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Stocks to move sideways before inflation report

The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

PHILIPPINE STOCKS may continue to move sideways this week as investors await the release of key economic data.

On Wednesday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.07% or 5.36 points to close at 6,903.53, while the broader all shares index improved by 0.24% or 8.96 points to end at 3,607.51.

Week on week, the PSEi climbed by 0.31% or 21.56 points from its 6,881.97 close on March 22.

“Sideways trades characterized the sessions of this shortened trading week, closing the first quarter on a quiet note,” online brokerage firm 2TradeAsia.com said in a market note last week.

For this week, the market will wait for the release of the March inflation report on Friday, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“For the 1st week of April, investors are expected to look towards upcoming economic data for clues. Primarily, investors are expected to watch out for the Philippines’ March inflation data. An inflation print significantly faster than February’s 3.4% may further temper hopes of monetary easing by the Bangko Sentral ng Pilipinas (BSP), which in turn would negatively affect the local bourse,” he said.

“Investors may also take cues on the local economy’s health from the upcoming March S&P Global Philippines manufacturing purchasing managers’ index,” he added. 

A BusinessWorld poll of 17 analysts yielded a median estimate of 3.8% for March headline inflation. If realized, this would be faster than the 3.4% print in February, but slower than 7.6% in the same month a year ago.

This would also mark the second straight month that inflation picked up on a monthly basis but would be within the BSP’s 2-4% annual target for a fourth straight month.

Investors are also expected to monitor the performance of US markets, Mr. Tantiangco said.

“The record performances from Wall Street, if they continue, are expected to have positive spillovers to the local market. Eyes may also be on the peso, which has been exhibiting weakness against the dollar recently. A continuation of this weakening may weigh on sentiment,” he said.

Mr. Tantiangco put the PSEi’s major support at 6,800 and resistance at 7,000.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort placed the PSEi’s immediate minor support at 6,600-6,760.

“For the coming week, more market players return from the Holy Week holidays and would lead to more trading values and activities that would support the market,” Mr. Ricafort said in a Viber message.

For its part, 2TradeAsia.com put the PSEi’s immediate support at 6,800 and resistance at 7,000.

“The local bourse has been range-bound in the 6,800 to 7,000 zone. It is likely to stay here in the near term, pending strong impetus on the macro side,” the online brokerage said. —  R.M.D. Ochave

Philippines expected to ratify South Korea FTA by midyear

REUTERS

By Justine Irish D. Tabile, Reporter

THE PHILIPPINES could ratify the free trade agreement (FTA) with South Korea by the middle of the year, with no issues expected to arise from the deal, according to the Department of Trade and Industry (DTI).

Trade Undersecretary and Board of Investments Managing Head Ceferino S. Rodolfo said the timeline takes into account the runup to the South Korean elections.

“The timeline (for the ratification) that we are looking at is by the middle of this year … Because South Korea is also preparing as they have an upcoming election,” Mr. Rodolfo told reporters last week.

South Korea will hold parliamentary elections on April 10 to select a new 300-member National Assembly, the country’s unicameral legislature.

The Philippines and South Korea signed the free trade deal in September after four years of negotiations.

Under the Philippine Constitution, international agreements and treaties require the concurrence of two-thirds of the Senate for ratification or to be effective.

Senate President Juan Miguel F. Zubiri has said that the FTA was likely receive ratification in January this year. However, the Senate has not yet sponsored a resolution to ratify the agreement.

Asked if there are possible snags, Mr. Rodolfo said both sides produced a focused deal acceptable to both sides.

“We don’t expect any issue because the FTA with South Korea is very targeted and focused. And we know what we want and we also know what they want,” Mr. Rodolfo said.

“And we are also preparing ahead of it. For example, we are already tweaking the incentive regime for plantations so that the companies can take advantage of it,” he added.

Under the FTA, the Philippines will be granted tariff elimination on 1,531 lines of agricultural goods, of which 1,417 lines will be removed upon entry into force (EIF) of the bilateral FTA. Among the Philippines’ top goals are the export of more bananas, processed pineapple and other fruits to South Korea. 

Meanwhile, the FTA also led to tariff elimination for 9,909 lines of industrial goods, of which 9,747 lines are set for tariff elimination upon EIF as South Korea seeks to expand its automakers’ footprint in the Philippines.

“The Embassy of the Republic of Korea in the Republic of the Philippines is very active in terms of development and technical cooperation,” Mr. Rodolfo said.

“This is not just on FTA, these cooperation activities that would allow us to take advantage of the FTA are already being undertaken ahead of the FTA,” he added.

The DTI entered a partnership with Korea Institute for Advancement of Technology to develop an origin management system and an artificial intelligence-enabled harmonized system (HS) classification tool that will enable exporters to determine the HS codes for their products.

The partnership will run until December 2025 and is known as the Origin Management System for the Promotion of FTAs in the Philippines project.

Marcos boosts maritime security as tensions with China escalate

REUTERS

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. has ordered agencies to boost coordination on maritime security to confront “a range of serious challenges” to territorial integrity and peace, as a sea dispute with China worsens.

“Despite efforts to promote stability and security in our maritime domain, the Philippines continues to confront a range of serious challenges that threaten territorial integrity, but also the peaceful existence of Filipinos,” he said in Executive Order 57.

The order, which was released on Sunday, reorganized the 10-member National Coast Watch Council (NCWC) and renamed it to the National Maritime Council, which will still be headed by his executive secretary.

The order does not mention China but follows a series of confrontations and accusations between the two neighbors over disputed areas of the South China Sea.

China claims almost the entire South China Sea, through which more than $3 trillion of annual ship-borne commerce goes through. Its claims overlap with those of the Philippines, Vietnam, Indonesia, Malaysia and Brunei.

A United Nations-backed tribunal in 2016 voided China’s expansive claims for being illegal.

The latest flare-up occurred on March 23, when China used water cannon to disrupt a Philippine resupply mission to Second Thomas Shoal for soldiers guarding a warship intentionally grounded on a reef 25 years ago.

Last week, Mr. Marcos said his government would enforce countermeasures against “illegal, coercive, aggressive and dangerous attacks” by China’s coast guard and maritime militia within the Philippines’ exclusive economic zone in the waterway.

His order expands the government’s maritime council by adding the national security adviser, solicitor general, National Intelligence Coordinating Agency chief and the South China Sea task force as members.

The order appears to expand the role of the military by naming the Armed Forces of the Philippines, not just the navy, among the agencies supporting the council.

The renamed National Maritime Council will be the central body to formulate strategies to ensure a “unified, coordinated and effective” framework for the Philippines’ maritime security and domain awareness.

‘FREE FROM FEAR’
Mr. Marcos increased the number of agencies supporting the council to 13 from nine, including the space agency and the University of the Philippines’ Institute for Maritime Affairs and the Law of the Sea.

The late President Benigno S.C. Aquino III created the old National Coast Watch Council through an executive order in 2011, a year before a standoff with China over the Scarborough Shoal.

Mr. Marcos noted that despite efforts to promote stability within the Philippines’ maritime domain, the country continues to confront “serious challenges” that threaten its territorial integrity and Filipinos’ “fundamental right to live in peace and freedom, free from fear of violence and threat.”

Under the March 25 order, the National Task Force for the West Philippine Sea will get policy guidance from the President through the new council.

It also renamed the NCWC secretariat to the Presidential Office for Maritime Concerns, which will provide consultative, research, administrative and technical services to the new council.

The secretariat “may report directly to the President on critical and urgent matters and issues affecting the country’s maritime security and domain awareness.”

The President ordered agencies including the military, police, the Justice department, Customs, Immigration and Investigation bureaus to help the new council.

Mr. Marcos last week said a “countermeasure package” would be enforced in the coming weeks “in the face of illegal, coercive, aggressive, and dangerous attacks” by China’s coast guard and maritime militia.

He said his government has been in “constant communication” with allies in the international community.

Mr. Marcos said that while his country does not seek conflict with any nation, it will “not be cowed into silence, submission or subservience.” “Filipinos do not yield.”

“There is a clear indication now that Manila will be accelerating the utility of agreements forged with like-minded traditional and nontraditional partners in the realm of defense and maritime security cooperation,” Don Mclain Gill, who teaches international relations at De La Salle University in Manila, said in a Facebook Messenger chat.

“Manila understands the multifaceted nature of Chinese belligerence and power projection in the West Philippine Sea,” he added, referring to areas of the South China Sea within the country’s exclusive economic zone.

Mr. Marcos will meet with US President Joseph R. Biden and Japanese Prime Minister Fumio Kishida at the White House on Apr. 11 for their first-ever three-way summit.

They are expected to advance a trilateral partnership built on historical ties, growing economic relations, shared democratic values and a “shared vision for a free and open Indo-Pacific,” according to the White House.

“The three-way summit will set a gold standard on how other like-minded democratic nations will forge distinct alliances and strategic partnerships in the Indo-Pacific region to test China’s belligerence and dangerous attacks,” said Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation.

“If this norm succeeds, Beijing will be pacified to follow legal and nonaggressive actions and to seek diplomacy by all means,” he said via Messenger chat. — with Reuters

House remains firm on ‘Cha-cha’ despite public resistance in Pulse poll

PHILSTAR FILE PHOTO

By Kenneth Christiane L. Basilio

THE HOUSE of Representatives leadership reaffirmed its support for Charter change (“Cha-cha”) despite a Pulse Asia Research, Inc. poll last month showing 74% of Filipinos are against it regardless of timing.

Foreign ownership restrictions in power utilities, education and advertising must be lifted to attract foreign direct investments (FDI), Deputy Speaker and Quezon Rep. David C. Suarez said in a statement on Sunday.

“Amendments to the Constitution can create a conducive environment for investment and innovation, driving economic growth and prosperity,” he said. “Ultimately, the intention behind economic ‘Cha-cha’ is to empower Filipinos and strengthen our economy.”

Seven of 10 Filipinos are against a proposal to change the 1987 Constitution, according to the results of Pulse Asia’s poll this month.

In a statement last week, the pollster said 74% of Filipinos did not see the need for Charter change regardless of timing.

This opinion is echoed by small to big majorities in the various areas and classes, it added.

It said 8% of Filipinos thought the Charter should be amended now, while another 8% were open to it under the next government.

Pulse Asia said 6% of Filipinos opposed constitutional amendments now but support it at some other time under the present government, while 4% were undecided.

Opposition to Charter change increased by 43% from last year.

“While we acknowledge the survey results, we cannot ignore the pressing issues that require legislative action,” Majority Leader and Zamboanga City Rep. Manuel Jose M. Dalipe said in the same statement.

The House push for constitutional amendments despite public opposition is rooted in the need to introduce policies that they will likely benefit from, Hansley A. Juliano, a lecturer at the Ateneo de Manila University’s Department of Political Science, said in a Facebook Messenger chat.

“For the longest time, our politicians have been taught that neoliberal and free trade policies are the only thing that works,” he told BusinessWorld. “It’s difficult to accept something in good faith from a politician who is likely to benefit from what he’s legislating.”

Senior Deputy Speaker and Pampanga Rep. Aurelio D. Gonzales, Jr. in the same statement said the Constitution must be amended to “reflect the realities of today.”

The 1987 Constitution is “still viable today,” said Michael Henry Ll. Yusingco, a senior research fellow at the Ateneo’s Policy Center.

“The Constitution as a whole still reflects our values and principles,” he said via Messenger chat. “Why are the economic provisions no longer suitable today? None of the lawmakers claiming the Constitution is outdated has answered these questions.”

Senator seeks probe of taxes on cross-border services

STOCK PHOTO | Image by David Arrowsmith from Unsplash

A PHILIPPINE senator has filed a resolution seeking to investigate the tax bureau’s imposition of a 25% withholding tax and 12% value-added tax (VAT) on cross-border services of foreign corporations, saying it could drive away businesses.

“This could hike the cost of doing business in the Philippines, which will further erode the country’s competitiveness in attracting foreign investors,” Senator Sherwin T. Gatchalian, who filed Senate Resolution No. 955, said in a statement on Sunday.

He was referring to a Jan. 10 memo issued by the Bureau of Internal Revenue (BIR), which imposed taxes on services rendered by nonresident foreign corporations.

In issuing the memo, the agency cited a Supreme Court (SC) decision that said satellite airtime-free payments are subject to final withholding tax.

“We need to carefully review the issuances of the BIR, which implements laws and Supreme Court decisions,” Mr. Gatchalian said. “We must ensure that these issuances do not go beyond the law and SC decision.”

The senator earlier filed a resolution that seeks an inquiry in aid of legislation into complaints made by foreign companies on a large volume of denied VAT refund claims.

Citing business groups, he said foreign companies might end up passing on their VAT and withholding tax payments to their clients.

Congress has approved a bill seeking to make paying tax easier by exempting micro-taxpayers from withholding tax and reducing penalties for smaller businesses. — John Victor D. Ordoñez

Congressman slams call for Marcos to resign

PHILIPPINE STAR/ MICHAEL VARCAS

A LEADER in the House of Representatives has scored a former House speaker for urging President Ferdinand R. Marcos, Jr. to resign amid escalating tensions with China over the South China Sea, saying the call reeks of “political maneuvering.”

“Former Speaker Pantaleon Alvarez’s remarks are not only defeatist but dangerously naive,” House Deputy Majority Leader Jude A. Acidre said in a statement at the weekend. “To suggest that President Marcos Jr. should resign in the face of aggression is to misunderstand the very essence of leadership and national sovereignty.”

The party-list congressman was reacting to Mr. Alvarez’s statement last Wednesday in which the latter suggested that Mr. Marcos should resign and leave the leadership in the hands of Vice President Sara Z. Duterte-Carpio to de-escalate tensions with China.

Mr. Alvarez added that the Philippine government cannot afford to escalate tensions with China as the Philippines “cannot compete with China in terms of military strength.”

However, Mr. Acidre said the country should remain steadfast in its claim over contested waters in the South China Sea regardless of military capabilities. “We must stand firm in defending our territorial integrity and uphold our rights in the West Philippine Sea,” he said.

Commenting on the matter, Ateneo de Manila University Political Science Lecturer Hansley A. Juliano said Mr. Marcos resignation will be disadvantageous to the Philippines regardless of his “flaws and democratic deficits.”

“To displace him is to further displace our current standing in the emerging regional tension, which will ultimately be disadvantageous to Philippine security interests,” he told BusinessWorld in a Facebook Messenger chat.

House Assistant Majority Leader and Lanao del Sur Rep. Zia Alonto Adiong said in a statement that Mr. Alvarez’s underlying motive for issuing such statements must be questioned as “political strategies, not genuine concern for national welfare.”

“His (Mr. Alvarez’s) call for President Marcos Jr. to resign reflects only his pro-China stance and not any true concern for the plight of fellow Filipinos,” Mr. Adiong said.

Mr. Juliano said Mr. Alvarez’s statement has “zero credibility” as “he is essentially speaking like a mouthpiece of Mr. Duterte’s pro-China pivot.”

Mr. Alvarez, a close ally of former Philippine President Rodrigo R. Duterte, served as Speaker of the House from 2016 to 2018. — Kenneth Christiane L. Basilio

Marcos appoints nat’l police OIC

THE country’s No. 2 police official was assigned by President Ferdinand R. Marcos, Jr. on Sunday as the officer-in-charge (OIC) of the Philippine National Police (PNP), pending the appointment of a permanent replacement to Gen. Benjamin C. Acorda, Jr. whose retirement has taken effect.

Designated as OIC of the PNP, through a memorandum signed by Executive Secretary Lucas Bersamin, was Lieutenant General Emmanuel B. Peralta, the PNP’s deputy chief for Administration.

Mr. Marcos in December last year extended the term of Mr. Acorda as PNP chief even as the latter reached the mandatory retirement age of 56. Mr. Acorda was first appointed to the post in April 2023.

A ceremonial turnover of command is scheduled at the PNP Headquarters in Camp Crame, Quezon City on Monday. 

Mr. Acorda, a member of Philippine Military Academy Class of 1991, in November last year expressed hope that his successor would have a longer tour of duty to sustain projects of the police force.

“As far as I am concerned, a longer tour of duty would be better, especially because of the current system when it takes time to request for funds,” he said at that time.

Mr. Acorda stepped down amid mounting concern on deaths related to the government’s anti-illegal drugs campaign, with the Dahas project from the University of the Philippines Third World Studies Center reporting that there had been at least 10 drug-related killings from Mar. 16 to 23, eight of which were confirmed to have been committed by state agents.

It had recorded 165 drug-related deaths in the last six months of 2023, and 29 each in January and February 2024. — Kyle Aristophere T. Atienza

Swift passage of tollway bill urged

Motorists pass Mindanao Ave. Toll Plaza in Valenzuela on Dec. 17, 2020. — PHILIPPINE STAR/ MICHAEL VARCAS

CONGRESS should prioritize the approval of a bill imposing toll collection at expressways through Radio-Frequency Identification (RFID) technology in order to prevent traffic congestion at toll gates, a lawmaker said on Sunday.

“Our country lags behind in tollway speed as we’re the only ASEAN (Association of Southeast Asian Nations) nation mandating a complete stop on supposed expressways,” Party-list Rep. Bernadette Herrera said in a statement.

She called for the speedy passage of House Bill (HB) No. 8161, the Non-Payment of Toll Fees Act of 2023, which employs a standardized use of RFID systems to streamline the toll collection process.

HB No. 8161 also seeks the construction of Multi-Lane Fash Flow (MLFF) systems to allow vehicles to pass through tollgates without slowing down.

An MLFF system is “a method of electronic toll collection that enables vehicles to pass through toll plazas at highway speeds without requiring them to stop or slow down,” Section 3 of HB No. 8161 read. –

The bill also proposes to classify the non-payment of expressway fees as a traffic violation.

“By making non-payment of toll fees a traffic violation, we are sending a clear message that traffic rules must be followed,” she said, noting fines starting at P1,000 and an additional penalty of suspension of driver’s licenses of up to a year for habitual violators. — Kenneth Christiane L. Basilio

Lawyer weighs in on Teves case

POLÍCIA CIENTÍFICA E DE INVESTIGAÇÃO CRIMINAL/ FACEBOOK/PHILSTAR FILE PHOTO

A LEGAL expert said on Sunday that former Philippine congressman Arnolfo A. Teves, Jr. may be qualified for political asylum in Timor-Leste if he proves that his fundamental rights had been violated in his home country.

National Union of People’s Lawyers (NUPL) president Ephraim B. Cortez told BusinessWorld via Viber that Mr. Teves, who is wanted for multiple murder charges in the Philippines, may try to convince Timor-Leste authorities that “he is being subjected to certain legal processes, not because he actually committed any crime, but he was singled out” either because of religion, race, ideology or political beliefs – all of which are his fundamental rights.

“They (Mr. Teves’ camp) have to prove that [he is politically persecuted], although he is charged with serious common crimes here, the motive is political,” Mr. Cortez said.

Earlier, Mr. Teves’ legal counsel, Ferdinand Topacio, said they will exhaust legal avenues such as “safe refuge, political asylum, non-rendition, and other remedies of similar nature” to avoid his repatriation.

Mr. Topacio underscored that his client is not considered a terrorist in Timor Leste, citing alleged surveillance by local authorities who supposedly found that there was “no evidence of any activity related to terrorism, or any illegal activity at all, and nor was he in hiding.”

However, Mr. Cortez said there are other “legal considerations” which may be used to facilitate a speedy deportation proceeding against Mr. Teves, who is now detained in Timor-Leste on the strength of a Red Notice issued by the International Police (Interpol) last February.

Mr. Teves is wanted in the Philippines for allegedly masterminding the assassination of Negros Oriental Governor Roel R. Degamo last year in which five other people were killed as well as three separate murders in the previous year, among other crimes. — Chloe Mari A. Hufana

Cops kill gunrunner in shootout

COTABATO CITY — An entrapment operation targeting illegal firearms trading in Sultan Kudarat town in the southern Philippines went haywire on Saturday, forcing police Criminal Investigation and Detection Group (CIDG) agents to shoot and kill an alleged gunrunner.

Agents of the CIDG-Bangsamoro Autonomous Region, led by Lt. Col. Ariel S. Huesca, were forced to shoot Datun L. Mastura, 56, for pulling a gun on them during a sting to purchase two M16 rifles in Sitio Mamadra, Barangay Limbo, Sultan Kudarat, Maguindanao del Norte.

He shot and wounded Patrolman Raffy Jacinto, said Mr. Huesca.

The second suspect, Norodin M. Sulaiman, 33, an alleged member of the Task Force Ittihad of the Moro Islamic Liberation Front, was arrested after the brief shootout.

Brig. Gen. Prexy D. Tanggawohn, Bangsamoro police director, said Mr. Mastura, a radiology technician at the Sanitarium Hospital in the same municipality, was tipped off by residents of the town to police for his alleged gunrunning activities. 

Mr. Tanggawohn and Mr. Huesca separately told reporters that Mr. Sulaiman is set to be charged with violation of Republic Act 10591 that prohibits possession, or sale of firearms, ammunition and explosives without permission from the Philippine National Police. — John Felix M. Unson

BI warns against sex trafficking

PHILSTAR FILE PHOTO

IMMIGRATION Commissioner Norman G. Tansingco issued a warning on Sunday against the so-called bitbit or “tag-along” scheme employed by human traffickers to dupe Filipino women into becoming sex workers abroad.

In a statement, he revealed how Bureau of Immigration (BI) agents intercepted a suspected human trafficker who was about to board his flight to Malaysia with a potential Filipina victim at the Ninoy Aquino International Airport (NAIA) Terminal 3.

The BI said the Malaysian man, who is now detained, claimed that his Filipina companion is his live-in partner and that they are spending a vacation in Kota Kinabalu.

However, BI records showed that this man was allegedly responsible for bringing another Filipina to Malaysia very recently who has since not returned.

“This seems like another case of the bitbit scheme,” said Mr. Tansingco, citing how in 2023, a Filipina was also brought by a frequent traveler to Malaysia where she was held captive by a white slavery ring. The Filipina who was with the man last March 22 has been turned over to the Inter-Agency Council Against Trafficking (IACAT) for assistance, while the suspected human trafficker is being investigated and may face charges of violating the Expanded Anti-Trafficking in Persons Act of 2022. — Chloe Mari A. Hufana

PPP rules must consider LGU officials’ short tenures — PCCI

PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

THE short tenures of local officials could pose a challenge in implementing Public-Private Partnership (PPP) infrastructure projects at the local level, the Philippine Chamber of Commerce and Industry (PCCI) said.

PCCI President Enunina V. Mangio said in a Viber message that local projects must be weighed with an eye towards the short terms in office for local officials.

“The budgetary commitment may be compromised with frequent changes of administration. In the past PPP projects tended to overrun cost projections, and government was saddled with debt servicing,” Ms. Mangio said.

She said the PPP Code is considered favorable because it “recognizes the need of the private sector for profit to sustain operations while also continually improving the delivery of public services.” 

 The PPP Code was intended to address bottlenecks in the Build-Operate-Transfer (BOT) Law, involving the recognition of past contracts and delays in obtaining approval.

The law’s implementing rules and regulations (IRR) include a provision allowing the private partner to recover investments through commercial development rights, or the grant of a portion of reclaimed land for both solicited projects and unsolicited proposals.

Private partners may also profit by collecting fees from users or through pre-determined payments from the implementing agency.

“Expanding the avenues by which the private sector can earn profit and lessen the market risk associated in providing government infrastructure and facilities helps make projects under the PPP arrangement more attractive to investors,” Ms. Mangio said.

Streamlined approvals are also expected by setting a threshold of P15 billion for a project to go before the National Economic and Development Authority (NEDA) Board. Those below the threshold but do not require government assistance will be sent to the implementing agency.

Projects that require government subsidy must be sent to the NEDA Investment Coordination Committee (ICC), while local projects go before the respective councils.

“That, in a sense, can also diminish the number of PPP projects going to the NEDA board, and that’s part of the streamlining that we are pushing,” NEDA Secretary Arsenio M. Balisacan said during the IRR signing.

Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said implementing agencies must remain transparent and accountable to ensure that maximum value from PPPs is extracted.

“The new PPP Code also provides a particular emphasis on limiting government undertakings, particularly on unsolicited proposals, to ensure that government maximizes its upside in each and every PPP proposal,” Mr. Ridon said in an e-mail.

The BOT law previously set a P300-million threshold per project to be evaluated by the NEDA-ICC, which “forced a lot of local government units (LGUs) to structure their projects as joint ventures (JVs) to avoid the tedious approval process.”

“The new Code takes out the need for LGUs to force the structure of big projects into JVs if it is not the optimal structure,” Ronilo Balbieran, an economics professor at the University of Asia and the Pacific (UA&P) said via Viber.

PPP Center Executive Director Ma. Cynthia C. Hernandez has said that around 20 PPPs in the government’s flagship infrastructure list are set for approval by the NEDA-ICC Board this year.

Around 119 PPP projects worth P2.4 trillion are in the pipeline, according to the NEDA. Of these, 95 are national projects, while 24 are local projects.

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