NDC prepares for 6 major projects in 2024

The National Development Company, an attached agency of the Department of Trade and Industry, unveiled six big-ticket projects this year, the Philippines’ leading state-owned enterprise investing in diverse industries, serving as an effective catalyst for inclusive growth.

One of the major projects that NDC will be dealing with this year is the modernization and internationalization of the first health biotechnology company in the Philippines, geared towards the internationalization of commercialized diagnostic kits employing the isothermal platform for the detection of infectious diseases and full modernization/expansion of R&D, manufacturing, and distribution of diagnostic kits based on global standards.

NDC is also eyeing to invest in a waste-to-energy project with Australian company, Cyclion Holdings Pty Ltd., to transfer one-of-a-kind waste-to-energy technology to the Philippines

Further, NDC will be setting up the Philippine Artificial Intelligence Research Center.

AI research hub

“Establishment of the country’s hub for AI research is for the advancement of scientific discoveries in AI and algorithmic innovations,” Antonilo DC Mauricio said during the 26th General Meeting of the Rotary Club of Manila at the Manila Polo Club on Thursday, 1 February.

Mauricio also said NDC will be investing in the Philippine-Japan National Broadband Satellite Program, in which they are setting up a National Broadband Satellite Program with the cooperation of the Government of Japan under a Government-to-Government structure with various government financial institutions such as JICA and/or Japan Bank for International Cooperation.

The NDC, on the other hand, will be investing in the SES Satellite of Luxembourg. “SES is exploring technical and financial solutions, including dedicated satellites, Condosat, and 3rd party leased capacity to address the country’s long-term sovereign connectivity requirements,” he said.

Lastly, NDC will also be investing in the setting up of a Multi-purpose Gamma Irradiation Facility in Dasmariñas, Cavite for the decontamination and sterilization of food and non-food commodities.

Ongoing investments

Mauricio earlier said the key investment projects that NDC jumpstarted in 2023 were the Philippine Innovation Hub or iHub, the Vaccine Manufacturing Plant; the Kacific Broadband Satellite group; the Davao Thermo Biotech Corp., and Cyclion.

“These projects are navigated by NDC in coordination with the different agencies of the government and the private sector. NDC’s unique charter allows it to act as a vehicle for investment in multiple sectors, with the advantage of entering into agency-to-agency agreements,” he said.

iHub

The Philippine Innovation Hub or iHub, with its headquarters located on the Ground floor of the NDC Building in Salcedo Village, Makati, is also the headquarters of the Startup Venture Fund, the Philippine E-Commerce Platform, and the upcoming Philippine AI Research Center.

The endeavor has already signed knowledge partnerships with 12 organizations in 2023, and also serves as a co-working space and event space for start-ups, partners and stakeholders.

Liaising closely with the National Innovation Council, the iHub is NDC’s tangible investment in the Philippine digital transformation agenda and will establish a registry of innovation projects for better synergies between the private and public sectors.

NDC aims to be the first Philippine government agency to be ISO-certified for Innovation Management.

The SVF’s first investment is in SolX, a deep tech electricity utilization startup that was endorsed by the Philippines’ Energy Regulatory Commission.

Vaccine manufacturing plant

A Filipino vaccine distribution company that has been supported by the Asian Development Bank and KKR, Glovax has been applying for government support since 2014.

It has partnered with technology partner LG Lifesciences of Korea and Eubiologics to construct the Philippines’ first vaccine manufacturing facility and laboratory in Taysan, Batangas.

“This project is urgently needed for vaccine self-sufficiency, providing cheaper vaccines to the poor, and preparing for the next pandemic,” Mauricio said.

Kacific Broadband Satellite Group

Kacific Broadband Satellite Group is a Singapore-based company that has already invested more than $35 million in the Philippines, providing broadband satellite access to unserved and underserved areas through contracts with the Department of Information and Communications Technology and other agencies.

This, as the Philippines aims to secure the connectivity demands of the country by investing in the Kacific group itself, thus gaining an advantage over countries competing for the same bandwidth over the next decade.

The NDC investment in the Kacific group will allow NDC to pre-purchase frequency blocks from Kacific at a lower price, which in turn, will be sold at lower-than-market prices to Philippine buyers, especially the government, over the next six years.

Davao Thermo Biotech Corp.

Meanwhile, Mauricio said the Davao Thermo Biotech Corp. is a pioneering composting facility started in Davao in 2015 by Dr. Bo Puentespina, from the family that owns Malagos farms, known worldwide for its cheese and chocolates. The Puentespinas partnered with Kyowa Kako, the number 1 composting technology company in Japan.

“NDC’s investment in DTBC is aimed at expanding the plant and creating a franchise model to replicate this in other parts of the country,” he said.

Cyclion

A pioneer waste-to-energy company from Australia that converts biowaste to green fuel, Cyclion is a novel system that uses a mega-cyclone type of machine to process garbage without incineration.

The later stage uses algae to convert carbon dioxide into oxygen and also produces clean water as a by-product.

“The fuel output can be calibrated to produce different types of fuel such as biodiesel and aviation fuel. It is a potentially sustainable and environmentally safe solution to 2 urgent problems: garbage and fuel,” he said.

Looking ahead to 2024, the NDC will continue to identify gaps where it can make its modest contributions to national development,” added Mauricio.

Priority sectors of the NDC include health, food supply chain, climate change mitigation, water, construction, education, connectivity and technology innovation.

Performance

For over 104 years, the NDC has invested in 117 companies that implemented pioneering projects for national development.

The NDC, under the helm of Mauricio, has produced $19.54 million worth of investments and generated 61,448 jobs for the Filipino workforce.

NDC’s total comprehensive income for 2023 stood at P 5.50 billion, with total assets of P38.81 billion, total liabilities at P8.77 billion, and equity of P30.04 billion.

In 2022, the NDC’s dividend remittance to the Bureau of Treasury was P89.15 million remitted in May 2023.