PH gov’t issues guidelines to eliminate red tape in key infra projects

MANILA -- The Philippine government on Tuesday came out with the implementing guidelines for Executive Order No. 59, which aims to cut red tape in infrastructure flagship projects by streamlining the procedures and requirements for permits and clearances.

The EO was signed by President Ferdinand Marcos Jr. last April 30 in a bid to accelerate the government’s infrastructure drive.

According to the Anti-Red Tape Authority (ARTA), the existing process can get complicated, with proponents having to go through about 30 different government agencies for approval.

The EO 59 limits this to 12 to 18 agencies.

It also shortens to processing time to 3 days for simple transactions, 7 days for complex transactions and 20 days for highly technical transactions.

“The other provision of the law is that you can do this simultaneously. It doesn’t have to be sequentially so you can get it much faster. If they fail to approve within 20 days, that’s deemed approve,” added National Economic and Development Authority (NEDA) Undersecretary Joseph Capuno.

Even the documentary requirements have been streamlined.

“Yung delay dyan is really about documentary requirements from each and every agency involved in the permitting process. That’s why at the core of EO 59 is to limit the requirements only to those identified under Section 2 of EO 59. Unless they can justify it with a constitutional or legal basis,” said ARTA Director General Ernesto Perez.

NEDA said the measure will particularly speed up the processing of around 30 to 50 approved infrastructure flagship projects that are currently in the pre-project implementation stage.

Capuno said these are mostly physical connectivity projects being led by the Department of Transportation and the Department of Public Works and Highways, as well as irrigation projects under the Agriculture Department.

COMPETITIVENESS RANKING

Both ARTA and NEDA hope that the proper implementation of EO 59 will help raise the Philippines’ ranking in the IMD Competitiveness Index.

The 2024 report again placed the Philippines in the 13th spot out of 14 economies in Asia, citing infrastructure as one of the country’s weak points.

The Philippines also retained the 52nd spot globally, out of 67 countries.

RIGHT-OF-WAY ISSUES

But apart from licensing and permitting delays, Capuno pointed out another hindrance to infrastructure projects that is beyond the ambit of EO 59: right of way issues, and the lack of budget to resolve them.

“Common complaint yan. Even if the technical design is there, feasibility study is there, the market is ready to accommodate the offers from government, but if the government has no money to back up its offer then no deal is made and the project gets delayed,” said Capuno.

“Why is there no money for right-of-way issues? Meron naman kaya lang kulang. Minsan delayed din or napupunta sa ibang priorities,” he added.

Major railway projects such as the Metro Manila Subway Project, the MRT-7, and the North-South Commuter Railway are also facing right-of-way challenges.

Special Assistant to the President for Investment and Economic Affairs Frederick Go earlier pushed for a new Right-of-Way law to expedite the implementation of critical infrastructure projects.