Following monumental reforms to welcome foreign investors, the Bases Conversion and Development Authority said it welcomes the participation of local and foreign investors in the bidding for the lease and development of a 37-hectare property in New Clark City into a large-scale solar photovoltaic power plant.

Former President Rodrigo Duterte on 2 March 2022 signed into law Republic Act 11647 amending the Foreign Investments Act allowing 100 percent foreign capital investment in domestic enterprises unless foreign participation is prohibited or limited by other laws or the Constitution.

This also applies to foreign investments in export enterprises whose products and services do not fall within Lists A and B of the Foreign Investment Negative List.

These foreign export enterprises shall register with the Board of Investments and shall submit reports on export ratio requirements.

Nationality restrictions removed

Aside from this, in November last year, the Department of Energy issued Department Circular 2022-11-0034, which amended the implementing rules and regulations of Republic Act 9513 or the Renewable Energy Act of 2008. This removed the nationality restrictions imposed on businesses engaged in the exploration, development and utilization of renewable energy sources, thereby allowing 100 percent foreign ownership in the industry.

Following policy reforms to ease ownership restrictions on renewable energy projects in the country, the BCDA said it expects more local and international developers to participate in renewable energy projects in New Clark City, including the proposed large-scale solar power plant to be located in the northernmost portion of the rising metropolis.

“Thanks to the efforts of the Marcos administration to implement policy reforms in the energy sector, foreign-owned companies are now able to participate in renewable energy projects in New Clark City without equity restrictions. This will open our bidding process to a diverse pool of competitive players from both the local and international RE industry, helping us accelerate the development of renewable energy sources in New Clark City,” BCDA president and chief executive officer Aileen Zosa said.

To be eligible in the bidding for the solar project, bidders must be corporations, joint ventures, or consortiums duly registered with the Philippines’ Securities and Exchange Commission or its counterpart in their country of incorporation.

Technical capability

Further, the state-run agency said bidders must also have the technical capability to undertake the project, with five years of track record in the business of solar power generation, design, and construction, and experience in completing similar projects with a capacity of at least 100 megawatts.

Bidders, including all its joint venture or consortium partners, its parent company, subsidiaries and affiliates should not be in default with its obligations in past or current projects with the BCDA Group, have no pending case against BCDA, and have no unpaid tax liabilities in the Philippines.

The subject property is being offered on an “as is, where is” basis, with a lease period of 25 years, renewable for another 25 years upon mutual agreement of the parties.

Interested bidders may participate in the bid by purchasing the TOR (terms of reference) for a fee of P75,000.