Green Lanes for Strategic Investments Act

Senate Office of the Securitary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 26 JAN 26 P3:25 SENATE RECEIVED BY: 1689 S. No. _ Introduced by SENATOR JUAN MIGUEL F. ZUBIRI AN ACT ESTABLISHING GREEN LANES TO EXPEDITE, STREAMLINE, AND AUTOMATE THE PERMITTING AND LICENSING PROCESS OF STRATEGIC INVESTMENTS IN THE PHILIPPINES EXPLANATORY NOTE The Philippines continues to lag behind its ASEAN neighbors in attracting global capital owing to its perennial problems on regulatory inefficiencies and bureaucratic complexities and delays. In 2024, the ASEAN region posted a USD 226 billion in foreign direct investments (FDI). This demonstrates global investor confidence in the region but not necessarily in the Philippines as net FDI inflows in the Philippines reached USD 8.93 billion only in the same year, according to the Bangko Sentral ng Pilipinas. This accounts for only around 4% of total FDI inflows into ASEAN. The country's small share of regional FDI is a testament to the urgent need for deeper, systemic reforms in government processes to enhance investor confidence and competitiveness, particularly in the permitting and licensing process. In this context, the adoption of "Green Lanes" for strategic investments is not only an administrative reform but a strategic necessity. The bill seeks to institutionalize one- stop and coordinated Green Lanes across national agencies, government-owned or - controlled corporations, and local government units, among others, for Strategic Investments, i.e. projects that are high-impact, employment-generating, technologically advanced, or essential to national development priorities. While several key laws have attempted to address red tape and promote investments already, bottlenecks still persist because implementation and regulatory compliance remains burdensome, fragmented, and unpredictable. Agencies maintain separate procedures,

overlapping requirements are not eliminated, and LGUs vary widely in capability and compliance. This discourages investors seeking certainty, speed, and predictability. To unlock the full potential of the Philippine investment environment, there is thus an urgent need for a Green Lane system that is (1) national in scope, (2) technology- enabled, and (3) mandatory across government levels. In view of the foregoing, the immediate passage of this bill is earnestly sought. JUAN MIGUEL F. ZUBIRI

Senate TWENTIETH CONGRESS OF THE ens Office of the Secretary REPUBLIC OF THE PHILIPPINES ) ) First Regular Session 26 JAN 26 P3:25 SENATE RECEIVED BY: 1689 S. No. _ Introduced by SENATOR JUAN MIGUEL F. ZUBIRI AN ACT ESTABLISHING GREEN LANES TO EXPEDITE, STREAMLINE, AND AUTOMATE THE PERMITTING AND LICENSING PROCESS OF STRATEGIC INVESTMENTS IN THE PHILIPPINES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Green Lanes for Strategic

Investments Act".

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

promote and facilitate strategic investments in the country that are aligned with the Philippine Development Plan or similar national development frameworks, and which contribute to significant economic growth, sustainable environmental outcomes, accelerated employment generation, and enhanced innovation in processes and designs. 9 To strengthen the country's investment climate, there is a need to reduce undue regulatory burden and ensure the expedited, transparent, and automated processing of permits and licenses for strategic investments.

Sec. 3. Coverage. - This Act shall cover all national government agencies and

their regional and provincial offices, government-owned or -controlled corporations, and other government instrumentalities, the Bangsamoro Autonomous Region in Muslim Mindanao, as well as local government units (LGUs), hereinafter collectively referred to as covered agencies, involved in the issuance of permits, licenses, certifications, endorsements, clearances, approvals, or authorizations identified in the implementing rules and regulations of this Act and required to promote or facilitate strategic

investments in the country, hereinafter collectively referred to as permits or licenses, and private entities imbued with public interest issuing such permits or licenses.

Sec. 4. Strategic Investments. - For purposes of this Act, strategic investments

5 shall include, but shall not be limited to, the following: (a) Highly Desirable Projects or investment projects recommended by the Fiscal Incentives Review Board (FIRB) to the President for modification of incentives or grant of appropriate financial support package based on defined development strategies that will create high-value jobs, build new industries to diversify economic activities, and attract significant foreign and domestic capital or investment; (b) Foreign direct investments under the Foreign Investment Promotion and Marketing Plan (FIMP), as endorsed by the Inter-Agency Investment Promotion Coordination Committee (IIPCC); and (c) Projects or activities, whether local or foreign, that are classified under the Strategic Investment Priority Plan (SIPP) as nationally significant and highly desirable. Projects or activities that do not qualify as strategic investments may avail of the assistance provided through the existing facilitation services of the Investments Assistance Service of the Department of Trade and Industry (DTI)-Board of Investments (BOI).

Sec. 5. Establishment, Designation and Maintenance of Green Lanes for Strategic

Investments. - All covered agencies and private entities imbued with public interest under

Section 3 of this Act shall establish, designate, and maintain green lanes for strategic

investments by creating green lane units within their respective offices, which shall facilitate, expedite, and streamline the processes and requirements for the issuance of permits or licenses of qualified strategic investments endorsed by the One-Stop Action Center for Strategic Investments (OSAC-SI) created under Section 12 of this Act: Provided, That the green lanes shall be integrated and shall not be duplicative of the existing one-stop shops or one-stop action centers established under existing laws.

All covered agencies shall designate an account officer in the Green Lane unit, preferably headed by a Director or its equivalent involved in the issuance of permits or licenses. The account officer shall coordinate with the OSAC-SI, the Anti-Red Tape Authority (ARTA), and other relevant government agencies or offices to streamline and 5 simplify business permitting and licensing requirements and processes, and to recommend modifications to procedures that are outdated, redundant, or impose undue regulatory burden and cost. Private entities imbued with public interest shall likewise identify and designate a qualified officer who shall have the authority to fulfill the duties mandated by this Act.

Sec. 6. Availment of the Green Lanes for Strategic Investments. - Any firm,

corporation, partnership, one-person corporation, or joint venture, duly registered with the Securities and Exchange Commission (SEC) or, in case of sole proprietorship, duly registered with the DTI, whose project or activity qualifies as strategic investments in accordance with Section 4 of this Act, may avail of the green lanes provided by the covered agencies in processing their permits or licenses.

Sec. 7. Action on the Application. - Pursuant to Republic Act No. 11032, or the

"Ease of Doing Business and Efficient Government Service Delivery Act of 2018," covered agencies shall act on the applications for the issuance of a permit or license within the prescribed processing time provided in the respective Citizen's Charter of each covered agency, which shall not be longer than three (3) working days in the case of simple transactions, seven (7) working days in the case of complex transactions, and twenty (20) working days for highly technical transactions, all reckoned from the date the complete application was received. The said prescribed maximum processing period may 27 be extended only once for the same number of days. In all cases, denial of such application shall be fully explained in writing within the same period prescribed and shall state the name of the person making the denial and the grounds upon which the denial is based. When applicable, the denial of application shall cite the remedial measures that may be taken by the applicant. The complete application for the issuance of a permit or license shall be deemed approved in case of failure of a covered agency to act, whether to approve or disapprove, on said application. An application shall be considered complete when all the

documentary requirements enumerated, at the time of the application, in the respective 2 Citizen's Charters of each covered agency are submitted and the required fees and charges, if any, are duly paid: Provided, however, That applications for registration and availment of incentives under the National Internal Revenue Code of 1997, as amended 5 by Republic Act Nos. 11534 and 12066, shall not be deemed approved in case of failure 6 of the covered agency to act on said application. Imposition of additional requirements other than those listed in the Citizen's Charter and imposition of additional costs not reflected in the Citizen's Charter shall be punished in accordance with Sections 21 and 22 of Republic Act No. 11032.

Sec. 8. Issuance of Permits or Licenses Deemed Approved. - Pursuant to Republic

Act No. 11032, after the lapse of the original or extension period under Section 7 of this Act, the covered agency shall issue the requested permit or license; otherwise, upon the written request of an applicant, the DTI-BOI shall endorse the case to the ARTA. Upon receipt of the endorsement, together with the presentation of the acknowledgment receipt or official receipt of the payment of the necessary permit or license fees, and other transaction costs, and upon due investigation and verification that an applicant has indeed fully submitted all necessary documents and paid the required fees as indicated in the Citizen's Charters of the covered agency, the ARTA shall consider the application as deemed approved and shall issue a declaration of completeness, directing the concerned covered agency to issue the corresponding approval, extension, or renewal of the permit or license.

Sec. 9. Provisional Permits or Licenses. - Covered agencies and offices within the

agency shall have the authority to grant conditional or provisional approval of applications, and issuance of provisional permits or licenses required for projects or activities designated as strategic investments, upon submission of a notarized affidavit of undertaking, pursuant to Section 10 of this Act; Provided, That final action on such applications shall be issued within thirty (30) working days from the submission of complete documentary requirements and payment of all corresponding fees and charges, if any. This provision shall cover permits or licenses issued by covered agencies provided that the proponent has complied with the substantial requirements for the permits or licenses.

Sec. 10. Simultaneous Processing of Applications. - Applications for the issuance

3 of permits or licenses for projects or activities that qualify as strategic investments may be filed simultaneously with covered agencies and private entities imbued with public 5 interest involved in the issuance of such permits or licenses. Covered agencies shall process such applications without awaiting the prior action of other agencies or offices, on the presumption that the relevant permits or licenses, or requirements, from other agencies have already been complied with. The applicant shall submit an endorsement letter from OSAC-SI and a notarized affidavit of undertaking declaring that the application has been filed with the covered agencies and that the complete documentary requirements shall be submitted within thirty (30) working days from the execution of such affidavit. The covered agencies shall then issue the corresponding provisional permits or licenses, with a clear annotation that such issuance is subject to the completion of the requirements covered by the affidavit of undertaking. The provisional permit or license shall also indicate: (a) the final permit/s or license/s shall be issued upon submission of the lacking documents; and (b) the period of validity of such provisional permit or license. The affidavit of undertaking shall be deemed valid and binding between and among the applicant and the concerned covered agencies, unless revoked by the agency upon a finding of non-compliance with applicable laws, rules, and regulations. The covered agencies may coordinate with other relevant offices to verify the status of related applications to avoid undue delays and costs. Any violation or circumvention of the provisions of the affidavit of undertaking shall constitute as sufficient grounds for the suspension, cancellation, or revocation of the certificate of registration, permit or license issued by the concerned covered agency. The covered agency may also impose penalties or fees as authorized under relevant laws, 36 rules, and regulations.

Sec. 11. Administrative Relief. - All orders or decisions of the OSAC-SI in cases

involving the provisions of this Act such as, but not limited to, qualification and registration of projects or activities as strategic investments shall immediately be executory. The applicant may file one (1) motion for reconsideration of the denial of its application under the green lane directly to the Office of the DTI Secretary, or to the Office where such function is delegated, within five (5) working days from receipt of the written notice denying the application. The DTI Secretary shall resolve the same within seven (7) working days from the receipt of the motion.

Sec. 12. Creation of the DTI-BOI One-Stop Action Center for Strategic

14 Investments. - A One-Stop Action Center for Strategic Investments (OSAC-SI) is hereby created under the DTI-BOI, which shall serve as the primary point of entry of strategic investments for green lane processing. Applications registered with Investment Promotion Agencies (IPAs) other than the DTI-BOI shall be submitted to the concerned IPA. For incentives purposes, qualified projects can apply with any of the IPAs.

Sec. 13. Powers and Functions of the OSAC-SI. - The OSAC-SI shall have the

following powers and functions: (a) Serve as the primary point of entry for all projects and activities qualified as strategic investments; (b) Receive applications for green lane processing, whether submitted by investors or endorsed by the Office of the President, FIRB, IIPCC, or DTI- BOI; (d) Process, evaluate, and endorse for approval of the DTI Secretary applications for strategic investments; (e) Endorse the processing of permits or licenses of qualified strategic investments to the green lane of appropriate covered agencies upon approval of the DTI Secretary;

(f) Monitor the status of ongoing applications by identifying the responsible agencies, offices, or personnel, and verifying the corresponding actions or inactions taken thereon; Address investor concerns and facilitate the timely issuance of permits or (g) licenses; (h) Provide aftercare or post-establishment facilitation services to strategic investments to ensure continued compliance and operational support; (i) Produce and regularly update an investor manual, guidebook, or its equivalent, containing a comprehensive list of requirements, agencies, and private entities involved in the approval of strategic investments; and (i) Submit monthly reports on the implementation of this Act to the DTI-BOI and to Congress.

Sec. 14. Green Lane Technical Working Group. - A Green Lane Technical Working

Group (TWG) is hereby created to be composed of the following: (a) Managing Head of the DTI-BOI as Chairperson; (b) Undersecretary of the DTI; (c) Undersecretary of the Department of the Interior and Local Government (DILG); (d) Undersecretary of the Department of Finance (DOF); (e) Undersecretary of the Department of Economy, Planning, and Development (DEPDEV); (f) Undersecretary of the ARTA; and (g) Representative from the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA). The Investments Assistance Service of DTI-BOI shall provide technical and secretariat support to the Green Lane TWG.

Sec. 15. Duties and Responsibilities of the Green Lane TWG. - The Green Lane

TWG shall have the following functions: (a) Regulate policies for the effective implementation of this Act;

(b) Ensure that all key and relevant issues and concerns affecting the delay in the processing of permits or licenses for strategic investments are addressed; (c) Meet semi-annually or at any time as may be determined by the Chairperson or upon the recommendation of the technical secretariat; (d) Require the OSAC-SI to submit regularly, or when requested, summaries and status of pending and approved applications for permits or licenses of strategic investments and, after due deliberation and in consultation with the DTI-BOI, endorse the matter to the ARTA for appropriate action; and (e) Exercise oversight powers over the implementation of this Act.

Sec. 16. Establishment of the Portal for Strategic Investments. - The Department

of Information and Communications Technology (DICT), in consultation with OSAC-SI and the ARTA, shall establish a Single Portal for Strategic Investments (SPSI), which shall serve as the point of entry of strategic investments; Provided, that such portal shall involve the integration of any existing government portals processing permits or licenses. The DICT shall also assist in the development of a platform or feature to facilitate online applications for pertinent government-issued documents including the permits or licenses which are necessary for the registration and operation of strategic investments. Information dissemination campaigns shall also be undertaken by the DICT and the DTI-BOI, in coordination with other covered agencies, to raise public awareness on the use of said portal.

Sec. 17. Access to Energy Virtual One-Stop Shop (EVOSS). - The EVOSS

Secretariat, in coordination with the OSAC-SI, shall integrate the application of energy- related projects that qualifies as strategic investments to the EVOSS System. In the same manner, such energy-related projects shall lodge their applications, requests, and payments of applicable fees to the EVOSS System. The OSAC-SI shall have access to EVOSS for monitoring of energy-related projects enrolled in the EVOSS. Processing of permits or licenses of covered agencies whose processes are not yet enrolled in the EVOSS shall be covered under this Act.

Sec. 18. Business Continuity Plan (BCP). - All covered agencies shall provide in

its Business Continuity Plan, the policies and procedures that will be followed in times of

system operations error. The BCP processes shall be part of the agency's Citizen's Charter to be submitted to the ARTA, copy furnished the OSAC-SI.

Sec. 19. Reportorial Requirements. - All covered agencies shall prepare and

5 submit to the DTI-BOI monthly report status of applications received and acted upon 6 involving strategic investments covered under this Act, copy furnished the OSAC-SI. All covered agencies shall also submit to the Green Lane TWG, through the technical secretariat, a monthly report containing the following: (a) progress of initiatives identified in the implementation of this Act; and (b) problems encountered, actions taken, and recommended ways forward. The DTI-BOI shall submit monthly reports on the implementation of this Act to 14 both Houses of Congress.

Sec. 20. Relationship with the ARTA. - The OSAC-SI and the ARTA shall assist

each other in the fulfillment of their respective mandates in introducing regulatory reforms in government agencies, with due regard to Republic Act No. 11032 or the "Ease of Doing Business and Efficient Government Service Delivery Act." The OSAC-SI and the ARTA may enter into formal arrangements detailing the scope and limitations of their partnership.

Sec. 21. Appropriation. - The amount necessary to carry out the initial

implementation of this Act shall be charged against the current year's appropriations of the DTI-BOI. Thereafter, such sums as may be needed for its continued implementation shall be included in the annual General Appropriations Act

Sec. 22. Sanctions. - Failure to comply with the provisions of this Act shall be a

ground for administrative or disciplinary sanctions against any erring public official or employee as provided under existing laws and regulations, without prejudice to criminal, civil, or other related liabilities under existing laws.

Sec. 23. Implementing Rules and Regulations. — Within ninety (90) days from the

effectivity of this Act, the DTI-BOI, in consultation with the ARTA and appropriate government agencies and offices and other stakeholders, shall promulgate the necessary rules and regulations to implement this Act.

Sec. 24. Separability Clause. If any provision of this Act is declared invalid or

unconstitutional, the other provisions not affected thereby shall remain in full force and effect.

Sec. 25. Repealing Clause. All orders, issuances, rules, and regulations, or parts

thereof, that are contrary to, or inconsistent with, the provisions of this Act are hereby repealed, modified, or amended accordingly. This Act is consistent with, and shall not supplant, the streamlining initiatives of government agencies covered by previously issued executive orders.

Sec. 26. Effectivity Clause. Notwithstanding the non-issuance of the IRR, this Act

shall take effect fifteen (15) days after the publication in the Official Gazette or in a newspaper of general circulation. Approved,