Vol. XXI, No. 166 [ Business World Online ]
Wednesday, March 26, 2008 | MANILA, PHILIPPINES
THE GOVERNMENT is looking to finalize by end-March a multi-million-dollar deal with Taiwanese firm Century Development Corp. to build an industrial zone for software companies in Subic.
Subic Bay Metropolitan Authority Administrator Armand C. Arreza said he is leaving for Taiwan on Friday to hopefully "close the deal" with the Taiwanese company.
Century Development Corp., which developed the Nankang Cyber Park in Taiwan, is building a similar facility in Vietnam and is eyeing the Philippines as its next site.
Mr. Arreza said the company is planning to infuse initial investments of $25 million-$30 million.
"What’s more significant is the companies that will locate in the software park and the investment they will be bringing in. It’s a 10-hectare site and we expect to attract a lot of companies," he said in an interview.
The industrial park is expected to house business process outsourcing players as well as companies involved in software development and research.
Philippine Chamber of Commerce and Industry Vice-President George Siy earlier said the Philippines can get a bigger slice of the yearly $100 billion in foreign direct investments from Taiwan to Southeast Asia.
The Philippines normally gets Taiwanese investments of only about $1 billion a year, he noted, in contrast to $7 billion for Vietnam.
Government data showed total Taiwanese investments in the Subic Freeport Zone reached $225 million in 2006.
Taiwan is the country’s fifth largest trading partner, with two-way trade amounting to $7.2 billion in 2006. It is also the Philippines’ seventh largest source of foreign investors and fifth largest source of tourists.
Taiwanese businessmen late last year expressed interest in investing in the information and communications technology, energy, construction and tourism industries. Taiwan Economic Affairs Minister Steve Ruey-Long Chen said investors are looking favorably at free port zones in Subic and Clark.
Taiwan is investing $500-million for a 500-megawatt (MW) power plant in Cebu. Taiwan Cogeneration, Inc. is putting up a 300-MW facility, also in Cebu. The latter is awaiting government approval of its environmental impact assessment.
______________________________________________________________________
