Philippines - Compulsory Notification May Be Exempt For Joint Ventures In Solicited PPP Projects.
Legal News & Analysis - Asia Pacific - Philippines - Energy & Project Finance
3 December, 2019
On 2 July 2019, the Philippine Competition Commission (“PCC”) signed PCC Memorandum Circular No. 19-001 (“Circular”), which outlines the process and requirements for exemption from compulsory notification under the Philippine Competition Act (“PCA”) of entities forming joint ventures for the completion of certain public-private partnership (“PPP”) projects. The Circular took effect on 16 August 2019.
Implications for business in the Philippines
The Circular aims to harmonise the mandate of the PCC to advocate for fair and pro-competitive climate in the Philippines, and the policy of the Philippine government to accelerate the implementation of private sector-funded infrastructure development projects by putting them under minimal government regulation.
Since entities in a joint venture are required to provide compulsory notification to the PCC if the notification thresholds are breached under the PCA Implementing Rules and Regulations (“IRR”), as amended by PCC Memorandum Circular No. 18-011, prospective bidders in a PPP project wishing to form a joint venture are likewise subject to this regulation.
However, the Circular is exclusively applicable to joint ventures formed for Solicited PPP Projects, or those projects defined and identified by the government agency or instrumentality as part of its priority projects.
The full article can be found from Zicolaw's site here.
For more information, please contact:
Felix T Sy, Partner, Insights Abodago Philippines (a member of ZICO Law)