"Kampac International, based in Dubai, is firming up a $5-billion investment in the Philippines to set up an “energy city” somewhere in Southern Luzon.
Charles Ampofo, chairman of Kampac Internationa PLC in his speech at the 39th Philippine Business Conference in Manila Hotel said the project which will take five years to complete will include a LNG (liquefied natural gas) plant, a petrochemical facility, one water company among others that would boost energy supply in the country.
Upon completion, Ampofo said, the project would employ between 8,000 and 10,000. Ampofo said the company decided to invest in the Philippines due to good governance that gives investors confidence.
The other factor, Ampofo said, is the Philippines’ investments code and the liberalization instituted by the government to make the country investment-friendly.
Ampofo also cited the geographic location of the Philippines being in the middle of other growing economies in the region as a major edge. “You do not need an economist (to realize) that if you want to invest in a place which has potential , the Philippines presents a better location,” Ampofo said.
“The Philippines has become a hotcake today, because of high economic growth, increase in tax collection and investment grade rating,” Ampofo said.
But he said the question is whether the country can sustain growth.
One of the key areas of Kampac’s project is the LNG regasification plant using LNG.
LNG is the cheapest form of energy and the cleanest.
“It is a bit expensive to develop but always every economy has to take a long shot. LNG regasification for power generation is cheaper, cleaner and more efficient,” he said.
Ampofo also said a country needs a strong petrochemical industry. “I can guarantee that investors would locate here because the raw materials are here,” Ampofo said.
Ampofo said a country such as the Philippines which is prone to natural disasters needs strategic reserves for fuel.
Ampofo earlier signed a memorandum of agreement (MOA) with the Philippine Chamber of Commerce and Industry and had communicated his plan in separate meetings with President Aquino and Vice President Jejomar Binay .
The company, which has an annual turnover in excess of $3 billion.
Kampac is engaged in oil and gas trading, exploration and production, refining, oil Infrastructure development." via 10/25/13, "Dubai Company to Develop $5 Billion Energy City in the Philippines," oilprice.com, Charles Kennedy, via Free Rep.