Investments in the Philippines after COVID-19
The effects of the pandemic have a global effect, and no one can say for sure how the situation will develop. The Philippines is also feeling the effects of this pandemic on its economy, health care and tourism. The situation calls for a new division of investment. In this article, we will further focus on Czech and European investments in the Philippines and where best to invest after Covid-19.
What is the projected change in GDP for 2020 compared to previous years?
The events of recent months have affected the rapid growth of the Philippine economy. Although it is still uncertain how great the economic impact of the pandemic will be, we can look at the assumptions provided by macroeconomic research from ASEAN + 3. In 2020, we see a sharp drop in GDP growth, which shows how much the pandemic might affect economic development.
Philippines and investment in the first half of 2020
To get this idea of last year’s investment, let’s look at the following numbers. Approved investments from domestic sources reached PHP 70.7 billion last year (Philippine pesos), a decrease of 68 percent from PHP 2,119.7 billion. On the other hand, approved projects of foreign investors reached PHP 13.4 billion, an increase of 80 percent from PHP 66.9 billion. Foreign investment is therefore in great demand.
Czech investment in the Philippines after Covid-19?
The Czech Republic has export opportunities in many sectors: Civil aerospace, Transport and infrastructure, Energy, Defense, Glass and ceramics, Construction, Water and waste, Health and pharmaceutical, and finally Agriculture and food.
Civil aviation industry
This sector represents a relatively promising investment despite the presence of a pandemic. Clark International Airport (CRK) is set to become “aeropolis” by 2025, a world-class airport surrounded by shops and residents. There are plans to build another four terminals. The reason for this expansion stems from the fact that CRK has seen a huge increase in passengers over the last five years. This was an increase of 21% each year.
Current European investments in the Philippines
Energy industry
Delivery, installation and commissioning of 2,876 solar panels
In the field of energy, we can look at the planned investments in the program “Improving the Lives of People in Off-Grid Communities in Mindanao Through the Provision of Sustainable Energy”
The subject is the delivery of goods, import, supervision of installation, testing and commissioning of 2,876 solar systems for household lighting. These are mainly the electric cooperatives Davao Occidental, Davao del Norte and Davao Oriental.
This agreement is part of the European Union’s (EU) Sustainable Energy Access Program (ASEP) to provide Filipinos with access to clean energy by providing Solar Home Lighting System (SHLS).
The contracting authority is Yamog Renewable Development Group, Inc. Yamog. All legal entities that are members of the European Union can participate, but legal entities outside the EU can also participate. This is a grant agreement – External Relations of the European Union – No. 2017 / 392-922 (financing agreement ACA / 2014 / 035-111).
More information can be found at: https://webgate.ec.europa.eu/europeaid/online-services/index.cfm?ADSSChck=1596535941389&do=publi.detPUB&searchtype=AS&zgeo=35539&debpub=&orderby=sta&orderbyad=Desc&nbPubliList=15&page=1&aoref=140898&fbclid=IwAR3oTx8TxfJZy8-uX79nLemBynUMH_nOhkgt25cOLZhox0fewxml8YzHOIw
Delivery of a hybrid power plant system
Furthermore, the program “Solar Community-Based Island Tourism and Livelihood Energizer Platform (SMILE) – Philippines” was created.
The contract represents the supply and import of a complete hybrid solar PV-Genset Power Supply system with energy storage, including but not limited to the following components: solar photovoltaic array, energy storage system, inverters and controllers, diesel generator set and fuel storage system, transformer structure and take-offs, remote monitoring and data, supply of lightning conductors, cabling and circuit protection.
More information can be found at: https://webgate.ec.europa.eu/europeaid/online-services/index.cfm?ADSSChck=1596535941389&do=publi.detPUB&searchtype=AS&zgeo=35539&debpub=&orderby=sta&orderbyad=Desc&nbPubliList=15&page=1&aoref=140883&fbclid=IwAR3BzhsIZCBgxPkNATSWGklVP2HZPhfgUe4oF421LfoTwpv1P8qqZaMmIf0