MANILA— The Board of Investments (BOI) aims to give incentives to businesses investing in Marawi City by listing the former war-torn zone under the Less Developed Areas (LDA) of the Investment Priorities Plan (IPP).
BOI on Friday said that the inclusion of Marawi City in the LDA will help in rehabilitation of the city, which became the battleground for government troops and terror group Maute for months.
This is part of DTI’s initiative being part of the Task Force Bangon Marawi, where it is mandated to bring back economic activities in the area.
BOI Managing Head Ceferino Rodolfo said providing incentives to businesses locating in Marawi will facilitate in attracting investors and promote economic activities in the area.
This would also mean creating more jobs and providing income opportunities for the people of Marawi City and help internally displaced persons (IDPs) to make their lives back to normalcy.
“Listing these areas as LDAs will encourage more investors, both local and foreign, to seriously look into investment opportunities in the said areas,” said Rodolfo, who is also a Department of Trade and Industry (DTI) undersecretary.
In 2016, the BOI listed 134 LDAs in the IPP. Most of these areas were calamity-stricken cities and municipalities.
This initiative of the BOI targets to accelerate rehabilitation in areas affected by Typhoon Yolanda in 2013.
Those investors locating in LDAs are entitled to incentives such as 100-percent deduction from taxable income of necessary and major infrastructure works.
As of October 2017, there the BOI approved a total of 92 projects in LDAs.
These projects amounted to PHP141.36 billion, generating 12,622 jobs at full operation.
Bulk or 83 percent of the BOI-approved projects in LDAs are in power sector, and the rest are in areas of transportation and storage, manufacturing, real estate, and accommodation and food services.
Meanwhile, DTI Secretary Ramon Lopez reassured that the administration is prioritizing the restoration of peace and order in the country to safeguard its citizens as well as local and foreign investments.
“We wish to reassure our investors that the peace and order climate in the country remains stable and sound,” Lopez noted.