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How effective is routine job rotation?

Last week, you talked about employee transfer as an option for those who are not happy about their career development. How about job rotation as a routine practice to help develop people for future management jobs? — Lost Glory.

There’s a thin line that separates career development and management development. The former focuses on improving the growth of ordinary workers, so they become fully equipped with the right skills to perform their job. On the other hand, management development is about preparing high-potential talent with the right leadership tools they can use in the future.

This distinction has to be made as there are people not interested in doing management jobs.

When I studied in Tokyo on scholarship, I learned first-hand the intricacies of job rotation as Japanese employees become highly trained for the job. Workers are trained meticulously to do a myriad of jobs for their entire careers.

It’s easy to understand in the Japanese system, which presupposes lifetime employment. Rotations run for about three years per job. As soon as new employees are hired in April every year, they are assigned to jobs that are utterly alien to what they learned in university.

New workers with engineering degrees are posted to entry-level jobs in human resources (HR), sales, marketing, public relations, or finance. This is to ensure that people improve their skill in nemawashi (extensive consensus-building), among other traditional management practices.

If one has average communication skills in English, that person is assigned to work in other countries like a good friend of mine who was assigned here in the Philippines as a ranking executive in a major automaker, eight years prior to his compulsory retirement at 65 years. 

The Japanese rotation system creates generalists, as opposed to the specialists preferred in Western countries. That’s why many high-flyers become chief executive officers in the same company right after college graduation. If not, they become part of the senior management team several years before retirement or after spending 45 years of their life in the same organization.

ADJUSTMENTS
Do you think you can copy this Japanese approach to job rotation? Maybe, but with some major adjustments. Accept the fact that people are natural job hoppers who may shun lifetime employment. You can experiment with a modified job rotation program to support continuing personnel development, starting with the following insights in mind:

One, benchmark against the best practices in your industry. Discover whether you have a sound basis for resorting to job rotation. Assuming you have no models in your industry, there is no harm in visiting other companies to observe their practices.

Two, justify the rationale for job rotation in your company. Anticipate all possible objections that management may put up to challenge your ideas. Welcome any question. It’s better that way so that your draft program is fully tested long before implementation.

Three, make it part of professional development for all. It can be a component of the business continuity program. Even experienced people do not automatically qualify as successors, unless they have spent working in many job functions and exercised leadership with various personalities.

Four, calibrate the amount of time needed for a successful job rotation. Would a three-year program suffice? How about one year? There should be no hard and fast rule, like how long an engineer needs to become effective in an HR job. Weigh the complexities of the work assignment.

Five, incorporate performance appraisals in the process. Job rotation is not a stand-alone program. It must work side-by-side with the organization’s appraisal system. In that case, the evaluation must be done within a framework where a monthly evaluation is done, depending on the strengths and weaknesses of participants.

Six, do a pilot test covering only those with high potential. You don’t have to instantly implement the system with as many people as possible. The best approach is to choose only those with the right aptitude and talent. If someone fits the bill, management should immediately assign that person to the program.

Last, establish a management committee to oversee the program. HR can’t do it alone. The committee must be the program’s caretaker. The issues to resolve may include the refusal of some department heads to release a candidate.

CAUTION
Job rotation comes with the understanding that not all high-flyers will do an excellent job, so it’s unrealistic to expect that the program can solve their performance deficiencies. Far from it. It could be that the problem may be systemic in origin. This happens all the time when organizations tend to copy best practices without considering their relevance or direct application to their needs.

You have to be prudent in adopting this program as they may not suit all contexts. Therefore, you have to closely monitor both the positive and negative effects of rotation in company operations, and adjust accordingly.

 

Bring Rey Elbo’s popular leadership program called “Superior Subordinate Supervision” to your line executives. Contact him on Facebook, LinkedIn, X  or e-mail elbonomics@gmail.com or via https://reyelbo.com

Aggression and the President’s Commander-in-Chief powers

PHILIPPINE STAR/KRIZJOHN ROSALES

The Philippines renounces war as an instrument of national policy (Article II.2 of the Constitution). That much is clear. It doesn’t mean, however, that the Philippines can’t defend itself. When circumstances permit, the Philippines, through the president, can unleash the Armed Forces to defend the country’s sovereignty, territory, and people.

Thus, the president may call out such armed forces to prevent or suppress lawless violence, invasion, or rebellion. Furthermore, in case of invasion or rebellion, he may, for a period not exceeding 60 days, suspend the privilege of the writ of habeas corpus or place the Philippines or any part thereof under martial law.

Congress, on the other hand, shall have the sole power to declare the existence of a state of war (Constitution, Art. VI.23). In which case, the Congress may, by law, authorize the President, for a limited period and subject to such restrictions as it may prescribe, to exercise powers necessary to carry out a declared national policy. Unless sooner withdrawn by resolution of the Congress, such powers shall cease upon the next adjournment thereof.

The question that can be raised is: can the president exercise his “commander-in-chief” powers ahead of a congressional declaration of “the existence of a state of war”? From Article VII.18, it seems such is possible in cases of lawless violence, invasion, or rebellion.

Verily, when an aggression occurs, the Philippines has the inherent international law right to self-defense. If such aggression amounted to an invasion, the president could unilaterally make the call to self-defend anent Art. VII.18. But what of cases amounting to foreign “aggression” not amounting to an invasion (thus removing it from the purview of Art. VII.18)? Who makes the call then to bring the country to war?

Aggression is defined by the Rome Statute (Article 8 bis [2]) as “the use of armed force by a State against the sovereignty, territorial integrity or political independence of another State, or in any other manner inconsistent with the Charter of the United Nations.” UN General Assembly Resolution 3314 defines aggression similarly but also enumerates the acts which could “qualify as an act of aggression”:

(a) The invasion or attack by the armed forces of a State of the territory of another State, or any military occupation, however temporary, resulting from such invasion or attack, or any annexation by the use of force of the territory of another State or part thereof;

(b) Bombardment by the armed forces of a State against the territory of another State or the use of any weapons by a State against the territory of another State;

(c) The blockade of the ports or coasts of a State by the armed forces of another State;

(d) An attack by the armed forces of a State on the land, sea or air forces, or marine and air fleets of another State;

(e) The use of armed forces of one State which are within the territory of another State with the agreement of the receiving State, in contravention of the conditions provided for in the agreement or any extension of their presence in such territory beyond the termination of the agreement;

(f) The action of a State in allowing its territory, which it has placed at the disposal of another State, to be used by that other State for perpetrating an act of aggression against a third State;

(g) The sending by or on behalf of a State of armed bands, groups, irregulars or mercenaries, which carry out acts of armed force against another State of such gravity as to amount to the acts listed above, or its substantial involvement therein.

Hence, a blockade at the outskirts of Philippine territorial waters or an “attack” by a foreign ship against a Philippine ship constitutes an “act of aggression” triggering a national right to self-defense. However, should such be considered an act of “invasion” (or perhaps an act of “lawless violence”) thus triggering in turn Art. VII.18 of the Constitution?

However, it is more reasonable to presume that such acts of aggression constitute neither an invasion nor lawless violence. This effectively prevents the president from acting under Art. VII.18. Or does it? Can the president act presumptively in that the aggression entitles the Philippines to self-defense and thus justify the use of his residual powers as Commander-in-Chief? This even more if an “armed attack occurs” (UN Charter Article 51) or the Philippines is faced with a situation that is “instant, overwhelming, and leaving no choice of means, and no moment for deliberation” (as provided for in the Caroline case).

However, would it also be possible to interpret aggression as bringing the country to a “state of war,” for which the Congress is duty bound to declare its “existence” and thus the need to authorize the president to do what is necessary for national self-defense?

These are important matters that need to be deliberated upon now rather than later.

The views expressed here are his own and not necessarily those of the institutions to which he belongs.

 

Jemy Gatdula is the dean of the Institute of Law of the University of Asia and the Pacific and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence. He read international law at the University of Cambridge.

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

The state of cryptocurrency

Cryptocurrency, once a niche interest, has exploded into mainstream consciousness, yet its journey has been anything but smooth. As Molly White illustrates in her article, “The State of Crypto Is Anything But Strong,” published in Bloomberg Businessweek, the current resurgence of crypto is marked by familiar patterns of speculation, manipulation, and regulatory uncertainty. While industry proponents tout a newfound maturity, the reality remains clouded by the shadows of past crashes and ongoing risks.

The recent surge in Bitcoin prices and the proliferation of meme coins have reignited the fervor reminiscent of the 2021-2022 boom. However, behind the facade of legitimacy lies a market still rife with manipulation and scams. The allure of quick riches draws in both seasoned investors and unsuspecting newcomers, perpetuating a cycle of euphoria and disillusionment.

Regulatory bodies like the US Securities and Exchange Commission (SEC) have reluctantly embraced certain crypto products, such as Bitcoin exchange-traded products (ETPs) yet maintain a cautious stance due to the asset’s speculative nature and association with illicit activities. Despite efforts to bring crypto into the fold of traditional finance, concerns persist regarding market manipulation and investor protection.

The intersection of cryptocurrency and artificial intelligence (AI) offers a glimpse into the industry’s evolving narrative. While early advocates positioned Bitcoin as a disruptive force in finance, subsequent narratives shifted to emphasize its speculative allure and utility in AI-powered applications. However, the promise of decentralized AI remains elusive, with blockchain’s inefficiencies and AI’s inherent biases casting doubt on the feasibility of such endeavors.

Cryptocurrency regulation in the Philippines finds itself in a unique state as of 2024. Neither fully embraced nor entirely outlawed, it exists in a quasi-legal realm. Despite not being recognized as legal tender, cryptocurrency transactions are permissible, reflecting the country’s progressive stance towards digital assets. This article explores the evolving regulatory landscape, recent developments, taxation policies, and practical implications for users.

The global phenomenon of cryptocurrency has not spared the Philippines, where the market has witnessed both enthusiasm and skepticism. It evident that the state of cryptocurrency in the country mirrors broader trends of speculation, regulatory challenges, and the quest for legitimacy.

The regulatory oversight of cryptocurrency in the Philippines falls under the purview of the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC). With the exponential growth of the crypto market, the government has taken steps to establish a regulatory framework to govern its usage.

Entities engaging in virtual currency (VC) exchanges must register with the BSP and comply with operational requirements aimed at safeguarding the financial system. The SEC oversees initial coin offerings (ICOs) and investment schemes involving crypto assets. Licenses, including the Virtual Asset Service Provider (VASP) license, Electronic Money Issuer (EMI), and Remittance and Transfer Company (RTC) license, are mandatory for operating crypto exchanges and related services. Notably, the BSP has granted Coins the first Advanced Electronic Payments and Financial Services (EPFS) license, previously exclusive to traditional banks.

Key milestones include BSP Circular No. 944 in 2017 recognizing virtual currencies as valid payment methods and SEC advisories on ICOs and crypto investments in subsequent years. Recent developments include cautionary measures against unregistered exchanges and public reviews of draft rules on financial products and services involving cryptocurrencies.

To regulate and tax the burgeoning crypto market, the Philippine government has imposed a capital gains tax of up to 15% on cryptocurrency transactions. Individuals and businesses involved in crypto trading are required to report capital gains during annual tax filings. Additionally, cryptocurrencies held for investment purposes may be subject to value-added tax (VAT) or ordinary income tax based on their classification.

The approval of PHPC, a stablecoin pegged to the Philippine peso, by the BSP aims to facilitate remittances and reduce transaction costs for overseas Filipino workers. This initiative aligns with the country’s vision of harnessing blockchain technology for financial inclusion.

Cryptocurrencies offer diverse applications beyond speculative trading. Stablecoins enable cost-effective remittances, circumventing traditional banking channels. Decentralized finance (DeFi) platforms empower individuals to access financial services directly, bypassing intermediaries. Crypto gaming ecosystems, exemplified by Axie Infinity, showcase innovative earning opportunities through non-fungible tokens (NFTs) and in-game assets.

While crypto presents lucrative prospects, investors must exercise caution due to inherent risks, including volatility and security vulnerabilities. Choosing regulated platforms like Coins.ph and conducting thorough research mitigates potential pitfalls associated with unregulated exchanges.

The Philippines’ pragmatic approach to cryptocurrency regulation underscores its commitment to fostering innovation while ensuring investor protection and financial stability. Collaboration between regulatory bodies and industry stakeholders enhances transparency and accountability, positioning the country as a dynamic hub for crypto adoption and innovation. As the regulatory landscape continues to evolve, stakeholders are encouraged to stay informed and engage in shaping the future of crypto regulation in the Philippines.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

 

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He is the chair of the Digital Transformation IT Governance Committee of FINEX Academy. He teaches strategic management and digital transformation in the MBA Program of De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

MPIC’s CdO unit to water district: Show ‘good faith’ in negotiations

CAGAYAN de Oro Bulk Water, Inc. (COBI), a unit of Metro Pacific Water, is urging the Cagayan de Oro Water District (COWD) to show good faith in negotiations, as the water company seeks resolution over the latter’s unsettled accounts.

“We respectfully remind COWD to update its payments, which we believe will demonstrate its good faith and commitment to a successful negotiation,” COBI said in a statement on Thursday.

“COBI remains optimistic that a formal settlement agreement would result in a speedy and amicable resolution to this issue,” it added.

The Cagayan de Oro (CdO)-based water company said that COWD has announced its intention to negotiate over the unsettled accounts.

“We believe a mutually beneficial resolution through discussion is the most effective way forward that will benefit not just both parties but, most especially, the consumers,” COBI said.

The company has requested COWD to formally engage via documented correspondence for a productive negotiation.

It said that the Local Water Utilities Administration is the “perfect facilitator” for the negotiation as it is in line with its mandate as a regulatory body.

“Although several failed negotiations have been made in the past, we hope that the upcoming one will be different. By securing a proper quorum of representatives from both parties, we can work toward a truly amicable resolution for COBI and COWD,” the company said.

COBI has said that the decision to cut off water supply to COWD was a joint decision by the company and Rio Verde Water Consortium as they deemed it “the only way COWD would take the matter seriously.”

Metro Pacific Water is a wholly owned subsidiary of Metro Pacific Investments Corp. (MPIC).

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Isabelle Huppert to head Venice Film Festival jury

ACTRESS Isabelle Huppert has been named the president of the Venice Film Festival jury. — LABIENNALE.ORG

ROME — Isabelle Huppert will head the main competition jury at this year’s Venice Film Festival, organizers said on Wednesday.

Ms. Huppert won the best actress award in Venice in 1988 for her performance in Story of Women and in 1995 for La Ceremonie.

The 71-year-old French actress also received a special Golden Lion award in 2005 for her performance in Gabrielle and for her overall career.

“There is a long and beautiful history between the Festival and I. Becoming a privileged spectator is an honor,” said Ms. Huppert, who chaired the jury at the 2009 Cannes Film Festival.

The 81st Venice Film Festival, held on the lagoon city’s Lido island, will run from Aug. 28 to Sept. 7. The movies in competition will be announced in July. — Reuters

How PSEi member stocks performed — May 9, 2024

Here’s a quick glance at how PSEi stocks fared on Thursday, May 9, 2024.


EXPLAINER | The top three factors every entrepreneur needs for business success

FREEPIK

In this explainer, Judge R. Calimbahin III, manager for entrepreneur experience of Endeavor Philippines, shares that access to these three crucial factors can spell success to an entrepreneur.

NEDA: Legislated wages could hurt small firms, stoke inflation

BW FILE PHOTO

PROPOSALS to legislate wage increases could stoke inflation and hurt small companies, the National Economic and Development Authority (NEDA) said on Thursday.

“We are trying to temper inflation. And we don’t, at this point, want to add more sources of pain, because I do think that despite the challenges, we are doing well in guiding the economy to sustained growth,” NEDA Secretary Arsenio M. Balisacan told reporters on the sidelines of a briefing.

Headline inflation accelerated to 3.8% in April from 3.7% last month amid rising transport and food costs, the Philippine Statistics Authority (PSA) said on Tuesday.

Legislators are considering various proposals for wage hikes of between P150 and P750. In February, the Senate passed on third and final reading a P100 across-the-board wage hike.

“Conditions across industries, firms, and in the country are not the same, so a single wage would have negative implications,” he said.

“The small and medium enterprises will be hit hard. And what will be their response? They could minimize their labor (levels).

The unemployment rate rose to 3.9% in March from 3.5% in February, according to the PSA. This is equivalent to two million jobless in March from 1.8 million in February.

NEDA has said that it is not opposed to raising wages, but backed the wage-setting mechanism of regional wage boards.

“We want to strengthen the window for the bargaining strength of labor (groups) in tripartite wage boards,” Mr. Balisacan said.

Federation of Free Workers President Jose G. Matula said the present system of wage increases does not meet the daily needs of workers.

“It’s concerning that, despite recent wage increases via regional wage boards, all regional minimum wages in the Philippines remain below the poverty threshold set by the PSA and fall far short of approximating the family living wage,” he said in a Viber message.

A family of five in the capital region would need P1,192 a day or P25,928 a month to live decently, according to research group IBON Foundation.

IBON Foundation Executive Director Jose Enrique A. Africa said that a wage increase of up to P150 would be “viable even for smaller enterprises.”

“If taken from profits, they need not to lead to either job losses for workers or price increases for consumers — the key concept being that employers be more open to sharing profits with workers who were essential to the profits being made to begin with,” he said via Viber.

To support micro-, small- and medium-sized enterprises (MSMEs), the government must offer preferential tax treatment and incentives, and help in developing workers’ technical skills, Mr. Africa said.

MSMEs must also be supported as the government eases import restrictions, and be allocated more funding from the national budget, he added. — Beatriz Marie D. Cruz

Farm goods, e-motorcycles, hybrids subject to tariff review

REUTERS

THE GOVERNMENT is reviewing the tariff regime for farm commodities, and studying whether to extend an offering of incentives to importers of electric motorcycles and hybrid vehicles, the National Economic and Development Authority (NEDA) said on Thursday.

NEDA Secretary Arsenio M. Balisacan said at a briefing that the reviews have hurdled the technical and committee levels, and will be raised before the NEDA Board, chaired by President Ferdinand R. Marcos, Jr., next month.

If approved by the board, changes in the tariff regime will be implemented beginning next year until 2028, according to NEDA.

“The overall intention of that review is to further structure the tariff regime so that we can have a more efficient and competitive economy,” Mr. Balisacan said. 

Tariff should be configured to ensure that there are no cases where “some industries have low tariffs for their outputs, but face high tariffs for the inputs that they use for their production.”

Household consumption grew 4.6% in the first quarter slowing from 5.3% in the previous quarter and 6.4% a year earlier, the weakest reading for household spending since the 4.8% contraction in the first quarter of 2021.

Such spending accounted for 3.5 percentage points of overall growth in spending, according to the Philippine Statistics Authority (PSA).

Mr. Balisacan said that many parts of the economy are affected by a “highly distorted tariff structure.”

Reviewing the government’s tariff regime would also help “stabilize the policy environment” for all commodities, he added.

“It is a concern for investors what the applicable tariff is, so if they invest, will they see a low tariff or high tariff?”

He said there was no consensus on whether a separate executive order (EO) is needed for tariff revisions for some electric vehicle types or for hybrids.

NEDA has been studying the extension of EO No. 12 to grant zero tariffs to e-motorcycles and hybrid vehicles. The EO was signed last year to cut carbon emissions and encourage the transition to greener forms of transport.

The decision to limit the tariff benefits to electric four-wheelers is backed by the Department of Trade and Industry (DTI), which cited the need to encourage the rapid rollout of charging infrastructure. The DTI is also pursuing a fleet-focused strategy for electric four-wheelers to achieve critical mass as quickly as possible. 

Headline inflation accelerated to 3.8% in April due to rising food and transport costs, the PSA said on Tuesday.

“We are trying to streamline and to restructure so that we can have much more broad-based sources of growth so that employment generation and growth can happen,” Mr. Balisacan said. — Beatriz Marie D. Cruz

DTI asks manufacturers, retailers to accept ‘voluntary’ prize freeze

PHILIPPINE STAR/MIGUEL DE GUZMAN

LEADING manufacturers and retailers have been pitched on adopting a “voluntary” price freeze, with the Department of Trade and Industry (DTI) calling on them to do their part in curbing rising prices of essential goods.

In a statement on Thursday, the DTI expressed gratitude for industry’s willingness to look to the greater good.

“We are profoundly grateful for the industry’s partnership in protecting the welfare of our community,” Trade Secretary Alfredo E. Pascual said.

The Price Act authorizes a 60-day freeze on prices of basic necessities in areas declared to be under a state of calamity.

The DTI said it proposed the voluntary price freeze on basic and prime commodities at a recent “Kapihan” session.

DTI Consumer Protection Group Assistant Secretary Amanda Marie F. Nograles said everyone will benefit from the price freezes, “not only in areas under a state of calamity, but every Filipino consumer.”

The DTI also touted its ongoing projects, such as the Clark Mega Food Hub and the Nueva Vizcaya Agricultural Terminal Online.

The meeting was attended by representatives of Monde Nissin Corp., Unilever Philippines, Inc., Coca-Cola Beverages Philippines, Universal Robina Corp., Nestlé Philippines, Inc., Procter and Gamble Philippines, Inc., Century Pacific Food, Inc., Alaska Milk Corp., CDO Foodsphere, Nutri Asia, SM Supermarket, and Robinsons Supermarket. — Justine Irish D. Tabile

President pushing overhaul of coco dev’t fund — PSAC

THE Private Sector Advisory Council’s (PSAC) agriculture group said that President Ferdinand R. Marcos, Jr. is calling for an overhaul of the trust fund set up to develop the coconut industry ahead of a major effort to replace ageing coconut trees.

In a statement on Thursday, the PSAC said Mr. Marcos, in a meeting on Wednesday, proposed a comprehensive restructuring of the Coconut Farmers and Industry Development Plan (CFIDP) as the Philippine Coconut Authority (PCA) embarks on a replanting effort.

Last year, the President ordered the PCA to draft a plan to rehabilitate the coconut industry, including the planting of 100 million coconut trees by 2028.

The rehabilitation plan aims to address the advanced age of the nut-bearing trees. The PCA is seeking to replant about 8.5 million trees this year.

“Efforts are underway to realign the CFIDP to ensure that the growth of the coconut industry is both sustainable and inclusive,” the PSAC said.

It said that the Department of Energy will move forward with it plans to increase the biodiesel blend to B5 (indicating 5% coconut oil content) in October.

“This policy aims to improve fuel efficiency while ensuring that the coconut supply for the food sector remains unaffected,” it added.

It said that Mr. Marcos has also endorsed PSAC’s recommendation to bridge sugar imports during the milling offseason and refine imported raw sugar.

“This strategy, along with a comprehensive review of the Sugarcane Industry Development Act (SIDA), aims to reallocate funds more effectively toward critical agricultural needs such as seed and irrigation,” the PSAC said.

SIDA, also known as Republic Act 10659, seeks to raise the competitiveness of the sugarcane industry, and improve the incomes of farmers and workers.

Meanwhile, Mr. Marcos has instructed the Solicitor General to seek clarification and reconsideration of the decision that revoked the biosecurity permits for Golden Rice and Bt Eggplant.

The meeting also discussed increasing funding for the salt industry and stricter measures against tobacco and vape smuggling.

“We are committed to the swift implementation of these strategies to ensure they bring substantial benefits to our agricultural community and bolster the nation’s economy,” Universal Robina Corp. President and Chief Executive Officer Irwin C. Lee said. — Adrian H. Halili

PPP Center studying EDSA busway privatization proposal

PHILIPPINE STAR/MICHAEL VARCAS

THE Department of Transportation (DoTr) said the Public-Private Partnership (PPP) Center is now evaluating the proposal it received for the privatization of the EDSA busway system.

“There is a proposal. It is being evaluated by the Public-Private Partnership Center. Then after that we will work with the proponent,” Transportation Secretary Jaime J. Bautista said on the sidelines of a recent event. 

The evaluation of the proposal is expected to be concluded in the next few weeks, Mr. Bautista said.

“There is a process right now under the new PPP law. There is a period that the PPP Center will review it and then if the documents are complete, it will be turned over to the DoTr,” he said.

In 2023, President Ferdinand R. Marcos, Jr. signed a measure aimed at streamlining the framework for PPPs.

The PPP Code, or Republic Act No. 11966, amended the Build-Operate-Transfer Law to create a unified legal framework for all PPPs at both national and local levels.

In March, the DoTr said it is confident that the EDSA busway privatization will take place in 2025.

The DoTr hopes the busway privatization follows a similar path to the privatization of the Ninoy Aquino International Airport (NAIA), soliciting bids from potential PPP proponents.

The NAIA PPP project is considered the fastest project to progress from submission to investment coordination committee approval to concession agreement signing.

In February, the PPP Center and the DoTr said they completed the initial market sounding activity for the EDSA Busway project.

In October, the DoTr said it expects to start the bidding for the EDSA PPP project in 2025. The EDSA Busway Project involves the financing, design, construction, procurement of low-carbon buses, route planning, and operations and maintenance of the busway. — Ashley Erika O. Jose