Joint Foreign Chambers laud PCC efforts to create a level playing field in construction

February 6, 2017

Given the focus of the Duterte Administration on Infrastructure development which is fully supported by the business community, it will be necessary to create an environment in which infrastructure projects can be implemented effectively and timely. In our view, it will be necessary to open up the construction industry as well as the engineering sector at large to foreign players which will lower costs, facilitate technology transfer, and bring back Filipino engineers.

Government agencies should be partners in making sure that the policies of fair competition under the Philippine Competition Act are implemented in the sectors they regulate. One of the agencies that has undermined fair competition is the Philippine Contractors Accreditation Board (PCAB), which is limiting accreditation of foreign contractors to 40%, despite the fact that there is nothing in Philippine law that restricts the ownership of foreign contractors.

In this respect we are very encouraged by the support coming from the Philippine Competition Commission (PCC) which filed an “amicus curiae” brief with the Supreme Court, encouraging that the Supreme Court will make an early decision on the pending case between Manila Water and the PCAB. A speedy disposition of the case will benefit government’s infrastructure priorities and support faster implementation of projects.