MALACANaNc

MANILA

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MEMoRANDUM oRDER No. 59

. APPROVING THE 1999 INVESTMENT [Link] PLAN

Pur:luant to Article 29 of the Omnibus Investments Code of 1987, the attachec

1999 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 Ninereer
Hundred and Ninety-Nine. --D- ,/)
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By the i),.'esident:

-A",r*|il
[Link] B. ZAMORA
Executive Secretary

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MANILA

ME,SSAGE

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The Estrada administration is committed to spreading the benefits of the country's
economic achievement to all our countrymen, consistent with our policy of giving
priority to improving the wellbeing of the masses. We acknowledge that it is only by
uplifting the livelihood of the poor that we can truly reahze the twin [Link] of peace and
dc,,ctropment.

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

We, therefore, present the 1999 Investments Priorities Plan (IPP), that identifies
priority economic areas etigible for incentives under the Omnibus Investments Code of
1987. The 1999 IPP includes preferred sectors in specific regions to direct capital flows
in these areas that could eventually spur economic take-off in the counrryside.

With the pivotal support of private sector investments in nation building, our
eftrb,ris under the 1999 IPP shall ultirnately contribute to our over-all objective of forging
a col"rlmon ground for enduring peace, economic stability and sustainable development
for 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 the
government: sustained and equitable economic growth as espoused in the 10-point action agenda of the
Estrada 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 and
employme:rl opportunities in the countryside, coupled with meeting the objectives of sustainable
development. Thus, a major highlight of the 1999 iPP is the introduction of the [Link] in the
priority activity determination process and the regional classification of some priority activities in the list.
Tlris year'[Link]']P shall therefore have for its theme 'ACHIEVING COaNTRI,IYIDE DEVELOLMENT
THROUGI{ CLOBALLY COMPETTTIVE [Link].'

Consistent with the action plans of the administration, the 1999 IPP have identified tlre following
goals:
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 modernization
3. To support small and medium enterprises clevelopment; steer thern in the direction of
advanced teclrnology and high value-added products
t,. To increase exports
5. To set up and upgrade the infrastructure and support facilities neoessary to pronrote agro-
industrial and countryside developrnent
6" '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 significance
of this IPP i-s rn its role of laying the groundwork that will ensure the achievement of globally competitive
agricultural and industrial sectors, high level of export, and investments performance ancl sustainable
development and protection of the environment. The 1999 IPP is anchored on a basic free market policy
that 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 of the
masses, the i999 IPP identifies preferred sectors in specific regions so as to guide investors towards the
most appropniate regional base for an economic activity. Thus, capital flows will be directed towarcls the
region: to obtain a critical mass of investments that could eventually spur economic take-off in the
countrysicie.

Thi:, year's IPP is consistent with tire national developnrent plan and the development plans of
local government units. lt \\,ill also assist to some extent in the implementation of the industrial
Developmr:tlt Plan of the Philippines (IDPP), the blueprint for enhancing and sustaining the global
competitiveness of Philippine industries in tlre short, medium and long-terms. The IPP will consider the
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IDPP to th,e extent that incentives are applicable to certain activities
identified in the industrial plan.
otherwise. other types of assistance, such as those identified in the iPP,
will be rendered to pursue the
vision larcl down in the IDpp.

'['he 1999 IPp maintains the activity

classifications previously laid dorvn in the past lpps, as
follows: '$

l. Mandatory Inclusions
2. Catalytic Industries
3. Industries Undergoing Structural Adjustment
4. Export-oriented Activities
5. Support Activities

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

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

The 1999 IPP was fornulated through the concerted efforts of all the regional
line agencies and
the 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 adrninistration
focused crn pursuitlg a level of dev*lopment tirat wii continuo*usly improve the lives of Filipinos.

OSP TRINIDAD PARDO

Chairman, Board of Investments
Secretary, Department of Trade and Industry

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GEI{ERAL Ii{OTE: Unless specifier}, the activities listed herein may be registered on pioneer or
non-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 rules
and 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 the
following:
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 [Link]
a. 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. Ice
plant projects as a separate activity may be registered if
they locate in LDAs to service agricultural and fishery
products
b. Other Farm Services Activities
.Farm machinery and equipment services
rPests and diseases control services
,lrrigation and drainage services
. Intenned iation services
3. The following activities, as provided for in their respective
laws, are also covered underthis heading:
a. Production and/or processing of higii-value crops as
defined in R.A. 7900 (Higlr-Value Crops Devt. Acr of
I e9s)
b. Commercial fishing operation as defined in R.A. 8550
(Phil. Fislreries Code of 1998)

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Applicable to ALL Regions
* With Moderniz,ation Program

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B. Industrial Tree Plantation (Sec. 36 (0 of P.D. 705)

Covers the establishment of forest tree plantations which include
timber and non-timber species such as rubber, bamboo, rattan, etc.
(excluding fruit trees) for commercial and industrial purposes.

C. [Link] un&Steel* (R.A. 7103) projects (new ancl expansion projects

only on pioneer status), such as:
1. Basic iron and/or steelmaking integrated with slab-making
2. Flatproducts
3. Seamless pipes production : .

4. Long Products

D. Fhilippine Mining Act of 1995'(R.A. 7942), covers the following:

l. Exploration of mineral resources
2. Mining, quarrying and processing of minerals
E. Book Publishing* (R.A. 8047), covers the following:
l. Publication of books
2. Publication of [Link]
3. 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 commercial
deve lopment opportunities
3. Non-rail based mass transit facilities, navigate inland
waterways and related facilities
4. Port infrastructure Iike piers. wharves, quays, storage,
handling, ferry services and related facilities
5. Airports, air navigation, and related facilities
6. Power generation, transmission, distribution, and related
facilities
7. Telecon-rmunications, backbone network, terrestrial and
satellite facilities and related service facilities
8. Information technology and data base infrastructure
9. Irrigation and related facilities
10. Water supply, sewerage, drainage, and related facilities
1 I . Education and health infrastructure

[Link] reclamation, dredging and other reiated development

facilities
[Link] and tourism estates or townslrips, including related
infrastructure facilities and utilities
14. Government buildings, lrousing projects
1 5. Markets, slaugirterhouses, and related faciiities

16. Warehouses and post-harvest facilities

' With Modernization Program

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[Link] O.n. O.:f.. and fishponds, including
storage and
processiltg faci lities
l8'Environmentar and sorid waste management
rerated facirities
such as collection equipment, composting
plants, incinerators,
landfill and tidal barriers
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G. Petroleum Industry. (RA. g479), such

as activities relating to
refining, storage, distribution and marketing
[Link]",* [Link]",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
a minimum of two (2) participaiing
of
companii frorn t*" fZi
different ASEAN countries unO iniotu.s
not only the physica-l
movement of products between the participatingi"*lirrri".
countries
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but also resource sharing/pooling andior
complementation.
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II. CATALYTIC INDUSTRIES O

Region Activities Referring To
I 3 Wood Furniture

II a Cornposite Board
a Gifts and Housewares

III a Jewelry
a Composite Board

IV
v a Jewelry
c Natural Fiber
a Industrial Carbon'

VI o Composite Board
a Gifts and Housewares
a Jewelry

VII a Gifts and Housewares

a Composite Board
a Natural Fiber
o Hand and Loomwoven Products+

VIII a NaturalFiber
a industrial Carbon*
3 Cordage*

IX a Composite Board
a Jewelry
a Gifts ano Housewares
a Rubber Fooiwear
a NaturalFiber
a Textile*

x o Composite Board
e Wood Products

XI Industrial Carbon*

XII a Cornposite Board

a NaturalFiber
a Wood Furniture
a Jewelry

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Applicable to SPECIFIC Regions
" With Mor-lernization Program
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a Gifts and Housewares

a Loomwoven Products+

CAR a Jewelry
e
fa
Gifts and Housewares
a Loomwoven Products*

CARAGA. a Ceramic Products

a Jewelry
a Gifts and Housewares
C Composite Board

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III. IND USTRIES UNDERGOING STRUCTTJRAL ADJUSTMENT

Region Activities Referring To

I a Garments
o Engineered products'

u Organic Fertilizer*

III C Pyrotechnics
a Petrochemical downstream products*

IV o Engineered Products*
a Chenrical Products*

v o Engineered Products*
a Organic Chemicals*

vt Organic Fertilizer*

vII a Wooden Container

a Organic Fertilizer*
a Engineered Products*
a Pulp and Paper

vIII a Oleochemicals*
a Pulp arrd Paper

x a Pulp and Paper

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

o to SPECIFIC Regions
- Applicatrb
With lrlodernization Program
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" Engineered Products*

r Paints
e Lubricants+

XI ?, EngineeredProductsx
j Glass Packaging

xII . Organic Fertilizer*

o Engineered Products*
". Pulp and Paper
Made-up Articles of Textile

CAR a Pulp and Paper

a Engineered Products'
a Made-up Articles of Textile

CARAGA a Pulp and Paper

a Essential Oils*
a Er-rgineered Products*

' With Ivlodcrnization Program

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 SPECIFIC COVERAGE

" CAT,[Link]

AC''|IVITY REGION COVERAGE/DEFINITION

Composite Board II,III, VI, 'hnir covers the manufacture of composite boards (e.g.,
VII,IX. X, particle board) using natural resource-based
XII, materials/wastes and industrial refuse.
CARAGA
Wood Prodr:,cts This covers the manufacture of wooden [Link] used in
the construction of buildings/liouses (e.g., door panels,
jambs, and moldings).

Furn iture [, XII This covers the manufacture of furniture using mainly
wood and/or rattan, or in combination with metal,
glass, stone, plastic, leather (natural or synthetic), etc.

Natural Fibrr V, VII, VIII, This covers the production ofraw coconut coir (fiber
IX, XII extracted from coconut husk) and/or manufacture of
coir fiber products (e.g., mats and mattresses ). Also
includes coco-husk dust or coco - peat products.

Rubber Footwear IX This covers the manufacture of rubber shoes and parts
thereof, sandals and slippers.

Gifts and I'Iousewares II, VI, Vil, This covers the following handicraft products:
IX, XII, 1. Basketwork - basket and basketware containers of
CAR, all kinds of vegetable plaiting materials such as but
CARAGA not limited to buri, buntal, rattan, functional in
nature:
a) Floral baskets
b) Garden/outdoorbaskets
c) Packaging baskets for such products as
confectioneries, toiletries, potpourri, etc.

2. Shellcraft, Woodcraft, Stonecraft, Fibercraft

Articles made from sea shells, wood, stone, any
fiber including handmade paper products whose
clraracteristics nlay be ornamental/decorative/
functiorral in nature. May also include novelty
items.

J. Made-up articles of textile - Household articles

made up of textile for bed, bathroom, table and
kitchen linens and other home furnishings.

4. Fossilized / Dried flower making - preserved, dried

or fossilized plants and plant parts used for
decorative and novelty purposes.

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Jervelry III, V, VI, ' Tiris covers activities involved in the manufacture /
IX, XII, production of:
CAR, 1. Fine Jewelry
CARAGA a) 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 medals
or insignia)
b) Articles made of precious metals, with or without
stones fbr personal use of a kind nornrally carried
in the pocket, handbag or in the person (e.g.,
cigarecte cases, powder boxes, chain purses, cachou
boxes)

2. Imitation Jewelry
a) Articles falling either under l(a) or 1(b) above
which are made of base metals and /or materiald
other than precious metals; of imitation of
gemstones, of natural rnaterials; and/or their
combination thereof

J. Cutting and polishing, forming of gemstones or

imitation of gemstones
4. Pearl farming, pearls culturing, and in the production
and imitation of pearls
5. Refining and/or fonning of precious metals andior
imitations of precious metals (Non-precious metals
electroplated to simulate precious metals)
6. Articles made of precious metals utilizing goldsmithing
and/or silversmithing techniques
7. Otlrer raw materials and parts used in the manufacture
ofjew,;lry
a) Raw ntaterials, supplies and other materials such as
but not limited to: clasps, chains in spools, wires,
sheets, findings, settings, rubber mold, cleaning
solution, soldering pads, binding wires, points
wheel, and sharpening stones

This also covers activities in support of jewelry

enterprise, such as: electroplating; gernstone appraisal
and certification, and assaying and refining. 1

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Ceramic Products CARAGA This covers the manufacture of ceramic products rnade
from porcelain, white earthenware, bone china,
terracotta which are ornamental in character. it
includes the following products:
1.
-$
Ceramic artwares and tablewares (dinnerwares),
kitchenwares and other cerarnic household and
toilet articles.
2. Novelty items
3. Other decorative ceramic articles
Textiles' IX This covers activities in spinning, weaving, knitting.
- I-land & Loornwoven VII and finishing, including the production of cordage.
*'
Products* .,
- Loornwoverr Products* XII, CAR
- Cordage* VIiI

. [Link] UNDERGOING INDUSTRIAL ADJUSTMENTS

ACT{VITY REGION [Link]/DEFINITION

Chernical Protiucts' IV This covers the following:

- Organic Chemicals* V
- Fertilizer: L Manufacture of both organic and inorganic
a) Inorganic & Organic* X chemicals, including the manufacture of oieo-
chemicals, industrial carbon, essential oils and
b) Organic* [i, V, VI, VII,
lubricants
IX, XII
- Oleochemicals* VIII, X
- Lubricants+ x 2. Production of organic fertilizers of plant and animal
origin, including the production of microbiai
- F,ssenl,ia? 0il* CARAGA
fertilizer with nitrogen-fixing organism and
mycorrhiza. Mere mixing and cornpounding o1
organic fertilizers are not covered

Pulp and Paper VII. VIII, IX, This covers the mechanical and chemical process of
X, XII, CAR, pulp and paper milling. This also covers hand-made
CARAGA paper making

Pyrotechnics III This covers the manufacture/ production of firecrackers

and pyrotechnic devices as defined and listed in R.A.
7l 83 (An Act Regulating the Sale, Manufacture,
Distribution and Use of Firecrackers and Other
Pyrotechnic Devices). This includes:
1. Firecrackers
2. Pyrotechnic devices

With Modernization
With [Link] Program
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Note: Industrial explosives are excluded.

tingineered Pt'oducts and/or I, IV, V, Vll, ' This co\/ers the manufacture of metalworking machinery
T'heir Parts anc Componettts* IX, X, XI, XII, (tools &. dies included), special purpose industrial
-f,,
CAR, nrachinery, electrical machinery, agricultural machinery,
CARAGA machinery and equipment, conirnunication equipment
and apparatus and office computing and accounting
machinery, including their parts and components.

of designs of machinery and equipment

Preparatiorr
arrd/or their parts and components are included.
Likewise, the production of parts and components minus
the final assembly process is included.

Radio and television manufacturing projects are lirnited

to modernization only.

Y
Paints ' This covers only the manufacture of paints

Garments I, iX . This covers the production of items of clothing such as

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

Petrochern ical Downstream III . This covers the manufacture of industrial plastic
Products* products including complete plastic-based packaging
systems (i.e. blister packs combined with boxes that can
double as point of sale display cases).

Soaps, Deiergerfs and X . This covers the following:

Sharipoos-
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 witlr

the production of raw materials both natural (e.g.,
essential oils) and synthetic.

Garments and I\[Link]-up XII, CAR . This covers hand-crocheted items that al'e iised for
Articles of Texti!e decorative purposes, hand-crocheted wearing apparel
and accessories.

' With Modernization Program

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IV. EXPORT-ORIENTED This covers export producers, export traders, service exporters, and
+ activities considered in support of exporters.
INDUSTRTES

L Export $roducers refer to manufacturers of non-traditional

export 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, [Link] derive their
intome from the sale of non-traditionalexport producis abroad.
3. Service exporters refer to enterprises tlrat provide services to
clients abroad such as knowledge, informatiott, technology and
systems and/or application or installation thereof in the project
sites. Services provided to international airlines/shipping
liues/rnilitary aircraft or seacraft even if rendered locally rray
qualify for registration provided revenues are paid for in foreign
currency. Mere deployment of people or individual practice of
profession abroad shall not qualify for registration.
4. Activities considered irr support of exporters cover services
comprising a portion of the process involving the manufacture
of 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 by
the direct exporter, product testing and inspection, repair,
maintenance and calibration of machinery and equipment used
by export-oriented companies utilizing high-technology
processes.

Non-traditional export products shall be those products as defined in

the Implementing Rules and Regulations of the Export Development
Act. In the absence of the definition of non-traditional export
products 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) unmanufactured
tobacco.

' Applicable to At,L Regions

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V. SUPPORT ACT]IVITIES*

A. Infrastructure * This covers the following:

1. Industrial estates
2. Industrial communities
3. Service dities
4. Telecommunications
5. Ports'
6. Water supply*/distribution*/treatment*
7. Major water catchment basins/watenvays.. and related
infrastructure, man-made or natural including sewerage
systems*
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 of

industries and seruices which include science and technology
parks;
r technology incubation centers or science and technology centers
under a unified'and continuous management;
. urban community redevelopment wirich refers to the renewal of
certain urban diitricts in need of major redevelopment into well-
developed state-of-the-art and environmentally sustainable
industrial centers catering to light industries.

As a general rule, developmcnt of industrial estates must be outside

Metro Manila, Laguna and Cavite. In the case of Cavite and Laguna,
industrial estates will be allowed in underdeveloped areas as
identified in the IPP. Urban community redevelopment is not
covered by this locational policy restriction.

lnduslrial conununities refer to large tracts of land for developnrent

with carrying capacity for town facilities such as accommodation
facilities, multi-purpose centers, health centers, drugstores, scliools
aud other Iivelihood cenrers.

Service cities refer to well-planned, managed, developed,

environmentally sustainable and globally competitive metropoiis
provided with a full range of products, services and amenities whicir
include, anrong otlrers, educational facilities, medical faciiities such
as tertiary (specialty) hospitals, a grand central station to serve as
multi-modal transportation hub which will include an integrated mix
of local and regional public transit system and a comprehensively
designed pedestrian circulatiorr system, a well-lighted and integrated
parking system and structure, integrated design and adaptable utility
system composed of underground power lines, water supply system

Applicable to ALL Regions

With modernie;ation program
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with water treatrnent system and dual piping system, provision for
centralized gas facility and provision for district cooling, and latest
telecommunication system that should integrate existing systent with
traffic, parking, cable, theaters, concert hall:; and galleries and
convention centers employing/adapting new or the latest concepts
within the stitctures.

Teleconununicalions refer to the establishment and operation of Iocal

exchanges, 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, ferry
service facilities, and other related facilities. The establishment
and/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, et!:
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B. Common Carriers * This covers land transp6rt, airtransport and inter-island shipping.

1. Land transport" includes public utility bus operations, rail

transport operations which include Iight railway and other
electric-based transit systems, and pipeline operations for the
transport of petroleum products whether liquid or gases or natural
gases

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

C. Environmentrrl ,Activities " 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 Depleting
Substances and International Framework Convention on

With modernizaiion program

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with water treatrnent system and dual piping system, provision for
centralized gas facility and provision for district cooling, and latest
telecommunication system that should integrate existing systent with
traffic, parking, cable, theaters, concert halls and galleries and
convention centers employing/adapting new or the latest concepts
within the sti&ctures.

Teleconununications refer to the establishment and operation of local

exchanges, 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, ferry
service facilities, and other related facilities. The establishment
and/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,

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B. Common Carriers * This covers land transp6rt, airtransport and inter-island shipping.

l. Land transport" includes public utility bus operations, rail

transport operations which include light railway and other
electric-based tnansit systems, and pipeline operations for the
transport of petroleum products whether iiquid or gases or natural
gases

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

C. Environmentr.l .Activities " 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. ISO
14000)
b) Activities in cc'mpliance with multilateral agreements ( i.e.
Montreal Protocol Prescriptions on Ozone Depleting
Substances arrd International Frarnework Convention on

With modemizaiion program

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 Climate Change)

J. Establishment of Toxic and Hazardous Waste Facility

4. Establishment of waste handiing facilities/ sewerage systems for

industrial/ municipal wastes (modernization may include
rehabilitation)
5. Testing/measuring services for ernission and effluent and otlier
related environmental parameters (for industrial and vehicular
engines preferably with rehabilitation facility) '.
i
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D. Ship Buil$ing',i Repair / This covers the construction, repair or breaking of cargo / passenger
Breaking vessels designed to support the needs of the shipping and iron and
steel sectors.

[. Support to 0ther
Governmernt Priority
Programs This covers the fabrication of major .mass housing components using
1. Housing Components for non-traditional, structurally sound, and [Link]
Socialized/ Lou'Cost material s/ technol ogy. These i ncl ude roof/frarn i ng system s. parlit iou
Housing Projects systems, {looring systelns, door/window systems, fi nishing/ceil ing
systems, and plumbing/ sewerage systems.

7. Medical Equipment This covers the following:

and/or Ilevices 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; or
b) 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.

3. Motor Vehicle Parts and This covers the following:

Components/lVlotor l. The manufacture of parts and components for tlre motor vehicle
Vehicles,, specifi cally industry; and,
passenger cars, 2. Integrated manufacture of major/ proprietary parts and
cnmmercial vehicles and 'components with assembly of motor vehicles fallirlg under the
*
motorcycles Car Development Program (CDP), the Commeriial Vehicle
Development Program (CVDP) and the Motorcycle
Development Program (MDP), in compliance with the
requirement to put up parts manufacturing facilities with project
cost of US$ l0 million for cars, US$ I million for commercial
velricles, and US$ 2 million for motorcycles.

With Modernization Program

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4. Social Services * 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 nraintenance
pcrsounel, seafarers complying with international standards attd
the d&elopmertt oi ertvironrrrental/sustainable discipl ines - i.c.,
pollution control officers/ managers, environmental management
audftors) sectors.

2. Health service delivery which includes hospitals, diagnostic

centers, therapy centers, clinical laboratories, anrbulatory lrealth
care 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 concemed
3. Social welfare services which include day care centers, senior
citizens centers, centers for disabled, and out of school youths
centers, and other social-welfare services as determined by tlre
BOI in consultation with the Department of Social Welfare lnd
Development aird other government agencies concerned.
4. New retirement villages.

5. Tourisnt" This covers the following:

1. Tourist accommodation facilities which refer to hotel, apartel,
tourist inns, pension lrouss, and resorts. Resorts may also
include special interest activities (which may or may not have
accommodation 'facilities) such as but not lirnited to theme
parks, convention, exhibition/trade display centers, eco-tourism
projects or tlrose involving environmentally sound tourism
activities in a given ecosystem yielding socio-economic benefits
and enhancing natural and cultural diversity conservation.

2. Tourism estates which refer to large tracts of land with defined

boundaries in any of the destination areas in the country, suitable
for development into an integrated complex with prescribed
carrying capacities of tourist facilities and activities such as but
not lirnited to accommodation, food and recreational centers and
commercial outlets, and provided with roads, water supply
facilities, power distribution facilities, drainage and sewerage
systems and other necessary infrastructure.

3. Tourisl huses l

4. Restoration of historical and cultural sites/properties provided

that the sites/properties are at least 100 years old as cerlified by
the National Historical Institute and endorsed by the Departrnent
of Tourisrn.

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With Modernization Program
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6. Drugs and Medicines 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.

7. Reseanch and This covers both in-house R&D activities of any

DeveloPment Activities manufacturing/producing firm and the commercialh&n activities of

private finns and research institutions.
&i

An endorsement is required from the Department of science and

Technology, Department of Agriculture or the relevant agency
concerned.

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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), in
orrordorrn 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 [Link] INDUSTRIES

A. Processed Food
I L-lalalMeat
2. 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 plantation
4. 'y'egetable Oils (e.g., peanut oil, rice bran oil;:Bunflower and soybean oil)
Production of Food Crops
Nole: Maybe integraled with post-harvest: j)rocessing aryd olher vegetcbles (such as
Tonrutoas)
5" lntegrated Coconut Processing
6. Seaweeds Processing
7. Cassava Processing
)Vote: Maybe integrated with plantation
8. Iiruit Processing (e.g., durian, mangosteeen, jack fruit, marang, banana, mango, passion
guava, calamansi, and guyabanos)
9. [Link] (Fish Production and Processing) such as, but not limited to:
a) Frozen fish
b) Clrilled fish
c) Canned fish
d) Abalone
e) Crab fattening
D Eel production
g) Squid processing
h) Carp and Tilapia Production and Processing
i) Tropical Fish Production and Processing
j) Shrimps/Prawn
k) 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/canning
12. Mushrooms Culture and Processing
13. Sweet Potato Plantation and Processittg
!4. Crocodile Farrning and Processing
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B. Cutflower Production

C. Pearl Culture

wood processing
D. lrrriustrial Tree Plantation (lnclude Mangrove, Rattan, Bamboo, etc') and
,lcement wood board and fiberboard) r€constructed veneer

E. Stripbuilding and watercraft

F. A'oaca Pulp Plantation and Processing ''

G. Pairq Oil Plarrtation and Processing

J

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) , ;J

1. 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 [Link] Tiles production

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

R. Sugarcane plantation and Refineries

S. Se,riculture
T. Ivlosquito coil processing

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TII. BASIC INDUSTRIES

A. Pltarrnaceuticals
L Antibiotics '$
a) Penicillin
b) Streptomycin
c) Tetracycline's
d) Soft gelatin Capsules
2. Medical Devices
r a) Prostiretics
e b) Diagnostics
" tr3. Other pharrnaceuticals

B. Textile and Textile Products

. Yarns and fabrics
1

2. Hand-woven textiles
3. Specialty fabrics
4. 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 materiqls
8. Silkreeling , ' 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 bolts
3. Industrial rubber rollers
4. 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)
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2. Electric Transmission/distribution
3. Water Supply Facilities/Waterways and sewerage systems
4. Buses/Cargo trucks
5. Other specialized mass transport systems
6. Power generation like hydrqpower, and Geothennal

B.'Ielecommunicatior-rs with lnternational Gateways

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

2. Tourist Accommodation Facilities

a) Hotels
b) Resorts
c) Other tourist accontmodation facilities such as apartel, pension houses,
tourist inns, and others.

3. Tourist Transport Facilities

a) Air
b) 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 Laboratories
b) Training and Demonstration Centers
c) Tool Shops and Sirnilar Facilities
d)
I'.l'J,".'|T;?**
* Forging
:* ffi,11[?.**
Brass rnaking
e) Funriture

I fi::,'#li,,o o,o"",sing raclities

0 :"'ili:'
't Glazing
g) Food Processing
orDist,red water
] ffiTlli,i::,cannin*
* Vapor Heat Treatment

23

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 * Slaughterhouse/abattoir
h) Automotive Battery Plate Manufacturing
Note: [Link] 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 Villages

a) 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'

E,. Petrochemicai Complex

lndustrial Gases (such as oxygen and nitrogen)

c. Ir,{iscellaneous Chem ical Products

1. BiotechnologicaliBiosyrrthetic Chemicals
Z. Esserrtial Oils
3. Fine Chemicals

VI. ENGINBERING INDUSTRIES

e,ngineering Products
1) Motor Vehicle part and components
Z) Automobile Parts and assemblY
3) Moderrt offsct Printing
B. 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.

NUCLE,US GATEWAY SATELLITE DESTINATIO}J

AREA I _ SI]LU JOLO, SULU PROVINCE
AREA II _ T'AWI-TAWI BONGAO [Link] PROVINCE
AREA III _ LANAO DEL SUR MARAWI CITY LANAO DEL SUR PROVINCE
AREA IV -.MAGUINDANAO COTABATO CITY MAGUINDANAO PROVINCE

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