PCC streamlines review for joint ventures on solicited PPP projects

MANILA, Philippines — The Philippine Competition Commission (PCC) is streamlining the review process for joint ventures formed for solicited private-public partnership (PPP) projects by allowing exemptions from compulsory notification, thus helping accelerate the implementation of key infrastructure projects.

PCC Memorandum Circular 19-001, issued on July 2, provides the procedures for the streamlined review process for joint ventures for PPP projects effective on Aug. 16.

Under the circular, agencies may file an application for a Certificate of Project Exemption from PCC’s compulsory notification in behalf of their solicited project’s prospective bidders.

To quality for exemption, the application should be made by the agency prior to the project development stage.

After the submission of application, PCC will review the project and may provide inputs on the terms of reference of the transaction advisor or consultant to be procured for the development of the project feasibility study, within 30 days from its receipt of complete documents and information.

If the application is made after the project development stage, but before project procurement, the PCC may allow the application to proceed provided it would have a longer period of 60 days to undertake its review and give inputs.

During the project procurement stage, PCC may give its inputs on how the pre-qualification documents, bidding documents, PPP contract and other documents part of the review may affect competition in the market.

PCC may also require undertakings or commitments to be complied with by prospective bidders to address potential competition issues.

Within 15 days after the submission of final project documents with PCC’s inputs, the antitrust body will then issue the Certificate of Project Exemption in favor of the winning bidder.

In case PCC’s inputs or undertakings are not implemented by the agency and winning bidder, or if there are substantial changes to the PPP project after PCC’s review, the transaction may return to the full merger review route.

The PCC may also initiate a motu proprio review of the project should a winning bidder violate any of its commitments to the antitrust body.

 “This track enables the PCC to inject the necessary competition safeguards early on and pave the way for faster rollout of these priority infrastructure projects. The measure embodies efficiency of processes by the implementing agency, the PPP Center, and the PCC, while remaining steadfast to our respective mandates,” PCC chair Arsenio Balisacan said.

PCC issued the circular for streamlined review process following a memorandum of agreement signed with the PPP Center in July last year to coordinate efforts in projects.

Prior to the issuance of the circular, joint ventures formed by prospective bidders that meet the thresholds have to notify and undergo the full merger review by the PCC after getting the approval of the implementing agency or PPP Center.

“This has the dual effect of allowing early detection of potential competition concerns and facilitation of the delivery of PPP projects,” Balisacan said.

For unsolicited PPP projects, the PCC will also come up with rules within the year.