INVESTMENT

      Welcome to Bacolod City, emerging gateway to the Philippines and to Southeast Asia and the bustling capital of Negros Occidental in Central Philippines,    Known as the “ Sugar Bowl “ of the country,    the city serves as the  entry point to the 19 towns and 12 component cities of the province and the neighboring Negros Oriental (capital: Dumaguete City).
     Cleanest and Greenest Highly Urbanized City for three consecutive years, and now in the Hall of Fame, also ranked 2nd Most Livable City in its category in 2002,   Bacolod offers a pleasant and wholesome urban environment to live in. Moreover, the city’s vibrant economy, abundant resources, adequate transportation, communications, utility services, and other facilities, as well as the congeniality and superior training of its   human resources make it a promising center for investments, agriculture, trade, and industrial growth.

     Bacolod  plays a vital role in the development of central Philippines and in contributing to the socio-economic, industrial and cultural exchange in Southeast Asia.
     Fifty five (55) minutes away from Manila by air, there are a number of morning and afternoon flights to and from the City through the country’s major airline companies - Philippine Airlines, Cebu Pacific and Air Philippines. By sea from Manila, the city is an 18-hour leisurely cruise on board well-known seafaring vessels.
     The city’s seaport in the Reclamation area serves as hub for commerce and trade , catering to international cargo vessels and regular inter-island trips to and from Manila and the rest of Luzon, Visayas   and Mindanao. Inter-island shipping firms have included Bacolod as a major take-off point for passenger and cargo transport.
     The road linkage in Negros allows comfortable travel all over the island. National, provincial and farm-to-market roads are well maintained. Barangay roads comprise 60 percent of the total road network. In many areas, private roads are under the care, mostly, of the sugar industry to facilitate better access for milling and trading purposes. The latest addition to the road network is the Northern link from Bacolod City to San Carlos City via the mountain town of Salvador Benedicto. The new highway,  reduces travel time by about two hours. Likewise,  the Kabankalan-Hinobaan highway in Southern Negros has  increased vehicular and human traffic to and from Negros Oriental via Basay, the backdoor of the neighboring province.
     Buses and jeepneys ply the route 24 hours in certain destinations. Taxicabs and car rental services are available anytime of the day or night in Bacolod. The city is also accessible via a combination of land trip and barge services from various points of Cebu. Trips to Mindanao are available  via Dumaguete  in Negros Oriental.
     Bacolod   has thriving commerce and trade relations with a number of cities, the most active being with Iloilo City  and the Northern Mindanao gateway – Cagayan de Oro City.

     Bacolod City  boasts of its extensive communication facilities, among the best in southern Philippines.  Amenities include telephone stations and toll services, mobile phones, Internet service providers, telex, facsimile, and reliable messengerial services, including internationally known companies and government postal service.
     Telephone communication services have reached almost all towns and cities in the early years of the new century. Also available are mass communication facilities like cable TV, radio and television, newspapers and magazines. At least three towns have their own community radio facilities, an initiative of a private broadcasting network.

• Processed Foods
• Manufacturing
• Power Generation
• Gifts, toys and houseware
• Garments
• Metalwork
• Cut flowers and ornamentals
• Furniture
• Banking and Finance
• Travel and support services
• Sports and eco-tourism
• Mass housing
• Information Technology

     The Bacolod Investment Code, City Ordinance No. 323, was passed in 2002 to lay down the legal framework and mechanism for integrating the investment incentives laws of the national government with the local development initiative; spread development from the urban areas to undeveloped and underdeveloped areas of the city; promote the flow of investors both foreign and local, thus generating employment opportunities and providing backward and forward linkages among industries in the city, province and the rest of the country. The Code aims to transform selected areas of Bacolod into highly developed Agri-industrial, Industrial, Commercial, Tourist, Investment and Financial Centers in the province, the region and the country. Balanced development and the general welfare of the people through rationalized land use is also an objective of the Code.
     To encourage local entrepreneurs and to attract outside investors, the City offers incentives for new investments and expansion and diversification projects. A qualified investor may enjoy up to five years of exemption from local business taxes and real property taxes on improvements. The number of years of exemption depends on the  classification of the project, and the capital invested in relation to the number of employees hired or to be hired.

What investments qualify for incentives?
     Tax exemptions are available for investors entitled to incentives under National Laws (E.O. 236, RA 7844, RA 7916, RA 7718, and RA 8289, investors in preferred areas of investment, investors locating non-preferred investments in growth and priority development areas, and those not otherwise qualified for incentives but who meet the capitalization and employment generation requirements of the CODE.
PREFERRED INVESTMENTS;
     Preferred Investments entitled to the tax exemptions are the following:

• Manufacture of Agro-based products such as:
  * Canned food products
  * Dried Fruit Processing
  * Sweets, candies and condiments

• Manufacture of handicraft products like:
  * Toys
  * Ceramics
  * Furniture
  * Garments

• Tourism-related businesses like:
  * Mid range hotels
  * Beach resorts
  * Theme parks
  * Marina
  * Tourist transport utilities

• Property development projects like:
  * Commercial complexes
  * Office buildings
  * Retirement Villages
  * Convention centers
  * Private industrial estates
  * Economic zones
  * Agriculture/aquaculture food terminals
  * Hospitals

• Transshipment facilities such as but not limited to:
  * Airport & seaport infrastructure
  * Common bonded warehouses
  * Shipping facilities
  * Ship repair
  * Ship berthing

• Metal and foundry shops

• Education-related entities but not limited to:  new educational facilities and bookstores

• Printing/Publishing

• Others:  high value crops

     Investors who are expanding in or diversifying to a preferred investment  growth and priority development areas pursuant to the City Land Use Plan are also qualified for the same incentives which run from 3 to 5 years.
     Among the requirements for incentive availment is that the investment must have a capitalization of at least P 1.5 million but not more than P 15  million for small-sized enterprises,  a ratio of at least 1 employee per P600,000 invested, and a minimum of ten employees.    Medium sized enterprises with capitalization of P 15  million but not more than P 60  million  should  have a capital/employment ratio of at least one per million. Large scale enterprises with capitalization of over P60 million are required to have a capital/employment ratio of at least one per P1.5 million.  Enterprises employing the minimum required are entitled to 3 years of exemption, while those employing 175% of the number required enjoy four years. The five year incentive is given to businesses employing 250% of the minimum required.
     NON-PREFERRED INVESTMENTS.
     Non-preferred investments in growth and priority development areas are also entitled to incentives if they meet capital and employment generation requirements. The same ratios as for preferred investments are applicable, however the period of the exemption ranges from 1 year to 3  years instead of 3 to 5 years.
     OTHER INVESTORS:
     Investors who are not qualified for incentives under preceding sections may still be granted tax breaks  if the investment is pursuant to the purpose, intent, and objective of the Code and capitalization and employment generation requirements are met. In this case, a business with capitalization of P1.5M to P10M should have at least 20 workers to enjoy a year of exemption; P10.01 M to P35.0 M and 21 to 70 workers to enjoy 2 years of exemption; P35.01 M to P60.0 M and 71 to 120 workers for 3 years of exemption; and over P60 M and 121 workers for the maximum 4 year period of exemption.

     Responsibility for the implementation of the Investment Code is with the Local Investment Board which is composed of the following:

• City Mayor – Chairperson

• City Administrator - Co-Chairperson

• City Treasurer

• City Assessor

• City Planning and Development Officer

• Chairperson, Sangguniang Panlungsod Committee, Ways and Means

• Chairperson, Sangguniang Panlungsod  Committee, Trade and Industry

• Provincial Director – Department of Trade and Industry

• Three (3) representatives from the Business organizations duly accredited by the Sangguniang Panlungsod.

• Two (2) representatives from the Industry Associations duly accredited by the Sangguniang Panlungsod.

• One (1) representative from the Tourism organizations duly accredited by the Sangguniang Panlungsod.

     The LIB is  charged with the regulation  and promotion of investments in the City.  It processes  and approves/disapproves applications for incentives, monitors registered enterprises for continuing compliance, and cancels or suspends incentives when the terms and conditions set by the Code are violated,  The Board is also  authorized to arrange with national government agencies and private organizations for investment promotions and promotional strategies to draw more investment capital and employment opportunities into the city.