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The Department of Trade and Industry is supporting an executive order which provides for the creation of green lanes for strategic investments to help improve ease of doing business
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Executive Order No. 18, signed by President Ferdinand Marcos Jr. on February 23, 2023, aims to expedite the processes involved in the issuance of licenses, permits, and other certifications for strategic investments
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Under the EO, strategic investments are classified as highly desirable projects, foreign direct investments, and projects or activities under the Strategic Investment Priority Plan
The Department of Trade and Industry (DTI) is supporting the Malacañang order establishing investment green lanes.
Executive Order No. 18 signed by President Ferdinand Marcos Jr. on February 23, 2023 provides for the creation of green lanes for strategic investments to help improve ease of doing business.
In a statement, Trade Secretary Alfredo Pascual said the EO is consistent with the administration’s eight-point socioeconomic agenda and is a crucial part of government efforts to implement policy reforms that will facilitate ease of doing business in the Philippines.
It “complements our efforts to facilitate a robust economic recovery and expansion. It promotes ease of doing business as national government agencies including its regional and provincial offices, as well as local government units are now mandated to create green lanes that will fast track the process of securing necessary licenses and permits for strategic investments. This increases the attractiveness of our country as an investment destination”, he said.
Under the EO investments can only be classified as strategic if they are aligned with the Philippine Development Plan and categorized as (1) highly desirable projects, (2) foreign direct investments, and (3) projects or activities under the Strategic Investment Priority Plan.
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Within six months from its issuance, the EO mandates the DTI-Board of Investments (BOI) to establish a One-Stop-Action-Center for Strategic Investments (OSAC-SI), which will serve as a single point of entry for all projects that qualify as Strategic Investments.
“The OSAC-SI will help address investor concerns and issues. It will also facilitate the endorsement of strategic investments to concerned government agencies so they can assist them in processing the licenses and documentary requirements they need,” Pascual said.
The DTI-BOI is also tasked to produce and regularly update a manual or guidebook for investors, which will contain the list of government requirements for the establishment of strategic investments for every sector. The Department of Budget and Management (DBM) will assist in operationalizing the OSAC-SI.
The green lanes will help expedite or fast-track processes involved in the issuance of licenses, permits, and other certifications for strategic investments endorsed by OSAC-SI. The new EO provides for integration of all existing one-stop-shops or one-stop action centers of similar nature.
As part of the government’s digitalization efforts, the EO warrants concerned national government agencies or local government units to enable electronic submission of application for, and issuance of license, clearance, permit, certification, including payments.
Likewise, the EO sets a timeline for the processing of documents. NGAs and LGUs are ordered to act on applications not longer than three working days for simple transactions, seven working days for complex transactions, and twenty working days for highly technical transactions from the date of the receipt of application.
In case the NGA or LGU fails to act on the investment, it shall be deemed approved consistent with Section 10 of Republic Act No. 9485 or the Anti-Red Tape Act of 2007. Further, DTI-BOI may endorse to the Anti-Red Tape Authority applications for permits and licenses which are not yet resolved after the lapse of the original or extension period.
For efficient monitoring, the EO mandates concerned NGAs, LGUs, and/or quasi-judicial bodies to submit monthly updates to the DTI-BOI reflecting the status of applications received. Likewise, a Technical Working Group will be created to serve as an oversight body that will ensure the efficient and successful implementation of the EO. This initiative requires a whole-of-government collaboration as DTI OSAC-SI, NGAs, LGUs, GOCCs, and other government instrumentalities are ordered to coordinate with one another for assistance and support.
In October last year, Pascual and the DTI Board of Investments recommended the issuance of the EO after reporting the investment leads gathered from the presidential visits.
“We communicated to the President that several investors are interested to expand operations in the Philippines. Most of them have emphasized the importance of advancing ease of doing business after we have identified barriers across multiple regulatory agencies that hamper the smooth entry of FDIs in the country”, the trade chief added.
