Red tape slayer bets on green lane

Red tape slayer bets on green lane | Daily Tribune

The crusade against red tape is a unified call toward creating a more conducive environment for investments and infrastructure development in the Philippines, a top investment banker pointed out.

Bureaucratic hurdles have long been a barrier to growth, stifling potential investments and slowing down development.

As the country seeks to attract more capital for critical sectors like power, transportation and public infrastructure, the call to cut through red tape has become increasingly urgent.

BDO Capital & Investment Corp. president Eduardo Francisco has identified among the most pressing issues in the Philippine power sector are red tape and bureaucratic hurdles that hinder investments.

In a recent forum, Francisco pointed out how such challenges are currently slowing down infrastructure and energy projects, urging the government to take more decisive steps to streamline processes.

Francisco emphasized the importance of initiatives such as the Board of Investment’s (BOI) green lanes and the involvement of the Public-Private Partnership (PPP) Center and the National Economic and Development Authority (NEDA) in enticing blue-chip investments.

He said the collective efforts aim to prioritize private sector infrastructure projects — especially those that are unsolicited — by listing them as part of the NEDA flagship projects.

Once included, these projects gain access to streamlined processes with elevated oversight, minimizing delays caused by local government units (LGUs) or other obstacles.

“There’s a concern more about red tape and everything else but hopefully, those are being fixed and being addressed by the green lanes.”

“There’s this thing that the PPP and the NEDA are doing where they’re working on getting private sector infrastructure flagship projects, not even solicited, purely private sector, part of the NEDA list,” Francisco said.

“The benefit there, if you get in that list, you probably have priority access, somebody watching it over so that as each of their delays at the LGU (local government unit), somebody’s making it difficult for you, it will be elevated to the top.”

Despite some progress — such as reducing the number of required signatures from 265 to 165 — Francisco stressed that much work remains.

“While it’s been reduced, from 265 to 165 signatures, it’s still a lot. So we want to reduce that further, but there’s improvement,” he said.

Francisco also acknowledged the complexities of power projects, particularly when developers have to invest in their grid connections, which later might be absorbed by the National Grid Corporation of the Philippines (NGCP). This, he said, adds a significant financial burden on developers, creating further barriers to rapid project development.

BOI data as of September showed that green lane certifications to 126 projects totaling P4.13 trillion had been granted to streamline the processing of permits and licenses across national government agencies and local government units.

Of these projects, 114 are renewable energy (RE) initiatives, with a combined value of P3.74 trillion. Additionally, 36 RE projects worth P1.64 trillion have already been registered with the BOI to benefit from both fiscal and non-fiscal incentives.

Many of these high-value projects under the Green Lane initiative focus on offshore wind energy.

Infra maximizes potential

Francisco emphasized the immense potential of the economy to grow through strategic investments in infrastructure, particularly in the energy sector.

He highlighted the strong interest from foreign investors in the country, especially in large-scale energy projects.

“Many foreign investors, like the French, some Canadians, the Japanese, and the Chinese, are coming here in the Philippines as engineers or as consultants,” he said.

Offshore wind projects, in particular, are garnering significant attention. “We are talking to a lot of these groups for offshore wind. These are huge projects. It is fascinating,” he added.

The increased openness in the energy sector and government efforts to streamline the regulatory process have created a favorable environment for large-scale investments.

Favorable government initiatives support the push for infrastructure development, which Francisco recognized as instrumental in attracting these investments.

Recent policy reforms, such as the Public Service Act and Renewable Energy Act amendments, have opened doors for greater foreign participation in the energy, telecom and transportation sectors.

“These reforms are making it easier for foreign companies to come in and invest in critical areas, such as renewable energy. The government is taking steps in the right direction,” Francisco held.

Aimed at enhancing the ease of doing business and improving the country’s infrastructure, these reforms align with the broader goals of energy security and sustainable development.

The renewable energy (RE) potential, backed by foreign investments and government support, is not just a key, but a promising solution to addressing future energy demands and boosting the economy.

Francisco’s insights at the summit underscore the increasing confidence in the Philippines’ economic potential and highlight the vital role of infrastructure, especially in renewable energy, in fostering long-term growth.

As foreign investors show heightened interest in contributing to and benefiting from the country’s expanding economy, he declared BDO Capital continues to lead the way in facilitating partnerships and funding for transformative projects, instilling confidence in the investment process.