Duterte urged to back 3 economic measures

Senator Sherwin Gatchalian on Sunday renewed his call for President Duterte to certify as urgent three measures that aim to lift investment restrictions to liberalize the country’s economy and speed up the government infrastructure projects.

“In light of the new cash-based budgeting system for 2019, there is now an even more urgent need to foster true competition in government public works projects by liberalizing the entry of foreign contractors into the industry,” Gatchalian said.

Gatchalian is referring to Senate Bill No. 1907 which aims to lift investment restrictions under Commonwealth Act No. 541 that prevent foreign contractors from bidding on government public projects.

Another is Senate Bill No. 1909 which aims to remove the nationality requirement in the granting of licenses for contractors in construction and Senate Bill No. 1921 which seeks to dismantle the domestic preference policy under the Government Procurement Reform Act (GPRA) to encourage the entry of foreign suppliers.

He said the President should certify as urgent these three measures he recently filed to ensure that public works projects would be started and completed within the calendar year.

“One of the main causes of delays in construction and other public works projects is the lack of contractors and suppliers. Lifting restrictions and providing a more level playing field in public works projects will encourage the entry of foreign players, which in turn will enable the government to deliver on its much-needed infrastructure initiatives,” Gatchalian said.

“For projects to be completed in a shorter period of time, we need simultaneous construction to happen. And for that to happen, we need to have foreign contractors who can also participate in government projects,” he added.

The government’s economic managers are now doing away with an obligationbased budgeting in favor of a cash-based system, which limits contractual obligations and disbursement of payments for goods delivered and services rendered only within the fiscal year, as they push Congress to fast track passage of the proposed R3.757trillion national budget for 2019.