Voting 19-3-0, the Senate on Wednesday afternoon approved a measure which sees to relax ownership of public utilities.
Senate Bill No. 2094, which seeks to amend the Commonwealth Act No. 46 or the Public Services Act, aims to allow foreigners to own “modern, more accessible and affordable” public services in the country.
The proposed measure limits public utility to three services–distribution of electricity, transmission of electricity, and water pipeline distribution and sewerage pipeline systems.
The senators who voted against the approval of the measure include Risa Hontiveros, Francis Pangilinan, and Senate president pro tempore Ralph Recto.
Sen. Grace Poe, committee on public services chairman, said one of the amendments to the proposed measure is for the increase of penalty per day from P200 to P2 million if service providers have contract violations.
The measure also indicates that foreigners may own only more than 40 percent of the public services identified as critical infrastructure if their country accords a reciprocal right to Filipinos by law, treaty or international agreement.
It also seeks to limit foreigner employment to less than 25 percent of the total number of employees of a company.
The Public Services Act was one of three economic bills certified as urgent by President Duterte last April. The others were Foreign Investments Act, and Trade Liberalization Act.
The Joint Foreign Chambers (JFC) hailed the approval and expressed optimism the game- changing law will pass in the current Congress. The Retail Trade Liberalization Act amendments just lapsed into law and the Foreign Investments Act amendments was recently ratified by both chambers of Congress and will soon be transmitted to the president.
“Liberalization of the economy is one of the most important measures needed to attain similar levels of foreign investment received by (the Philippines’) Asean neighbors and ensure the economy’s continued recovery from the pandemic,” JFC said in a statement.
The approved Senate bill will allow 100 percent foreign ownership of, among others: telecommunications; air carriers; domestic shipping; railways and subways and; canals and irrigation.
Under the approved bill, only the following are classified as public utilities and remain subject to the 60-40 foreign ownership restriction: distribution or transmission of electricity; petroleum and petroleum products pipeline transmission or distribution systems; water pipeline distribution systems and wastewater pipeline systems; airports; seaports; public utility vehicles (defined as road vehicles that carry passengers and/or cargo for a fee, offering services to the public, namely trucks-for-hire, UV express service, public utility buses, public utility jeepneys, tricycles, filcabs, and taxis and; expressways and tollways. Irma Isip
