ECCP vice president for external affairs Henry Schumacher said the country’s construction industry continues to be burdened by the lack of full involvement of international contractors.
“If the Philippines wants to continue growing the economy, the lack of infrastructure needs to be addressed. This can only be done with the involvement of international contractors that will bring latest technologies to the country,” Schumacher said.
"But you cannot expect these companies to bring the technology, bring the money, carry the risks and then control only 40 percent of the venture," he said.
In a report, the ECCP said the willingness of foreign contractors and construction companies to invest in the Philippines is affected by the unwillingness of the Philippine Contractors Accreditation Board (PCAB) to accept the accreditation of fully owned foreign companies.
"Given the need to implement infrastructure development, foreign contractors and construction companies are needed to introduce new technologies. All business organization supported the ECCP drive to find ways to change the unfair process of PCAB, agreeing there is nothing in the law that prevents foreign contractors to get active in the Philippines. (Department of Trade and Industry) Secretary (Adrian) Cristobal fully supports this also," the ECCP said.
Schumacher said the foreign chamber has already met with the PCAB board to raise its concerns.
"PCAB is undermining fair competition in the country and we may well have to bring this up with the newly created Philippine Competition Commission under the leadership of Arsenio Balisacan," he said.
Under PCAB Board Resolution No. 333 Series of 2013, a Quadruple A or AAAA category was created under its regular license for contractors.
The AAAA category requires investment of at least P1 billion to allow foreign contractors to come in with 100 percent foreign equity.
Other than this, foreign corporations are not allowed to obtain a regular license from PCAB as it requires at least 60 percent Filipino equity in the applicant corporation.
"We wish to seek your clarification on this because such requirement is not stated in Republic Act No. 4566. In issuing licenses, Republic Act No. 4566 provides only for the following qualifications of applicants: at least two years of experience in the construction industry and knowledge of the building, safety, health and laws of the Republic of the Philippines and the rudimentary administrative principles of the contracting business as the Board deems necessary for the safety of the contracting business of the public. The law neither requires 60 percent Filipino equity nor provide for foreign equity restrictions," the ECCP said in a letter sent earlier to PCAB.
PCAB is mandated to issue, suspend and revoke licenses of contractors for both public and private construction, as well as implement RA 4566.
Manila has been ranked eighth – ahead only of Vietnam and Myanmar -- among the 10-member Association of Southeast Asian Nations in terms of overall quality of infrastructure according to the World Economic Forum Report in 2013-2014.
Source: The Philippine Star
