Gov't weighs antitrust exemptions to fast-track key infra deals
The Philippine Competition Commission (PCC) is looking to exempt certain public-private partnership (PPP) projects from compulsory notification requirements to accelerate the development of key projects in disadvantaged areas.
In a statement, the PCC said it held focus group discussions (FGDs) on June 16 to 17 to seek feedback on the draft circular on the Updated Process for Exemption from Compulsory Notification of PPP Projects.
In line with the PPP Code, the proposed policy aims to establish a framework for the exemption from the compulsory notification of joint ventures (JVs) related to PPP projects.
The draft circular outlines five grounds for the exemption of PPP deals based on specific regional and economic development benchmarks.
A PPP project may be exempted if it is a JV that establishes a new economic activity in a disadvantaged area, or in locations with a gross domestic product (GDP) per capita below or equal to 75 percent of the national average.
Also exempt from the notification requirements are sectoral projects for regional and national development, such as those in agriculture, data transmission, and tourism.
In addition, projects involving research and development, regional airports, and maritime ports will be exempted under the proposed rules.
“The updated process seeks to facilitate the delivery of priority infrastructure projects while preserving market competition,” the PCC said.
Currently, JVs for PPP projects require compulsory notification when they meet the statutory thresholds, set at ₱9.1 billion for the size of the party and ₱3.8 billion for the size of the transaction.
Based on the FGDs, the PCC said government agencies recommended expanding the exemption grounds to cover other key sectors, such as health, education, and low-cost housing.
The agencies also want the draft circular to provide clarification on coverage thresholds and evaluation windows, including measures to prevent duplicate document submissions.
Meanwhile, the commission said private sector partners are pushing for further refinement of what constitutes a “new economic activity” eligible for exemption.
They also proposed adding exemption grounds for socialized housing and defense, as well as issuing a joint circular between the PCC and the PPP Center to ensure alignment with PPP processes.
PCC Mergers and Acquisitions Office (MAO) Director Lianne Ivy Medina said these recommendations would be considered as the agency works on finalizing the provisions of the draft circular.
By easing notification requirements, the PCC said it would have more time to focus on reviewing PPP projects “with the most significant impact on trade, industry, and commerce,” while strengthening coordination in the approval of these deals.