THE Department of Public Works and Highways will seek to increase the participation of smaller contractors in the government’s big-ticket infrastructure projects next year, possibly by setting aside quotas.

Department of Trade and Industry (DTI) Undersecretary for Competitiveness and Ease of Doing Business Group Ruth B. Castelo said that the program will identify the pathways to increase the role of domestic contractors in the wake of President Rodrigo R. Duterte’s directive to involve them in infrastructure projects.

Trade Secretary Ramon M. Lopez reiterated that DTI is open to the  liberalization of the equity requirement for contractors applying for a category of license eligible for the infrastructure program. The current floor for equity is P1 billion.

“Many [contractors] are saying that there should be a liberalization… [lowering of the equity requirement will mean] that there will be more players,” he added.

“In effect there will be a reserve [set aside] for local contractors — those who have an equity of below P1 billion… But for bigger projects, we’re open to foreign [companies].”

Ms. Castelo said the infrastructure program has the potential to stretch the resources of the construction industry, raising the possibility that small and medium-sized companies could play a part.

“The bigger companies will be able to give opportunities to our smaller contractors for them to develop in terms of their expertise, their technology [and] manpower,” she told BusinessWorld in an earlier interview. — Anna Gabriela A. Mogato

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