- By quade
- 24 October 2023
Iloilo City’s Power Grid Expected to Bring in BPO Investments
The enhancements in Iloilo City’s power infrastructure, as highlighted by Dr. Winston Padojinog, the University of Asia and the Pacific’s president, will not only benefit the local population but also potentially attract commercial enterprises and international investors to the area.
In particular, he is hopeful that additional information technology and business process management (IT-BPM) industries might set up shop in the city with easier access to electricity. Dr. Padojinog previously talked about the importance of having reliable utilities like water and electricity for economic growth, especially in times of uncertainty like this.
This was part of the larger “What’s Up Western Visayas” forum, which was part of the Iloilo Business Week organized. One of his talking points was the emergence of the More Electric and Power Corporation (MORE Power) and its contributions to the city.
MORE Power took over power distribution from the Panay Electric Company (PECO) and began operations in February 2020. The event was organized by the Iloilo chapter of the Philippine Chamber of Commerce and Industry (PCCI).
Status of the BPO Industry in Iloilo City
As with the rest of the country, Iloilo is well on its way to becoming a player in the global BPO sector. This is because of improvements to the city’s energy grid, which will allow for easier access to electricity and faster internet connectivity.
Another reason is because of the robust educational institutions in the city. These are producing quality graduates who are highly qualified for work in the BPO industry. Lastly, there is the city’s strategic location. Being found in the middle of the Philippines has helped make Iloilo a strategic location for business investors.
“Iloilo has become an IT-BPM (Information Technology and Business Process Management) center, it could be an investment center of other businesses, too, because of three important success factors in addition to power.”
– Dr. Winston Padojinog, president of the University of Asia and the Pacific (UA&P)
But business investment is just the start of that growth. As more money pours in, this can also be used to invest in other important aspects of the city like retail, housing, and transportation.
“And from there will lead to many other investments like housing, food, retail, transport, and of course demand for more power.”
– Dr. Winston Padojinog, president of the University of Asia and the Pacific (UA&P)
Dr. Padojinog wasn’t the only one optimistic about the changes happening with these investments. Another attendee at the conference was former Senate President Franklin Drilon. He gave a talk called “Economic Landscape and Investment Opportunities in Iloilo City” where he discussed the business climate in Iloilo. Among the things he discussed was the welcome change compared to years ago when Iloilo City was passed over by BPOs because they lacked sustainable power.
“At that time, I was already trying to help improve Iloilo. We were bypassed by the BPO industry because of a lack of power and stable distribution. In fairness to MORE, they really assisted and improved the investment climate in Iloilo by providing a stable and adequate distribution system, which made Iloilo attractive to the BPO industries,”
– Franklin Drilon, Former Senate President.
Data from the Iloilo Federation of Information Technology (I-FIT) lists 103 BPOs with operations in the province. Of these businesses, 20 are listed as big firms and operate in the city, providing jobs for over 41,000 Ilonggos.
MORE’s Contributions to the Business Sector in Iloilo
MORE has been a help in improving the business environment in the city as their distribution utility (DU) provides electricity to over 93,000 accounts.
A recent study by UA&P this year showed promising growth signs in DU’s customer base. Their success contributed an average of PHP4.99 billion annually to Iloilo City’s Gross City Domestic Product (GCDP). This is equal to about 3.8% of the city’s entire economy.
Not only that, the power grid has been responsible for 6,693 direct or indirect jobs between 2020 and 2022. This reduced unemployment in Iloilo City by 10.6% and created PHP 1.75 billion worth of additional income for households at the same time.
The reduced system loss has benefited consumers by providing them with extra income to spend in other parts of the economy. This change has been directly tied to approximately PHP 1.01 million added to the economy through consumption spending. Overall, the success of MORE Power is estimated to be responsible for about 19% of Iloilo City’s economic growth in 2022.
