. No. of inter-agency/industry linkages/investments consultations conducted

104

100%

4

26/qtr

1/qtr

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