Vision ConfidenCe PerformanCe Board of Investments by liaoqinmei



      2011 Annual Report
We, the BOI family, are committed to generate local and foreign investments
and develop globally-competitive industries, thus, increasing employment through the
responsible use of the country’s resources, guided by the principles of private initiative
and government cooperation.

In pursuit of these commitments, we bind ourselves to render competent and efficient
service with utmost integrity and professionalism.

Ours is a challenging task, yet with discipline and the guidance of an enlightened and
strong leadership, we shall move forward.

To meet investors’ diverse requirements, BOI offers specialized services that include:
   • Supplying knowledge-based market information
   • Analyzing your business feasibility
   • Linking you to the services chain
   • Matching you with foreign and local businesses
   • Nurturing your expansion and diversification
   • Profiling industries

01     Message from the President
02     Message from the Chairman
04     Message from the Managing Head
08     Investment Commitments
15     Top Investor Projects
16     Philippine Development Plan 2011-2016
17     Investment Priorities Plan 2011
18     Investment Promotion Agencies
19     Board of Governors
20     Independent Auditor’s Report
       BOI Directory

                                                         Cover story
                                                         Vision | ConfidenCe | PerformanCe

                                                         Our report this year reflects BOI’s performance as it rose to the challenge of
                                                         restoring exemplary performance. Our vision is to be a preferred investment
                                                         destination as we partner with the best to achieve the most impressive
                                                         results. This optimism has brought about a confidence in the way we work,
                                                         in the decisions we make, and in the manner we intend to achieve our
                                                         goals. This is a manifestation of our unwavering commitment to excellence.

                                                         The stylized ripples effect symbolizes the thirteen representative sectors that
                                                         form part of the key investment areas. These areas are deemed enablers
                                                         and triggers of more employment and business opportunities around the
                                                         county – creating positive ripple effects towards inclusive growth through
                                                         expanding spheres of development action, inspiring more confidence for a
                                                         brighter tomorrow.

                 y warmest greetings to the Board of Investments on the publication of your 2011
                 Annual Report.

     I congratulate the Board for registering an impressive year. Through your sustained efforts to
     promote and generate investments and our steadfast campaign to restore transparency and
     accountability in government, our country is now experiencing increased investor confidence,
     evidenced by a significant boost in investments, from Php302.10 billion in 2010 to
     Php368.93 billion in 2011, an impressive 22% growth.

     The year has seen the BOI make strides in each of its three key functions: industry development,
     investment promotion, and investment servicing. Chief among these accomplishments are the
     agency’s contributions in the preparation of the Philippine Development Plan and the 2011
     Investment Priorities Plan, both of which serve as our roadmap for making the Philippines
     more competitive in the global economy. The Board has also identified key investments areas
     that are considered enablers of job creation, organized both outbound and domestic missions
     to stimulate investments, and gathered resources to develop a comprehensive research and
     assistance facility for our foreign partners.

     As you welcome another fiscal year, I ask that you take to heart our people’s desire for greater
     transparency and good governance. May you demonstrate the same commitment as you
     continue to fulfill your mandate and chart new directions. With your cooperation, I am confident
     that we will be able to bring about equitable progress and lasting stability for our people.

     Benigno S. Aquino iii
     Republic of the Philippines


                he Board of Investments (BOI) capped another year in 2011 on a bright note with
                committed investments of Php369 billion, up 22% from Php302 billion in 2010. It was
                able to sustain the momentum from the previous year with investors committing a
          sizeable amount of capital infusion into critical sectors that serve as the country’s engines of

          The manufacturing and power sectors surged to Php192.5 billion – cornering more than half
          of the total investments pie. Domestic investors served as prime movers as they contributed
          the bulk of investments amounting to Php345.70 billion, a 94% share, affirming their solid
          confidence in the economy. Meanwhile, investments from foreign sources continued to gain
          ground with Php23.2 billion, up 4% from Php22.3 billion in 2010.

          The agency played a pivotal role in the preparation of the 5-year medium term Philippine
          Development Plan 2011-2016, specifically on the Competitive Industry and Services Sectors.
          The Plan seeks to pursue a more deliberate, focused approach with emphasis on addressing
          the fundamental challenges facing the country’s business environment.

          The BOI has evolved from being a regulator of foreign investments to a proactive and
          responsive service-oriented agency. Its services include assisting potential investors in the
          Philippines by providing them with a range of information on investment opportunities,

The Board of Investments (BOI) capped another year in 2011 on
a bright note with committed investments of Php369 billion,
up 22% from Php302 billion in 2010.

             costing estimates and available supporting industries. The agency’s frontline and after-
             sales services have continued to engage and persuade investors to locate and retain their
             investments in the country. Its National Economic Research & Business Assistance Center
             (NERBAC) directly fosters the initial phase of investments facilitation from walk- in to
             phone-in counseling sessions including briefings outside of the agency’s premises. On the
             other hand, its Strategic Investors Assistance Program (SIAP) – a centerpiece program for
             investment promotion – was energized and strengthened towards ensuring higher quality,
             trust-based working relationship between the agency and its existing investors.

             Towards the end of 2011, the BOI re-engineered its organization to step up to the plate
             of giving focus to industry development as a strategic approach for generating jobs and
             achieving inclusive economic growth. It embarked on the task of preparing Industry
             Roadmaps that sought to foster globally competitive and innovative industries. Industrial
             policies were fine-tuned to make them more responsive to emerging global business needs.
             In pursuit of the thrusts of the Aquino administration, the BOI registered projects aimed at
             realizing inclusive growth – in which everybody – including the poorest of the poor – not
             only participates in generating growth but also partakes of its benefits.


             GREGORY L. DOMINGO
             Chairman, Board of Investments
             Secretary, Department of Trade & Industry


                 he BOI is re-engineering itself to ably address the demands of a highly competitive
                 global environment.

          In 2012, the BOI initiated flagship programs: modernization of the BOI to further enhance
          the agency’s efficiency and responsiveness to its stakeholders and the public; the
          formulation of Industry Development Roadmaps, and a focused investment promotions

          Feedback and fresh perspectives from trade and investments experts and practitioners
          during high level talks ranging from macroeconomics to sectoral issues have become regular
          feature events for continuing education of officers and staff of the BOI.

          Under the BOI Modernization Program, we continue to explore innovative ways to
          accomplish tasks more effectively and efficiently. We have reviewed the application process
          for investors and have simplified procedures and cut the turnaround time for registration.
          Initial results of the streamlined process, applied to agribusiness, mass housing, and tourism
          projects, have been very encouraging for both the agency and its clients. Also, we have
          engaged our executives and staff in continuing education and capacity building activities
          to help us craft and implement the industry roadmaps for optimum results. In addition, we
          are also working on improving the BOI IT System to enhance the collection, monitoring, and
          submission of investment projects.

We will continue to focus on investment areas that are con-
sidered “enablers”or “triggers” to provide opportunities for
balanced and equitable economic development, contribute to
modernization, foster transfer of technology, and encourage
formation of durable capital.

             The formulation of Industry Development Roadmaps with government, as catalyst, and
             the private sector taking the lead, is reinvigorating partnerships to chart clear paths
             in growing agriculture, industry and services. The results of these partnerships will be
             individual industry roadmaps and a comprehensive industry development strategy to guide
             sustainable growth.

             With a team willing to work harder and smarter to improve the agency’s services
             collaborating constructively with our partner industry organizations, corporations and
             agencies, we build the case for a more competitive Philippines.

             We will continue to focus on investment areas that are considered “enabler” or “trigger”
             to provide opportunities for balanced and equitable economic development, contribute to
             modernization, foster transfer of technology, and encourage formation of durable capital.

             For 2012, the Philippine projects economic growth at 5 to 6%, and we are confident that
             we will achieve our target of sustained 7 to 8 percent per annum in the next several years.
             These prospects will result from the ongoing implementation of strategies for inclusive
             growth in the Philippine Development Plan 2011-2016.

             Our country is on a very different footing now. With the transformational leadership of
             the Aquino administration and appurtenant painstaking policy reforms, the country has
             survived powerful external shocks. Critical initiatives in improving governance are now
             invigorated by a political will imposed from a highly trusted and credible political leadership.

             The Philippine foresees high and continuous economic growth in the years to come.

             ADRiAn S. CRiSToBAL JR.
             Managing Head (October - December 2011)
             Board of Investments
             Department of Trade & Industry


                ullish investors’ sentiments on the Philippines resulted to the country’s favorable
                investment performance in 2011 with the Board of Investments (BOI) posting an
                unprecedented Php369 billion in investment approvals, a 22% improvement from the
          Php302 billion level recorded in 2010. Buoyed by stable macroeconomic fundamentals, the
          country has become a very attractive location for business. The government ensured that it
          has become an enabler of business especially in attracting more capital into the country and
          the continued streamlining of government transactions.

          With international rating agencies and financial institutions giving satisfactory approval
          and stable marks to the country especially on our financial capability to withstand external
          shocks, the confidence of domestic investors alone remain very high as they continue to
          infuse additional capital at an accelerated pace. Foreign investors have taken the cue from
          local businessmen to bridge the disparity to more manageable levels as they have vowed to
          invest more what with the expansion of existing projects, joint ventures and diversification
          to other fields.

          In line with promoting the development of key sectors, the BOI continues to spearhead
          the annual listing of the Investment Priorities Plan (IPP). The IPP is a list of promoted areas
          of investments eligible for government incentives. It is the result of various consultations
          with government agencies, foreign chambers, NGOs and the private sector. The 2011 IPP
          list focused on investment areas that are considered “enablers” or “triggers” for more job
          creation without sacrificing the fiscal consolidation efforts of the government.

          As these investments generate more opportunities and jobs, purchasing power are likewise
          stepped up resulting in greater consumer demand among the populace. With government’s
          all out support for industries to craft strategies and master plans to make them more
          competitive with the rest of the globe, our job of making the Philippines as an investment
          destination of choice continues to make headway and the entire country is bound to reap
          the dividends in the years to come.

Php369 billion approval
       in investment

Php23.23 billion capital share
       Foreign investors’
       As the country’s lead investment promotion agency, the BOI conducted outbound missions
       and participated in Presidential Visits. Through these missions and, as a strategic initiative,
       target companies were identified and called on for possible investment leads generation
       which are expected to contribute considerably towards achieving the investment
       commitment targets within the 2011-2016 period.

       The agency aggressively pursued conduct of inbound missions as these provided investors
       with the first-hand experience of seeing the country and knowing the vast investment
       opportunities it offers. The inbound missions were from China, Japan, Korea, Spain,
       United Kingdom, Finland, Germany, Singapore and Thailand and are expected to enhance
       participation of foreign investors in the areas of PPP, agribusiness, renewable energy and
       tourism sectors, among others.

       Acknowledged as one of the crucial partners in investment promotion and generation, the
       BOI conducted a series of Investment Promotion Modules designed for LGUs. With their
       enthusiastic responses, we foresee the smooth establishment of Investment Promotion
       Centers around the country and the expected passage of each locality’s Local Investment
       Incentives Code.

       The agency remains a very active member of the inter-agency committee which steers the
       implementation of the Philippine Investments Promotion Plan (PIPP). The PIPP comprises the
       various Investment Promotion Agencies (IPAs) of the government. This organizational structure
       addresses the country’s need for an effective coordination mechanism to synchronize the
       government’s investment promotion efforts. For 2011, the IPAs were able to participate in
       Presidential Visits to China, US and Japan as well as other national investment fora and events.

       To ramp up the competitiveness of our economy and more than hold its own amidst the
       specter of external shocks, an investment promotion strategy, the Global Marketing and
       Intelligence System (GMIS), was put in place not only to increase export sales but also to
       spur more investment capital into the country. The marketing arm of BOI is an essential part
       of the GMIS System which is a collective effort among the agencies under the newly formed
       Trade and Investment Promotion Group (TIPG) to better address and synchronize trade and
       investment promotion activities.

       As we look forward to 2012, I am confident that the best is yet to come and there will be no
       looking back because the way is to move up ahead and flourish.

       CRiSTino L. PAnLiLio
       Managing Head (January - September 2011)
       Board of Investments
       Department of Trade & Industry

             2003 - 2011 (by value)









(in million Php)    0
                              2003    2004      2005    2006     2007       2008       2009    2010     2011

LoCAL/FoReign         2003       2004         2005      2006       2007             2008       2009       2010      2011
Grand Total          28,340     164,522      163,878   187,616    215,354          288,350    124,171    302,099   368,930

The Board of Investments (BOI) registered Php368.9 billion investments for 2011, a significant 35% increase in terms of
number of projects approved and 22% increase in growth value compared to last year’s Php302 billion.

  2004 - 2011 (by number of projects)

                                       These figures represent a renewed confidence in the reforms
                               instituted by the present administration and in our country’s strong
                               macroeconomic fundamentals. We are committed to sustaining and
                                increasing investments in the next few years with sharper focus on
                                                                    developing industry roadmaps.









               2004          2005      2006          2007          2008          2009      2010      2011

number of             2004      2005          2006          2007          2008          2009      2010      2011
Approved Projects      153       219           233           339           381           248       246       332

Investment commitments breached the year’s target with a total of 332 projects compared to 246
in 2010. These projects are expected to boost employment opportunities by 67,211 jobs once
operational, almost double last year’s 36,751 jobs.

                DOMESTIC &
                2003 - 2011

                                                   Remarkable growth in investments came from local businesses,
                                                         generated by a larger demand from the domestic market.
                                                   Their increased stake in the economy reinforces overall investor
                                                    confidence which will attract more local and foreign infusions.









(in million Php)     0
                                  2003    2004     2005    2006       2007    2008     2009    2010      2011


 FoReign/DoMeSTiC         2003        2004         2005       2006        2007         2008      2009        2010      2011
 Foreign                  8,348      127,913      43,796     36,499      102,316      93,401    10,396      22,328    23,234
 Domestic                19,992      36,609      120,081    151,117      113,038     194,948   113,774     279,771    345,695

        2004 - 2011

                                                                                     We want to balance this portfolio by
                                                                               attracting more investments in agriculture
                                                                                   and tourism in line with the Philippine
                                                                                               investment Priorities Plan.

               (Industry Commitments in million Php)

                  Agriculture, Hunting and Forestry - 26,684.152                   Other Community, Social

                  Electricity, Gas and Water Supply - 710,697.773                  and Personal Service Activities - 12,575.982

                  Fishing - 314.698                                                Real Estate, Renting and Business Activities - 205,440.705

                  Health and Social Work - 20.500                                  Regional Headquarters (Book III) - 1,050.224

                  Hotels and Restaurant - 16,220.193                               Retail Trade - 157.223

                  Information Technology Services - 46,901.249                     SIRV Remittances -100.003

                  Infrastructure/Industrial Service Facilities - 159,314.915       Transport, Storage and Communication - 89,096.080

                  Manufacturing - 386,293.098                                      Wholesale and Retail Trade - 52,909.720

                  Mining and Quarrying - 107, 147.388

Top performing sectors that generated majority of the investments in 2011 were low cost mass housing, Php72.688 billion
with net value added 85% including raw materials such as bathroom and kitchen fixtures as well as elevators and generators.
Other high performing sectors in terms of investments were energy, with total approved investments of Php87.785 billion;
and mining, Php63.286 billion.

Other key investment commitments for the period were tourism projects, Php10.832 billion and agriculture, Php1.917 billion.

                  BY REGION

     (in million Php)

       nCR               74,720.402
       Region 4          49,705.620
       Region 3          82,850.864
       Region 1          31,312.792
       Region 7          11,874.375
       Region 6          14,544.149
       Region 11         38,481.517
       Region 13         49,648.383
       Region 2           9,332.225
       CAR                 659.671
       Region 5            145.876
       Region 10          2,688.006
       Region 12            65.000
       Region 8           2,355.538
       Region 9            546.366

     The biggest chunk of investments for the year went to Central Luzon at 22% generating Php82.851 billion.
     The others were in the National Capital Region, 20%; Region 4 (Southern Luzon), 13%; Region 13 (CARAGA), 13%;
     and Region 11 (Southern Mindanao), 10%.

        2004 - 2011
                                         The manufacturing sector is a proven catalyst in employment
                                       generation. We will maximize this sector’s opportunities with a
                                     comprehensive roadmap and milestones to market their progress
                                             and development, along with other key sectors of the iPP.

         in five thousand

       2004                                                                            38,738

       2005                                                                            46,649

       2006                                                                            49,266

       2007                                                                            59,922

       2008                                                                            94,079

       2009                                                                            95,372

       2010                                                                            36,751

       2011                                                                             67,211

       TOTAL                                                                           487,988

Projected        2004        2005     2006      2007      2008      2009       2010      2011    grand Total
Employment      38,738      46,649   49,266    59,922    94,079    95,372     36,751    67,211    487,988

       2007-2011 (In Million Php)
     Country                          2007          2008         2009         2010         2011        ToTAL
     SINGAPORE                     42,155.055    9,906.206    3,111.461      175.498      590.767    55,938.986
     NETHERLANDS                    8,202.522   36,832.322      149.189    4,445.955    4,699.555    54,329.543
     UNITED KINGDOM                 8,524.703   23,403.563    1,924.505      260.790      203.456    34,317.017
     KOREA (SOUTH), REPUBLIC OF     2,594.580   12,717.658      467.974       19.959    2,257.111    18,057.283
     JAPAN                          4,834.018    1,680.384    1,190.126       55.889    6,059.201    13,819.618
     NORWAY                        11,172.218        9.103       40.595      236.854         -       11,458.770
     TAIWAN                         9,701.978      301.798        -           20.756       59.303    10,083.834
     MALAYSIA                       7,384.340      497.676        -          431.829         -        8,313.844
     U.S.A.                         1,823.225    1,668.759      147.551    2,837.175    1,706.381     8,183.091
     BRITISH VIRGIN ISLANDS             9.729         -          28.834    6,201.376       26.169     6,266.109
     CHINA (PROC)                   1,523.894    2,069.541      151.667      470.171      758.993     4,974.266
     SWITZERLAND                        -             -           -        4,358.781      377.823     4,736.604
     THAILAND                         169.998         -       2,482.061    1,042.527         -        3,694.586
     INDIA                              1.366        1.031        0.795    1,475.547      292.652     1,771.391
     AUSTRALIA                        614.093      385.148      165.796       62.580       35.217     1,262.834
     HONGKONG                         929.685      162.790       58.529       33.988       21.688     1,206.680
     MAURITIUS                        490.560      110.400        -            -             -          600.960
     CANADA                            21.914      400.841       13.440        -           71.764       507.958
     GERMANY                          129.365       67.943       29.495       50.000        5.199       282.003
     SPAIN                              -           29.316        -           43.128         -           72.444
     FRANCE                            14.693       17.130        3.392        6.520        6.809        48.544
     CAYMAN ISLANDS                    18.424        2.077        -            -           17.139        37.640
     COSTA RICA                         -             -           -           32.000         -           32.000
     BELGIUM                            -             -           -            -           27.099        27.099
     ITALY                             21.117         -           0.101        -            5.243        26.462
     DENMARK                            -             -          10.019        9.040         -           19.059
     UNITED ARAB EMIRATES              12.968         -           -            -             -           12.968
     TURKEY                             2.243         -           -            8.680         -           10.923
     IRELAND                            -           10.722        -            -             -           10.722
     SWEDEN                             3.052         -           3.793        0.400         -            7.245
     QATAR                              -            3.518        -            2.318         -            5.836
     BELARUS                            -                         -            -            4.000         4.000
     RUSSIA                             -            3.670        -            -             -            3.670
     SAUDI ARABIA                       -                         -            2.325         -            2.325
     WESTERN SAMOA                      -            2.220        -            -             -            2.220
     AUSTRIA                            -            1.040        -            -             -            1.040
     SLOVAKIA                           -            1.000        -            -             -            1.000
     ISRAEL                             0.006        -            -            -             -            0.006
     OTHERS                         1,960.336    3,115.687      417.566       44.460    6,009.282    11,547.331
     grand Total                  102,316.084   93,401.543   10,396.890   22,328.543   23,234.852   251,677.912

     In 2011, foreign investment projects approved came mostly from Japan, Php6.059 billion followed by the
     Netherlands, South Korea, United States, and China.


Petron Corporation, a majority         technology (IT) systems.It is hoped     Oceanagold (Philippines), Inc.,
Filipino - owned company, embarks      that over the next five years, the      a wholly-owned Dutch company,
on a Php74.8 billion modernization     project is estimated to provide         gets BOI perks with their production
and conversion program that            49 percent net value added for the      of dore bars and copper concentrate.
will transform the Bataan oil          services they will provide and boost    This Php9 billion project is expected
refinery into a full conversion        the country’s cargo capacity as the     to create 725 jobs.
plant. It aims to produce white        operator will allow foreign and
products compliant with the Euro       domestic loading and unloading of
international standards for clean      goods and passengers. Commercial
fuels. The expansion project is        operation of the North Harbor
expected to create 1,165 jobs.         project has begun and is estimated
                                       to initially create 1,448 jobs.         Trans-Asia Renewable Energy
                                                                               Corporation, sets up its 54-MW
                                                                               wind power plant in San Lorenzo,
                                                                               Guimaras - the first wind energy
                                                                               project in Visayas. The Filipino
ATN Philippines Solar Energy                                                   owned company allocates
Group, Inc., a wholly-owned Filipino   Energy Development Corporation,         Php6.5 billion capital for this
firm, invests Php5.676 billion as      embarks on their first 86-megawatt      project that is expected to generate
a renewable energy developer of        wind energy project in Burgos town,     employment for 75 locals.
30MW solar energy resources.           Ilocos Norte. This Php14.4 billion
                                       project (100% Filipino owned
                                       company) is expected supply power
                                       output to the national grid.
                                                                               Silangan Mindanao Mining Co., Inc.,
                                                                               a wholly-owned subsidiary of Philex
                                                                               Mining Corporation, enters into
Therma South, Inc., an Aboitiz                                                 production of copper concentrate
company, develops a 300-megawatt       Alternergy Philippines Holdings,        with gold and silver by-products. The
(MW) coal-fired power plant in         invests Php18 billion in two (2) wind   Php49.2 billion Silangan project will
Davao City. The Php24.9 billion        power projects. Earmarking              generate considerable employment
project would create 121 jobs,         Php11.7 billion for a 90-megawatt       of 2,592 during the development
and more importantly, provide the      wind project in Pililla, Rizal and      period and throughout the life of
much-needed additional power           Php6.47 billion into a 50-MW wind       the mine. In addition, roads, schools,
supply to the Mindanao grid.           venture in Cavinti, Laguna.             hospitals and other infrastructure
                                                                               associated with the project aims
                                                                               to directly benefit the residents of
                                                                               Surigao del Norte.

                                       New Carcar Manufacturing, Inc.,
Manila North Harbour Port, Inc.,       a 100% Filipino-owned company,
a 100% Filipino-owned company,         sets aside Php10.57 billion for
redevelops Manila North Harbor in      steel billet manufacturing in three
Tondo, Manila. The Php14.89 billion    strategic locations-La Union, Cebu
project includes equipping the port    and Davao del Norte. The project is
with new cargo-handling machinery      expected to create 513 jobs.
and upgrading its information


     The Philippine Development Plan 2011-2016 was formulated in accordance with the Constitutional provision
     of Section 9, Article VII, directing the Government’s economic and planning agency to “implement a continuing
     integrated and coordinated programs and policies for national development.”

     Upon the assumption of President Benigno S. Aquino III of the country’s leadership, he embarked on his program of
     government that is based on his “Social Contract with the Filipino People” wherein he articulated a commitment to
     transformational leadership, institutional reform, economic stability and inclusive growth.

     On September 2, 2010, the President issued Memorandum Circular No. 3 directing the National Economic and
     Development Authority (NEDA) to coordinate the formulation of the Philippine Development Plan for 2011-2016.

     In the formulation of the Plan, NEDA coordinated with all the country’s development stakeholders in giving substance
     and directions to the document, based on the program of government of the Aquino administration. Exhaustive
     consultations were conducted throughout the country with the participation of various government agencies, the
     regional development councils, local government units, the business sector, non-government organizations, academe,
     and groups of well-known experts in economic and social development.

     The Social Contract envisions “a country with an organized and shared rapid expansion of our economy through a
     government dedicated in honing and mobilizing our people’s skills and energies as well as the responsible harnessing
     of our natural resources.” With good governance and anti-corruption as an overarching theme, the Philippine
     Development Plan will effectively address poverty and create massive employment opportunities and achieve its
     vision of inclusive growth. It has emerged into a comprehensive set of strategies, policies and programs and activities
     within a framework of inclusive growth that will translate the administration’s development agenda for the
     next six years.

     The Plan centers on five key strategies. First is to boost competitiveness in the productive sectors to generate massive
     employment. Second is to improve access to financing to address the evolving needs of a diverse public. Third is to
     invest massively in infrastructure. Fourth is to promote transparent and responsive governance, which is emphasized
     in all the chapters. And fifth, is to develop human resources through improved social services and protection.

     These strategies will be supported by complementary action programs that focuses on achieving a stable
     macroeconomic environment, ensuring ecological integrity, and advancing the peace process and guaranteeing
     national security. To achieve growth that is inclusive and sustained, we want to ensure that the production sectors are
     able to provide the needed employment and livelihood opportunities.

     The Plan shall be accompanied by a Results Matrix which lists the specific programs and projects against which the
     performance of the implementing agencies shall be graded. A Public Investment Program (PIP) which identifies the
     budgetary requirements and their sources for these programs and projects is being finalized. The PIP will also link
     the Plan particularly the Results Matrix to ensure effective implementation and monitoring of the development
     initiatives therein. Consequently, the various Regional Development Offices will also roll out their individual Regional
     Development Plans and Investment Programs for their respective areas.

     The Philippine Development Plan provides a substantive translation of the Administration’s Social Contract. The support
     of all sectors of society will be crucial in turning our aspirations for a better quality of life for all Filipinos into reality.

     Source: Philippine Development Plan 2011-2016 (NEDA)


It is A new Day for investments: Coherent, Consistent and Creative. The 2011 Investment Priorities Plan (IPP) was
formulated to support President Aquino’s commitment to pursue economic growth while ensuring that the poor and
the marginalized will enjoy the benefits of development as contained in his Social Contract with the Filipino People.
A key feature of the 2011 IPP is the inclusion of public-private partnership (PPP) projects to tap the private sector
in the improvement of the country’s infrastructure system. This year’s IPP is shorter, focusing on activities that will
create more jobs, enhance the delivery of basic social services, boost the country’s international competitiveness,
and address the challenges of climate change. To ensure that the investments generated will indeed contribute to
the development goals of the country, entitlement to incentives will now be dependent on net value-added, job
generation, multiplier effect and measured capacity. The 2011 IPP contains the following priority investment areas:

The Regular List, which includes thirteen (13) priority investment areas that were identified to support the current
priority programs of the government.

The export Activities, which covers manufacture of export products, services exports and activities in support of

The Mandatory List covers areas/activities where the inclusion in the IPP and/or the grant of incentives under
E.O. No. 226 is mandated by law.

The ARMM List, which covers priority investment areas that have been determined by the Regional Board of
Investments of the Autonomous Region of Muslim Mindanao (RBOI-ARMM) in accordance with E.O. No. 458.

The 2011 IPP was formulated through the concerted efforts of the IPP Inter-Agency Working Group spearheaded by
the Board of Investments, in coordination with the Regional Board of Investments - Autonomous Region of Muslim
Mindanao (RBOI-ARMM), the Office of the President – Presidential Management Staff, NEDA, and the Departments
of Finance, Agriculture, Energy, Environment and Natural Resources, Public Works and Highways, Social Welfare and
Development, Science and Technology, Tourism, and Transportation and Communications.

Other participating agencies were the Bureau of Export Trade and Promotion (BETP), Bureau of Micro, Small and
Medium Enterprise Development (BMSMED), Civil Aeronautics Board (CAB), Civil Aviation Authority of the Philippines
(CAAP), Commission on Higher Education (CHED VII-Regional Office), Construction Industry Authority of the
Philippines (CIAP), Department of Health (DOH XI-Regional Office), Department of Labor and Employment (DOLE
VII-Regional Office), Environmental Management Bureau (EMB), Film Development Council of the Philippines (FDCP),
Fiber Industry Development Authority (FIDA), Housing and Land Use Regulatory Board (HLURB), Maritime Industry
Authority (MARINA), Manila Water Sewerage System (MWSS), Mines and Geosciences Bureau (MGB), National
Commission on Culture and Arts (NCCA), National Housing Authority (NHA), National Power Corporation (NPC),
National Telecommunications Commission (NTC), National Water Resources Board (NWRB), Philippine Economic
Zone Authority (PEZA), Philippine Information Agency (PIA XI-Regional Office), Philippine Ports Authority (PPA), Power
Sector Assets and Liabilities Management (PSALM) Corporation, Philippine Retirement Authority (PRA), Public-Private
Partnership (PPP) Center, Small Business Guarantee and Finance Corporation (SBGFC), Technical Education and
Skills Development Authority (TESDA), DTI-Regional Operations and Development Group (DTI-RODG) and the Local
Government Units (LGUs).

Source: Investment Priorities Plan 2011


     In 2009, the BOI, together with the country’s network of Investment Promotion Agencies (IPAs), formed an alliance
     to achieve a unified platform that will help prospective investors achieve the best return on capital and ascertain the
     diversification of industries in the countryside.

     The alliance proved significant in the realization of a broader economic strategy, maximizing the advantages inherent
     to a given location while contributing to the overall development objectives of the country. These IPAs help ensure that
     investors are appropriately protected and their investments secure wherever they are located.

     The IPAs share and utilize best practices in simplifying business procedures, streamlining rules and enhancing
     business linkages.

     The IPAs were created by laws enacted by the Philippine Congress and signed by the President of the Philippines. Each
     IPA is a government office which registers and grants incentives to investments in their respective areas of jurisdiction
     and guided by the Philippine Investment Promotion Plan (PIPP), the country’s blueprint to synchronize strategies and
     achieve success in investment promotions.

     List of investment Promotion Agencies

          1.  Board of Investments (BOI) - Industry and Investments Bldg 385 Sen. Gil Puyat Ave Makati City
     	      	 	 Tel	No.	897-6682	•	Fax	No.	895-3512	•	Website:
          2. Philippine Economic Zone Authority (PEZA) - Roxas Boulevard corner San Luis Street, Pasay City
     	      	 	 Tel	No.	551-3454	•	Fax	No.	891-6380	•	Website:
     	    3.	 Bases	Conversion	Development	Authority	(BCDA)	-	BCDA	Corporate	Center	2nd	Floor,	Bonifacio	Technology
     	      	 	 Center	31st	St.,	Crescent	Park	West,	Bonifacio	Global	City,	Taguig	1634
     	      	 	 Tel	No.	816-6666	loc	111	•	Fax	No.	816-0917	•	Website:	
     	    4.	 Subic	Bay	Metropolitan	Authority	(SBMA)	-	Administration	Building,	Bldg.	229	Waterfront	Road,	Subic	Bay	
     	      	 	 Freeport	Zone	•	Tel	No.	(047)	252-4888	•	Fax	No.	(047)	252-4427	•	Website:
     	    5.	 Clark	Development	Corporation	(CDC)	-	Bldg	2122,	C.P.	Garcia	St.,	Clark	Freeport	Zone,	Pampanga		
     	      	 	 Tel	No.	(045)	599-2092	/	599-4902	•	Fax	No.	(045)	599-2507	•	Website:
          6. Philippine Retirement Authority (PRA) - 4th floor, Citibank Center, 8741 Paseo de Roxas Makati City, Philippines
     	      	 	 Tel.	No.	848-1412	loc	101	•	Fax	no.	848-7106	•	Website:
          7. Phividec Industrial Authority (PIA) - Mindanao Container Terminal, Tagoloan, 9000 Misamis Oriental
     	      	 	 Tel	No.	(088)	567-0260;	567-0135	•	Website:
     	    8.	 Aurora	Pacific	Economic	Zone	and	Freeport	Authority	(APECO)	-	Room	303/304		Languages	Internationale	Building,	
                 926 A. Arnaiz Avenue (formerly Pasay Road) San Lorenzo, Makati City
     	      	 	 Tel	No.	813-4381	•	Fax	No.	813-3674	•	Website:
     	    9.	 Cagayan	Economic	Zone	Authority	(CEZA)	-	7th	Floor,	Westar	Building	Shaw	Boulevard,	Pasig	City	1603
     	      	 	 Tel	No.	636-5776	•	Fax	No.	631-3997	•	Website:
         10. Zamboanga City Special Economic Zone Authority (ZCEZA) - San Ramon, Zamboanga City 7000
     	      	 	 Tel	No.	(062)	992-2012	•	Fax	No.	992-2012	•	Website:
     	   11.	 Freeport	Area	of	Bataan	(FAB)	-	2/F	AFAB	Administration	Bldg.,	Freeport	Area	of	Bataan,		
     	      	 	 Mariveles,	Bataan	2106	•	Tel	No.	(047)	935-4009	/	(047)	935-4004	•	Website:
         12. Tourism Infrastructure and Enterprise Zone Authority (TIEZA) - DOT Building, T.M. Kalaw Street,
     	      	 	 Teodoro	F.	Valencia	Circle,		Ermita,	Manila	•	Tel	524-71-41	•	Fax	521-8113	•	Website:
         13. Regional Board of Investments of the Autonomous Region in Muslim Mindanao (RBOI-ARMM) - ORG Compound,
     	      	 	 Cotabato	City,	9600	•	Tel	No.	(064)	421-9202	•	Fax	No.	(064)	421-1591	•	Website:


From left to right : Governor Geronimo D. Sta. Ana, Governor Oliver B. Butalid, Undersecretary Cristino L. Panlilio,
Secretary Gregory L. Domingo, Undersecretary Adrian S. Cristobal Jr., Undersecretary Merly M. Cruz, and Governor Pelagio T. Ricalde


     Republic of the Philippines
     CoMMiSSion on AuDiT
     Commonwealth Avenue, quezon City

     The Managing Head
     Board of Investments
     385 Sen. Gil Puyat Avenue
     Makati City

     Pursuant to Section 2, Article IX-D of the Philippine Constitution and Section 43 of Presidential Decree No. 1445, otherwise
     known as the Government Auditing Code of the Philippines, we have audited the accompanying Balance Sheet of the Board of
     Investments as of December 31, 2011, and the related Statements of Income and Expenses and Cash Flows for the year then
     ended. These financial statements are the responsibility of the auditee. Our responsibility is to express an opinion on these
     financial statements based on our audit.

     We conducted our audit in accordance with generally accepted state auditing standards. Those standards require that we
     plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatements.
     Our audit included examining, on a test basis, evidences supporting the amounts and disclosures in the financial statements.
     It also included assessing the accounting principles used and the significant estimates made by the Auditee, as well as
     evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion.

                Our audit disclosed the following:

           1.   The balances of the inventory accounts are doubtful/unreliable due to the unreconciled difference of
                Php11,331,144.00 between the accounting records and the year-end reported inventory counts and errors
                omissions in the recording of inventories caused by (a) non-recording of the issuances of Drugs and Medicines
                and Medical, Dental and Laboratory Supplies (c) taking up as outright expense the purchase of supplies worth
                Php2,394,938.08 instead of the recording the same as inventories; and (d) unrecorded deliveries from the
                Procurement Service in the total amount of Php171,735.19 (Observation No. 3)

           2.   The reported balances of the Property, Plant and Equipment accounts totaling Php55,781,877.75 were doubtful/
                inaccurate due to: (a) the incomplete count of PPE, non-submission of the report thereon and its non-reconciliation
                with the accounting records; (b) inclusion of the value of disposed furniture and fixtures of Php1,096,167.00;
                (c) inclusion of the value of unserviceable motor vehicles of Php250,000.00 which were neither disposed nor
                reclassified to Other Assets account; (d) insufficient and incorrect depreciation for all the PPE accounts; and (e)
                unadjusted errors in recording PPE of Php605,765.62. (Observation No. 5)

     In our opinion, except for the effects on the financial statements of the matters discussed in th preceding paragraphs, the
     financial statements referred to above present fairly in all material respects, the financial position of the Board of Investments
     as of December 31, 2011 and the results of its operation and its cash flows for the year then ended, in accordance with
     applicable laws, rules and regulations and conformity with generally accepted state accounting policies.



     MARY S. ADeLino
     State Auditor V
     Supervising Auditor

                                                                                                                       March 15, 2012


Board of investments (Boi)                Angelica M. Cayas                         Ma. Corazon H. Dichosa
Industry & Investments Building           Director, International                   Director, Industrial Policy Department
385 Sen. Gil J. Puyat Ave., Makati City   Marketing Department                      Phone: (+632) 896.9239/897.6682
                                          Phone: (+632) 896.8907/ 897.6682                     Loc. 211
gregory L. Domingo                                   Loc. 288                       Fax :      (+632) 895 3701
DTI Secretary and BOI Chairman            Fax:       (+632) 895.3521                E-mail :
5F Industry & Investments Building        E-mail:
385 Sen. Gil J. Puyat Ave., Makati City                                             evariste M. Cagatan
Phone: (+632) 890.9333/899.5518           Dennis R. Miralles                        Director, Infrastructure and Services
         899.7450 loc. 5520               Director, Domestic                        Industries Department
Fax:     (+632) 896 1166                  Marketing Department                      Phone: (+632) 895.3997/897.6682
E-mail:              Phone: (+632) 896.4179/897.6682                      Loc. 228
                                                    Loc. 241                        Fax:       (+632) 895.6617
Adrian S. Cristobal Jr.                   Fax:      (+632) 890.9307                 E-mail:
Undersecretary for Industry Development   E-mail:
Trade & Policy Group (IDTP)                                                         Rudy B. Caña
BOI Managing Head and                     MAnAgeMenT                                Director, Manufacturing
Vice Chairman                             SeRViCeS gRouP                            Industries Department
3F DTI International Building                                                       Phone: (+632) 890.9329/897.6682
375 Sen. Gil J. Puyat Ave., Makati City   efren V. Leaño                                      Loc. 307
Phone: (+632) 890.4898/890.4891           Executive Director                        Fax:      (+632) 897.3080
TeleFax: (+632) 895.3993                  Phone: (+632) 896.5167/897.6682           E-mail:
E-mail:                      Locs. 322/321
                                          Fax:      (+632) 897.5334                 nestor P. Arcansalin
Cristino L. Panlilio                      E-mail:                Director, Resource-Based
Undersecretary for Trade & Investment                                               Industries Department
Promotions Group (TIPG)                   erlinda F. Arcellana                      Phone: (+632) 895.3977/ 897.6682
385 Sen. Gil J. Puyat Ave., Makati City   Director, Incentives Department                     Loc. 278
Phone: (+632) 890.9303/890.9332           Phone: (+632) 895.3568/897.6682           Fax:      (+632) 896.8453
Fax:      (+632) 895.3512                            Loc. 280                       E-mail:
E-mail:             Fax:       (+632) 896.8236
                                          E-mail:            guillermo S. Laquindanum
Merly M. Cruz                                                                       Director, Supervision and
Undersecretary for Regional Operations    Bobby g. Fondevilla                       Monitoring Department
and Development Group                     Director, Finance & Administrative        Phone: (+632) 890.9544/897.6682
7F New Solid Building                     Services Department                                 Loc. 257
357 Sen. Gil J. Puyat Ave., Makati City   Phone: (+632) 890..9325/897.6682          Fax:      (+632) 895.3649
Phone: (+632) 890.4697                              Loc. 218                        E-mail:
Fax:     (+632) 890.4685                  Fax:      (+632) 890.3051
E-mail:                    E-mail:           inVeSTMenTS
                                                                                    SeRViCing gRouP
geronimo D. Sta. Ana                      Atty. Marjorie o. Ramos-Samaniego
Governor                                  Director, Legal Services Department       Raul V. Angeles
Tel. No. (+632) 890.9335/897.6682         Phone: (+632) 890.3172/897.6682           Executive Director
         Loc. 255                                   Loc. 238                        Phone: (+632) 890.3056/897.6682
Fax:     (+632) 890.9335                  Fax:      (+632) 890.2151                          Locs. 323/324
E-mail:               E-mail:                Fax:     (+632) 897.3079
Atty. Pelagio Tan Ricalde                 Rafaelito H. Taruc
Governor                                  Director, Strategic Management Services   Domingo i. Bagaporo
Phone: (+632) 897 2830                    Department                                Director, Investment Assistance and
          897.6682 Locs. 331/332          Phone: (+632) 899.8893                    Services Department
Fax:      (+632) 897.2830                           Loc. 203                        Phone: (+632) 895.3989/897.6682
E-mail:              E-mail:                           Loc. 270
                                                                                    Fax:       (+632) 896.8329
oliver B. Butalid                         inDuSTRY DeVeLoPMenT gRouP                E-mail:
Tel. No. (+632) 896.9285                  Lucita P. Reyes                           Ramon L. Rosales
          897.6682 Locs. 330/329          Executive Director                        Director, Business One-Stop Shop (BOSS)
TeleFax: (+632) 896.9285                  Phone: (+632) 895.3983/897.6682           Action Center
E-mail:                         Locs. 326/325                  Phone: (+632) 897.2116/897.6682
                                          Fax:       (+632) 895.3978                          Loc. 253
inVeSTMenT                                E-mail:                Fax:      (+632) 895.8322
PRoMoTionS gRouP                                                                    E-mail:

Felicitas Agoncillo-Reyes
Executive Director
Phone: (+632) 896.9212
          897.6682 Locs. 327/328
Fax:      (+632) 897.2181
Industry & Investments Building
385 Sen. Gil Puyat Avenue, Makati City, Philippines 1200
Tel. Nos.: (632) 897.6682 / (632) 890.9308 / (632) 895.3640 •

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