Universities could be opened up to foreign investment

THE GOVERNMENT will explore more sectors to be liberalized for foreign investors, including universities, the National Economic and Development Authority (NEDA) said.

Socioeconomic Planning Secretary Ernesto M. Pernia said that the next NEDA Board meeting will discuss the 11th Regular Foreign Investment Negative List (FINL).

“The Economic Development Cluster has already approved NEDA’s recommendations on the 11th Regular Foreign Investment Negative List, or FINL. The NEDA Board at its next meeting will take this up,” Mr. Pernia said during NEDA’s year-end briefing yesterday at its headquarters in Mandaluyong.

Among those being considered for wider foreign ownership are universities.

“The establishment of universities by (foreign investors) themselves, or in partnership with local universities, is still not included in the proposed changes in the FINL. So we’ll try to put that in also,” said Mr. Pernia.

He said that opening up the education system to foreigners is a common practice in the region.

“There’s no reason to be behind these countries. We have already been lagging behind in our education sector,” Mr. Pernia added.

President Rodrigo R. Duterte signed on Nov. 21 Memorandum Order No. 16 that ordered government agencies to “take immediate steps” on either lifting or easing foreign participation in various industries.

These sectors include: recruitment companies, whether for local or foreign employment; the practice of particular professions, where allowing foreign participation will redound to the public benefit; contracts for the construction and repair of domestically-funded public works; public services, except activities and systems that are recognized as public utilities such as transmission and distribution of electricity, water pipeline distribution systems, and sewerage pipeline systems; culture, production, milling, processing, and trading, except retailing, of rice and corn and acquiring by barter, purchase, or otherwise, rice and corn and the by-products thereof; teaching at higher education levels; and retail trade enterprises.

“We will look through the list again and we’ll see how much more we can put in there,” Mr. Pernia said

Aside from the FINL, NEDA Assistant Secretary Jonathan L. Uy said that there will be six proposals up for approval by the NEDA Board “within this month.”

However, the six items will go through ad referendum approval since the en banc NEDA Board will not be able to meet before the year ends. Ad referendum approval is resorted to when an en banc quorum is not available.

“We expect to have six more to propose to the NEDA Board, ad referendum, with three new projects,” said Mr. Uy.

These included the P20.313-billion Safe Philippines Project, which will put up 18 integrated operations and command centers, equipped with video surveillance systems and a remote backup data center; the P11.369-billion Bridge Construction and Acceleration Project for Socioeconomic Development; and the procurement of the seven Philippine Coast Guard Maritime Disaster Response Helicopters for P5.887 billion.

Also up for approval are the loan validity and construction period extensions of the Samar Pacific Coastal Project and the Jalaur River Multi-purpose Project, as well as additional financing for the New Bohol Airport.

Mr. Pernia said that the full NEDA Board, composed of Cabinet members and chaired by the President, may meet sometime in January.

With some 15 big-ticket infrastructure projects given the green light this year, Mr. Pernia said that he expects a similar number to be approved in 2018.

“Based on what we’ve done just looking at 2017, we were able to get projects processed and approved, 20 of them. Hard projects alone will be 15 of the 20... We try to get the NEDA Board to meet every two months. We try to keep that pace so we expect 15 more next year,” he said. —