Foreign construction firms will soon be able to secure permits as regular construction contractors and participate in local building projects, with full equity.
The opening up of the local construction and related industry to foreigners was announced at the recent2nd EU-Philippines Business Dialogue by Secretary of Public Works Rogelio Singson.
The foreign contractors will be licensed under a new category called “Quadruple A.” the registration guidelines of which will be issued within a month.
Secretary Singson explained that the move is need-based. “The Philippines needs more foreign contractors. We are opening the Quadruple A category for foreigners so they can be granted construction permits not only on a per-project basis but so they can be registered as regular contractors.”
The foreign contractors can put up offices in the country, as regional base, and from here tap into other opportunities in other ASEAN countries as well.
The foreign contractors should be able to use the large pool of local construction skills, including engineers, technicians and other skilled workers.
Local contractors have been consulted regarding the move, Singson said. “All they are asking is that they will not be put at a disadvantage.”
During the dialogue with the local construction entrepreneurs, it was agreed that the foreign companies registering as contractors will be required a minimum investment of about P1 billion.
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