CUTTING RED TAPE. National Economic and Development Authority Undersecretary Joseph Capuno (3rd from left) and Anti-Red Tape Authority Secretary Ernesto Perez (3rd from right) lead the signing of the guidelines of Executive Order 59 on Tuesday (June 18, 2024) at the Philippine International Convention Center in Pasay City. EO 59 streamlines the permitting process for key infrastructure projects. (Photo from NEDA)
MANILA – Government agencies on Tuesday signed and launched the implementing guidelines of Executive Order 59 that will streamline the permitting process for the country's Infrastructure Flagship Projects (IFPs).
The guidelines were signed by National Economic and Development Authority (NEDA) Undersecretary Joseph Capuno, Anti-Red Tape Authority (ARTA) Secretary Ernesto Perez, and key officials from the NEDA Board Committee on Infrastructure at the Philippine International Convention Center in Pasay City.
Perez said one of the salient features of the guidelines is the reduction in the number of IFP-licensing agencies from 30 to just 12 to 18.
"Before the issuance of EO 59, the IFP permitting process was really complex, involving 30 different issuing agencies. Now with EO 59 directing all national government agencies and local government units involved in issuing licenses, clearances, permits, certifications, authorizations for IFPs, collectively known as IFP licensing agencies to expedite these processes," he said.
Perez said EO 59 and its implementing guidelines mandate all national government agencies (NGAs) and local government units (LGUs) to review their Citizens Charters and remove burdensome requirements, limit the number of signatories to maximum of three, and allow the use of electronic signatures.
NGAs and LGUs are also mandated to establish a One-Stop for IFPs that will serve as the single point of entry for all NEDA Board-approved IFPs, and designate an IFP account officer who will be the focal person for facilitating the permits and licenses.
The implementing guidelines also allow the simultaneous processing of applications through the submission of an Affidavit of Undertaking and mandate the automatic approval or renewal of documents if the relevant licensing agencies fail to act within the 3-7-20 days prescribed processing time under the Ease of Doing Business and Efficient Government Services Act.
The Ease of Doing Business Act required all services in government to be classified as Simple, Complex, or Highly Technical and should be delivered or acted upon within the prescribed period of three, seven or 20 days, respectively.
Capuno, however, clarified that the EO does not cover the NEDA's approval of IFPs.
"Hindi covered ng EO 59 yung NEDA, covered sya ng tinatawag nating PPP Code for IFPs. Ginawa yung EO 59 to support the PPP Code para mabilis lahat yung proseso (The EO 59 does not cover NEDA, it is covered by the PPP Code for IFPs. The EO 59 was issued to support the Public-Private Partnership Code so that the process will be faster)," Capuno said.
He said the NEDA approval process for IFPs usually takes 90 to 120 days.
At present, there are 185 IFPs with an indicative project cost of PHP9.5 trillion.
Of the total, almost 48 projects are expected to immediately benefit from the streamlined permitting process.
"We have a number of projects in what we call pre-project implementation. These projects are not yet ready for approval, but they're seeking all the clearances, detailed engineering designs, consultation, and so forth and so on," Capuno said.
"I think there are about 30 plus for pre-project implementation. Between 35 to 50, pre-project implementation. The others are already for approval process while others are already for implementation," he added.
NEDA Secretary Arsenio Balisacan emphasized that the streamlined processes under EO 59 represent a significant stride toward enhancing the country’s investment climate, improving the ease of doing business, and strengthening the country’s economic foundation.
“Fast-tracking our major capital projects is crucial because we seek to catch up with our dynamic neighbors in the region and realize the numerous economic opportunities such projects will bring. We hope to create the enabling conditions for high-quality job creation for thousands of Filipinos; we wish to enhance regional connectivity and link leading and lagging regions; and we aim to raise the competitiveness of our local industries and foster rapid, sustained, and inclusive growth,” Balisacan said in a statement delivered by Capuno.
Improving competitiveness
Government officials are also optimistic that with the issuance of EO 59 and its implementing guidelines, the Philippines' competitive ranking will improve.
In the IMD World Competitiveness Yearbook (WCY) 2024, the Philippines ranked 52nd out of 67 countries, remaining in the same place as last year.
The WCY analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation.
The country recorded an improvement in the government efficiency factor to 49th from last year's 52nd place, and also maintained its 40th spot in the economic performance indicator.
The country, however, recorded declines in business efficiency and infrastructure.
"Hopefully with the implementation of this one [EO 59], we can notch a bit higher in the next round," said Capuno, adding that measures to address right of way issues will also help improve the country's ranking. (PNA)
