THE Board of Investments (BoI) reported a surge in agricultural investments following the agency getting the authority to approve projects worth up to P15 billion.

From February 2 and June 11, six projects were approved by the BoI with an aggregate investment of P13.38 billion, with investments in agriculture leading with P6.05 billion. The transportation and storage industry followed with P3.95 billion in investments.

"These projects, upon completion, will drive the adoption of new technologies and strengthen food security. This is crucial to meet the rising food demand and sustain resilient agricultural systems despite climate change and other challenges," Trade Secretary and BoI Chairman Alfredo Pascual said in a statement over the weekend.

Investments in agriculture include the registration of a new producer of dressed whole and further processed or cut-up chickens, a dairy farm and milk-processing facility, and a cold storage facility project.

Pascual attributed the increase in agriculture investments to Fiscal Incentives Review Board (FIRB) Resolution 003-24 issued on Feb. 2, 2024, allowing the BoI to approve projects with up to P15 billion in capital.

BoI noted that projects exceeding the increased threshold are still managed by the FIRB. Tax incentive applications previously submitted by IPAs for projects up to P15 billion will be returned to them for further processing and approval.

Since the enactment of the Corporate Recovery and Tax Incentives for Enterprises Act in 2021, the FIRB has greenlit 28 projects valued between P1 billion and P15 billion with cumulative investments amounting to P126.61 billion.

In the same period, the FIRB has also endorsed and approved 15 projects valued at over P15 billion each totaling P835.89 billion in investments.

The Trade department, meanwhile, said that granting IPAs greater authority to approve incentives would boost their role in managing the country's incentive regime and ensure compliance among registered business enterprises (RBEs) regardless of the amount of investment capital.

"This increased project cost threshold for IPA approval affirms the government's push to streamline business processes and manage incentives prudently. This sends a clear message to investors: The Philippines is actively fostering an environment conducive to sustainable business growth," the trade chief said.

Pascual added that the FIRB's move would speed up project registration for investors and resolve past issues related to the lengthy evaluation of applications, which lacked clear timelines for final FIRB approval.