THE ECONOMY of the Davao Region this year is expected to sustain or even surpass its six percent growth last year as key industries have remained vibrant, a government economist said.
Ma. Lourdes D. Lim, National Economic and Development Authority regional director, said there are indications that the region will sustain, if not outperform, itself this year because five main industries have performed better, among them mining where some investors have continued to spend money for their exploration activities.
She said the good business climate in the region has become the motivation for investors to include it as their priority area for investments.
“Because of this (perceived growth), the region has continued to be a magnet (for those looking for opportunities either as workers or as investors),” Lim said, adding that aside from mining, the other industries that have continued to contribute to the economy are services, agribusinesses, construction and real estate, tourism, and information and communications technology.
In the mining industry, two big companies have continued their exploration activities with the goal of starting to go into operations within the next three years. One of them is the St. Augustine Copper and Gold, a joint venture of the American company Russell Mining and Minerals Inc. and the Nationwide Development Corp. in Kingking, Pantukan, Compostela Valley.
The other project is the nickel project of the Asiaticus Management Corp. which had a falling out with its former partner, the Australian giant BHP Billiton.
Another mining project, the Tampakan mining project, is also expected to contribute to the regional economy as it is located within the boundaries of the four provinces, including Davao del Sur. The project, based on estimates, would contribute to about P134 billion to Mindanao’s total economy.
Although the mining site is located in Tampakan, South Cotabato, its proposed port is the coastline of Malalag in Davao del Sur.
Last month, the Mindanao Business Conference pushed it as the flagship mining project of the Aquino administration.
On construction and real estate, some big companies have been implementing key projects like the SM North which is due to open in the first quarter of next year. The mixed use project is the second for SM which has already its first mall, the SM City Davao.
In May, the first ever mixed use project of the Ayala Land Inc., the Abreeza, opened its mall at the 10-hectare lot The project is the joint venture of the Ayala company and the Anflo Investment and Management Corp. of Don Antonio O. Floirendo.
Aside from the malls, several property development projects have been on-going including the third phase of the Northcrest, an 80-hectare project of the Alsons Development and Investment Corp., which is expected to start at the last quarter of the year. The company has also started the Eden Ridge, a nine-hectare high-end resort-type village.
Northpoint, a condominium project of Camella Communities, is already being completed as the company is also establishing its mall in outskirt Mintal.
Because real estate companies have been attracted to the city, the city government has contemplated on abolishing the incentives provided to investors in identified priority areas of investments. The city government, through Mayor Sara Z. Duterte-Carpio, thought that property developers will continue to set up projects even without the incentives as they are attracted to the city.
Property development has not only limited to Davao City as some companies already have set up their projects in nearby urban centers. In the nearby Tagum City, Filinvest Land Inc. of Andrew Gotianun has started its 8.5-hectare subdivision project.
On tourism, the city government just launched its “Life is Here” tagline in the hope of attracting more tourists. Several tourism-related establishments like restaurants have also been opened.
Lim said these new developments will result in the growing of the economy of the region as more jobs and other business opportunities are created.
In 2009, the region had a P73.2 billion in gross domestic regional product, or the combined amount of goods and services produced in the region. Although the data for 2010 has yet to be released, Ms. Lim said the expected growth of the economy was at six percent.
The 2009 figure, based on the report of the Mindanao Development Authority, ws a result of the 5.4% growth brought by the growth of the services sector which contributed a 41.2% share.
