Green Lane for Strategic Investments Act

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES JUL 14 P4:16 First Regular Session SENATE RECENIU S. No. 589 Introduced by Senator MARK A. VILLAR AN ACT ESTABLISHING GREEN LANES FOR PURPOSES OF STREAMLINING THE PERMITTING AND LICENSING PROCESS OF STRATEGIC INVESTMENTS EXPLANATORY NOTE The 2023 World Competitiveness Ranking published by the International Management and Development (IMD) reflects that the Philippines dropped from 48th place in 2022 to 52nd for overall rank out of 63 economies and lagging behind other ASEAN members. The Philippines likewise ranks 115th out of 180 countries under the Corruption Perceptions Index in 2023 scoring only 34 against the global average of 43/100. Whereas the World Bank 2020 report on Ease of Doing Business indicates that the country now ranked 95th from 165th in 2021, but still far behind neighboring states. While such is the case, the economic managers are optimistic that the foregoing will very soon recover in light of the carefully laid out plans and aggressive measures being taken and complemented by the outpouring Total Approved Investments received in 2024. The challenge now is to ensure that these investment pledges are translated into actual investments, unhampered by bureaucratic inefficiencies. Out of the administration's comprehensive 8-Point Socioeconomic Agenda, at least five (5) directly relates to improving the economic climate in order to attract more foreign investments, sustain economic growth and ultimately accomplish the medium-term goals of the administration. One of the outcomes to be pursued under

the Philippine Development Plan 2023-2028 is to attain increased and targeted total investments to boost trade, skills upgrading, and sustainability. Specifically, this will be achieved by promoting Strategic Investment Priority Plan (SIPP) through sector-focused and company-specific promotion in target markets, developing unique locational assets especially in the rural areas and positioning the Philippines as a prime destination of foreign investments against climate change or environmental, social, and governance (ESG) investments. This bill aims to institutionalize Executive Order No. 18 also known as "An Order Constituting Green Lanes for Strategic Investments", establishing a One-Stop-Action- Center for Strategic Investments (OSAC-SI), which serves as the single point of entry for all projects qualified as Strategic Investments. Under this initiative, concerned national government agencies, including regional and provincial offices, local government units, and quasi-judicial bodies shall designate a "Green Lane" to expedite and streamline the processes and requirements for the issuance of permits and licenses of Strategic Investments endorsed by the OSAC-SI. The said Green Lane is integrated with and not duplicative of the existing one- stop shops or one-stop centers established under existing laws. Immediate passage of this bill is earnestly sought. MARK A. VILLAR PIX

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES 25 JUL 14 P4:16 First Regular Session RECEIVED on SENATE S. No. 589 Introduced by Senator MARK A. VILLAR ESTABLISHING GREEN LANES FOR PURPOSES OF STREAMLINING THE PERMITTING AND LICENSING PROCESS OF STRATEGIC INVESTMENTS Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

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

2 Investments Act.

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

promote and facilitate investments in the country, particularly Strategic Investments, which are aligned with the existing Philippine Development Plan that will improve the 6 country's infrastructure capabilities and characterized as projects with significant capital or investment, have consequential economic and positive environmental impact, with complex technical processes and engineering designs, and provides 9 significant contribution to the balance of payments of the country.

Sec. 3. Application. - This Act shall apply to all national government agencies

(NGAs), government-owned or controlled corporations (GOCCs) and instrumentalities, including Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and local government units (LGUs) involved in the issuance of permits, licenses, certifications or authorizations, and private entities imbued with public interest issuing permits and/or licenses.

Sec. 4. Strategic Investments. - Strategic Investments shall include, but not

limited to the following:

i. Highly Desirable Projects - Investment Projects recommended by the Fiscal Incentives Review Board (FIRB) to the President for modification of incentives or the crafting of the appropriate financial support package based on defined development strategies for creating high-value jobs, building new industries to diversify economic activities, and attracting significant foreign and domestic capital or investment, and the fiscal requirements of the activity or project, as provided under Section 301 of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act No. 11534 or the "Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act." ii. Foreign Direct Investments (FDI) - Foreign Direct Investments are those resulting from the implementation of the Foreign Investment Promotion and Marketing Plan, as endorsed by the Inter-Agency Investment Promotion Coordination Committee. Projects or activities under the Strategic Investment Priority Plan (SIPP) - Local or foreign investments on activities considered projects of national significance or highly desirable, and which falls under the priority sectors or industries included in the SIPP formulated by the Department of Trade and Industry-Board of Investments (DTI-BOI) and approved by the President in accordance with Section 300 of the NIRC of 1997, as amended by R.A. No. 11534. These projects cover registrations under the DTI-BOI or other Investment Promotion Agencies. Pursuant to existing BOI issuances and subject to the condition that the projects are promote innovation within the context of the 4th industrial revolution, the following are the approved and confirmed activities under the Strategic Investments Priority Plan: a) Clean Energy Sources such as renewable energy, hydrogen, nuclear, including energy storage; b) Green Metals such as mining and mineral processing; c) Electronics; d) Defense-related Projects; e) Aerospace;

f) Electric vehicles manufacturing and/or assembly including charging stations and batteries; g) Pharmaceuticals including vaccines and essential drugs and medicines included in the Philippine National Drug Formulary (PNDF); h) LNG storage and regasification; i) Public-Private Partnerships (PPP) and infrastructure Projects including agri- infra and telecommunications infrastructure j) Specialty hospitals such as centers for cancer, heart, lungs, kidneys, etc. k) Water treatment, supply and distribution 1) New products and new technologies The said list shall be subject to change which the BOI Board may deem appropriate. Projects or activities that do not qualify as Strategic Investment may be facilitated through the existing facilitation services provided by the BOI - Investments Assistance Service (IAS).

Sec. 5. Green Lane Technical Working Group (TWG). - There shall be a Green

Lane TWG which shall be composed of the following member-agencies: Chairperson : Managing Head, DTI-BOI, who shall have the rank of an Undersecretary Members Undersecretary, DTI; Undersecretary, DILG; Undersecretary, Department of Finance (DOF); Undersecretary, National Economic and Development Authority (NEDA) Undersecretary, ARTA (Anti-Red Tape Authority) Representative from the Office of the Special Assistant to the President for Investment and Economic Affairs The TWG shall have a technical secretariat, headed by the Investments Assistance Center/Service of BOI, which shall provide support to the TWG and perform functions in accordance with Section 6.

Sec. 6. Duties and Responsibilities of Green Lane TWG. - The Green Lane TWG

shall have the following functions: a) Exercise supervision on 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 and 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, until the operationalization of the digital OSAC-SI; d) Require the OSAC-SI to submit regularly or when requested, summaries and status of pending and approved applications for permits and licenses of Strategic Investments; and after due deliberation and in consultation with the DTI-BOl endorse the matter to ARTA for appropriate action; e) Acts on complaints and take appropriate actions, consistent with their respective mandates, against third-party business consultants engaged by foreign and local investors who act in violation of Republic Act No. 9485 or the "Anti-Red Tape Act of 2007", as amended or prejudice the interest of the project proponents and/or the government; and f) Exercise oversight powers over the implementation of this Act.

Sec. 7. One-Stop Action Center for Strategic Investments. - There shall be a

One-Stop Action Center for Strategic Investments (OSAC-ST) that shall serve as the single point of entry for the issuance of the required licenses and permits from Bureau of Customs (BOC), Department of Environment and Natural Resources (DENR), Department of Energy (DOE), and other NGAs and GOCCs including instrumentalities 26 and LGUs to all projects qualified as Strategic Investments. The OSAC-SI shall be under the supervision of the Investments Assistance Service of DTI-BOl. The DTI Secretary shall determine the organizational structure and pattern of the Bureau, subject to the approval of the Department of Budget and Management 31 and consistent with the civil service laws, rules and regulations.

Sec. 8. Functions of OSAC-SI. - OSAC-SI shall have the following powers and

2 functions: a) Directly receive applications for Green Lane and applications as endorsed by the Office of the President, FIRB, Inter-Agency Investment Promotion Coordination Committee (IIPCC), and DTI-BOI; b) Identify and designate projects as Strategic Investments; c) Process, evaluate and endorse for approval of the DTI Secretary the application/s for Strategic Investments; d) Address investor concerns, through coordination with the Investments Promotion Unit Network (IPU-Net) member-agencies and endorse the same to concerned NGAs, LGUs, and/or quasi-judicial bodies for the processing of permits and licenses, and monitoring and reporting of actions taken therein; e) Produce and regularly update, an investor manual of guidebook or its equivalent annually, containing the list of government requirements for the establishment for Strategic Investments, as well as the concerned NGAs, LGUs, or quasi-judicial bodies issuing the relevant permits and licenses; f) Monitor and inquire on the status of ongoing applications for permits or licenses necessary for, or related to, applications of Strategic Investments, and in relation thereto, ascertain the government agency and individuals tasked with acting on a submission of electronic document, and such individual's action or inaction thereon; g) Submit yearly reports on the implementation of this Act to the Technical Working Group (TWG) created under Section 8 and to the Congress; and h) Provide aftercare services or post-establishment facilitation services to Strategic Investments.

Sec. 9. Establishment of Green Lanes for Strategic Investments. - NGAs including

their regional and provincial offices when applicable, BARMM, LGUs, shall establish a Green Lane within their offices for purposes of expediting and streamlining the processes and requirements for the issuance of permits and licenses for Strategic Investments endorsed by the OSAC-SI. The said Green Lane shall be integrated with

1 the existing One-Stop Shops or One-Stop Action Centers established under existing 2 laws, such as R.A. No. 11534, Republic Act No. 11234 or the" Energy Virtual One-Stop 3 Shop Act" (EVOSS), and R.A. No. 11032 or the "Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (EODB)". Each government agency shall designate an account officer or person-in-charge, preferably headed by a Director or its equivalent, involved in the issuance of permits, licenses, certifications and other business-related documents. The account officer or person-in-charge shall be responsible for coordinating with 9 OSAC-SI, relevant government offices or agencies in streamlining and simplifying business permitting and licensing processes and recommending modifications or procedures that are outdated, redundant and add undue regulatory burden and cost to the transacting public, in coordination with the ARTA.

Sec. 10. Investments Promotion Unit Network (IPU-Net). - The existing IPU-Net,

composed of thirty-six (36) government agencies - the DTI, BOI, ARTA, Office of the Ombudsman, BSP, Department of Agrarian Reform (DAR), Department of Agriculture (DA), DOE, DENR, Department of Finance (DOF), Department of Foreign Affairs (DFA), Department of Health (DOH), Department of Information and Communications Technology (DICT), Department of Interior and Local Government (DILG), Department of Labor and Employment (DOLE), Department of Public Works and Highways (DPWH), Department of Science and Technology (DOST), Department of Tourism (DOT), Department of Transportation (DOTt), DENR-Environmental Management Bureau (DENR-EMB), DILG-Bureau of Local Government Development, 23 DILG-Bureau of Fire Protection, DILG-Bureau of Local Government Development, DOF-BOC, DOF-Bureau of Local Government Finance, DOF-Securities and Exchange Commission, DOH-Food and Drugs Administration, DOH-Health Facilities and Services Regulatory Bureau, DOJ-Bureau of Immigration, DOTr- Manila International Airport 27 Authority, OP-Housing and Land Use Regulatory Board, OP-National Commission on 28 Indigenous Peoples, OP-National Economic Development Authority, OP-National 29 Intelligence Coordinating Agency, and NEDA-PPP Center, shall be institutionalized to enhance a system of linkages and networking to address investor issues and concerns.

Sec. 11. Who can avail of the Green Lanes for Strategic Investments. - Any firm,

32 corporation, partnership, one-person corporation, or joint venture, duly registered

with the SEC, or in case of sole proprietorship, duly registered with the DTI, qualified 2 and whose project is endorsed as Strategic Investments in accordance with Section 4, can avail of the Green Lane services.

Sec. 12. Action on the Application. - NGAs and LGUs shall act on the applications

for the issuance of a permit or license within the prescribed processing time provided in the concerned agency or Citizen's Charter of the LGU, which shall not be longer 7 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 from the date the complete application was received. The said prescribed maximum processing period may be extended only once, provided the same is indicated in the Citizen's Charter, pursuant to Rule VII, Section 3(b) of the IRR of R.A. No. 11032. In all cases, denial of such application shall be made in writing within the same period prescribed. Consistent with Section 10 of R.A. 9485, as amended, the complete application for the issuance of a permit or license shall be deemed approved in case of failure of NGA or LGU to act within the prescribed period. Provided, That the said automatic approval shall not be applicable for applications for registration and tax incentives under R.A. No. 11534. An application shall be considered complete when all the documentary requirements indicated in the respective Citizen's Charters are submitted and the required fees and charges are duly paid. Imposition of additional requirements other than those listed in the Citizen's 23 Charter and imposition of additional costs not reflected in the Citizen's Charter shall be punished in accordance with Sections 21 and 22 of R.A. 9485, as amended.

Sec. 13. Issuance of Permits and Licenses. - After the lapse of the original or

extension period under Section 13, the NGA or LGU shall issue the requested permit 27 or license, otherwise, the DTI-BOI shall endorse the case to the ARTA. Upon receipt 28 of the endorsement, together with the presentation of the acknowledgment receipt and/or official receipt of the payment of the necessary license or permit fees, and other transaction costs, and upon due investigation and verification that the applicant has indeed fully submitted all necessary documents and paid all the required fees, 32 ARTA shall issue a declaration of completeness and order the concerned office or

1 agency to issue the appurtenant approval, extension, and/or renewal of the license, 2 clearance, permit, certification, or authorization which is deemed approved pursuant 3 to Section 10 of R.A. No. 9485, as amended by R.A. No. 11032.

Sec. 14. Provisional Permits or Licenses. - Concerned NGAs and LGUs shall have

the authority to issue a provisional approval, permit, and/or certification relating to 6 applications for permits and/or certifications necessary for, or related to, applications 7 of projects designated as Strategic Investment upon the execution of a notarized 8 Affidavit of Undertaking. Provided, That the final action on such applications shall be released within a period of thirty (30) working days from the submission of complete 10 documentary requirements and payment of all the corresponding fees, if there be any. OSAC-SI account officer shall monitor the compliance of the applicant to the 12 Affidavit of Undertaking.

Sec. 15. Simultaneous Processing of Applications. - Applications for Strategic

Investments-related permits, licenses, certifications, clearances or authorizations may be filed simultaneously with all NGAs, and their regional and provincial offices, GOCCS, 16 government instrumentalities, as well as LGUS,. Government agencies and offices that receive an application or transaction requiring permits from other government agencies or offices, shall process the application without awaiting the action of the latter agency provided there is 20 substantial compliance on the application. The agency or office shall act on the presumption that the relevant permit from other government agencies had already been issued. The applicant shall submit the Endorsement Letter together with the 23 application for permits and/or licenses to the concerned government agency, and shall execute a notarized Affidavit of Undertaking, using the template prescribed by the DTI-BOI, that it has filed the relevant documents from specific NGAs or LGUs and the 26 applicant shall submit the complete documentary requirements within thirty (30) working days from the time of execution of such Affidavit. Provided, that said Affidavit 28 of Undertaking shall be considered valid and binding between and among the proponent and government agencies unless otherwise revoked by the latter upon finding of non-compliance with laws, rules and regulations. NGA or LGU concerned shall then issue the corresponding provisional permits or licenses, with an annotation that it shall be subject to the completion of requirements covered by the undertaking.

Any violation or circumvention of the provisions of the Affidavit of Undertaking 2 shall constitute sufficient grounds for the suspension, cancellation or revocation of the 3 Certificate of Registration, Permit, License, or Certificate issued by the concerned government agency, as well as the imposition of fees as may be authorized by applicable laws, rules and regulations, and issuances.

Sec. 16. Business Continuity Plan (BCP). - All covered agencies shall provide in

its BCP, the policies and procedures that will be followed in times of system operations error. The BCP processes shall be part of their respective Citizen's Charter to be 9 submitted to ARTA and copy furnishing the OSAC-SI.

Sec. 17. Accreditation of Business Consultants. - Pursuant to its function under

11 Section 6 (e), the TWG, in consultation with concerned government agencies shall provide the criterion for accreditation of business consultants.

Sec. 18. Monitoring. - Each concerned NGA, LGU, quasi-judicial body and other

covered agencies shall prepare and submit to the DTI-BOI monthly report status of applications received and acted upon involving Strategic Investments covered under this Act.

Sec. 19. Agency Support. - All concerned NGAs, GOCCS, and instrumentalities,

LGUs, and private entities imbued with public interest issuing permits and licenses are hereby directed to provide the necessary assistance and support for the successful 20 implementation of this Act.

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

in the fulfillment of their respective mandates, with due regard to R.A. No. 11032 as 23 the general law with respect to the streamlining of processes in government agencies. Towards institutionalizing this collaborative relationship, OSAC-SI and ARTA may enter into formal arrangements detailing the scope and limitations of their partnership.

Sec. 21. 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 the project as Strategic Investments, shall immediately be executory. The proponent may file one (1) Motion for Reconsideration of the denial of application under the Green Lane directly to the Office of the DTI Secretary, within 31 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. 22. Reportorial Requirements. - The OSAC-SI submit to the President of

the Philippines and the Congress, through the DTI-BOl, a yearly report on the implementation of the Green Lane Act.

Sec. 23. 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 9 criminal, civil or other related liabilities under existing laws.

Sec. 24. Appropriations. - The amount necessary for the initial implementation

11 of this Act shall be charged against the current year's appropriations of the 12 departments/agencies concerned. Thereafter, such sums as may be necessary for the 13 continued implementation shall be included in the annual General Appropriations Act (GAA).

Sec. 25. Implementing Rules and Regulations. - Within six (6) months from the

effectivity of this Act, the DTI-BOl, in consultation with ARTA and other concerned government agencies, and other stakeholders shall promulgate the necessary implementing rules and regulations for the effective implementation of this Act.

Sec. 26. Separability Clause. - If any provision of this Act is held invalid or

20 unconstitutional, the other provisions not so declared shall remain in force and effect.

Sec. 27. Repealing Clause. - All laws, executive orders, issuances, rules and

regulations, inconsistent with this Act are hereby repealed or modified accordingly.

Sec. 28. Effectivity. - This Act shall take effect after fifteen (15) days following

its publication in the Official Gazette or in a newspaper of general circulation. Approved,