DTI chief: Let local contractors prosper
Local contractors should first be allowed to prosper in the country before further liberalizing the sector to foreign participants, Trade Secretary Ramon Lopez said Wednesday.
The Trade secretary made the statement when asked about the National Economic and Development Authority's plan to exclude the contractors sector from the Foreign Investment Negative List before the end of the year.
"I think we should allow the local players to prosper first ... because there are a lot of local players already. We have 10,000 contractors accredited in our system," Lopez said during the ASEAN+6 Construction Forum press conference in Parañaque City.
Lopez said a policy decision must first go through consultations with industry stakeholders.
The Duterte administration's economic team will meet to clarify the plan to exclude the contractors sector from the negative list as the Trade and Industry department has an existing policy allowing 100 percent foreign participation.
"We have a P1billion threshold for foreign participation in construction projects ... So talagang nakakapagparticipate talaga sila" he said,
However, foreign players are barred from participating in government funded projects.
"So we need to clarify this as to what extent we should we allow foreign participation," the Trade chief said.
Department of Trade and Industry Construction Industry Arbitration Commissioner Emilio Tumbocon said the country welcomes foreign players.
"It cannot be foreign contractors who just fly in and fly out," he said, however.
"They should put investments here in the country with a 15-year warranty," Tumbocon noted during the same briefing.
Lopez said he is optimistic that NEDA Secretary Ernesto Pernia will give priority to the local contractors. "I'm sure Sec. Pernia would favor first contractors here."