MALACANaNcMANILA

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MEMoRANDUM oRDER No. 59

. APPROVING THE 1999 INVESTMENT PRIOR.ITIES PLAN

Pur:luant to Article 29 of the Omnibus Investments Code of 1987, the attachec1999 Inrrestment Priorities Plan (IPP) is hereby approved.

I'his Memorandum Order shall take effect fifteen (15) days after its publication ar

require<i under Article 31 of the omnibus Investments Code of 1987.

IIONE in the City of Manila, tltis fiW fil!/-ut the year of our Lord NinereerHundred and Ninety-Nine. --D- ,/)

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By the i),.'esident:

-A",r*|ilRONA.LDO B. ZAMORAExecutive Secretary

ilililililtililtiiltfiilIiltrlrr Horooram r 4259{

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t .' .,pterncaNANc \ ' {MANILA

ME,SSAGE

'$The Estrada administration is committed to spreading the benefits of the country's

economic achievement to all our countrymen, consistent with our policy of givingpriority to improving the wellbeing of the masses. We acknowledge that it is only byuplifting the livelihood of the poor that we can truly reahze the twin go.als of peace anddc,,ctropment.

The development of all the regions is one primary concern of our economicprograim for global competitiveness. We want to involve the regions in economicdevelopment to address the lack of industrial activities in the countryside and to dispersethe br:nefit of growth to all regions in the country.

We, therefore, present the 1999 Investments Priorities Plan (IPP), that identifiespriority economic areas etigible for incentives under the Omnibus Investments Code of1987. The 1999 IPP includes preferred sectors in specific regions to direct capital flowsin these areas that could eventually spur economic take-off in the counrryside.

With the pivotal support of private sector investments in nation building, oureftrb,ris under the 1999 IPP shall ultirnately contribute to our over-all objective of forginga col"rlmon ground for enduring peace, economic stability and sustainable developmentfor the Filipino nation.

M,AITI]HAY! ,/)

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THE 1999 INVESTMENT PRIORIT'IES PLAN

FOREWORD

The 1999 lnvestment Priorities P[+n (lPP) embodies the basic development thrust of thegovernment: sustained and equitable economic growth as espoused in the 10-point action agenda of theEstrada Administration. This is to be pursued through the irnplementation of nor only eionomically.technicallS' and financially sound programs but are also geared towards creatirrg livelihooci andemployme:rl opportunities in the countryside, coupled with meeting the objectives of sustainabledevelopment. Thus, a major highlight of the 1999 iPP is the introduction of the regional.concept in thepriority activity determination process and the regional classification of some priority activities in the list.Tlris year's.il']P shall therefore have for its theme 'ACHIEVING COaNTRI,IYIDE DEVELOLMENTTHROUGI{ CLOBALLY COMPETTTIVE INDUSTR.trES.'

Consistent with the action plans of the administration, the 1999 IPP have identified tlre followinggoals:

l. To uplift the material well-being of tire poor and the marginalized '2. To enhance global competitiveness of Philippine industries'-t. To ensure sustainable development,1-. To take advantage of globaland internationaldevelopnlents

To achieve these goals, the following are the objectives of the 1999 lpp:

L To create employment opportunities and reduce the cost of livilg'2. To increase agricultural productivity tlrrough modernization3. To support small and medium enterprises clevelopment; steer thern in the direction of

advanced teclrnology and high value-added productst,. To increase exports5. To set up and upgrade the infrastructure and support facilities neoessary to pronrote agro-

industrial and countryside developrnent6" 'fo ensure efficient environmental management;. To irnprove science and technology competence and support R&D efforts in inclustries

Tlte 1999 iPP is tlre first IPF to be fonnulated under the present adrninistrarion. The significanceof this IPP i-s rn its role of laying the groundwork that will ensure the achievement of globally competitiveagricultural and industrial sectors, high level of export, and investments performance ancl sustainabledevelopment and protection of the environment. The 1999 IPP is anchored on a basic free market policythat is consistent with the government's commitnrents under a new world tracle order, e.g., WTO, AFTA,APEC, etc,

Witlr the governrnent's avowed 'policy of giving priority to improving the well-being ofmasses, the i999 IPP identifies preferred sectors in specific regions so as to guide investors towardsmost appropniate regional base for an economic activity. Thus, capital flows will be directed towarclsregion: to obtain a critical mass of investments that could eventually spur economic take-off incountrysicie.

Thi:, year's IPP is consistent with tire national developnrent plan and the development plans oflocal government units. lt \\,ill also assist to some extent in the implementation of the industrialDevelopmr:tlt Plan of the Philippines (IDPP), the blueprint for enhancing and sustaining the globalcompetitiveness of Philippine industries in tlre short, medium and long-terms. The IPP will consider the

thethethethe

IDPP to th,e extent that incentives are applicable to certainotherwise. other types of assistance, such as those identifiedvision larcl down in the IDpp.

'['he 1999 IPp maintains the activity classificationsfollows: '$

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activities identified in the industrial plan.in the iPP, will be rendered to pursue the

previously laid dorvn in the past lpps, as

l. Mandatory Inclusions2. Catalytic Industries3. Industries Undergoing Structural Adjustment4. Export-oriented Activities5. Support Activities

-'r\ciivities that are deemed national in scope, regardless of location, are eligible for incentivesprovided fc'r under Executive Order 226 and these are thoie falling under Mandatory, i,xport-oriented andSupport Activities. Activities under Cataly'tic and Industries Undergoing Struciurat Adjustment areregicnatr in scope. This means that the eligibility for incentives is oJteriined by the locatio' of 1heproject.

The 1999 IPP also includes a special listing of economic activities identified for promotion by theAutonomc'tts Region of Muslim Mindanao (ARMM). The ARMM IPP is the list of priority activities thathave been independently identified by the Regional Board of Investments (R6OI) of the ARMM inaccordance rvith E.O. 458. To be entitled to incentives grantecl by the ARMM, econo*i" activities i, thisspecial listirlg shall be pursued in the ARMM only. Howevrr, economic activities listed in the nationalIPP may har.e its location inside the ARMM.

The 1999 IPP was fornulated through the concerted efforts of all the regional line agencies andthe Regionai Development Councils, in close coordination with the Inter-agency"wort ing Glorp on i;;IPP' A putriic hearing attended by representatives from various sectors was held in Metro Manila.

'fhe 1999 IPP will be a rnajor tool in irnplementing the agenda of the Estracla adrninistrationfocused crn pursuitlg a level of dev*lopment tirat wii continuo*usly improve the lives of Filipinos.

Secretary, Department of Trade and Industry

J/

OSP TRINIDAD PARDOChairman, Board of Investments

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GEI{ERAL Ii{OTE: Unless specifier}, the activities listed herein may be registered on pioneer ornon-pioneer status.

I. MANDAT'CiR.Y INCLUSIONS+

This shall inr"lude all the areas/activities as provided for under existing laws and/ or their implernenting rulesand regulatiors, ?nul international agreements which specificalll, rnandate inclusion in the Ipp, ,u"h ug

A. Agriculture and Fishery. (R.A. S435) covers the following:1. Commercial Production and/or Froogssing, Breeding/

Propagation of planting materials/breeding materials of thefollowing:a. Agricultural Crops (such as, but not limited to, food crops,

feed crops, fiber crops, and other commercial crops,including tradirional crops)

b. Poultry and Livestock (such as, but not limited to, cattle,swine, goats and sheep), including feed milling

c. Fishing and Aquaculture (such as, but not limited to, laiu-lapu, tilapia, eel, Irito, bangus, shrimps/prawr.r culture,seaweeds )

2. Agricultural/Fishery Serv.icesa. Post harvest activities irrcluding but not limited to the

following:. Mechanized bulk handling, transrrort and storage;Warehousing. drying and milling of grains

. Setting up of ice plant and cold storage facilities. Iceplant projects as a separate activity may be registered ifthey locate in LDAs to service agricultural and fisheryproducts

b. Other Farm Services Activities.Farm machinery and equipment servicesrPests and diseases control services,lrrigation and drainage services. Intenned iation services

3. The following activities, as provided for in their respectivelaws, are also covered underthis heading:

a. Production and/or processing of higii-value crops asdefined in R.A. 7900 (Higlr-Value Crops Devt. Acr ofI e9s)

b. Commercial fishing operation as defined in R.A. 8550(Phil. Fislreries Code of 1998)

+ Applicable to ALL Regions* With Moderniz,ation Program

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B.

C.

D.

a

Industrial Tree Plantation (Sec. 36 (0 of P.D. 705)Covers the establishment of forest tree plantations which includetimber and non-timber species such as rubber, bamboo, rattan, etc.(excluding fruit trees) for commercial and industrial purposes.

l.on un& Steel* (R.A. 7103) projects (new ancl expansion projectsonly on pioneer status), such as:

1. Basic iron and/or steelmaking integrated with slab-making2. Flatproducts3. Seamless pipes production : .

4. Long Products

Fhilippine Mining Act of 1995'(R.A. 7942), covers the following:l. Exploration of mineral resources2. Mining, quarrying and processing of minerals

E. Book Publishing* (R.A. 8047), covers the following:l. Publication of books2. Publication of te.rtbooks3. Printing ofbooks or textbooks *

F. eOf Projectst (R.A. 6957, as amended by R.A. 7718), such as,

but not liniited to, the construction of :

L Highways, including expressways, roads, bridges,interchanges, tunnels, and related facilities

2. Railways or rail-based projects packaged with commercialdeve lopment opportunities

3. Non-rail based mass transit facilities, navigate inlandwaterways and related facilities

4. Port infrastructure Iike piers. wharves, quays, storage,handling, ferry services and related facilities

5. Airports, air navigation, and related facilities6. Power generation, transmission, distribution, and related

facilities7. Telecon-rmunications, backbone network, terrestrial and

satellite facilities and related service facilities8. Information technology and data base infrastructure9. Irrigation and related facilities10. Water supply, sewerage, drainage, and related facilities1 I . Education and health infrastructure12.Land reclamation, dredging and other reiated development

facilitiesl3.Industrial and tourism estates or townslrips, including related

infrastructure facilities and utilities14. Government buildings, lrousing projects1 5. Markets, slaugirterhouses, and related faciiities16. Warehouses and post-harvest facilities

' With Modernization Program

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lT.Public O.n. O.:f.. and fishponds, including storage andprocessiltg faci litiesl8'Environmentar and sorid waste management rerated faciritiessuch as collection equipment, composting plants, incinerators,landfill and tidal barriers

+aI

G. Petroleum Industry. (RA. g479), such as activities relating torefining, storage, distribution and marketing p.troi",* f.iOu",r.

H. Jewelry (R.A. 8502), such as fine jewelry and\imitation jewelry,limited to export-orierited projectsl

I. $Cgllojects (ASEAN Industrial Cooperation Agreement)An AICO arrangelllt is a cooperative arrangement consisting ofa minimum of two (2) participaiing companii frorn t*" fZidifferent ASEAN countries unO iniotu.s not only the physica-lmovement of products between the participatingi"*lirrri". Jracountries but also resource sharing/pooling andior i;ir;;;"complementation.

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II. CATALYTIC INDUSTRIES O

Region

I

XI

XII

Activities Referring To

Wood Furniture

Cornposite BoardGifts and Housewares

JewelryComposite Board

JewelryNatural FiberIndustrial Carbon'

Composite BoardGifts and HousewaresJewelry

Gifts and HousewaresComposite BoardNatural FiberHand and Loomwoven Products+

NaturalFiberindustrial Carbon*Cordage*

Composite BoardJewelryGifts ano HousewaresRubber FooiwearNaturalFiberTextile*

Composite BoardWood Products

Industrial Carbon*

Cornposite BoardNaturalFiberWood FurnitureJewelry

II

III

3

a

a

a

a

IVv a

c

a

VI

VII

o

a

a

a

a

a

o

VIII

IX

a

a

3

o

e

a

a

a

a

a

a

x

a

a

a

a

o Applicable to SPECIFIC Regions" With Mor-lernization Program

f

CAR

Gifts and Housewares

Loomwoven Products+

JewelryGifts and Housewares

Loomwoven Products*

Ceramic Products

JewelryGifts and Housewares

Composite Board

CARAGA. a

a

a

C

III. IND USTRIES UNDERGOING STRUCTTJRAL ADJUSTMENT O

a

a

a

efaa

RegionI

v

vt

vII

vIII

x

o Applicatrb to SPECIFIC Regions-

With lrlodernization Program

Activities Referring ToGarmentsEngineered products'

Organic Fertilizer*

PyrotechnicsPetrochemical downstream products*

Engineered Products*Chenrical Products*

Engineered Products*Organic Chemicals*

Organic Fertilizer*

Wooden ContainerOrganic Fertilizer*Engineered Products*Pulp and Paper

Oleochemicals*Pulp arrd Paper

Pulp and Paper

lnorganic and Organic Fertilizer*Oleochemicals*Soaps, Detergents, SlramPoos *

a

o

u

III

IV

C

a

o

a

o

a

a

a

a

a

a

a

a

a

a

a

i

lt-biII

i1

+

XI

xII

CAR

CARAGA

" Engineered Products*r Paintse Lubricants+

?, EngineeredProductsxj Glass Packaging

. Organic Fertilizer*o Engineered Products*

" Pulp and Paper. Made-up Articles of Textile

a

a

a

Pulp and Paper

Engineered Products'Made-up Articles of Textile

Pulp and PaperEssential Oils*Er-rgineered Products*

a

a

a

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' With Ivlodcrnization Program

Wood Prodr:,cts

Furn iture

Natural Fibrr

Rubber Footwear

Gifts and I'Iousewares

REGIONII,III, VI,VII,IX. X,

XII,CARAGA

[, XII

V, VII, VIII,IX, XII

IX

II, VI, Vil,IX, XII,CAR,

CARAGA

" CAT,A.LYTICIhIDUSTRIES

AC''|IVITYComposite Board

SPECIFIC COVERAGE

COVERAGE/DEFINITION'hnir

covers the manufacture of composite boards (e.g.,particle board) using natural resource-basedmaterials/wastes and industrial refuse.

This covers the manufacture of wooden artic.les used inthe construction of buildings/liouses (e.g., door panels,jambs, and moldings).

This covers the manufacture of furniture using mainlywood and/or rattan, or in combination with metal,glass, stone, plastic, leather (natural or synthetic), etc.

This covers the production ofraw coconut coir (fiberextracted from coconut husk) and/or manufacture ofcoir fiber products (e.g., mats and mattresses ). Alsoincludes coco-husk dust or coco - peat products.

This covers the manufacture of rubber shoes and partsthereof, sandals and slippers.

This covers the following handicraft products:1. Basketwork - basket and basketware containers of

all kinds of vegetable plaiting materials such as butnot limited to buri, buntal, rattan, functional innature:

a) Floral baskets

b) Garden/outdoorbasketsc) Packaging baskets for such products as

confectioneries, toiletries, potpourri, etc.

2. Shellcraft, Woodcraft, Stonecraft, FibercraftArticles made from sea shells, wood, stone, anyfiber including handmade paper products whoseclraracteristics nlay be ornamental/decorative/functiorral in nature. May also include noveltyitems.

J.

4.

Made-up articles of textile - Household articlesmade up of textile for bed, bathroom, table andkitchen linens and other home furnishings.

Fossilized / Dried flower making - preserved, driedor fossilized plants and plant parts used fordecorative and novelty purposes.

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iPII

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Jervelry III, V, VI,IX, XII,CAR,

CARAGA

' Tiris covers activities involved in the manufacture /production of:

1. Fine Jewelrya) Articles of personal adornment made of precious

nrctals, stones, pearls or combination thereof, (e.g.,-$ rings, bracelets, necklaces, brooches, earrings,watch chains, fobs, pendants, tie pins, cuff links,combs, tiaras, dress-studs, religious or other medalsor insignia)

b) Articles made of precious metals, with or withoutstones fbr personal use of a kind nornrally carriedin the pocket, handbag or in the person (e.g.,

cigarecte cases, powder boxes, chain purses, cachouboxes)

Imitation Jewelrya) Articles falling either under l(a) or 1(b) above

which are made of base metals and /or materialdother than precious metals; of imitation ofgemstones, of natural rnaterials; and/or theircombination thereof

Cutting and polishing, forming of gemstones orimitation of gemstonesPearl farming, pearls culturing, and in the productionand imitation of pearlsRefining and/or fonning of precious metals andiorimitations of precious metals (Non-precious metalselectroplated to simulate precious metals)

6. Articles made of precious metals utilizing goldsmithingand/or silversmithing techniquesOtlrer raw materials and parts used in the manufactureofjew,;lrya) Raw ntaterials, supplies and other materials such as

but not limited to: clasps, chains in spools, wires,sheets, findings, settings, rubber mold, cleaningsolution, soldering pads, binding wires, pointswheel, and sharpening stones

This also covers activities in support of jewelryenterprise, such as: electroplating; gernstone appraisaland certification, and assaying and refining. 1

2.

J.

4.

5.

7.

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Ceramic Products

Textiles'- I-land & Loornwoven

Products* ., *'

- Loornwoverr Products*- Cordage*

ACT{VITY

Chernical Protiucts'

- Organic Chemicals*- Fertilizer:

a) Inorganic & Organic*b) Organic*

- Oleochemicals*- Lubricants+- F,ssenl,ia? 0il*

Pulp and Paper

Pyrotechnics

With ModernizationWith Moderni.ration Program

This covers the manufacture of ceramicfrom porcelain, white earthenware,terracotta which are ornamental inincludes the following products:1. Ceramic artwares and tablewares-$

kitchenwares and other cerarnictoilet articles.

2. Novelty items3. Other decorative ceramic articles

CARAGA

IXVII

XII, CARVIiI

products rnadebone china,

character. it

(dinnerwares),household and

. INDUST.iUES UNDERGOING INDUSTRIAL ADJUSTMENTS

This covers activities in spinning, weaving, knitting.and finishing, including the production of cordage.

COVER.AGE/DEFINITION

This covers the following:

L Manufacture of both organic and inorganicchemicals, including the manufacture of oieo-chemicals, industrial carbon, essential oils andlubricants

2. Production of organic fertilizers of plant and animalorigin, including the production of microbiaifertilizer with nitrogen-fixing organism andmycorrhiza. Mere mixing and cornpounding o1

organic fertilizers are not covered

This covers the mechanical and chemical process ofpulp and paper milling. This also covers hand-madepaper making

This covers the manufacture/ production of firecrackersand pyrotechnic devices as defined and listed in R.A.7l 83 (An Act Regulating the Sale, Manufacture,Distribution and Use of Firecrackers and OtherPyrotechnic Devices). This includes:1. Firecrackers2. Pyrotechnic devices

REGION

X[i, V, VI, VII,

IX, XIIVIII, X

xCARAGA

VII. VIII, IX,X, XII, CAR,

CARAGA

III

IV

V

(

l2

tingineered Pt'oducts and/orT'heir Parts anc Componettts*

Paints

Garments

Petrochern ical DownstreamProducts*

I, IV, V, Vll,IX, X, XI, XII,

CAR,CARAGA

Y

I, iX

XII, CAR

t

Note: Industrial explosives are excluded.

' This co\/ers the manufacture of metalworking machinery(tools &. dies included), special purpose industrial

-f,, nrachinery, electrical machinery, agricultural machinery,machinery and equipment, conirnunication equipmentand apparatus and office computing and accountingmachinery, including their parts and components.

Preparatiorr of designs of machinery and equipmentarrd/or their parts and components are included.Likewise, the production of parts and components minusthe final assembly process is included.

Radio and television manufacturing projects are lirnitedto modernization only.

' This covers only the manufacture of paints

. This covers the production of items of clothing such as

men's, women's, and children's and infants wear andother wearing apparel such as gloves, undergarments,stockings and socks, neckwear and other related apparel.

. This covers the manufacture of industrial plasticproducts including complete plastic-based packagingsystems (i.e. blister packs combined with boxes that can

double as point of sale display cases).

. This covers the following:

I . M;rnufacture of both herbal & synthetic:a. soaps, organic surface-active agents, waslring

preparations; and,b. shampoos

2. Manufacture of these products may be integrated witlrthe production of raw materials both natural (e.g.,essential oils) and synthetic.

. This covers hand-crocheted items that al'e iised fordecorative purposes, hand-crocheted wearing appareland accessories.

III

XSoaps, Deiergerfs and

Sharipoos-

Garments and I\4i.sle-upArticles of Texti!e

' With Modernization Program

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IV. EXPORT-ORIENTEDINDUSTRTES

+This covers export producers, export traders, service exporters, and

activities considered in support of exporters.

L Export $roducers refer to manufacturers of non-traditionalexport productslservices with capability to export at least 50%of its output, if Filipino-owned, and at least'/lYo, if foreign-owned.

2. Export traders refer to persons or enterprises, wh.ich derive theirintome from the sale of non-traditionalexport producis abroad.

3. Service exporters refer to enterprises tlrat provide services toclients abroad such as knowledge, informatiott, technology and

systems and/or application or installation thereof in the projectsites. Services provided to international airlines/shippingliues/rnilitary aircraft or seacraft even if rendered locally rrayqualify for registration provided revenues are paid for in foreigncurrency. Mere deployment of people or individual practice ofprofession abroad shall not qualify for registration.

4. Activities considered irr support of exporters cover services

comprising a portion of the process involving the manufactureof final products, sub-assembly of parts/ components of the

final export product, fabrication of parts/components of the

final export products wlterein tlte raw materials are provided bythe direct exporter, product testing and inspection, repair,maintenance and calibration of machinery and equipment used

by export-oriented companies utilizing high-technologyprocesses.

Non-traditional export products shall be those products as defined inthe Implementing Rules and Regulations of the Export DevelopmentAct. In the absence of the definition of non-traditional exportproducts in the EDA IRR, these shall be those products other than

the products considered as traditional exports in the 1994 IPP, i.e..(a) copra; (b) crude coconut oil; (c) desiccated coconut, (d) copra

meal and cake; (e) inedible nrolasses; (f) pineappie in syrup; (g)

logs; (h) iumber; (i) plywood and veneer, and fi) unmanufacturedtobacco.

l4' Applicable to At,L Regions

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V. SUPPORT ACT]IVITIES*

A. Infrastructure *

Applicable to ALL RegionsWith modernie;ation program

This covers the following:1. Industrial estates2. Industrial communities3. Service dities4. Telecommunications5. Ports'6. Water supply*/distribution*/treatment*7. Major water catchment basins/watenvays.. and related

infrastructure, man-made or natural including seweragesystems*

8. Tollroads/highways*9. Power generation*/transmission*/distribution*

10. BOT projects costing PL0 B and below.

Industr ial es late s incl ude.'

" large tracts of land for the use of a community or a cluster ofindustries and seruices which include science and technologyparks;

r technology incubation centers or science and technology centersunder a unified'and continuous management;

. urban community redevelopment wirich refers to the renewal ofcertain urban diitricts in need of major redevelopment into well-developed state-of-the-art and environmentally sustainableindustrial centers catering to light industries.

As a general rule, developmcnt of industrial estates must be outsideMetro Manila, Laguna and Cavite. In the case of Cavite and Laguna,industrial estates will be allowed in underdeveloped areas asidentified in the IPP. Urban community redevelopment is notcovered by this locational policy restriction.

lnduslrial conununities refer to large tracts of land for developnrentwith carrying capacity for town facilities such as accommodationfacilities, multi-purpose centers, health centers, drugstores, sclioolsaud other Iivelihood cenrers.

Service cities refer to well-planned, managed, developed,environmentally sustainable and globally competitive metropoiisprovided with a full range of products, services and amenities whicirinclude, anrong otlrers, educational facilities, medical faciiities suchas tertiary (specialty) hospitals, a grand central station to serve asmulti-modal transportation hub which will include an integrated mixof local and regional public transit system and a comprehensivelydesigned pedestrian circulatiorr system, a well-lighted and integratedparking system and structure, integrated design and adaptable utilitysystem composed of underground power lines, water supply system

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v

B. Common Carriers *

C. Environmentrrl ,Activities "

a

with water treatrnent system and dual piping system, provision forcentralized gas facility and provision for district cooling, and latest

telecommunication system that should integrate existing systent withtraffic, parking, cable, theaters, concert hall:; and galleries and

convention centers employing/adapting new or the latest conceptswithin the stitctures.

Teleconununicalions refer to the establishment and operation of Iocalexchanges, public calling offices, international gateway facilities, and

inter-exchange carrier network operations (i.e.,. satellite and

terrcstrial-based ).

Ports* refer to the establishment and/or operation for public use:

piers, wharves, quays, storage and cargo-handling facilities, ferryservice facilities, and other related facilities. The establishmentand/or operation of airport facilities for public use; air navigation,storage and handling facilities, and other related faciiities.

Power generation projecls* eligible for registration are:

a) Those utilizing indigenous and environmental!y friendly fuel.b) Those using ,renewable energy sources. Renewable energy

sources include biomass, waste to energy conversiort, solar,wind, geothermaJ,

fXOio, et!:

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This covers land transp6rt, airtransport and inter-island shipping.

1. Land transport" includes public utility bus operations, railtransport operations which include Iight railway and otherelectric-based transit systems, and pipeline operations for thetransport of petroleum products whether liquid or gases or naturalgases

7. Air transport facilities include passenger aircraft operations and

cargo aircraft operations

3. Inter-island slripping* includes pure cargo vessel operations,passenger carrying vessel operations and passenger-cargo vessel

operations

Tiris covers the following:

l. Developrnent or Conversion of Industrial Ecosystem '

2. Industry/ Self-Regulation at the Plant/Firm Level which includes:a) Environmental Management Systems Certification (i.e. ISO

I 4000)

b) Activities in compliarrce with multilateral agreements ( i.e.

Montreal Protocol Prescriptions on Ozone DepletingSubstances and International Framework Convention on

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With modernizaiion program

B. Common Carriers *

C. Environmentr.l .Activities "

a

with water treatrnent system and dual piping system, provision forcentralized gas facility and provision for district cooling, and latest

telecommunication system that should integrate existing systent withtraffic, parking, cable, theaters, concert halls and galleries and

convention centers employing/adapting new or the latest conceptswithin the sti&ctures.

Teleconununications refer to the establishment and operation of localexchanges, public calling offices, international gateway facilities, and

inter-exchange carrier network operations (i.e.,. satellite and

terrcstrial-based ).

Ports* refer to the establishment and/or operation for public use:

piers, wharves, quays, storage and cargo-handling facilities, ferryservice facilities, and other related facilities. The establishmentand/or operation of airport facilities for public use; air navigation,storage and handling facilities, and other related faciiities.

Power generation projecls* eligible for registration are:

a) Those utilizing indLgenous and environmental!y friendly fuel.b) Those using renewable energy sources. Renewable energy

sources include biomass, waste to energy conversiort, solar,

:.-: ;.).- : .. . ,tt. ,

This covers land transp6rt, airtransport and inter-island shipping.

l. Land transport" includes public utility bus operations, railtransport operations which include light railway and otherelectric-based tnansit systems, and pipeline operations for thetransport of petroleum products whether iiquid or gases or naturalgases

2. Air transport facilities ilrclude passenger aircraft operations and

cargo aircraft operations

3. Inter-island shipping* includes pure cargo vessel operations,passenger carrying vessel operations and passenger-cargo vessel

operations

This covers the following:

1. Development or Conversion of lndustrial Ecosystern 1

2. Industry/ Self-Regulation at the PlanVFirm Level which includes:

a) Environmental Management Systems Certification (i.e. ISO14000)

b) Activities in cc'mpliance with multilateral agreements ( i.e.

Montreal Protocol Prescriptions on Ozone DepletingSubstances arrd International Frarnework Convention on

l6

a''1ni l\q'/u(\\---

I

With modemizaiion program

i

A

D. Ship Buil$ing',i Repair /Breaking

[. Support to 0therGovernmernt PriorityPrograms1. Housing Components for

Socialized/ Lou'CostHousing Projects

7. Medical Equipmentand/or Ilevices

3. Motor Vehicle Parts andComponents/lVlotorVehicles,, specifi callypassenger cars,cnmmercial vehicles and

motorcycles *

Climate Change)

Establishment of Toxic and Hazardous Waste Facility

Establishment of waste handiing facilities/ sewerage systems forindustrial/ municipal wastes (modernization may includerehabilitation)

Testing/measuring services for ernission and effluent and otlierrelated environmental parameters (for industrial and vehicularengines preferably with rehabilitation facility) '.

This covers the construction, repair or breaking of cargo / passenger

vessels designed to support the needs of the shipping and iron and

steel sectors.

This covers the fabrication of major .mass housing components usingnon-traditional, structurally sound, and environment.friendlymaterial s/ technol ogy. These i ncl ude roof/frarn i ng system s. parlit iousystems, {looring systelns, door/window systems, fi nishing/ceil ingsystems, and plumbing/ sewerage systems.

This covers the following:l. Production of instruments, apparatus, or contrivances, inciuding

their components, parts and accessories, intended:a) For use in the diagnosis, cure, mitigation, treatment or

prevention of disease in man or animals; orb) To affect the structure or any function of the body of man or

animals. This shall however exclude dental prosthetics.2. Manufacture of assistive devices for persons witir disabilities

(PWDs) suclr as, but not Iimited to, wheelchairs, crutches,prostheses, braces, and hearing aids.

This covers the following:l. The manufacture of parts and components for tlre motor vehicle

industry; and,2. Integrated manufacture of major/ proprietary parts and

'components with assembly of motor vehicles fallirlg under theCar Development Program (CDP), the Commeriial VehicleDevelopment Program (CVDP) and the MotorcycleDevelopment Program (MDP), in compliance with therequirement to put up parts manufacturing facilities with projectcost of US$ l0 million for cars, US$ I million for commercialvelricles, and US$ 2 million for motorcycles.

J.

4.

5.

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With Modernization Programt7

4. Social Services *

5. Tourisnt"

t With Modernization Program

t

This covers the following:L Educational/training institutions specializing in developing skills

for the manufacturing, agriculture, fishery, mining, touristrt,irrfrastructure and service (including the training of nraintenancepcrsounel, seafarers complying with international standards attdthe d&elopmertt oi ertvironrrrental/sustainable discipl ines - i.c.,pollution control officers/ managers, environmental managementaudftors) sectors.

2. Health service delivery which includes hospitals, diagnosticcenters, therapy centers, clinical laboratories, anrbulatory lrealthcare facilities, facilities for mentally ill patients and other health

services as determined by the BOI in consultation with the

Depatunent of Health and other government agencies concemed3. Social welfare services which include day care centers, senior

citizens centers, centers for disabled, and out of school youthscenters, and other social-welfare services as determined by tlreBOI in consultation with the Department of Social Welfare lndDevelopment aird other government agencies concerned.

4. New retirement villages.

This covers the following:1. Tourist accommodation facilities which refer to hotel, apartel,

tourist inns, pension lrouss, and resorts. Resorts may alsoinclude special interest activities (which may or may not have

accommodation 'facilities) such as but not lirnited to themeparks, convention, exhibition/trade display centers, eco-tourismprojects or tlrose involving environmentally sound tourismactivities in a given ecosystem yielding socio-economic benefitsand enhancing natural and cultural diversity conservation.

3.

Tourism estates which refer to large tracts of land with definedboundaries in any of the destination areas in the country, suitablefor development into an integrated complex with prescribedcarrying capacities of tourist facilities and activities such as butnot lirnited to accommodation, food and recreational centers and

commercial outlets, and provided with roads, water supplyfacilities, power distribution facilities, drainage and seweragesystems and other necessary infrastructure.

Tourisl huses l

Restoration of historical and cultural sites/properties providedthat the sites/properties are at least 100 years old as cerlified bythe National Historical Institute and endorsed by the Departrnentof Tourisrn.

2.

4.

(

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l8

6. Drugs and Medicines

7. Reseanch andDeveloPment Activities

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This covers the manufacture of bulk chemicals. The formulation or

preparation of bulk chemicals into dosage form for catastrophic

diseases, vaccines, and biologics may be considered.

Manufactup of bulk materials from indigellous plants may be

integrated with tlre growing of medicinal plants and dosage

formulation into medicines.

This covers both in-house R&D activities of any

manufacturing/producing firm and the commercialh&n activities of

private finns and research institutions.

An endorsement is required from the Department of science and

Technology, Department of Agriculture or the relevant agency

concerned.

t9

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VI. Additional Friority Investments Areas for the Autonomous Region of Muslim Mindanao(ARMM)

Presented in this section is the list of priori4t areas which have been independently idcntified by

the Regional Brtnrd of Investments of the Autonontous Region of Muslim Mindanoo (ARMM), inorrordorrn u,itit E.O. 458. The BOI-ARMM ciih grant registration and administer incentives to

activities listecl herein, provided lhese are locuted in lhe ARMM.

I. EXPORT ACTIVITIES

A. Expor$ Trader and Service Exporters.#

B. Support Activities for Exporters

II. AGRICULTURE, FOOD AND FORESTRY-B.A.SED INDUSTRIES

A. Processed FoodI L-lalalMeat2. Leguminous and other vegetable - based protein (textured,:palletized or liquid)3. Spices Processing (e.g., hot pepper, black pepper, gingel, etc,)

i'lote: May be integrated with plantation4. 'y'egetable Oils (e.g., peanut oil, rice bran oil;:Bunflower and soybean oil)

Production of Food CropsNole: Maybe integraled with post-harvest: j)rocessing aryd olher vegetcbles (such as

Tonrutoas)5" lntegrated Coconut Processing6. Seaweeds Processing7. Cassava Processing

)Vote: Maybe integrated with plantation8. Iiruit Processing (e.g., durian, mangosteeen, jack fruit, marang, banana, mango, passion

guava, calamansi, and guyabanos)9. A.quaculture (Fish Production and Processing) such as, but not limited to:

a) Frozen fishb) Clrilled fishc) Canned fishd) Abalonee) Crab fattening

D Eel productiong) Squid processingh) Carp and Tilapia Production and Processingi) Tropical Fish Production and Processingj) Shrimps/Prawnk) Lapu-lapu (Grouper) and other marine products

10. Corn Flour Mill (lntegrated with plantation)I 1. Yourrg Com Production

l,l ote : May include process ing/canning12. Mushrooms Culture and Processing13. Sweet Potato Plantation and Processittg!4. Crocodile Farrning and Processing

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B. Cutflower Production

C. Pearl Culture

D. lrrriustrial Tree Plantation (lnclude Mangrove, Rattan, Bamboo, etc') and wood processing

,lcement wood board and fiberboard) r€constructed veneer

E. Stripbuilding and watercraft

F. A'oaca Pulp Plantation and Processing ''

G. Pairq Oil Plarrtation and ProcessingJ

H. Coffee Processing (Maybe integrated with plantation)

l. particle Board (use of agri-based waste material suclt as rice straw, wood waste, etc.)

J. Activated Carbon Manufacturing (Use of coconut shell, wood based, etc')

K. Feeds Production (anirnal feeds and feeds for 4quaculture)

L. 'i obacco Plalttatiolt and Processing

rrl Productiott ol Beverage Crops (but not limited to) , ;J1. Cacao Beans r i;:'

N. production of plarrtation Crops ancl other Medical Herbs/Essentialoilplants (including flower

extracts)

o. Froduction 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: inclucle,r natural method and artificial insemination and embrya transfet"

technologt

P. tsricks and R.oofing Tiles production

e. euality seeds and seedlings of fruit trees ancl other planting materials propagated asexually or

by tissue culture

R. Sugarcane plantation and Refineries

S. Se,riculture

T. Ivlosquito coil processing

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TII. BASIC INDUSTRIES

A. PltarrnaceuticalsL Antibiotics

a) Penicillin '$

b) Streptomycinc) Tetracycline'sd) Soft gelatin Capsules

2. Medical Devices

r a) Prostiretics

e b) Diagnostics" tr3. Other pharrnaceuticals

B. Textile and Textile Products1 . Yarns and fabrics2. Hand-woven textiles3. Specialty fabrics4. Tire cord fabrics

Note; Musl be integraled tvith u,caving and dipping units.

5. Ramie (degumed, staple fiber, combed tops, noels and silvers)6. Fislr nets"7 . Fabrics made of indigenous raw materiqls8. Silk reeling , ' ', i. '' ,

C" Fertilizers (organic and inorganic)Solid waste materials

D. IMining (Exploration and development of Mineral Resources)a) Mining and quarrying of Metallic and Non Metallic Minerals (inciuding small scale

as defined under P.D. 1899, but to exclude river beds operations)b) Processing of Minerals (such as beneficiation arrd other Metallurgical methods)

E. Cement - At least 1.0 MTPY Capacity (Clinker based)

IV. CONSUMER. MANUFACTURES

A. Rubber Products such as:

1. Higli pressure and hydraulic rubber hoses

2. Rubber bolts3. Industrial rubber rollers4. Rubber tires

B. Lcather Products

V. INF'RASTRUCTURE AND SERVICES

A. Public Utilities (with developmental route of the four provinces of the ARMM and other

adjacent Cities and Provinces)l. Common Carriers (land, air and water transport facilities)

t

2. Electric Transmission/distribution3. Water Supply Facilities/Waterways and sewerage systems4. Buses/Cargo trucks5. Other specialized mass transport systems6. Power generation like hydrqpower, and Geothennal

B.'Ielecommunicatior-rs with lnternational Gateways

C. Tourism1. Tourism Estates

i, - Subject to guidelines developed jointly by the Board of lnvestments-6 ARMM and Department of Tourism (DOT)

2. Tourist Accommodation Facilitiesa) Hotelsb) Resortsc) Other tourist accontmodation facilities such as apartel, pension houses,

tourist inns, and others.

3. Tourist Transport Facilitiesa) Airb) Water .,'c) Tourist Buses and taxi/van '-' .l ,, ' : '

Note: *Endorsed by the DOT ,, ...* *New and e xp an s i oi pr oj e cii ;nruy b e r e gi s t e r e d

D. Industrial Service Facilities

This will cover the following activities:l. Common Centers:

a) Testing and Quality Control Laboratoriesb) Training and Demonstration Centersc) Tool Shops and Sirnilar Facilitiesd)

I'.l'J,".'|T;?*** Forging

: ffi,11[?.*** Brass rnaking

e) Funriture

I fi::,'#li,,o o,o"",sing raclities0 :"'ili:'

't Glazingg) Food Processing

] ffiTlli,i::,cannin* orDist,red water

* Vapor Heat Treatment

'l23

E,.

* Slaughterhouse/abattoirh) Automotive Battery Plate Manufacturing

Note: The.followirtg criteric ntusl be mel:* The project will sen,e lhe cqmmon needs rf the industry in the locality and;

,r The praject will improve fhe relative slalus and comparative advanlages of the

industry

2. Development of Retirement Villagesa) Shall include Health and Medical facilities including amenities required by the

Philippine Retirement Authority (PRA).

" Ul Subiect to the guidelines to be approved by BOI-ARMM in consultation with the

pna, the Department of Health (DOH), the Regional Planning and Development

Office (RPDO) and other concenred agencies'

Petrochemicai Complex

lndustrial Gases (such as oxygen and nitrogen)

Ir,{iscellaneous Chem ical Products

1. BiotechnologicaliBiosyrrthetic Chemicals

Z. Esserrtial Oils3. Fine Chemicals

c.

VI. ENGINBERING INDUSTRIES

e,ngineering Products1) Motor Vehicle part and components

Z) Automobile Parts and assemblY

3) Moderrt offsct Printing

Electronics and Telecommunications Products

VII. ARMM PRIORITY AND TOURISM AREAS

NCTE; Listed belov, are potential tourist destinotions which need further exploration and

evaluation for inlensified promolions, development and ntarketing.

B.

NUCLE,US

AREA I _ SI]LUAREA II _ T'AWI-TAWI

GATEWAY

JOLO,BONGAO

SATELLITE DESTINATIO}J

SULU PROVINCETAWI.TAWI PROVINCE

AREA III _ LANAO DEL SUR MARAWI CITY LANAO DEL SUR PROVINCE

AREA IV -.MAGUINDANAO COTABATO CITY MAGUINDANAO PROVINCE

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