Trade Dept. starts consultations on opening construction industry to foreigners

A series of public consultations on giving 100-percent foreign-owned construction companies a free reign in doing business in the Philippines started on Tuesday, according to the Department of Trade and Industry.

 

The point of discussions revolve on taking down the 60-40 rule that covers construction companies, the department noted on its website.

 

The idea hinges on the creation of a wider base for public-private partnerships, the Aquino administration's flagship initiative on infrastructure development. 

 

The Trade Department and the Philippine Contractors Accreditation Board (PCAB) want feedback from stakeholders on the feasibility of allowing contractors to secure an operating license – valid for 12 months – for various projects.

 

Consultations for Metro Manila-based stakeholders started Tuesday, with Davao-based stakeholders getting their day to give their views and comments on Feb. 5 and those in Cebu City on Feb. 7.

 

The public-private PCAB is the agency authorized to give construction firms the license to operate in the country.

 

Under the Implementing Rules and Regulations of Republic Act (RA) 4566, or the Contractors’ License Law, foreign-owned contractors usually get a special license for a specific project within a specified timeframe.

 

Twelve-month licenses are reserved for companies that at at least 70-percent Filipino owned.

 

The construction industry is part of the Foreign Investment Negative List which sets stringent limits to foreign participation and ownership. — VS, GMA News