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Davao; The New Tuna Highway? ff

27 April 2004 Philippines

Engr. Gil Dureza, chief of Bureau of Investment of the Philippine city of Davao, said two projects -- P80-million cold storage facility for tuna and a coconut oil processing plant-- will be implemented in Davao region.  Mr. Dureza said General Santos City has also two projects, a fish processing for export with P82 million capitalization and a tuna cold storage of P160 million.

Dureza said the early increase in investments may be due to the improved investment climate.  “These businesses are expansion projects of current investors which make us conclude that they did well last year,” he said.

With this, Dureza expressed optimism that investments this year will increase within a 10-percent level. He said most of the investments are into processing, especially tuna and other fish products.

Dureza said investors are also eyeing Davao Oriental as an area for investments because of the discovery of new fishing grounds.  “The area facing the Pacific Ocean is now the new tuna highway and investors are eyeing to put up cold storage as possible investment project,” he said.

Most of the investments as of the first quarter of the year do not have foreign equity, he said.

In 2003, the entry of investments also picked up in the third and fourth quarters when the BOI issued certificates of registration to investments costing about P1.8 billion.

Certificates of BOI recognition qualify investors to incentives. Such incentives include income tax exemptions of at least 32 per cent for six years.

Foreign national employees are exempted from wharfage dues and fees and equipment will not be charged of taxes and duties.

Source: Philippine Press