NTC, PNR execs back Cha-cha to lift cap on foreign ownership

State regulators of public services and executives of private power firms on Wednesday expressed support for Charter change (Cha-cha) proposals seeking certain amendments to the economic provisions of the 1987 Constitution.

Ella Blanca Lopez, commissioner of the National Telecommunications Commission (NTC) and Michael Macapagal, chairman of the Philippine National Railways both said increased foreign capital will speed up modernization in their respective industries.

“We support the initiatives of Congress and the present administration which we firmly trust will make our legal and regulatory framework more adaptive and responsive to the ever changing needs of time,” Lopez said during the third day of the public hearing on Resolutions of Both Houses 7 (RBH 7).

The resolution proposed the insertion of the phrase “unless otherwise provided by law” on at least two economic provisions of the Constitution which limits foreign ownership of businesses to 40 percent.

“The technical experience and financial capabilities of foreign corporations in maintaining and operating railway projects provide economic advantages to the country. The advanced technical knowledge that foreign corporations possess will significantly contribute to the development and modernized railway transportation system in the Philippines,” Macapagal said.

However, he noted that there is a need for subsequent legislation which will provide safeguards against abuse.

“Safeguards should be expressly provided for in the measure so as to ensure that the business will generate employment for Filipinos and prioritize the benefits of our citizens above others,”  he said.

Jose Ronald Valles, head of the Manila Electric Company’s Regulatory Management Office, meanwhile, said relaxing the limits on foreign ownership will increase investments and competition in their sector. 

“We extend full support to the objective of RBH 7, particularly on seeking to enable foreign ownership of public utilities.  We believe this measure holds a significant potential to attract substantial investment in the power (energy) sector, fostering infrastructure development and expansion, far greater competition within the industry which will potentially lead to improved service quality and lower prices for Filipino consumers,” Valles said.

MORE Power chief executive officer Roel Castro said additional foreign capital will address longstanding deficiencies in the energy sector.

“While it (limit on foreign ownership) is working as it is now, we also recognize the fact that deficiencies are needed [to be addressed] at the last mile, which is at [the end of] the distribution utility. As it is proposed, we are supportive of it (RBH 7),” Castro added.—LDF, GMA Integrated News