2015 Semi-Annual Accomplishment Report - Rboi...

2015 Semi-Annual Accomplishment Report RBOI

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Regional Board of Investments-ARMM

A. MANDATE

A.1. LEGAL BASIS

The Omnibus Investment Code of 1987- Executive Order No. 226

Registration of investments with incentives pursuant to E.O. 226 otherwise known as the Omnibus Investments 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.

A.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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B. EXECUTIVE SUMMARY B.I. 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 projectsare 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.

(Table 1.) 2015 Annual Target vs. Actual Accomplishment (January-June 2015)

Performance

Indicator (MFO7)

Annual Target

Actual

Accomplishment

Percentage of

Accomplishment

Remarks

No. of applications approved/evaluated

8/8 3/3 38% 3 evaluated 3 approved

Value of Investments Generated

Php700 M Php1.55B 221% Exceeded target by

Php850 M

Jobs Created 700 613 87% In the first semester of 2015, the agency has evaluated and approved 3 applications for RBOI registration with total project cost of Php1.55 billion with overall jobs created of 613.The three firms approved and registered by RBOI are Tawi-Tawian Petroleum Trading Corporation, Chan C Mining Incorporated and Lamsan Power Corporation.

Registered Investments and Jobs Generated

CY 2012 to 1st Semester of 2015

YEAR TOTAL INVESTMENTS

(Php’000) JOB GENERATION

2012 569 M 1,016

2013 1.463 B 1,743 2014 3.867 B 3,433

2015 1.550 B 613

TOTAL 7.449 B 6,805

A total of Php7.499 billion worth of investment projects have been poured in the region since the start of the Hataman Administration in 2012 up to the present year 2015 and recorded a total job generation of 6,805.


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Total Investments CY 2012- 1ST Semester of 2015

Total Jobs Created CY 2012- 1ST Semester of 2015

Php 569M

Php 1.463B

Php 3.867B

Php1.550 B

2012

2013

2014

2015

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2012 2013 2014 2015

1,016

1,743

3,433

613


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C. THE REPORT

C. II. INVESTMENT GENERATION ACTIVITIES:

C. ii. a. 2015 APPROVED REGISTRED FIRMS In the first semester of 2015, RBOI conducted two (2) Joint Meetings of RBOI Board of Governors and Management Committee (ManCom) on February 20, 2015 in Davao City and on May 23, 2015 in Cotabato City. The meetings were organized to approve or deny an application after a thorough evaluation by the group on the legality and feasibility of the firms applying for RBOI registration. As a result of the meetings, the applications of the following firms were approved by the Board:

1.Tawi-Tawian Petroleum Trading Corporation is into importation and distribution of petroleum products. The company operates at Barangay Garing Baunoh, Panglima Sugala, Tawi-Tawi where three (3) oil tank depots are currently being constructed with an expected capacity of 7.6 million litres per annum. The P121.25 million petroleum project is estimated to generate 56 jobs.

2. Chan C Mining Incorporated is a new mining operator in the Province of Tawi-Tawi. It has

invested P741.8 million for a mining and quarrying of nickel ore project in Barangays Karaha and Dungon, Panglima, Sugala, Tawi-Tawi. The company’s mining capacity is estimated to produce 1,000,000 Wet Metric Tons of nickel ore per year to create 497 jobs.

The extracted nickel ore are exported to China. 3. Lamsan Power Corporation based in Crossing Simuay, Sultan Kudarat, Maguindanao

expanded their existing power plant with an additional 5.5 megawatts capacity worth Php686.7 million. The said renewable energy project is set to create 60 workers.

List of Firms approved by RBOI for registration from January-June 2015

Name of Firm Business Address Project Activity Project Cost Employment Generation

1.Tawi-Tawian Petroleum Trading Corporation

Brgy. Garing Baunoh, PanglimaSugala, Tawi-Tawi

Importation and Distribution of Petroleum Product

Php121 M 56

2.Chan C Mining, Incorporated

Brgys. Karaha and Dungon, PanglimaSugala, Tawi-Tawi

Mining and Quarrying of Nickel Ore

Php742 M 497

3. Lamsan Power Corporation

Simuay Sultan Kudarat, Maguindanao

Power plant Php687M 60


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C.ii.b. INVESTMENTS IN THE PIPELINE The companies listed below have already submitted their application for RBOI registration. The documents are now undergoing evaluation by the technical personnel of the agency. A Joint Board of Governors’ and ManCom Meeting is set anytime in the third quarter of 2015 to further review the applications for RBOI registration and have these readied for final approval.

INVESTMENTS IN THE PIPELINE

Name of Firm Business Address Project Activity Estimate Project Cost

Estimate Employment Generation

1. DS3 Fuel Tanking and Services Inc.

Polloc, Parang, Maguindanao

Construction of Oil Depot

Php252M 45

2. Al-Sahar Agri Ventures Inc.

Mangudadatu, Talayan, Guindulungan, Barira, Buldon

Cavendish Banana plantation

Php3.7B 3,900

3. Gintong-Agri Corporation

DOS, Maguindanao Oil Palm (5,000 Has.)

Php1.3 B 1,000

4. Maguindanao Energy Farms Inc.

Crossing Simuay, Sultan Kudarat, Maguindanao

Napier Biomass Fuel Production

Php400M 60

C.ii.c. INVESTMENT LEADS

2015 INVESTMENT LEADS Name of Firm Proposed Project Location

1. Matling Industrial and Commercial Corporation (MICC)

Cassava processing Matling, Malabang, Lanao Sur

2. CICC Philippine Inc. Lab Testing for Mining Tawi-Tawi

3. Polloc Millenium Development Corporation (PMDC)

Petroleum Depot Polloc Port, Parang, Maguindanao

The above list of potential inventors has signified their interest to invest in ARMM. At present, they are still on the process of gathering information, doing research, logistics and other preparations in relation to their business plans in the region. C.ii.d. TECHNICAL SUPPORT SERVICES RBOI provided various services to the following companies that are interested to invest in the region:

1. Organized round table discussion and investment coaching for UNIFRUTTI, Inc. on February

18, 2015 in Davao City regarding their proposed banana plantation project in Maguindanao;

2. Assisted Mr. Eric Lee Group Company by conducting a round table discussion and investments coaching relative to their plans of setting-up a manufacturing business on electronic motors to be located at Polloc Port, Parang, Maguindanao;


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3. Extended assistance to Lamsan Power Corp through their representative, Ms. Juliet Supil, regarding their project of expanding the company’s power plant in Simuay, Sultan Kudarat, Maguindanao with an additional capacity of 5.5 megawatts.

4. Provided information to DS3 Tanking and Services on the requirements for RBOI

registration relative to their investment project of building/constructing a Php252 million oil depot in Parang, Maguindanao. Their application for RBOI registration is now undergoing evaluation by the agency. 5. Provided technical support to Gintong-Agri Corporation through the company’s Legal Officer Atty. Cheryl Tan, concerning RBOI registration requirements and processes with regards to their oil palm plantation project in Datu Odin Sinsuat Municipality, Maguindanao. The company has already submitted their application for RBOI registration and is now being assessed by the agency.

6. Assisted Al-Sahar Agri-Ventures Inc. by providing them consultation services with regards to their application for RBOI registration. Al-Sahar Agri Venture Inc. is into a Php3.7billion cavendish banana plantation to occupy 2,600 hectares spread in the Municipalities of Mangudadatu, Talayan and Guindulungan, Barira and Buldon all in the Province of Maguindanao. The project is expected to provide 3,900 jobs. At present, the company’s application is now being evaluated by the agency.

7. Provided assistance to PTC Arrastre and Estevedoring Services Corporation based in Parang, Maguindanao regarding the procedures on applying for availment of incentives under Book 1 of E.O. 226 otherwise known as the Investment Code of 1987. 8. Facilitated technical assistance and investments coaching to Polloc Millenium Development

Corporation (PMDC) in a meeting at the RBOI Office, Cotabato City on June 10, 2015 regarding their plan to put up a Petroleum Depot at Polloc Port, Parang, Maguindanao.

9. Provided investment advice to the Senior Officials of Matling Industrial and Commercial Corporation (MICC) during their visit to RBOI Office in Cotabato City on June 29, 2015. The company plans to modernize their cassava processing plant site in Malabang, Lanaodel Sur and they hope to register it with RBOI.

RBOI Chairman, Atty. Ishak V.

Mastura (2nd

left) during a round

table meeting/forum with the

executives and senior officers of Al

Sahar Agri-Ventures lead by Unifrutti

Chairman and CEO, John Perrine (1st

left) on January 29, 2015, Davao

City. The meeting was organized to

discuss about the company’s

cavendish banana plantation

investment project in Maguindanao.


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C.II. e. MONITORING OF RBOI REGISTERED FIRMS

One of the assistance of RBOI to its registered firms is the after care services. This semester, the agency has monitored 26 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.

Two (2) incentives were dispensed to RBOI registered firms: issuance of Certificate of Entitlements for availment of Income Tax Holiday to Delinanas Development Corporation and Certificate of Good Standing to Agumil Philippines Inc.

Agumil Plant Manager, Phil Roy Malana (center) discussed

updates on their company’s operations’ with RBOI staffs,

Engr. Jun Macalawan and Shamera A. Abobakar during the

RBOI monitoring visit at Agumil Philippines Office in Buluan,

Maguindanao on May 6, 2015.

RBOI staff during a monitoring visit at Matling Industrial

and Commercial Corporation (MICC) in Malabang, Lanao

del Sur on May 7, 2015. Senior officials of the company

showing a diorama (model) of its cassava starch processing

plant site development plan which the company will register

to RBOI after completing all the documentary requirements


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III. INVESTMENT PROMOTION ACTIVITIES III. a. 2014-2016 Investment Priorities Plan (IPP) ARMM List

The ARMM Investment Priorities Plan (IPP) for 2014-2016 was approved by President Benigno CS. Aquino III on October 28, 2014. The IPP lists the priority activities for investments which can qualify for incentives from the ARMM government.

RBOI conducted the Investments Priorities Plan (IPP) Consultation and Roadshow on June 16, 2015, Jehan Hall, Alnor Complex, Cotabato City. The IPP consultation and roadshow was aimed at informing the public on the salient features of the 2014-2016 IPP and its implementing guidelines, specifically on the investment opportunities for potential and existing investors in the ARMM. This also served as venue for the attendees to participate in the review of the current IPP for updating if necessary.

The said consultation is part of the regional government’s approach to actively involve all players in the planning of the region’s economic development particularly on investment matters. The IPP shall correspond to the Regional Development Plan of ARMM in accordance with the 2011-2016 Philippine Development Plan. The agency will also be moving to other ARMM provinces to conduct the IPP consultation and Roadshow.

The ARMM IPP lists the following as priority activities: export; agriculture, agribusiness or aquaculture fishery; basic industries; consumer manufactures; infrastructure and services; 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.


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III.b. Strengthening RBOI Capacities RBOI conducted its Performance Review, Assessment and Evaluation (PRAE) on April 14, 2015 at Golden Lace, Cotabato City. The activity was aimed at improving the agency’s performance by assessing if the office was able to accomplish its deliverables for 2014 and 1st quarter of 2015, determine performance gaps and identify required interventions and collaborative strategies that will lead to the successful implementation of RBOI projects and activities as well as

avoid recurrence of lapses in the future. Dir. Nestor Alcansalin of BOI Manila was guest during the said PRAE. Dir. Alcansalin presented and updated the RBOI management and staffs on the new policies on investment registration and dispensation in country. Atty. Ishak V. Mastura, Chairman of RBOI emphasized on the strategies and policies to achieve the agency’s 2015 targets. Shamera A. Abobakar, Senior Investment Specialist of RBOI-ARMM (2nd right/1st row) represented the Philippines in the JICA-Strengthening Business Development Service (BDS) for Industrial Promotion Training from January 26-February 20, 2015 at JICA, Chubu International Training Center in Nagoya City, Japan. Ms. Abobakar shared her learning to RBOI staffs to further improve the BDS support system of the ARMM government to SMEs and large investors. In her training report, she suggested that ARMM should set-up Local Economic and Investments Promotions Offices (LEIPOs) to be managed by each of the five (5) provincial governments in ARMM to serve as BDS provider. On the other hand, the economic cluster lead by RBOI together with concerned government agencies will provide BDS support as facilitators to the LEIPOs. The LEIPOS will serve as mechanisms to provide BDS services/support to SMEs and large investors in the provinces. The LEIPOs will offer one-stop-services, consultancy, promotion activities and many others which is expected to have a positive effect to the overall image of the region as future best investment destination in the country.


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III.c. Promotion of Investments Sustainability Organization (PISO): A partner towards Improving Investments in ARMM

Investors in the ARMM can help increase investments in the region. Their experiences and best practices as successful investors can be used as genuine evidence that there is an opportunity to develop and grow business in the region. For this reason, RBOI has formed its registered investors into an “advisory body” or “policy advocacy group” called Promotion of Investments Sustainability Organization (PISO). The PISO composed of prominent investors will provide advice to the ARMM/ Regional Government (Bangsamoro) through RBOI on business policy matters. They can also be tapped as investment promoters or champions of ARMM.

The Promotion of Investments Sustainability Organization (PISO) Organizational Meeting and Forum was conducted on May 12, 2015 at Jehan Hall, Al-Nor Complex, Cotabato City. All RBOI registered firms’ representatives who

were present during the said meeting were

supportive of organizing the PISO. These firms

were the Unifrutti Group Philippines, Lamsan

Corp., La Frutera, Inc., Power Up Ventures

Inc., ARDEXCOR, Matling Corp., Philippine

Trade Center Inc., ABSCOR, AMARDI,

Bangsamoro Oil & Fuel Corp.,Maguindanao

Halal Food Center and Al-Nor Group of

Companies. Representatives of the ARMM Special Economic Zone and Free Port of Polloc and

FASTRCT were also present in the meeting.

Representatives of RBOI registered firms discussing

on the future of investments in the region in the

advent of the Bangsamoro government.

A group photo with the representatives of RBOI registered firms

during the Promotion of Investments Sustainability Organization

(PISO) - Organizational Meeting on May 12, 2015 in Cotabato

City.


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IV. RBOI NETWORKS AND LINKAGES a. Three (3) Division Chiefs of RBOI attended a JICA sponsored seminar in Industry

Development on Rubber, Cacao, Palm Oil, Coffee and Abaca for investment promotion on January 19-22, 215 in Davao City. As an offshoot, the agency has come up with an updated Oil Palm Industry Profile as reference for investors.

b. Participation to the Oil Palm Technical Working Group (TWG) –Philippine Palm Oil

Development Council Inc. (PPDCI) Meetings on April 8, 2015 in Davao City. RBOI is a member of the PPDCI Board of Directors.

c. Attendance to the 1st Regional Economic and Development Committee (REDC) Regular Meeting on February 10, 2015 at the RPDO Office, Cotabato City. Updates on the investments generation in the region for the year 2015 was presented in the meeting.

d. Attendance to the 1st Quarter Board of Director’s Meeting of the Regional Economic Zone Authority (REZA) held at the Golden Lace, Cotabato City on March 6, 2015. RBOI Chair/Managing Head Atty. Ishak V. Mastura as member of the REZA Board of Director attended in said meeting. RBOI also has participated in the succeeding meetings and activities called by REZA such as follows:

Preliminary Meeting on the Presentation and Review ASSURE on April 17, 2015 Review and Assessment of the REZA-ASSURE Pre-Feasibility Study Perspective

on June 2-3, 2015. Review and Assessment of the REZA Manual of Operations on June 9-10, 2015 Board of Directors Meeting on June 17, 2015.

e. Attendance to the organizational meeting of ARMM Regional Competitiveness

Committee on March 4, 2015 in Cotabato City. RBOI is a member of said committee.

f. Attendance to the 2nd Regional Economic Development Committee (REDC) Regular Meeting on March 23, 2015 at DAF-ARMM Office, Cotabato City.

g. Attendance to the MinDA and Asian Development Bank (ADB) Consultation on the ADBs three-year rolling business plan for 2016-2018 on April 17, 2015, at MinDA office, Davao City. The objective was to discuss and agree on the indicative lending and technical assistance pipeline with emphasis on enhancing ADBs programmatic support and value addition.

h. Attendance to the Board of Investments (BOI) first Regional Roadshow for 2014-2016 Investment Priorities Plan (IPP) on May 22, 2015 in General Santos City.

i. Participated in the 1st ARMM Successful Cooperative Congress on May 25-26, 2015 at Shariff Kabunsuan Complex, Cotabato City. RBOI Chairman, Atty. Ishak V. Mastura was one of the guest speakers during the plenary sessions of the event.


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j. Facilitated the participation of ARMM investor, John Perrine, the CEO and Chairman of Unifrutti Group Philippines as member of the official delegation of the State Visit of President Benigno “NoyNoy” Aquino III to Japan on June 2-5, 2015.

k. Atty. Ishak V. Mastura,

Chairman and Managing Head of RBOI represented the ARMM Regional Government in the “Training on Strengthening Mindanao Development Authority’s Capacity to implement Mindanao Development Corridor Strategy” awarded by the Australian Government under its Australian Awards Fellowship Program held on May 30 to June 15, 2015 in Brisbane, Australia. RBOI is working closely with the Mindanao Development Authority (MinDA) on the Mindanao Development Corridor strategy since the agency is a critical partner in achieving the objectives of the strategy aimed at accelerating economic development and inclusive growth in Mindanao.

V. RBOI WEBSITE

RBOI has consistently complied with good governance conditions such as the updating of the RBOI Website www.rboi.armm.gov.ph. In the recent ARMM Website Assessment survey conducted by ICTO-ARMM on the 1st Quarter 2015, RBOI got 100% score/compliance.

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


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VI. GENDER AND DEVELOPMENT (GAD)

A GAD project which includes a wellness package (body massage, physical fitness, cooking of healthy foods) is being implemented by the office. This is to promote healthy lifestyle among the personnel and live a productive life.

Further, a series of lectures on “Islamic Faith” were conducted in the office this “Month of Ramadhan”. This is being participated by the men and women of the agency regardless of their religious faith to promote deeper understanding and unity among the employees.

VII. ARMM ACTIVITIES PARTICIPATED BY RBOI:

The agency represented by its Chairman/Managing Head, Atty. Ishak V. Mastura presented its accomplishments for FY 2014 during the Oplan GISA (Governor’s Initiative on Strategic Assessment) on January 20, 2015 at the Bajau Hall, Bangsamoro Compound, Cotabato City.

“YapaKapayapaan: A Barefoot Walk for Peace in Bangsamoro” on February 6, 2015 at the ORG Compound, Cotabato City in solidarity to the call for TRUTH, JUSTICE and PEACE in line with the Mamasapano incident which happened on January 25, 2015.

YakaPayapaan Caravan was held on February 14,2015 in Mamasapano, Maguindanao.

The office participated in the ARMM parade in celebration of the 2015 Women’s Month celebration on March 9, 2015 at the ARMM Compound, Cotabato City.


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RBOI participated in the Labor Day Celebration Parade on May 1, 2015 at the ARMM Compound, Cotabato City. The agency also participated in the Labor-Management (LMG) Conference on May 1, 2015 at the Office of the Regional Governor, ARMM Compound, Cotabato City. The conference was aimed at discussing and resolving issues and to provide relevant information affecting the labor sector towards industrial growth in the region.

RBOI personnel lead by its Executive Director, Moner K. Dumama (3rd left) wearing the traditional attire of the Maguindanaon tribe, attended the opening ceremonies of the Re-Opening of the Bansamoro Tribal Village on June 10, 2015 at the ARMM Compound, Cotabato City.

A booth was set-up by RBOI during the ARMM Peoples Day on June 17, 2015 at the ARMM Compound, Cotabato City. The booth manned by RBOI technical staff provided consultancy services and investment coaching to five walk-in clients who visited in the booth and were interested in ARMM investments.

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