PH sees 5 IB projects in a year; Ayala to register tourism projects

The Philippines expects to register the first five Inclusive Business (IB) projects within one year with Ayala Corporation, one of the country’s biggest conglomerates, already exploring the possibility of applying its tourism development projects in this new area of economic activity under the government’s Investment Priorities Plan (IPP).

Trade and Industry Secretary Ramon M. Lopez told reporters at the IB Summit here that registration of five IB projects would be reasonable in a year.

"At least the first IB project maybe registered in the remaining months of the year and the balance four by next year," said Lopez when asked on the government’s target for IB registration.

The Board of Investments (BOI), which is chaired by Lopez, has included IB projects, initially for agriculture and tourism sectors, in the recently approved 2017 IPP.

Lopez noted that it will also take time to prepare an IB model because a proponent has to come up with feasibility study for it to qualify as an IB.

But he said that maybe some companies are already on the verge of doing their IB models now. Once the initial projects are registered, he said, this will encourage other IB models to seek for BOI registration.

Under the IB guidelines, qualified projects are entitled to five-year income tax holiday, but Lopez said the BOI reviews the IPP every three years to determine which economic activities are still relevant and need continued government incentives.

At present, the 5-year ITH for IB projects is needed as a major come on for companies to go for IB model, which are considered sustainable, scalable and profitable because it takes it integrates the micro, small and medium enterprises (MSMEs) into a company's value chain for its operation become viable.

Meantime, Paolo Borromeo, group head corporate strategy and development of Ayala Corp., said they are looking at the company’s tourism development projects, particularly Lio, as an IB model.

Lio is Ayala Land's first tourism estate offering a wealth of experiences within a majestic natural setting in El Nido, Palawan. A master-planned township geared to become an ecologicallysustainable tourism destination, Lio shall be home to hotels and resorts, tourism and commercial establishments and residential communities with world-class amenities that blends with the natural landscape.

Borromeo said they will study the potential of Lio as an IB model in terms of training, jobs creation and into its overall value chain.

The Ayala Group has other huge tourism estate projects such as the Sicogon Tourism Island Tourism Estate and Anvaya Cove.

In addition, Ayala has other projects in the healthcare and education that maybe qualified for IB model.