Foreign chambers cite need to resolve issues on energy sector

The Foreign Chambers of the Philippines (FCP) underscored the need for the Arroyo administration to address a number of issues in the oil and power industry to enhance investors’ confidence in these sectors.

FCP is composed of various associations of foreign investors in the country. The biggest groups of FCP include: the American, Canadian and Japanese Chambers of Commerce of the Philippines.

In a luncheon meeting hosted by the FCP for Energy Secretary Vincent S. Perez, FCP members cited the status of the implementing rules and regulations (IRRs) of the Omnibus Power Act or Republic Act No. 9136.

Aside from the status of the drafting of the IRR, the group said it wants to be informed of the timing and the schedule of the public hearings where they could possibly participate, and make recommendations in their respective areas of concern.

FCP also wants to get the government’s stand in the issue of limitations of foreign ownership in public utilities. "We have to know if the government is studying or considering possible constitutional change on foreign ownership (in public utilities)," American Chamber of Commerce of the Philippines executive director Robert Sears said in an interview.

Sears said that in some sectors, 100 percent foreign ownership is allowed just like what happened when the General Banking Act was amended to allow foreigners to wholly-owned a local bank.

"We hope they could consider that," Sears said, noting that up to now they are bound by the 60-40 percent foreign ownership limit in the power industry.

Another concern of the FCP is the consistent power supply at industrial parks in the country. The group wants to be assured that the economic zones in the Philippines will have enough power before they invest more on these areas.

They also took note of the government’s development plan for the downstream natural gas industry.

Perez, for his part, said they are encouraging both local and foreign banks to see the development of natural gas as a possible avenue for new investments and joint ventures.

Aside from these, the FCP also took note of the government’s methods of financing infrastructure development, and decision making in relation to project approvals.

Other issues listed down by the FCP include: the speedy resolution of the National Power Corp. (Napocor)’s stranded cost issue.

They also wanted government’s firm assurance that competition would be encouraged in power generation through bidding/regulatory practice rather than legislated ceilings on generation capacity.