Private sector seeks easing of merger notification rules for PPPs

THE private sector is pushing for an easing of merger notification requirements for public-private partnership (PPP) projects, citing the need to accelerate infrastructure development, the Philippine Competition Commission (PCC) said.

The PCC had conducted focus group discussions among companies, regulators, and investment promotion agencies on the draft rules updating the process for exempting PPP projects from compulsory notification.

The proposed circular will replace the old guidelines set out in PCC Memorandum Circular Nos. 19-001, 20-001, and 20-002, the PCC said.

The draft circular seeks to streamline review procedures and establishes five grounds for exemption based on specific regional and economic development benchmarks.

Under the Philippine Competition Act, joint ventures for PPP projects require compulsory notification when they meet the statutory thresholds, currently at P9.1 billion for size of party and P3.8 billion for size of transaction.

“The updated process seeks to facilitate the delivery of priority infrastructure projects while preserving market competition,” it said.

Implementing agencies cited the need to clarify coverage thresholds, align evaluation windows with the timelines of Republic Act No. 11966 or the PPP Code, and prevent duplicate document submissions.

Participants also pushed to expand the exemption grounds for joint venture PPPs to other industries like health, education, and low-cost housing.

Private-sector partners also sought clarification of what constitutes a “new economic activity” eligible for exemption.

“One of their proposed grounds considers an exemption for projects that support an initial investment for new economic activity in disadvantaged areas, thereby introducing new market capacity with minimal risk of market distortion,” the PCC said.

Participants from the private sector also requested a documentation list based on the specific ground applied for and strongly recommended exploring the issuance of a joint circular by the PCC and PPP Center to ensure alignment with PPP processes.

PCC Mergers and Acquisitions Office Director Lianne Ivy Medina noted that the technical, legal, and operational recommendations compiled from the sessions will be incorporated in finalizing the draft circular. — Beatriz Marie D. Cruz