Approval of 1998 Investment Priorities Plan

April 6, 1998 MEMORANDUM ORDER NO. 472 APPROVING THE 1998 INVESTMENT PRIORITIES PLAN Pursuant to Article 29 of the Omnibus Investments Code of 1987, the attached 1998 Investment Priorities Plan (IPP) is hereby approved. This Memorandum Order shall take effect fifteen (15) days after its publication as required under Article 31 of the Omnibus Investments Code of 1987. DONE in the City of Manila, this 6th day of April, in the year of Our Lord, Nineteen Hundred and Ninety-Eight. MESSAGE The initiatives of the private sector towards attaining economic development have fast-tracked the realization of a globally competitive economy. Enhancing further this participation becomes the goal in sustaining the economic momentum established through the unrelenting efforts and forward-looking approach to development. In our pursuit of sustainable development we would like to bring the benefits of economic progress down to the common masses. It is in this aspect that we are ensuring the actualization of the Social Reform Agenda through the promotion of preferred investment activities that enhance the delivery of basic social services and uplift the welfare of the general population. We, therefore, present the 1998 Investment Priorities Plan (IPP) that identifies thirteen (13) priority investment areas eligible for incentives under the 1987 Omnibus Investments Code of the Philippines. The plan is a continuation of policies and approaches in the achievement of an investment- and export-led growth that characterized our previous economic performance. The objective of dispersing economic prosperity towards strategic countryside areas has also been carried out through the forging of peace agreements and stronger cross-sectoral alliances. We should, therefore, also use the 1998 IPP as a tool to continue the inflow of investments and the creation of employment opportunities, in particular, in the Zone of Peace and Development (ZOPAD) in our Southern Regions to earlier realize the twin goals of peace and development. As we approach a new political regime, let the gains of this Administration spur further breakthroughs and successes. Moreover, let the Filipino entrepreneurship, solidarity, and social concern carry us through as we celebrate the Centennial Anniversary of our Independence as an independent competitive and modernizing nation. Mabuhay Philippines 2000! MANILA, 06 April 1998 THE 1998 INVESTMENT PRIORITIES PLAN FOREWORD The 1998 Investment Priorities Plan is formulated to serve as a conduit in the continuation of the economic reform programs crucial in sustaining the economic gains we have so far achieved. The implementation of these programs has ushered a continuous industrial development as evidenced by a strong growth of the industrial output, notable increase in foreign direct investments, acceleration of export sales, dispersal of growth to the countryside and congruent improvements in specific sectors. The vision now focuses on sustaining the economic momentum to transcend into the next millennium with emphasis on assisting in the implementation of the Social Reform Agenda. Moreover, the pursuance of sustainable development comes at a time when the celebration of the 100th year of Philippine political independence is being held. The 1998 IPP shall therefore have for its theme "SUSTAINING GLOBAL COMPETITIVENESS TOWARDS ACHIEVING SOCIAL EQUITY: A CENTENNIAL LEGACY". For the past years, the annual drafting of the IPP has been guided by preceding economic development plans that include: the E.O. 2 2 6, otherwise known as the Omnibus Investments C od e of the Philippines that specifies the incentives provided to priority investments; and the Medium-Term Philippine Development Plan of the Philippines (MTPDP) 1993-1998 that provides the agri-industrial vision for the country. For this year, the 1998 IPP is, in part, being made parallel to the newly mandated Industrial Development Plan of the Philippines (IDPP), the blueprint for enhancing and sustaining global competitiveness of the Philippine industries in the short (1-3 years), medium (4-10 years) and long (11-15 years) term. The 1998 IPP will provide incentives to qualified activities in the IDPP. Otherwise, other types of assistance including those not specified in the IPP will be rendered. Furthermore, the 1998 IPP lays the groundwork that ensures the consistency of future IPPs with the Philippine National Development Plan for the 21st Century (Plan 21). Specifically, it lends support to the pursuance of the national development vision focusing on agri-industrial development, sustainable human development, science and technology, and environment and natural resources management. In the medium-term, the 1998 IPP will assist in the facilitation of the Successor Plan (1999-2004), a component of the Plan 21. To achieve continuation of programs, the general goals of the 1998 IPP shall encompass those specified under the past IPPs that include: 1. enhancement of global competitiveness; 2. increase in exports; 3. increase in agricultural productivity; 4. setting-up and upgrading of infrastructure and support facilities; 5. countryside development; 6. alleviation of poverty through the creation of employment opportunities and the reduction in the cost of living; In addition, the 1998 IPP will also cover the goals of the IDPP necessary in directing the country towards sustained growth and competitiveness: 7. improvement of the science and technology competence and support to the R & D efforts in industries; 8. assistance to SMEs by promoting linkage between the SMEs and large industries steering them in the direction of advanced technology and high value-added products; and, 9. ensuring efficient environment and energy management. The 1998 IPP will, likewise, maintain the industry classifications previously laid-down in the past IPP's, to wit: 1. Export-Oriented Activities 2. Catalytic Industries 3. Industries Undergoing Industrial Adjustments 4. Support Industries 5. Mandatory Inclusions Thirteen (13) economic activities are listed in this year's plan. The modernization program with a possible three-year income tax holiday will continue to be made available in the 1998 IPP. However, as a step closer to our objective of achieving social equity, support to projects uplifting the welfare of the consuming public will be reinforced. Projects identified under the Social Reform Agenda of the government which include socialized/low cost housing projects and other social services such as the establishment of educational/training institutions, rehabilitation centers, health service facilities, and new retirement villages will be given priority. Moreover, the 1998 IPP shall continue its commitment to encourage the establishment of Research and Development projects in an effort to fast track the development of technology in the country and the introduction of innovative products and processes in the market. As one of the basic economic sectors in the country, the acceleration of agricultural productivity will be propelled through the provision of continued support to the key areas identified in the Agriculture and Fishery Modernization Act by promoting integration of processes and activities to ensure food security and encourage more value-adding. Several new features of the 1998 IPP are incorporated in the general policies and programs. A new policy focusing on urban redevelopment will be included. The urban redevelopment policy primarily aims to create the most favorable conditions of life and work for the general population through the modernization of industries, the repair of the environment and the improvement in the delivery of social services and institutions. As a measure to elevate the competitiveness of the preferred activities, all firms registered under the 1998 IPP will be encouraged to attain ISO 9000 Certification status. For environmentally critical projects, ISO 14000 Certification must be secured. The 1998 IPP will also assist in fostering investments within the ASEAN region by allowing priority areas in the 1998 IPP to qualify under the ASEAN Industrial Cooperation Scheme (AICO) so long as it meets the requirements imposed by the program. The 1998 IPP is formulated as a component of the overall economic development plan that is responsive to the country's commitments under formal trade and investment agreements such as the AFTA, APEC and WTO. Policy and legislative measures are continuously being initiated towards the rationalization of the incentives scheme that will strike a balance between the provision of sector-specific and time-bound incentives attuned to the needs and peculiarities of strategic sectors and the universalization of substantive incentives across all industries. Once these measures are in place, activities listed in the IPP will be limited to a few critical industries that will accord optimum economic gains on a long-term basis. In addition to the national listing of the 1998 IPP is a special listing of economic activities identified for promotion and eligible for incentives by the Autonomous Region for Muslim Mindanao (ARMM). The ARMM IPP is the list of priority areas that have been independently determined by the Regional Board of Investments (RBOI) of the ARMM in accordance with E.O. 458. Economic activities in this special listing shall be pursued in the ARMM only. However, economic activities listed in the national IPP may have its location also inside the ARMM. The preparation of the 1998 IPP was undertaken by an Inter-Agency Working Group on the IPP, which was spearheaded by the Board of Investments in close coordination with the Presidential Management Staff (PMS), the National Economic and Development Authority (NEDA), the Departments of Agriculture (DA), Environment and Natural Resources (DENR), Labor and Employment (DOLE), Finance (DOF), Science and Technology (DOST), Tourism (DOT), and Trade and Industry (DTI). Simultaneous public hearings attended by representatives from various sectors were held in Metro Manila, Cagayan de Oro, and Cebu. C.B. BAUTISTA Chairman, Board of Investments and Secretary, Department of Trade and Industry PROPOSED 1998 INVESTMENT PRIORITIES PLAN LIST OF PRIORITY COVERAGE/DEFINITION AREAS/ACTIVITIES I. EXPORT-ORIENTED This covers export producers, export traders, INDUSTRIES (P/NP) * service exporters, and activities considered in support of exporters. Export producers refer to manufacturers of non-traditional export products/services with capability to export at least 50% of its output, if Filipino-owned, and at least 70%, if foreign- owned. Export traders refer to persons or enterprises, which derive their income from the sale of non- traditional export products abroad. Service exporters refer to enterprises that provide services to clients abroad such as knowledge, information, technology and systems and/or application or installation thereof in the project sites. Services provided to international airlines/shipping lines/military aircraft or seacraft even if rendered locally may qualify for registration provided revenues are paid for in foreign currency. Mere deployment of people or individual practice of profession abroad shall not qualify for registration. Activities considered in support of exporters cover services comprising a portion of the process involving the manufacture of final products, sub-assembly of parts/components of the final export product, fabrication of parts/components of the final export products wherein the raw materials are provided by the direct exporter, product testing and inspection, repair, maintenance and calibration of machinery and equipment used by export- oriented companies utilizing high-technology processes. Non-traditional export products shall be those products as defined in the Implementing Rules and Regulations of the Export Development Act. II. CATALYTIC INDUSTRIES A. Composite Board (P/NP) This covers the manufacture of composite boards using natural resource-based materials/wastes and industrial refuse. B. Shipbuilding/Shiprepair/ This covers the construction, repair or breaking of Shipbreaking (P/NP) cargo/passenger vessels designed to support the needs of the shipping/iron and steel sectors. III. INDUSTRIES UNDERGOING INDUSTRIAL ADJUSTMENTS A. Chemical Products (P) * This covers the following: Manufacture of both organic and inorganic chemicals Production of organic fertilizers of plant and animal origin, including the production of microbial fertilizer with nitrogen-fixing organism and mycorrhiza. Mere mixing and compounding of organic fertilizers are not covered. B. Engineered Products This covers the manufacture of motors, and/or Their Parts and metalworkings (tools & dies included), special Components (P/NP) * purpose industrial machinery, agricultural machinery, communication equipment and apparatus, office computing and accounting machinery, and medical equipment and devices. Preparation of designs of machinery and equipment and/or their parts and components are included. Likewise, the production of parts and components minus the final assembly process is likewise included. Radio and television manufacturing projects are limited to modernization only. IV. SUPPORT ACTIVITIES This covers the following: A. Infrastructure (P/NP) * industrial estates industrial communities service cities telecommunications ports * water supply * /distribution * /treatment * major water catchment basins/waterways and related infrastructure, man-made or natural including sewerage systems * tollroads/highways * power generation * /transmission * /distribution * BOT projects costing P1.0 B and below. Industrial estates include: large tracts of land for the use of a community or a cluster of industries and services which include science and technology parks; technology incubation centers or science and technology centers under a unified and continuous management; urban community redevelopment which refers to the renewal of certain urban districts in need of major redevelopment into well-developed state-of-the-art and environmentally sustainable industrial centers catering to light industries. As a general rule, development of industrial estates must be outside Metro Manila, Laguna and Cavite. In the case of Cavite and Laguna, industrial estates will be allowed in underdeveloped areas as identified in the IPP. Urban community redevelopment is not covered by this locational policy restriction. Industrial communities refer to large tracts of land for development with carrying capacity for town facilities such as accommodation facilities, multi-purpose centers, health centers, drugstores, schools and other livelihood centers. Service cities refer to well-planned, managed, developed, environmentally sustainable and globally competitive metropolis provided with a full range of products, services and amenities which include, among others, educational facilities, medical facilities such as tertiary (specialty) hospitals, a grand central station to serve as multi-modal transportation hub which will include an integrated mix of local and regional public transit system and a comprehensively designed pedestrian circulation system, a well-lighted and integrated parking system and structure, integrated design and adaptable utility system composed of underground power lines, water supply system with water treatment system and dual piping system, provision for centralized gas facility and provision for district cooling, and latest telecommunication system that should integrate existing system with traffic, parking, cable, theaters, concert halls and galleries and convention centers employing/adapting new or the latest concepts within the structures. Telecommunications refer to the establishment and operation of local exchanges, public calling offices, international gateway facilities, multi-media training systems, and inter- exchange carrier network operations (i.e., satellite and terrestrial-based). Ports * refer to the operation of the following port facilities for public use which shall be eligible for registration: piers, wharves, quays, storage and cargo handling facilities, ferry service facilities, and other related facilities. The operation of the following airport facilities for public use shall be eligible for registration: air navigation, storage and handling facilities, and other related facilities. Power generation projects * eligible for registration are: a. Those utilizing indigenous and environmentally friendly fuel. b. Those using renewable energy sources. Renewable energy sources include biomass, waste to energy conversion, solar, wind, geothermal, hydro, etc. B. Common Carriers (P/NP) * This covers land transport, air transport and inter- island shipping. land transport * includes public utility bus operations, rail transport operations which include light railway and other electric-based transit systems, and pipeline operations for the transport of petroleum products whether liquid or gases or natural gases. air transport facilities include passenger aircraft operations and cargo aircraft operations. inter-island shipping * includes pure cargo vessel operations, passenger carrying vessel operations and passenger-cargo vessel operations. Environmental Activities This covers the following: (P/NP) * Development or Conversion of Industrial Ecosystem Industry/Self-Regulation at the Plant/Firm Level which includes: Environmental Management Systems Certification (i.e. ISO 14000) Activities in compliance with multilateral agreements (i.e. Montreal Protocol Prescriptions on Ozone Depleting Substances and International Framework Convention on Climate Change) Establishment of Merchant Facility Establishment of waste handling facilities/sewerage systems for industrial/municipal wastes (modernization may include rehabilitation) Testing/measuring services for emission and effluent and other related environmental parameters (for industrial and vehicular engines preferably with rehabilitation facility) D. Support to Other Government Priority Programs 1. Housing Components for This covers the fabrication of major mass Socialized/Low Cost housing components using non-traditional, Housing Projects (P/NP) structurally sound, and environment-friendly materials/technology. These include roof/framing systems, partition systems, flooring systems, door/window systems, finishing/ceiling systems, and plumbing/sewerage systems. 2. Motor Vehicle Parts and This covers the following: Components/Motor the manufacture of parts and components for Vehicles, specifically the motor vehicle industry; and passenger cars, integrated manufacture of major/proprietary commercial vehicles and parts and components with assembly of motorcycles (P/NP) * motor vehicles falling under the Car Development Program (CDP), the Commercial Vehicle Development Program (CVDP) and the Motorcycle Development Program (MDP), in compliance with the requirement to put up parts manufacturing facilities with project cost of US$ 10 million for cars, US$ 8 million for commercial vehicles, and US$ 2 million for motorcycles. 3. Social Services (P/NP) * This covers the following: educational/training institutions specializing in developing skills for the manufacturing, agriculture, fishery, mining, tourism, infrastructure and service (including the training of maintenance personnel, seafarers complying with international standards and the development of environmental/sustainable disciplines i.e., pollution control officers/managers, environmental management auditors) sectors. health service delivery which includes hospitals, diagnostic centers, therapy centers, clinical laboratories, ambulatory health care facilities, facilities for mentally ill patients and other health services as determined by the BOI in consultation with the Department of Health and other government agencies concerned. social welfare services which include day care centers, senior citizens centers, centers for disabled, and out of school youths centers, and other social-welfare services as determined by the BOI in consultation with the Department of Social Welfare and Development and other government agencies concerned. new retirement villages. 4. Tourism (P/NP) * This covers the following: tourist accommodation facilities which refer to hotel, apartel, tourist inns, pension house, and resorts. Resorts may also include special interest activities (which may or may not have accommodation facilities) such as but not limited to theme parks, convention, exhibition/trade display centers, eco-tourism projects or those involving environmentally sound tourism activities in a given ecosystem yielding socio-economic benefits and enhancing natural and cultural diversity conservation. tourism estates which refer to large tracts of land with defined boundaries in any of the destination areas in the country, suitable for development into an integrated complex with prescribed carrying capacities of tourist facilities and activities such as but not limited to accommodation, food and recreational centers and commercial outlets, and provided with roads, water supply facilities, power distribution facilities, drainage and sewerage systems and other necessary infrastructure. tourist buses restoration of historical and cultural sites/properties provided that the sites/properties are at least 100 years old as certified by the National Historical Institute and endorsed by the Department of Tourism. 5. Drugs and Medicines This covers the manufacture of bulk chemicals. (P/NP) The formulation or preparation of bulk chemicals into dosage form for catastrophic diseases, vaccines, and biologics may be considered. Manufacture of bulk materials from indigenous plants may be integrated with the growing of medicinal plants and dosage formulation into medicines. 6. Research and This covers both in-house R&D activities of any Development Activities (P) manufacturing/producing firm and the commercial R&D activities of private firms and research institutions. An endorsement is required from the Department of Science and Technology, Department of Agriculture or the relevant agency concerned. V. MANDATORY INCLUSIONS This shall include all the areas/activities as provided for under existing laws and/or their implementing rules and regulations, and international agreements which specifically mandate inclusion in the IPP. * Mandatory Inclusions as of (IPP Approval date) Industrial Tree Plantation Sec. 35 (f) of P.D. 705 BOT Projects * R.A. 6957, as amended by R.A. 7718 Iron and Steel * R.A. 7103 Mineral Resources * R.A. 7942 High Value Crops R.A. 7900 Book Publishing R.A. 8047 Agriculture and Fishery * R.A. 8435 Petroleum Industry R.A. 8479 Jewelry (limited to export -oriented) R.A. 8502 AICO Projects ASEAN Industrial Cooperation Agreement * With modernization program. ECONOMIC MONITORING/MOBILIZATION TASK FORCE INVESTMENTS GENERATED BY INVESTMENT PROMOTING AGENCIES: 1992-1997 BOI-APPROVED PROJECTS COST: BY SECTOR 1992-1997 BOI-APPROVED PROJECTS COST: BY REGION 1992-1997 BOI-APPROVED EQUITY INVESTMENTS 1992-1997 CUMULATIVE BOI-APPROVED: FOREIGN EQUITY INVESTMENTS: BY COUNTRY, 1992-1997 PHILIPPINE EXPORT PERFORMANCE/TARGETS RP EXPORT/IMPORT PERFORMANCE 1992-1997 RP EXPORT/IMPORT GROWTH (As of January 1998) RP EXPORT PERFORMANCE BY PHILIPPINE WINNERS JANUARY 1998 RP EXPORT PERFORMANCE BY REGIONAL BLOCS JANUARY 1998 OTHER DEVELOPMENTS IN EXPORTS JOB CREATION JOB PROTECTION (Social Accord for Industrial Harmony Stability) CREDIT AVAILABILITY JOB PROTECTION STOCKMARKET INTERNATIONAL RESERVES Additional Priority Investments Areas for the Autonomous Region in Muslim Mindanao Presented in this section in the list of priority areas which have been independently identified by the Regional Board of Investments of the Autonomous Region in Muslim Mindanao (ARMM) , in accordance with E . O . 458 . The BOI-ARMM can grant registration and administer incentives to activities listed herein , provided these are located in the ARMM . I. EXPORT ACTIVITIES A. Export Trader and Service Exporters B. Support Activities for Exporters II. AGRICULTURE, FOOD AND FORESTRY-BASED INDUSTRIES A. Processed Food 1. Halal Meat 2. Leguminous and other vegetable-based protein (textured, palletized or liquid) 3. Spices Processing (e.g., hot pepper, black pepper, ginger, etc.) Note : May be integrated with plantation 4. Vegetable Oils (e.g., peanut oil, rice bran oil, sunflower and soybean oil) Production of Food Crops Note : May be integrated with post-harvest processing and other vegetables (such as Tomatoes) 5. Integrated Coconut Processing 6. Seaweeds Processing 7. Cassava Processing Note : May be integrated with plantation 8. Fruit Processing (e.g., durian, mangosteen, jack fruit, marang, banana, mango, passion guava, calamansi, and guyabanos) 9. Aquaculture (Fish Production and Processing) a) Frozen fish b) Chilled fish c) Canned fish d) Abalone e) Crab fattening f) Eel production g) Squid processing h) Carp and Tilapia Production and Processing i) Tropical Fish Production and Processing j) Shrimps/Prawn k) Lapu lapu (Grouper) and other marine products l) Shellcraft processing 10. Corn Flour Mill (Integrated with plantation) 11. Young Corn Production Note : May include processing/canning 12. Mushrooms Culture and Processing 13. Sweet Potato Plantation and Processing 14. Crocodile Farming and Processing B. Cutflower Production C. Pearl Culture D. Industrial Tree Plantation (Include Mangrove, Rattan, Bamboo, etc.) and wood processing (cement wood board and fiberboard) E. Shipbuilding (wood based) F. Abaca Pulp Plantation and Processing G. Palm Oil Plantation and Processing H. Coffee Processing (May be integrated with plantation) I. Particle Board (use of agri-based waste material such as rice straw, wood waste, etc.) J. Activated Carbon Manufacturing (Use of coconut shell, wood based, etc.) K. Feeds Production (animal feeds and feeds for aquaculture) L. Tobacco Plantation and Processing M. Production of Beverage Crops (but not limited to) 1. Cacao Beans 2. Coffee Beans (Arabica variety) N. Production of Plantation Crops and others Medical Herbs/Essential oil plants (including flower extracts) O. Production of Livestock and Poultry (including Dairy products) 1. Beef (including cow-calf and feedlot operations) 2. Carabao (water buffalo) production 3. Goats and Sheep 4. Frozen semen and embryos Note : includes natural method and artificial insemination and embryo transfer technology P. Bricks and Roofing Tiles production Q. Cereal Grains (such as hybrid corn, sorghum and soybeans, including certified rice seeds) R. Quality seeds and seedlings of fruit trees and other planting materials propagated asexual or by tissue culture S. Sugarcane plantation and Refineries III. BASIC INDUSTRIES A. Pharmaceuticals 1. Antibiotics a) Penicillin b) Streptomycm c) Tetracycline's d) Soft gelatin Capsules 2. Medical Devices a) Prosthetics b) Diagnostics 3. Other pharmaceuticals B. Textile and Textile Products 1. Yarns and fabrics 2. Hand-woven textiles 3. Specialty fabrics 4. Tire cord fabrics Note : Must be integrated with weaving and dipping units . 5. Ramie (degumed, staple fiber, combed tops, noels and silvers) 6. Fish nets 7. Fabrics made of indigenous raw materials 8. Silk reeling C. Fertilizers (organic and inorganic) Solid waste materials D. Mining (Exploration and development of Mineral Resources) a) Mining and quarrying of Metallic and Non Metallic Minerals (including small scale as defined under P.D. 1899, but to exclude river beds operations) b) Processing of Minerals (such as beneficiation and other Metallurgical methods) E. Cement At least 10 MTPY Capacity (Clinker based) IV. CONSUMER MANUFACTURES A. Rubber Products such as: 1. High pressure and hydraulic rubber hoses 2. Rubber bolts 3. Industrial rubber rollers 4. Rubber tires B. Leather Products V. INFRASTRUCTURE AND SERVICES A. Public Utilities (with developmental route of the four provinces of the ARMM and other adjacent Cities and Provinces) 1. Common Carriers (land, air and water transport facilities) 2. Electric Transmission/distribution 3. Water Supply Facilities/Waterways and sewerage systems 4. Buses/Cargo trucks 5. Light railway transit systems 6. Other specialized mass transport systems 7. Power generation like hydro power, and Geothermal B. Tourism 1. Tourism Estates Subject to guidelines developed jointly by the Board of Investments-ARMM and Department of Tourism (DOT) 2. Tourist Accommodation Facilities a) Hotels b) Resorts c) Other tourist accommodation facilities such as apartel, pension houses, tourist inns, and others. 3. Tourist Transport Facilities a) Air b) Water c) Tourist Buses and taxi/van Note : *Endorsed by the DOT **New and expansion projects may be registered C. Industrial Service Facilities This will cover the following activities: 1. Common Centers: a) Testing and Quality Control Laboratories b) Training and Demonstration Centers c) Tool Shops and Similar Facilities d) Metal Working * Electroplating * Foundry * Forging * Machining * Heat Treatment e) Furniture * Kiln Drying * Treatment and processing facilities f) Ceramics * Kiln * Glazing g) Food Processing * Bottling and Canning Distilled Water * Industrial salt * Vapor Heat Treatment * Slaughterhouse/abattoir h) Automotive Battery Plate Manufacturing i) Tire Recapping Note : The following criteria must be met : * The project will serve the common needs of the industry in the locality and ; * The project will improve the relative status and comparative advantages of the industry . 2. Development of Retirement Villages a) Shall include Health and Medical facilities including amenities required by the Philippine Retirement Authority (PRA). b) Subject to the guidelines to be approved by BOI-ARMM in consultation with the PRA, the Department of Health (DOH), the Regional Planning and Development Office (RPDO) and other concerned agencies. c) Pipeline Bulk Transport System for Petroleum and Natural Gases and Liquids and Coal Slurry (Underwater and Underground) D. Petrochemical Complex E. Industrial Gases (such as oxygen and nitrogen) F. Miscellaneous Chemical Products 1. Biotechnological/Biosynthetic Chemicals 2. Essential Oils 3. Fine Chemicals VI. ENGINEERING INDUSTRIES A. Engineering Products 1) Motor Vehicle part and components 2) Automobile parts and assembly 3) Modern offset printing B. Electronics and Telecommunications Products VII. ARMM PRIORITY AND TOURISM AREAS NOTE: Listed below are potential tourist destinations which need further exploration and evaluation for intensified promotions, development and marketing. NUCLEUS GATEWAY SATELLITE DESTINATION AREA I - SULU JOLO SULU PROVINCE AREA II - TAWI-TAWI BONGAO TAWI-TAWI PROVINCE AREA III - LANAO DEL SUR MARAWI CITY LANAO DEL SUR PROVINCE AREA IV - MAGUINDANAO COTABATO CITY MAGUINDANAO PROVINCE REGIONAL BOARD OF INVESTMENTS January 20, 1998 USEC, Melito S. Salazar Vice Chairman/Managing Head Board of Investments Industry and Investments Building 385 Gil J. Puyat Avenue Makati City THRU: Engr. Elmer Hernandez Executive Director Industry Planning Group Attention: Ms. Florina A. Vistal Chairperson tel: 897-2116 1998 IPP Drafting Committee fax: 896-8329 Dear Usec. Salazar, Our revised IPP for the ARMM is forwarded to your level for possible distribution during the January 22, 1998 Cabinet Cluster A&B presentation of the draft of the 1998 national IPP. We are looking forward if we will be present during the final presentation of the IPP to the Cabinet and the President. The scheduled meeting is on February 3, 1998 as revised. I will be attending the said meeting with one of my technical staff, Larzon G. Santos, Chief Investment Specialists, Special Support and Research Division. Thank you very much and more power. Very truly yours, EDWARD IBLAH LIM Chairman/Managing Head PROPOSED 1998 INVESTMENTS PRIORITIES PLAN (IPP) I. EXPORT ACTIVITIES A. Export Trader and Service Exporters B. Support Activities for Exporters II. AGRICULTURE, FOOD AND FORESTRY-BASED INDUSTRIES A. Processed Food 1. Halal Meat 2. Leguminous and other vegetable-based protein (textured, palletized or liquid) 3. Spices Processing (e.g., hot pepper, black pepper, ginger, etc.) Note : May be integrated with plantation 4. Vegetable Oils (e.g., peanut oil, rice bran oil, sunflower and soybean oil) Production of Food Crops Note : May be integrated with post-harvest processing and other vegetables (such as Tomatoes) 5. Integrated Coconut Processing 6. Seaweeds Processing 7. Cassava Processing Note : May be integrated with plantation 8. Fruit Processing (e.g., durian, mangosteen, jack fruit, marang, banana, mango, passion guava, calamansi, and guyabanos) 9. Aquaculture (Fish Production and Processing) such as, but not limited to: a) Frozen fish b) Chilled fish c) Canned fish d) Abalone e) Crab fattening f) Eel production g) Squid processing h) Carp and Tilapia Production and Processing i) Tropical Fish Production and Processing j) Shrimps/Prawn k) Lapu lapu (Grouper) and other marine products l) Shellcraft processing 10. Corn Flour Mill (Integrated with plantation) 11. Young Corn Production Note : May include processing/canning 12. Mushrooms Culture and Processing 13. Sweet Potato Plantation and Processing 14. Crocodile Farming and Processing B. Cutflower Production C. Pearl Culture D. Industrial Tree Plantation (Include Mangrove, Rattan, Bamboo, etc.) and wood processing (cement wood board and fiberboard) E. Shipbuilding (wood based) F. Abaca Pulp Plantation and Processing G. Palm Oil Plantation and Processing H. Coffee Processing (May be integrated with plantation) I. Particle Board (use of agri-based waste material such as rice straw, wood waste, etc.) J. Activated Carbon Manufacturing (Use of coconut shell, wood based, etc.) K. Feeds Production (animal feeds and feeds for aquaculture) L. Tobacco Plantation and Processing M. Production of Beverage Crops (but not limited to) 1. Cacao Beans 2. Coffee Beans (Arabica variety) N. Production of Plantation Crops and others Medical Herbs/Essential oil plants (including flower extracts) O. Production of Livestock and Poultry (including Dairy products) 1. Beef (including cow-calf and feedlot operations) 2. Carabao (water buffalo) production 3. Goats and Sheep 4. Frozen semen and embryos Note : includes natural method and artificial insemination and embryo transfer technology P. Bricks and Roofing Tiles production Q. Cereal Grains (such as hybrid corn, sorghum and soybeans, including certified rice seeds) R. Quality seeds and seedlings of fruit trees and other planting materials propagated asexual or by tissue culture S. Sugarcane plantation and Refineries III. BASIC INDUSTRIES A. Pharmaceuticals 1. Antibiotics a) Penicillin b) Streptomycm c) Tetracycline's d) Soft gelatin Capsules 2. Medical Devices a) Prosthetics b) Diagnostics 3. Other pharmaceuticals B. Textile and Textile Products 1. Yarns and fabrics 2. Hand-woven textiles 3. Specialty fabrics 4. Tire cord fabrics Note : Must be integrated with weaving and dipping units . 5. Ramie (degumed, staple fiber, combed tops, noels and silvers) 6. Fish nets 7. Fabrics made of indigenous raw materials 8. Silk reeling C. Fertilizers (organic and inorganic) Solid waste materials D. Mining (Exploration and development of Mineral Resources) a) Mining and quarrying of Metallic and Non Metallic Minerals (including small scale as defined under P.D. 1899, but to exclude river beds operations) b) Processing of Minerals (such as beneficiation and other Metallurgical methods) E. Cement At least 1.0 MTPY Capacity (Clinker based) IV. CONSUMER MANUFACTURES A. Rubber Products such as: 1. High pressure and hydraulic rubber hoses 2. Rubber bolts 3. Industrial rubber rollers 4. Rubber tires B. Leather Products V. INFRASTRUCTURE AND SERVICES A. Public Utilities (with developmental route of the four provinces of the ARMM and other adjacent Cities and Provinces) 1. Common Carriers (land, air and water transport facilities) 2. Electric Transmission/distribution 3. Water Supply Facilities/Waterways and sewerage systems 4. Buses/Cargo trucks 5. Light railway transit systems 6. Other specialized mass transport systems 7. Power generation like hydro power, and Geothermal B. Tourism 1. Tourism Estates Subject to guidelines developed jointly by the Board of Investments-ARMM and Department of Tourism (DOT) 2. Tourist Accommodation Facilities a) Hotels b) Resorts c) Other tourist accommodation facilities such as apartel, pension houses, tourist inns, and others. 3. Tourist Transport Facilities a) Air b) Water c) Tourist Buses and taxi/van Note : *Endorsed by the DOT **New and expansion projects may be registered C. Industrial Service Facilities This will cover the following activities: 1. Common Centers: a) Testing and Quality Control Laboratories b) Training and Demonstration Centers c) Tool Shops and Similar Facilities d) Metal Working * Electroplating * Foundry * Forging * Machining * Heat Treatment e) Furniture * Kiln Drying * Treatment and processing facilities f) Ceramics * Kiln * Glazing g) Food Processing * Bottling and Canning Distilled Water * Industrial salt * Vapor Heat Treatment * Slaughterhouse/abattoir h) Automotive Battery Plate Manufacturing i) Tire Recapping Note : The following criteria must be met : * The project will serve the common needs of the industry in the locality and ; * The project will improve the relative status and comparative advantages of the industry . 2. Development of Retirement Villages a) Shall include Health and Medical facilities including amenities required by the Philippine Retirement Authority (PRA). b) Subject to the guidelines to be approved by BOI-ARMM in consultation with the PRA, the Department of Health (DOH), the Regional Planning and Development Office (RPDO) and other concerned agencies. c) Pipeline Bulk Transport System for Petroleum and Natural Gases and Liquids and Coal Slurry (Underwater and Underground) D. Petrochemical Complex E. Industrial Gases (such as oxygen and nitrogen) F. Miscellaneous Chemical Products 1. Biotechnological/Biosynthetic Chemicals 2. Essential Oils 3. Fine Chemicals VI. ENGINEERING INDUSTRIES A. Engineering Products 1) Motor Vehicle part and components 2) Automobile parts and assembly 3) Modern offset printing B. Electronics and Telecommunications Products VII. ARMM PRIORITY AND TOURISM AREAS NOTE: Listed below are potential tourist destinations which need further exploration and evaluation for intensified promotions, development and marketing. NUCLEUS GATEWAY SATELLITE DESTINATION AREA I SULU JOLO SULU PROVINCE AREA II TAWI-TAWI BONGAO TAWI-TAWI PROVINCE AREA III LANAO DEL SUR MARAWI CITY LANAO DEL SUR PROVINCE AREA IV MAGUINDANAO COTABATO CITY MAGUINDANAO PROVINCE