RIPC Region 5 visits Cebu

   On 18-20 August 2009,  representatives of  Bicol’s Regional Investment Promotion Committee (RIPC) participated in a learning visit to Cebu City.  The purpose of the visit was to gather first-hand insights on the experiences, policies, and best practices of the Cebu Investment Promotions Center (CIPC).  The RIPC members were particularly interested in finding out what makes Cebu a successful investment destination and on how to replicate relevant learnings in the Bicol region.

   The visitors, headed by the RIPC chairman and Department of Trade & Industry (DTI) Regional Director Jocelyn Blanco, included representatives from the LGUs namely, Masbate Governor Elisa Kho, Legazpi City Mayor Noel Rosal and two of his city councilors; representatives from the provincial, city, and municipal governments; 2 RDC-Private Sector Representatives; and participants from the  Department of Agriculture (DA) and NEDA  Region 5.

   The visit’s activities included a courtesy call to Cebu Governor and RDC Region 7 Chairman Gwen Garcia at the Cebu International Convention Center; orientation with officials of the CIPC; and site visits to the Aegis People Support, Bigfoot Entertainment and the National Economic Research and Business Assistance Center (NERBAC) in Cebu City.
 

Gov. Gwen Garcia with the members of RIPC at CICC

   Gov. Garcia welcomed and briefed the Bicol delegates on the programs and projects of the provincial government of Cebu. She hosted a dinner at Casino Español where the participants were joined by NEDA Deputy Director General Marcelina Bacani, NEDA Regional Development Coordination Staff (RDCS) Director Susan Jose, NEDA Region 7 Director Marlene Rodriguez and the staff of  RDCS and NEDA Region 7.

How Cebu opens its doors to investors was discussed to the group by Joel Mari Yu, CIPC Managing Director.  The operation of the CIPC, he said,  is a model of government and private sector cooperation on investment promotion activities.  While operating as a private organization, the budget support for CIPC’s operation comes from the local governments of Cebu and from private corporations doing business in Cebu.

Yu emphasized the importance of identifying a value proposition in promoting an area. He cited three important requirements that make an area attractive for investments: (1) establishing capability in terms of hardware (appropriateness of infrastructure to the kind of investment priority sector of the area), software (an environment that is investor friendly which includes bureaucracy and investment policies) and peopleware (availability of skilled manpower); (2) cost effectiveness (presenting cost competitiveness of the area as compared to others putting in mind that business exists for profit); and (3) quality of life in the area (amenities present and clean and safe environment).

   He stressed that it is important to develop “capability before opportunity” or put in place first all the facilities before inviting investors. A developed economy is where there is more employment in the private sector than in the government.

   Yu challenged the participants to put all the insights he shared into action.  He expressed his willingness to visit Bicol and speak to other local leaders and businessmen  to share their experiences and best practices that made Cebu City a successful investment destination.

   A site visit to Aegis People Support, exposed the participants to the operations of one of the fastest growing business process outsourcing (BPO) companies in the country.  CIPC has helped the company lobby for the provision of 24/7 transport and food services and security for its call center employees. 

   At the Bigfoot Entertainment at South Road Properties,    the participants had a glimpse of how a grand investment breaks ground to a full scale expansion in Cebu.  This, they realized, is possible if investors are provided the environment that would encourage them to do business in an area.

   During an audience with Cebu City Mayor Tomas Osmeña, the mayor gave the participants insights on the kind of leadership that contributes to the investment decisions of the business sector. He stressed that a good leader must be outward looking and must know what is happening in the outside world to be able to respond to the needs of foreign investors.

Cebu City Mayor Tomas Osmeña briefing
the  RIPC members during a dialogue

  At the NERBAC, the participants witnessed how a one stop action center operates with the cooperation of the different agencies involved in business registration. The NERBAC promotes transparency and streamlining of documentary requirements for start-up businesses. NERBAC Cebu is optimistic that it will help improve the business and investment climate and reduce bureaucratic costs in business registration and licensing process (BRP).

   The trip was a success in terms of fulfilling the expectations of the participants and achieving the RIPC’s objectives. Key outcomes of the learning visit, included proposed next steps such as preparation of a Bicol investment guide, preparation of LGU investment promotion plans and conduct of a regional investment forum.

   The investment guide will be made available by the RIPC to all cities and provinces. Interested LGUs will be assisted by the RIPC in preparing local investment promotion plans to foster discussion and reflection and to  consolidate agreements and  commitments in support of future work.  The target participants of the RIPC investment forum are LGUs, regional line agencies, chambers of commerce and industry, and the academe.