by Lorie Ann A. Cascaro
While investment plans of capitalists in other places are, as a rule, put on hold during elections pending the proclamation of the winners, investments in Davao City and other parts of the Davao region increased during the first four months of 2010.
Davao City Investment and Promotion Center chief Roberto Teo said an estimated P472.8 million worth of investments were poured into the city during the first quarter of the year. This, despite the fact that it is an election year and there is no assurance that the incumbent government officials will still be occupying their posts after their terms of office end on June 30, 2010.
“Businessmen have been comfortable with Mayor Rodrigo R. Duterte’s administration, and he has been one of the reasons they prefer to invest in Davao,” Teo said. He said this is the reason the business sector is confident about investing in the city even during the electoral season.
This is Duterte’s last term as mayor, but he is running for vice mayor against his former political ally, Benjamin de Guzman. (In 1992, Duterte appointed De Guzman as his city administrator. In 1995, De Guzman was elected vice mayor. In 1998, Duterte supported him when he ran and won for mayor against Rep. Prospero Nograles).
This time, it is Duterte’s daughter, Vice Mayor Sara Duterte, who is running for the mayoralty post against House Speaker Nograles whose strident campaign battlecry– “CHANGE WE NEED; CHANGE WE MUST; CHANGE WE WILL!” has been countered by the Duterte camp’s own slogan—“CHANGE? WHAT FOR? WE HAVE THE BEST!” Evidently, the business sector has made up its mind which slogan is more relevant under the present circumstances.
Coco oil mill
The biggest investment poured into the city so far this year was the P357-million coconut oil mill which is undergoing construction in Panacan. Teo said the Davao Bay Coconut Oil Mill Incorporated will focus on the processing of coconut oil for the export market.
This is expected to boost the region’s coconut industry and will encourage coconut farmers to look beyond copra as their primary money-making product. Copra prices are notorious for being fickle and farmers have become hostages to it.
The other coconut by-products like coco fiber, desiccated coconut, coconut diesel oil, virgin coconut oil and coco peat are also equally useful and in demand in the market and can help farmers improve their income.
“The coconut industry is alive and supporting millions of farmers, so it is but proper that we help the farmers explore the fullness of its potential,” Davao Oriental Gov. Corazon Malanyaon said. Her province is known for its coconut industry.
The holding of the 1st Coconut Summit in Davao Oriental last December signified the sincerity of local government leaders as well as those in the coconut industry to fully develop the industry. The Davao region is a primary stakeholder in the success of the industry since it is known as the coconut capital of the Philippines, with almost 18,000 farmers tilling coconut land.
Industry players are already preparing to increase the production of coconut coir fiber in the city to supply the global market. This was revealed by coconut industry cluster team chairperson Armando Angsinco who said it is important that local farmers learn how to produce coconut coir fibers that are high in quality and in large volumes if they want to meet the global demand.
Farmers traditionally consider the nut and the white coco meat as the only important parts of the coconut as well as its copra by-product. Little do they know that dried coconut husks which they normally throw away can be turned into coconut coir fibers. Coconut coir fibers are utilized by high-end Chinese furniture makers for auto seats.
Davao City also recently saw the reopening of Chun Haw Food Processor, a processing plant that produces the S9 Biotech Motor Oil from the coconut pulp or “sapal”. According to owner Sarlo Gentapan, the motor oil from coconut is more cost-efficient and safer than the regular motor oil.
Other investments
Davao City’s tourism and hospitality industry is also getting another boost with the P80-million investment that will be poured in by 3S Realty Corporation, Teo said. The company is constructing the five-storey Hotel Uno just beside the old Lawaan Theater on C.M. Recto Avenue. The business hotel is designed to have 148 rooms.
Another sector that will benefit from a recent investment in the city is the business process outsourcing (BPO) industry. Filandia Realty is constructing a P35.8 million building for Sutherland, one of the locators in the city’s call center industry.
Teo said the three new investments are already in the construction stage, so there is no chance that any of them will be backing out no matter what the election results will be.
These companies qualified for incentives being given by the city under the DCIPC. Teo said they will get the usual incentives given to qualified investors, including exemption from the mayor’s permit fees for three years, exemption from property tax for two years, business sales tax and other fees and taxes.
Davao City’s business sector does not seem to really care much who will win in the election for as long as there is stability in the city. Former Davao City Chamber of Commerce and Industry, Inc, president Simeon Marfori said they are more concerned about how the electoral process is conducted, whoever comes out as winner.
