THE 2000 INVESTMENT PRIORITIES PLAN - CHAN ROBLES VIRTUAL LAW LIBRARY

The 2000 Investment Priorities Plan (IPP) embodies the framework within which investor confidence is established and maintained. The very essence of economic development lies not only on the capability to cater to investments in the urban areas and in the metropolis, but more importantly, to support sustainable growth in the countryside. Investment generation, thus, becomes one important vehicle towards eventual poverty eradication as envisioned by the Estrada Administration at the end of his term. This year's IPP shall therefore have its theme "UPLIFTMENT OF THE LIVES OF THE COMMON FILIPINO BY DEVELOPING GLOBALLY COMPETITIVE INDUSTRIES".

Consistent with the action plans of the administration, the 2000 IPP has identified the following goals:

Industry Clustering seeks to maximize the natural clusters existing in some of the specific regions in the country. Effectively, the identification of industry cluster in the 2000 IPP will accommodate not only the core industry but more important the allied services and linkages of the identified clusters. This is envisioned to be an effective tool in developing competitive advantage among industries; hence, making the regions the core of development.

The 2000 IPP also incorporate a special listing of economic activities determined for promotion and eligible for investment incentives by the Autonomous Region for Muslim Mindanao (ARMM). The ARMM IPP is the list of priority areas which 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 also be located inside the ARMM.

A. EXPORT ACTIVITIES

Coverage:

1. Manufacture/production of non-traditional products (minimum export requirement of 50% if Filipino-owned; 70% if foreign-owned)

Non-traditional products shall exclude: (a) copra (b) crude coconut oil (c) desiccated coconut (d) copra meat and cake (e) inedible molasses (f) pineapple in syrup (g) logs (h) lumber (I) plywood and veneer and (j) unmanufactured tobacco.

2. Export trading

Trading of non-traditional export products

3. Services
Export of services 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 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.

4. Support to exporters

Manufacturing activities and services rendered to exporters except financing services and trading other than export trading.

B. SUPPORT TO GOVERNMENT PROGRAMS

Coverage:

1. Agricultural/fishery/forestry production, processing and services

- Commercial production of agricultural crops, livestock, and poultry, feeds/feed ingredients, fish species, and forest species seedlings
- Processing of a agricultural and fish products/by-products/wastes

- Service activities in support to the foregoing activities and to industrial plantation

2. Information Technology Services

- Software development projects

System software

Middleware

Applications software

- IT-enabled services
- Support and Knowledge

- Business Process Outsourcing

3. Mass housing projects including development and fabrication of housing components
4. Drugs and Medicines

5. Social Services

- Educational training institutions specializing in developing skills for the manufacturing, agriculture, fishery, forestry, mining, tourism, infrastructure and service sectors
- Health service such as 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 such as day care centers, senior citizens centers, centers for disabled, trauma/crisis centers, rehabilitation centers for youth offenders in selected areas 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)

- Retirement villages (limited to new projects only)

6. Tourism

- Tourist accommodation facilities such as hotels, apartels, tourist inns, pension houses, and resorts

Resorts may also include special interest activities (that may or may not have accommodation facilities) such as but not limited to theme parks, convention and exhibition/trade display centers, eco-tourism projects and those involving environmentally sound tourism activities in a given ecosystem/specific locality.

- Tourism estates
- Tourist buses

- Historico-cultural heritage projects covering the restoration of historical and cultural sites and properties identified, classified and declared as such by the National Historical Institute

Other cultural properties shall be endorsed by the National Commission for Culture and the Arts and the Department of Tourism.

- Agricultural-Tourism Projects

7. Environmental Projects

- Development or Conversion of Industrial Ecosystem
- Industry self-regulation at the plan/firm level

Activities leading to environmental management systems certification (i.e., ISO 14000)

Activities in compliance with multinational agreements where the Philippines is a signatory (i.e., Montreal Protocol Prescriptions on Ozone Depleting Substances and International Framework Convention on Climate Change)

-Establishment of toxic and hazardous waste facility
-Establishment of waste handling facilities/sewerage systems for industrial/municipal wastes (may include rehabilitation)

-Testing/measuring services for emission and effluent properties of industries or institutions

-Projects on Philippine rivers environmental management and rehabilitation similar to the activities under the Pasig River Rehabilitation Program

- Installation of pollution control devices in compliance with the Clean Air Act (R. A. 8749)

8. Infrastructure
-Establishment of physical infrastructure similar to and/or those covered under BOT (R. A. 6957, as amended by R. A. 7718), Industrial Communities, Service Cities, relocation of industries, Urban Community Redevelopment, IT parks, and Energy Conservation Activities and projects, among others

9. Common Carriers
-Public utility land, air, and water transport. Air and water facilities may involve cargo operations only
- Pipeline operations for transport of petroleum products and/or natural gas

10. Engineered Products
- Manufactured of machinery and equipment such as metalworking machinery (tools & dies included), special purpose industrial machinery, electrical machinery, agricultural machinery, communication equipment and apparatus, medical equipment and/or devices, and office, computing and accounting machinery, including their parts and components.
- Preparation of designs of machinery and equipment and/or their parts and components

- Radio and television manufacturing projects limited to modernization only)

11. Projects of Cooperatives
- Activities undertaken by producer cooperatives (e.g., agricultural, fishery, and industrial cooperatives) and service cooperatives (e.g., electric cooperatives).
12. Development of Energy Sources
- Development of renewable energy sources such as natural gas and liquefied natural gas
- Mini-hydro electric power

13. shipbuilding/shiprepair/shipbreaking
14. Manufacture of motor vehicles and parts and components

15. Research and development activities (may include in-house activities)

C. MANDATORY INCLUSION

Coverage:

1. Activities under the Agriculture & Fisheries Modernization Act, R. A. 8435
2. Production and/or processing of high-value crops R. A. 7900

3. Commercial fishing under R.A. 8550

4. Industrial Tree Plantation under P.D. 705

5. Iron and steel projects under R. A. 7103

6. Exploration, mining, quarrying, and processing of minerals under R. A. 7942

7. Publication or printing of books or textbooks under R. A. 8047

8. Activities under the Jewelry Industry Development Act, R. A. 8502 (limited to export-oriented projects)

9. BOT Projects

Projects under BOT (costing more than P1.0 Billion under R. A. 6957, as amended by R. A. 7718

10. Refining, storage, marketing and distribution of petroleum products under R. A. 8479
11. AICO (ASEAN Industrial Cooperation Agreement) Projects

II. REGIONAL LIST

A. MANUFACTURING/PRODUCTION ACTIVITIES

Region Activities

Gifts, Toys and Housewares

Jewelry

Pulp and Paper

Textiles and Garments & Articles of Textiles

Furniture

Gifts, Toys and Housewares

Packaging Products

Textiles and Garments & Articles of Textiles

Composite Board

Gifts, Toys and Housewares

Chemical Products

Composite Board

Jewelry

Leather and Leathergoods

Pyrotechnics

Chemical Products

Chemical Products (Organic Chemicals)

Furniture

Gifts, Toys and Housewares

Industrial Carbon

Jewelry

Composite Board

Furniture

Gifts, Toys and Housewares

Industrial Carbon

Jewelry

Leather and Leathergoods

Pulp and Paper

Textiles and Garments & Articles of Textiles

(Hand & Loomwoven Products)

Chemicals Products (Oleochemicals)

Industrial Carbon

Pulp and Paper

Textiles and Garments & Articles of Textiles

Composite Board

Gifts, Toys and Housewares

Pyrotechnics

B. INDUSTRY CLUSTERS

An industry cluster is a group of interlined or related activities composed of industries, suppliers, required support services, infrastructure and institutions.

Coverage:

REGIONAL CLUSTER/S

NCR - Footwear Center

CAR - Wood Center
I - Loomweaving Center

II- Furniture Center

III - Fine Jewelry Center

Food Center
IV - Automotive Parts and Components
Electronics
V - Coconut Center
Pili Center
VI - Marine Products Center
Sugar Center
VII - Costume Jewelry Center
Home Furnishing Center
Fashion Accessories Center

VIII - Coconut Center
Abaca Center
Aquamarine Center

Food Center

IX - Seaweed Center
Fish Center
Rubber Center

X- Rubber Center
XI - Fish Center

XII - Food Center

CARAGA - Wood Center

III. AUTONOMOUS REGION OF MUSLIM MINDANAO (ARMM) LIST A. EXPORT ACTIVITIES

1. Export Trader and Service Exporters
2. Support Activities for Exporters

B. AGRICULTURE FOOD AND FORESTRY-BASED INDUSTRIES

1. Processed Food

- Production and processing of halal meat
- Leguminous and other vegetable-based protein (textured, palletized or liquid)

- Spices processing (e.g., hot pepper, black pepper, ginger, etc.)

Note: may be integrated with plantation

- 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)

- Integrated coconut processing

- Seaweeds processing

- Cassava processing

Note: May be integrated with plantation

- Fruit processing (e.g., durian, mangosteen, jackfruit, marang, banana, mango, passion guava, calamansi, and guyabanos)

- Aguaculture (Fish Production and Processing) such as, but not limited to:

- Frozen fish

- Chilled fish

- Canned fish

- Abalone

-Crab fattening

- Eel production

- Squid processing

- Carp and tilapia production and processing

- Tropical fish production and processing

- Shrimps/prawn

- Lapu-lapu (Grouper) and other marine products

- Corn flour mill (integrated with plantation)

- Young corn production

- Note: May include processing

- Mushrooms culture and processing

- Sweat potato plantation and processing

- Crocodile farming and processing

2. Cutflower Production
3. Pearl Culture and Processing

4. Industrial Tree Plantation (include mangrove, Rattan, Bamboo, etc.) and wood processing (cement wood board and fireboard) reconstructed veneer

5. Shipbuilding and Watercraft

Jewelry

Pulp and Paper

Rubber Footwear

Textiles and Garments & Articles of Textiles

X Chemical Products (Inorganic Fertilizer, lubricants

Oleochemicals & Paints

Composite Board

Pulp and Paper

Soaps, Detergents, Shampoos

Wood Products

XI Chemical Products

Gifts, Toys and Housewares

Industrial Carbon

Packaging Products (Glass packaging)

Textiles and Garments & Articles of Textiles

XII Chemicals Products

Composite Board

Furniture

Gifts, Toys and Housewares

Jewelry

Pulp and Paper

Rubber Footwear

Textiles & and Garments & Articles of Textiles

CARAGA Chemical Products (Essential Oils)

Composite Board

Furniture

Gifts, toys and Housewares

Jewelry

Pulp and Paper

Coverage:

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