PCC exempts public-private joint ventures from compulsory notification

The Philippine Competition Commission (PCC) said Friday it has issued a circular exempting from compulsory merger notification of joint venture projects between government agencies and private entities.

In its Memorandum Circular No. 20-001, the PCC said starting July 11, public-private joint ventures covered by the National Economic and Development Authority Joint Venture Guidelines will be exempted from the regular merger review process.

“The PCC has been continuously streamlining its processes in support of the government’s push to ease doing business. Significantly, PCC’s issuance of these rules is aligned with the government’s relief, recovery and resiliency efforts, which direct the speedy roll-out of critical infrastructure projects in response to the current crisis,” PCC Chairman Arsenio Balisacan said.

The NEDA Joint Venture Guidelines cover joint venture arrangements entered into between private entities and government-owned or -controlled corporations, government corporate entities, government instrumentalities with corporate powers, government financial institutions, and state universities and colleges.

Under the circular, PCC will conduct a competitive assessment of the joint venture project in parallel with the approval process of the implementing agency or NEDA’s Investment Coordination Committee.

This will expedite the rollout of key development projects that would otherwise undergo the regular merger review only after they have been awarded to the private sector proponent, according to the PCC.

“This, in effect, exempts the government agency and the private entity from notifying the Commission of the JV upon signing of a definitive agreement,” the antitrust body noted.

The government agency may apply for a  Certificate of Project Exemption on behalf of the prospective bidders or proponents, it said.

In its review, the PCC shall provide inputs on the project documents and assess how the joint venture project may affect competition in the relevant markets.

Should competition concerns arise in the review, the PCC may require the prospective bidders to undertake specific commitments to address them.

If the implementing agency adopts PCC’s inputs in the final project documents, the antitrust body said it shall issue a Certificate of Project Exemption in favor of the prospective winning private sector participant.

“Failure to follow the requirements under the circular, the government agency and the winning private sector participant are required to file their notifications under the regular merger review process,” it said. -MDM, GMA News