SPANISH investors are not worried about the lingering terrorist threats in the Philippines but more concerned about corruption and the government’s failure to respect contracts with foreign companies, said an official of the Spanish Chamber of Commerce of the Philippines.

Another area of concern for the Spanish investors is the nationalization of utilities in the country, like such sectors as oil, energy and infrastructure, a situation that seems to be happening in the Manila Electric Co., where there is a looming government takeover.

Jose Luis Romero-Salas, president of the Spanish Chamber of Commerce of the Philippines, said Spanish investors look at the existing laws in a particular country where investors are supposed to be given priority and incentives.

The chamber, along with the Department of Trade and Industry, is hosting the two-day Spain-Philippines Business Meeting at the Renaissance Hotel in Makati City from Tuesday to Wednesday to facilitate the identification of opportunities for investment, business cooperation and potential partners in the Philippines.

The Spanish Institute for Foreign Trade is leading a delegation of 23 Spanish investors that are engaged in renewable energy, telecommunications, water management, engineering, sport weapon and ammunition, electromedicine and radiology, as well as leisure and tourism.

Romero-Salas said Spain and the Philippines share common concern on the problems of terrorism due to the Basque separatist armed group in Spain.

The armed separatist group tagged as an international terrorist organization linked to al-Qaeda, was believed to be behind the bloody train bombings in Madrid that killed close to 200 people in 2004.

The Philippines, on the other hand, faces constant threats of terrorist attacks from the Abu Sayyaf, Rajah Solaiman and the al-Qaeda-linked Jema’ah Islamiyah that operate in the Southern Philippines, Indonesia and Malaysia.

“Security is always a question for foreign investors but not a stumbling block,” said Romero-Salas. “Spanish companies have learned to live with threats of terrorism even in Spain.”

He added that the Spanish embassy in the Philippines is the only chancery that does not issue travel warnings for its nationals every time there are terrorist attacks in the country.

Various Western countries like the US, Australia, Canada and the United Kingdom issue travel warnings during terrorist attacks in the Philippines, the latest of which is the Glorietta bombing last year.

He said more Spanish investors are now gearing toward India, China and Southeast Asia because of the growing “nationalization” of oil companies and key utilities in Latin- American countries like Venezuela and Bolivia.

“Those [nationalization] are the threats for the [Spanish] investors,” said Romero-Salas. “But you don’t see the Philippines nationalizing on these key sectors so far, and that’s a plus for the Philippines.”

He said Spanish investors are more focused on the European and Latin-American market, and now gearing to India and China. “But when it comes to Southeast Asia, the Philippines is a priority,” said Romero-Salas.

Romero-Salas lined up specific concerns for Spanish investors that include legislation that focuses on incentives to foreign companies and the investment priorities of a country. “The sanctity of the contract [with foreign investors] is critical,” he said.

Spain is the world’s second-largest producer of wind-generated power after Germany and ahead of the US, according to the Spanish Chamber of Commerce of the Philippines.

The chamber also noted the steady increase in Spanish exports to the Philippines and vice versa.

In 2007 Spanish exports to the Philippines reached €119 million, showing an increase of 13.5 percent compared with 2006.

At the same time, Philippine exports to Spain reached €235 million, which increased by 29 percent compared with 2006.

Current Spanish investments in the Philippines are in the areas of insurance, cell-phone content services, information and technology, engineering, veterinary products, cosmetics and wine distribution.

Philippine exports to Spain, meanwhile, include cement products, electronics and IT products, frozen tuna, coconut oil and garments.

SPANISH investors are not worried about the lingering terrorist threats in the Philippines but more concerned about corruption and the government’s failure to respect contracts with foreign companies, said an official of the Spanish Chamber of Commerce of the Philippines.

LOW-LEVEL bilateral trade and the falling out of economic relations since the end of the Spanish colonial era put the Philippines outside of Spain’s circle of 11 priority countries for investments.

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