Investment promotion agencies (IPAs) are seeking authority to approve major projects by raising the threshold amount from the present P1 billion to P3 billion to P5 billion.
Tereso Panga, director-general of PEZA, said this would facilitate investments and strengthen the position of IPAs.
At present, IPAs are authorized to approve projects below P 1 billion. Those that cost P1 billion and above go through the Fiscal Incentives Review Board (FIRB).
Panga said ideally, FIRB should handle big-ticket projects that cost $1 billion.
Panga said this would align policies of IPAs which grant the same incentives regardless of the capital investments.
“It will be faster if the IPAs process and approve the projects because there will be no duplication (of evaluation). This will also strengthen our position as IPAs since we are the ones that promote investments and interact with investors. Thus, we can commit the incentives to be offered to investors instead of saying that (projects that cost) P 1 billion and up will go through FIRB for separate approval and confirmation of incentives,” he said.
Panga said assured PEZA is knowledgable in conducting cost-benefit analysis in evaluating projects. – Irma Isip
