THE Philippine Competition Commission (PCC) is working on a draft circular to update the process for exempting public-private partnership (PPP) projects from compulsory notification.
During a focus group discussion earlier this month, the PCC, in collaboration with the Public-Private Partnership Center, gathered feedback from the public and private sector for the draft circular.
At the focus group discussion, stakeholders sought clearer qualifiers for “new economic activity" that is eligible for exemption. A proposal called for the exemption of projects involving an initial investment in disadvantaged areas, which will introduce new market capacity with minimal risk of market distortion.
The stakeholders also pushed for exemptions in socialized housing, health and defense, and recommended exploring the issuance of a joint circular to ensure alignment with PPP processes, among others.
The draft circular will replace guidelines under PCC Memorandum Circulars 19-001, 20-001 and 20-002.
The proposed circular will also streamline review procedures and establish five exemption grounds based on regional and economic benchmarks.
Under the Philippine Competition Act, joint ventures for PPP projects require compulsory notification when they meet statutory thresholds, currently set at P9.1 billion for size of party and P3.8 billion for size of transaction.
“By updating these guidelines in close collaboration with the PPP Center and stakeholders, the commission exercises its regulatory oversight to proactively ensure a competitive environment, while supporting the timely and transparent rollout of national infrastructure priorities,” the PCC said.
