Energy investments lead ARMM pledges in first half: RBoI

Business World Online
Posted on June 19, 2014 10:44:03 PM

ZAMBOANGA CITY -- The Regional Board of Investments of the Autonomous Region in Muslim Mindanao (RBoI-ARMM) has registered projects, led by energy-related ventures, from January to June 15 with total investments of P2.52 billion, an increase of 72% compared with the P1.46 billion recorded in the first semester last year.

Shamera A. Abobakar, RBoI-ARMM information officer, said the total is expected to grow to P3 billion by yearend.

“The lead investor this semester is the Lamsan Power Corp., based in Sultan Kudarat, Maguindanao,” she noted.

The pioneer biomass renewable energy project is worth P921 million. The power plant’s capacity is 15 megawatts, 11.5 MW of which will be sold to the National Grid Corp. of the Philippines.

Ms. Abobakar added that another project that was discussed significantly during the recent RBoI-ARMM meeting was the provisional approval of Power Up Ventures, Inc.’s importation and distribution of petroleum products and construction of oil depots in the region.

Two other ventures that were already approved are those of Green Earth Enersource Corp., a subsidiary company of Agumil Philippines, Inc.

The robust investments in ARMM are an indicator of the positive outlook of both local and foreign investors in a region previously wracked by armed conflicts and instability, Ms. Abobakar said. In March, the national government and the Moro Islamic Liberation Front (MILF) formally signed a peace agreement, ending their 17 years of armed struggle.

Ishak V. Mastura, chairman of RBoI-ARMM, said it is good that major investments in the region are in renewable energy projects.

“This is very timely since we are experiencing power shortage in the country, particularly on the island (Mindanao),” he said.

“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 ARMM can look forward to more economic activity as we are starting from a low base after decades of armed conflict,” he added.

Green Earth Enersource Corp.’s is the second biggest renewable energy project in the region, with a committed investment of P366 million for a plant with a capacity of 4.5 MW. This power plant will support the energy needs of Agumil’s milling and crushing plants in Bulutan, Maguindanao, while excess power will be sold to power transmission operator.

Ms. Abobakar said other major projects registered with RBoI this year are in oil palm, mining and trading.

“SR Languyan Mining Corp. is investing P520 million in a nickel ore project in the village of Darussalam, Languyan, Tawi-Tawi,” she said.

Mujiv S. Hataman, ARMM governor, said that more investments in the region means that the situation is stabilizing. “I can now 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.” -- Albert F. Arcilla source