The Supreme Court last August ruled that Republic Act No. 4566 or the Contractors’ License Law does not explicitly prohibit foreign firms from participating in local government contracts to implement local projects. It struck down Section 3.1 of the law’s Implementing Rules and Regulations for disallowing foreign firms. The ruling effectively gives the go signal for foreign contractors to apply for regular contractors’ licenses putting them on equal footing with the Filipino contractors.
Davao Oriental 2nd District Representative Mayo Almario filed House Bill No. 7816 which seeks to amend R.A. 4566 “to protect our local economy and our people” by putting qualifications on foreign participation in the construction activities in the Philippines.
In his bill, the lawmaker said that foreign firms doing local projects will most likely bring into the country construction materials, equipment, and laborers - circumventing existing laws to the contrary. “Worst is that the undue advantage given to foreign contractors will inevitably result in the transfer of wealth from the Philippines to their mother countries, causing imbalance of capital and trade,” he added.
(c) Laguna Construction
Under the proposed measure, a foreign contractor may be allowed to do a local project if the Philippine Contractors Accreditation Board (PCAB) and the implementing government agency jointly certify that no local contractor is capable of doing the project especially highly technical ones like underwater subways and long stretches of tunnels. A license granted to a foreign firm should be on a per project basis only.
“To fully protect the interests of the Philippines and her people, the Filipino contractor must be given priority in local construction activities to develop his own native land, and only if he cannot do it will a foreign contractor be allowed,” concluded Almario. ###
