“EO 59 directs national government agencies and local government units to review their citizen’s charters, aiming to eliminate redundant and cumbersome procedures”
THE Marcos administration has taken a big step forward in accelerating the country’s economic growth and development with its directive to all government agencies to streamline the issuance of permits for infrastructure flagship projects.
The issuance of Executive Order 59 is an appropriate response to the incessant complaint of both local and foreign investors that they have to contend with cumbersome processes for the issuance of required licenses, clearances, permits, certifications or authorizations before they can set up shop or continue operations.
We already have RA 9485, or the Anti-Red Tape Act of 2007, intended precisely to speed up transactions with government offices at various levels. This was amended by RA 11032 which renamed the law as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.
The new EO complements both RA 9485 and RA 11032 but with a more defined goal: to expedite the implementation of 185 infrastructure flagship projects approved by the National Economic and Development Authority. This is as it should be.
The 185 flagship projects all over the country are part of the Marcos administration’s P9.14-trillion Build Better More Program.
The issuance of the EO appears to be an implicit admission that little progress has been made in the fight against red tape, a persistent problem repeatedly cited by foreign investors as a deterrent to investing in the country.
Of the 185 flagship projects, 81 are financed through the official development assistance, 51 through the General Appropriations Act, 45 through public-private partnerships and seven through hybrid financing modalities.
Malacañang’s issuance of the EO is timely and relevant since a survey by Pulse Asia from March 6 to 10, 2024 found that 56 percent of Filipinos cited complicated rules and regulations such as red tape and changes in government policies and regulations, while 55 percent identified restrictive rules on foreign ownership as the most significant factors that hinder foreign investment in the Philippines.
Nearly half or 46 percent saw corruption in the public sector as a major hurdle for foreign investment.
It was followed by inadequate transportation infrastructure (40 percent) and high electricity costs (37 percent). Inadequate telecommunication infrastructure (32 percent) and insufficient investor incentive (21 percent were also seen as significant hurdles.
The National Economic and Development Authority expects faster rollout of major infrastructure projects following the signing of this executive order.
For NEDA Secretary Arsenio Balisacan, the EO would support the goals of the Philippine Development Plan 2023-2028 by expanding and upgrading the country’s infrastructure sector as part of the government’s efforts towards social and economic transformation.
“By streamlining the processing of IFPs, we are making it easier for implementing agencies and more attractive for our partners in the private sector to execute transformative infrastructure projects that would spur job creation for our people and enable us to sustain our economy’s rapid expansion,” he said.
The main goal of the EO is to minimize, if not eliminate, delays in the implementation of IFPs.
If we want to catch up with our neighbors in the region, the bureaucracy must proactively accelerate the timely completion of these projects.
EO 59 actually introduces several critical changes, simplifying the requirements for the NEDA Board-approved list of IFPs.
It also directs national government agencies and local government units to review their citizen’s charters, aiming to eliminate redundant and cumbersome procedures.
The EO embraces the use of technology, facilitating electronic application submissions to concerned agencies and LGUs, including streamlined payment processes and issuance of receipts.
The order encourages a whole-of-government approach by mandating NGAs to automate and computerize their databases.
This move promotes data sharing among government entities, eliminating unnecessary document duplication.
LGUs will also establish business one-stop shops, simplify interactions for investors and collaborate with the Department of Information and Communications Technology to adopt inter-operable ICT platforms.
The EO covers all NGAs, government-owned and controlled corporations and applies to LGUs involved in the issuance of licenses, clearances, permits, certifications and authorizations that are required for projects included in the NEDA Board-approved list of IFPs.
In the end, what the EO signifies is the Marcos administration wants to aggressively advance infrastructure development as a key driver of the nation’s social and economic transformation in the next four years. (Email: [email protected])
