DTI lauds EO on green lane for investments

The Department of Trade and Industry (DTI) has lauded the issuance of the executive order (EO) for the creation of green lanes for strategic investments, as the move is seen to help improve ease of doing business and make the country more attractive to investments.

“This EO complements our efforts to facilitate a robust economic recovery and expansion. It promotes ease of doing business as national government agencies, including its regional and provincial offices, as well as local government units, are now mandated to create green lanes that will fast-track the process of securing necessary licenses and permits for strategic investments. This increases the attractiveness of our country as an investment destination,” Trade Secretary Alfredo Pascual said in a statement over the weekend.

EO 18 covers all national government agencies (NGAs) and their regional and provincial offices, governmentowned and controlled corporations and other government instrumentalities, as well as local government units (LGUs) involved in the issuance of permits, licenses, certifications or authorizations covering strategic investments.

Under the EO, strategic investments are those aligned with the Philippine Development Plan and are expected to contribute significantly to the Philippine economy by bringing significant capital or investments, contributing to the country’s balance of payments, and improving the country’s infrastructure capabilities.

Strategic investments are classified by the EO into three: highly desirable projects; foreign direct investments (FDI); and projects or activities under the Strategic Investment Priority Plan (SIPP), which lists those qualified for investment incentives under the Corporate Recovery and Tax Incentives for Enterprises Act.

The EO is in line with the current administration’s Eight-Point Socioeconomic Agenda and serves as a crucial part of its efforts to facilitate ease of doing business.

In October last year, Pascual recommended the issuance of the EO after reporting the investment leads gathered from presidential visits.

“It was during the meeting that we communicated to the President that several investors are interested to expand operations in the Philippines. Most of them have emphasized the importance of advancing ease of doing business after we have identified barriers across multiple regulatory agencies that hamper the smooth entry of FDI in the country,” he said.

Within six months from the issuance of the EO, the DTI - Board of Investments (BOI) is mandated to set up the One-Stop-Action-Center for Strategic Investments (OSACSI), which will serve as a single point of entry for all projects that qualifies as strategic investments.

“The OSAC-SI will help address investor concerns and issues. It will also facilitate the endorsement of strategic investments to concerned government agencies so they can assist them in processing the licenses and documentary requirements they need,” Pascual said.

In addition, the DTI-BOI is tasked to produce and regularly update a manual or guidebook for investors, containing the list of government requirements for the establishment of strategic investments per sector.

As part of the government’s digitalization efforts, NGAs and LGUs will enable electronic submission of applications for, and issuance of license, clearance, permit, certification, including payments.

Under the EO, NGAs and LGUs are ordered to act on applications within the prescribed processing time of three working days for simple transactions, seven working days for those considered complex, and 20 working days for those highly technical from the date of the receipt of application.

The prescribed maximum processing period may be extended only once for the same number of days if it is indicated in the citizen’s charter.

Should the NGA or LGU fail to act on the application, it shall be deemed approved if all necessary documents have been submitted and fees have been paid, consistent with Section 10 of Republic Act 9485 or the Anti-Red Tape Act of 2007, as amended.

After the lapse of the original or extension period, the DTI-BOI may endorse to the Anti-Red Tape Authority (ARTA) applications for permits and licenses which have not been resolved.

In order to monitor implementation, the EO mandates the concerned NGA, LGU, and/or quasi-judicial body to submit monthly updates to the DTI-BOI on the status of applications received and acted upon involving strategic investments.

To ensure the EO is implemented, a technical working group is also being created to serve as an oversight body. It will be headed by the DTI-BOI and have the DTI, Department of the Interior and Local Government, Department of Finance, National Economic and Development Authority and ARTA as members.