PCC to relax merger rules for some PPP deals

MANILA, Philippines — The Philippine Competition Commission (PCC) is looking to exempt certain sectors from the compulsory merger notification involving public-private partnership (PPP) projects under certain conditions, according to its proposed rules.

In a public notice yesterday, the PCC said it is seeking inputs from government agencies and private firms on the draft circular on the Updated Process for Exemption from Compulsory Notification of PPP projects.

Through the proposed rules, the PCC aims to establish a framework for the exemption from compulsory notification of joint ventures (JV) for a PPP project, in line with its mandate and the PPP Code.

Under the draft memorandum circular, the PCC said that projects in data transmission, tourism, agriculture, research and development, regional airports and maritime ports might be exempt from compulsory notification under certain conditions.

Previous PCC rules on compulsory notification exemption for PPP projects did not identify specific sectors.

Under the proposed rules, a JV for a PPP may also be exempted if the project involves investment in a new economic activity in a disadvantaged area or a region, city or municipality with a gross domestic product per capita equal to or below 75 percent of the national average.

An application for exemption will need to be submitted by the implementing agency and/or original proponent to the PCC’s Mergers and Acquisitions Office through the MAO E-Notification System.

The submission will include project proposals, feasibility studies, instructions to bidders and the initial draft contract, depending on the project stage.

Upon receipt of application, the PCC will issue the notice of complete submission within seven working days.

The PCC will have 20 days from the issuance of the notice of complete submission to conclude the review of the request for projects submitted during bidding or competitive challenge process and 40 days for those under the project development stage.

The PCC may request for additional information for the review. It may also require the original proponent or a prospective bidder to comply with undertakings as a condition to the exemption.

A certificate of project exemption will be issued to those found to satisfy the grounds for exemption, while those deemed to substantially reduce competition will be issued a notice to file a merger notification.

Stakeholders have until June 19 to comment on the draft memorandum circular.