Phenomenal growth in ARMM investments reaches P2.5-B mid 2014,
biomass power leads
BONGAO, TAWI-TAWI, June 16, 2014. -The Regional Board of Investments of the Autonomous Region in Muslim Mindanao (RBOI-ARMM) registered seven (7) firms in the 1st Semester of 2014 with total investment value of Php 2.52 billion with a phenomenal growth of 72% against last year’s P1.463 billion. This is the first time that ARMM investments reached this amount and is expected to grow by Php 3 billion by end of this year. At present, some investment projects are now in the pipeline of RBOI, undergoing evaluation.
In a joint RBOI Board of Governors and Management (MANCOM) Meeting on June 14, 2014 in Davao City, two projects were approved for registration while one is on provisional status.
The two renewable energy ventures newly approved were the Biomass Power Plants of
Green Earth Enersource Corporation, a subsidiary company of Agumil Philippines Inc.,
and the Philippine Trade Center, Incorporated. Another project that was discussed in the
joint meeting is the provisional approval of the importation and distribution of petroleum
products and construction of oil depots by Power Up Ventures Inc.
In the past six months, top investors in the region are into biomass energy projects.
Lead energy investor this semester is the Lamsan Power Corporation (LPC) based in Sultan Kudarat, Maguindanao. The pioneer biomass renewable energy project is worth Php 921 million. The power plant’s capacity is 15 megawatts (MW) and will be selling 11.5 MW to the National Grid.
Second biggest renewable energy project is by the Green Earth Enersource Corporation,a
subsidiary company of Agumil Philippines Inc., the biomass power plant has an investment
value of Php 366 million with a capacity of 4.5 MW. The power plant 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.
Third top energy investor is the Philippine Trade Center, Incorporated which has put-up their own power plant to fuel their existing Cornstarch Milling Plant at Sultan Kudarat, Maguindanao. The power plant with a capacity of 3MW has an investment value of Php 486 million. At present, out of the 3MW produced by the power plant, the milling plant consumed only 1.3MW and so the excess of 1.7 will be sold to Cotabato Light and Power Company.
Another energy related project is the importation and distribution of petroleum products by Power-Up Ventures Inc.. The company is proposing to construct five (5) oil depots in Polloc, Parang, Maguindanao. The company will invest P50 million for the project. The depots to be constructed have a total capacity of 5 million liters or 1 million liters per depot. The company’s registration is provisionally approved by RBOI since it still has to comply with some requirements. As such, they will only be given incentives after complying the additional documents and at the start of their commercial operations.
Other investments registered with RBOI during the previous months of 2014 are into oil palm, mining and trading. SR Languyan Mining Corporation invested Php 520 million for a nickel ore mining project in Brgy. Darussalam, Languyan, Tawi-Tawi. Agumil Philippines Inc., is set to put-up an Oil Palm Kernel Crushing Plant in Buluan, Maguindanao with a project cost of Php170 million. ABSCOR Multi-Trading Company based in Port Holland, Maluso, Basilan has invested Php 10 million for an import and export trading business.
The seven firms registered with RBOI recorded a total of 1,784 jobs created in half of this year.
Atty. Ishak V. Mastura, Chairman and Managing Head of RBOI said that major investments now are into renewable energy. “This is very timely since we are experiencing power shortage in the country, particularly in Mindanao. The power industry is the foundation of economic growth and there is a direct relationship between increasing energy use and strong economic growth. These investments in power plants mean that ARMM can look forward to more economic activity as we are starting from a low base after decades of armed conflict which is now in the process of winding up after the signing of peace agreement between the Government and the Moro Islamic Liberation Front early this year” Atty. Mastura added.
ARMM Regional Governor, Mujiv S. Hataman said: “The good news of more investments in the ARMM, Central Mindanao, Provinces of Maguindanao and Lanao del Sur means that as the situation there stabilizes, I can give more attention to the island provinces of Basilan, Sulu and Tawi-Tawi. We hope that as ARMM government’s presence and activities increase in those island provinces, more private sector investments will follow”. (SOURCE: RBOI).