MANILA — The stage is set for greater foreign ownership of certain sectors as the National Economic and Development Authority (NEDA) released on Monday the implementing rules and regulations (IRR) for the law amending the Public Service Act (PSA).
In a statement, the NEDA said the IRR for Republic Act 11659 or amendments to the PSA was a product of extensive review and consultations with the public, legislators, relevant administrative agencies and other key stakeholders.
Socioeconomic Planning Secretary Arsenio Balisacan said the IRR – approved by 21 agencies including the NEDA – takes effect on April 4.
The other agencies that approved the IRR are the Department of Energy, Department of Environment and Natural Resources, Department of Information and Communications Technology, Department of Transportation, Civil Aeronautics Board, Civil Aviation Authority of the Philippines, Energy Regulatory Commission, Land Transportation Franchising and Regulatory Board, Land Transportation Office, Local Water Utilities Administration, Maritime Industry Authority, Metropolitan Waterworks and Sewerage System, National Telecommunications Commission, National Water Resources Board, Philippine National Railways, Philippine Ports Authority, Toll Regulatory Board, Department of Labor and Employment, Securities and Exchange Commission and the Philippine Competition Commission.
“With the IRR already in place, we see this as a landmark reform that will further improve the country’s position as an ideal investment hub, which will help enhance employment opportunities and allow more Filipinos to benefit from more improved goods and services,” Balisacan said.
RA 11659 was signed in March last year by then president Rodrigo Duterte.
Once the IRR takes effect, full foreign ownership in airports, railways, expressways and telecommunications would be allowed as part of amendments to the PSA.
Prior to the approval of the amendments to the PSA, foreign ownership was limited to 40 percent in these sectors.
Public service utilities such as electricity transmission and distribution, water and wastewater pipeline distribution system including sewerage, petroleum and petroleum products pipeline transmission systems, seaports and public utility vehicles will remain subject to the 40 percent foreign equity limit.
“The PSA amendments form a critical part of our endeavor to attract foreign investments to the country to boost market competitiveness, foster innovation and create high-quality jobs,” Balisacan said.
The NEDA said the amendments to the PSA have safeguards against national security concerns that may arise through any proposed merger or acquisition or investment in a public service.
In addition, relevant administrative agencies may issue guidelines and circulars that may be necessary for the effective implementation of RA 11659 and its IRR, provided these are in line with Commonwealth Act No. 146 as amended, and with the PSA amendments including the IRR.
“Together with complementary policies and measures such as the amendments to the Foreign Investments Act, the Retail Trade Liberalization Act, the passage of the Corporate Recovery and Tax Incentives for Enterprises Act, the Regional Comprehensive Economic Partnership ratification, amendments to the IRR of the Build-Operate-Transfer Law, approval of the NEDA Joint Venture Guidelines, as well as the Marcos administration’s continuous efforts to raise investor interest in the country, we are confident that the Philippines will be able to attract much-needed capital and technology, sustain its high-growth trajectory, and generate high-quality jobs enabling rapid poverty reduction in the next six years,” Balisacan said.
