on lifting foreign equity restrictions for epc contractors

ON LIFTING FOREIGN EQUITY RESTRICTIONS

FOR EPC CONTRACTORS

A position paper prepared by the Philippine Constructors Association, Inc. (PCA) August 2011

September 2011 Page 1 of 12

POSITION PAPER ON LIFTING FOREIGN EQUITY

RESTRICTIONS FOR EPC CONTRACTORS I. Foreword: The Construction Industry Authority of the Philippines (CIAP) Technical Working Group (TWG) held a special meeting last Sept. 8, 2011 at the CIAC Conference Room, 2/F Executive Bldg., Sen. Gil Puyat cor. Makati Ave. Makati, Metro Manila to take up the PCA Position Paper on Foreign Equity Restrictions in Construction Contracting in the Philippines. The paper discussed how foreign construction companies may participate in PPP projects as an Engineering, Procurement, and Construction (EPC) firm for larger project. The PCAB opined that not all of the recommendations were applicable to Private Construction EPC Projects and therefore there was a need to extend the study also to Private Construction EPC Projects.

The PCAB will also make its position and recommendations to cover both the PCA Position Paper including a study on lifting foreign equity requirements for EPC Contractors who wish to engage in Private Construction during the next CIAP Board Meeting.

To help arrive at the position of the PCAB in the study and the deliberation of the different issues involving foreign equity requirements for the proposed Engineering Procurement and Construction (EPC) Contractors, the same criteria proposed and accepted during the TWG meeting shall be used. These are as follows:

A. Presence of an agreeable legal basis

B. Promotion and development of the Local Construction Industry (PD 1746 created

the CIAP to “promote, accelerate, and regulate the growth and development of the

Construction Industry”)

C. Adequate safeguards must be provided for Public Safety and assurance to the 15 year liability period as mandated by the New Civil Code Art. 1723

D. Compliance with Legal Standards (SEC, BIR, DOLE, Registration with SSS, Phil

Health, Pag-Ibig, etc.) that are required from Local Contractors shall also be

required from Foreign Contractors

II. ANALYSES

The PCA Position Paper

a. The PCAB agrees with the PCA Position paper that foreign participation in construction contracting companies who will invest (as a proponent) and/or engage (as proponent and constructor) in PPP projects in the Philippines especially in areas where there is limited local capacity.

b. The PCAB poses no objections to the lifting 100% foreign equity restrictions for foreign constructions companies participating in PPP projects since this clearly already provided for under the Philippine BOT Law in RA 7718.


c. The PCAB also supports the recommendation of the PCA paper to De-list “Foreign Proponents” from the Negative List B of EO 858 for PPP projects and the re-classification of “Facility Operators” because they are not part of Construction Services.

d. The PCAB does not object in the creation of a new Specialty Contractor called the EPC Contractor. However, since this is not currently defined in the Implementing Rules and Regulations, an amendment may have to be initiated to provide the proper legal framework and basis before being adopted.

e. The PCAB also supports the suggested capitalization structure requirement of the EPC Contractor of Php 1 Billion Pesos.

f. The PCAB supports the position paper of the PCA to limit participation of the foreign construction companies for EPC Projects not lower than 10 Billion Pesos. Subsequently, there was a request from the DTI Secretary to bring this value down to 5 Billion Pesos and the PCAB also has no objections.

g. The PCAB supports the position paper of the PCA with the exception of Item 3 which recommends the creation of a 4-A Category for EPC for the following reasons:

i. Sec. 16 of RA 4566 provides for the three main classifications of the contracting business namely, General Engineering, General Building, and Specialty. These are properly defined under Section 9 clauses c, d, and e. The main classifications are further sub-classified under Sec. 5.1 of the IRR. Sec. 5.6 of the IRR defines the Construction Categories as AAA, AA, A, B, C, D, and Trade.

The creation of a new 4-A category may be considered but the existing IRR will have to be amended to provide the proper legal framework.

The creation of EPC as a new main classification will require the law to be changed as it is not provided for in RA 4566. As an alternative, a sub-classification of EPC under the main classifications of Specialty, General Engineering, and/or General Building can be created because the board is empowered to add to the existing sub-classification under Sec. 5.1 of the IRR.

ii. Since Regular Licenses are issued only to Filipino Corporations, only a special license may be issued to the foreign contractors.

iii. It is only fitting that a Special License be issued to Foreign Contractors doing EPC Contracting engaging in PPP Projects because this is a special type of construction.

h. There are many types of EPC Contracts and their Classifications may vary on the type and scope of work to be carried out. They may be of General Building, General Engineering, Mechanical, Electrical, any specialty work, or even a combination of the different classifications and sub-classifications. Therefore, the provision of a licence to a foreign contractor who wishes to do EPC Contracting for PPP may still be considered using whatever present sub-classifications that are already available under the existing IRR.


EPC Contractor for Private Construction

In analyzing the need or viability of establishing licenses for EPC Contractors, the criteria will now be used as a basis. A. Legal Basis

The discussions on the PCA Position Paper per Item g.i, regarding the creation of a new classification, sub-classification and/or category apply also to foreign contractors who wish to engage in EPC projects for private construction.

1. NATIONALITY REQUIREMENTS

Section 5 of RA 4566 Pursuant to the power and duty conferred by law, the Board promulgated the IRR which under PD 1746, was confirmed by the CIAP and as required further by RA 4566, endorsed to the Office of the President for approval. The IRR was approved by the President on 31 March 1989.

a. License Types

Section 3.1 of the IRR describes the License types currently instituted and designated:

i. The Regular License

“Regular License” is issued to a domestic construction firm which is reserved for and issued only to constructor-firms of Filipino sole proprietorship, or partnership/corporation with at least seventy percent (70%) (Adjusted to 60% under Art. 48 of Chapter III, Book II of

the Omnibus Investment Code of 1987) Filipino equity participation

and duly organized and existing under and by virtue of the laws of the Philippines.

ii. The Special License

“Special License” means a License of the type issued to a joint venture, a consortium, a foreign constructor or project owner which shall authorize the Licensee to engage only in the undertaking of a single specific undertaking/project. In case the licensee is a foreign firm, the licensee authorization shall be further subject to condition(s) as may have been imposed by the proper government authority in the grant of the privilege for him to so engage in construction contracting in the Philippines. Annual renewal shall be required for as long as the undertaking/project is in progress, but shall be restricted to only as many times as necessary for the completion of the same.

The following can qualify only for the Special License:

A joint venture, consortium or any such similar association organized for a single specific undertaking/project;

A foreign firm legally allowed by the proper Philippine government authority to undertake construction activities in the Philippines.


A project owner undertaking by himself, sans the services of a constructor, the construction of a project intended for sale, lease, commercial/industrial use or any income generating purpose.

b. Cases where 100% Foreign Equity is currently allowed for projects under International Competitive Bidding (ICB) where there is a bi-lateral agreement or under the Philippine BOT Law in RA 7718.

2. NATIONALITY AS A CRITERION

a. Practice of Profession

i. Philippine Constitution, Art. 12, Sec. 14

“The practice of all professions in the Philippines shall be limited to Filipino citizens save in cases prescribed by law.”

ii. Explanatory Note of RA 4566

The Explanatory Note which listed contractors as among the list of professionals namely: civil engineers, architects, physicians, dentists, etc. clearly reflects the legislative intent to regulate construction contracting as practice of profession.

Manuel T. de Guia v. Commission on Elections G.R. No. 104712, May 6, 1992

“As it has been held, the key to open the door to what the legislature intended which is vaguely expressed in the language of a stature is its purpose or the reason which induced it to enact the statute. If the statute needs construction, as it does in the present case, the most dominant in that process is the purpose of the act. Statutes should be construed in the light of the object to be achieved and the evil and mischief to be suppressed and they should be given such construction as will advance the object, suppress the mischief and secure the benefits intended.”

Sec. 2, RA 4566

The intent of the statute to classify construction contracting as a profession was given effect in this section by placing the then (PLBC), Philippine Licensing Board for Contractors under the Board of Examiners, the present Professional Regulations Commission (PRC).

PLBC was changed to PCAB and transferred to DTI under PD 1746 as an administrative measure.

RA 465 as amended by RA 6511

By inference, construction was considered a profession by including contractors in its enumeration of professionals.


3. VALIDITY OF THE NATIONALITY REQUIREMENT AS PART OF THE IRR

a. The IRR was issued in accordance with the provisions of RA 4566. Legally therefore it has become part and parcel of the law. Any amendment thereto should undergo the same process.

b. The IRR has not been declared void nor unconstitutional by a competent court, nor ultimately by the Supreme Court. The same therefore remains valid.

4. INTERIM LICENSES

a. The only instance allowed by the IRR is the issuance of a provisional license under 6.7 thereof, but the same refers only to final resolution of renewal applications with deficiencies in either or both technical/financial qualifications.

b. Likewise, a temporary license is also issued to a renewal applicant pursuant to Sec. 18, Book VII of the Administrative Code which provides for non-expiration of the license until the determination of the renewal application if the licensee has made a timely and sufficient application for the renewal of the license.

c. For lack of legal basis, the Board cannot issue any form of interim license to a new applicant.

5. AMENDING THE IRR: IMPLEMENTATION of RA 4566 AS AMENDED BY PD 1746

a. PCAB issues amendments to the IRR of RA 4566

b. CIAP confirms the amendments and endorses the same to the Office of the President for approval.

c. The President approves the amendments.

d. The amendments shall take effect fifteen (15) days from filing of three (3) certified copies thereof with the Office of the National Administrative Register, U.P. Law Center

B. Will lifting the foreign equity restrictions for EPC contractors promote, accelerate, and

regulate the growth and development of the Construction Industry?

1. Limited local technology and/or capability

Currently there are already several local Contractors engaged in doing EPC. The projects vary with the nature and size. Generally speaking, undertaking by a local construction company is to be encouraged for private construction especially for locally funded projects.

The board recognizes that the promotion and acceleration of the development of the local Construction Industry can only be achieved in areas where there is limited local technology or capability. This is the rationale for the proposed Board Resolution allowing up to 95% foreign equity for construction activities


where there is limited technology or capability. This BR has no limitations in as far as amount or size of project is considered and is only dependent on the whether there is limited technology and/or capability.

The reason for encouraging foreign companies to form joint ventures with local contractors is to ensure that transfer of technology and to safeguard public interest and safety after the project is completed and turned over.

The parameters on its implementation require further study and a divestment plan similar to the proposal on the PCA Paper can be considered. In its implementation, we also need to consider how to determine if there is limited technology and/or capability.

Filipinos engaging in projects with limited technology and/or capability under a Sub-contract arrangement is not advisable because technology transfer would be difficult to achieve due to the natural tendency for the foreign main contractors to sub-contract works with defined scopes. A sub-contractor would only perform the works under his scope and this would not guaranty that he would have anything to do with the works involving the technology that is not available.

2. For Projects Php 5 Billion and above

On the proposal of putting a cap of 5 Billion Pesos as the minimum amount to allow the entry of foreign contractors, let us evaluate the project amounts undertaken by local contractors.

Project Amount Status

1. South Metro Manila Skyway Stage 2 Php 8,048,690,850.93 98.94% Completed

2. Istana Nurul Iman Palace, Brunei USD 222,000,000.00 Completed 1983

3. Solaire Manila Entertainment City Php 9,250,856,608.00 On-going

4. St. Luke’s Medical Center Fort Bonifacio

6.B Completed

5. Design and Build of Sta. Rita 1000MW Combined Cycle Plant with 33km overhead transmission line

2.5B Completed

6. One Rockwell Php 7.2 B 98% complete

7. One Shangri-La Php 8.89 B On-going

8. Discovery Primea 5.2 B On-going

From the above table, we can conclude that there are local contractors that are able to undertake larger projects given the opportunity.

It is also evident that our contractors are interested and capable of entering into JV for special projects.

The trend for some local contractors is to be more active in special projects through JV with foreign companies as they are shortlisted in some bids for 3


wind farm projects worth more than PhP5B each and some large scale water treatment plants worth about 2.5B.

3. Prevailing Practice in other ASEAN Countries

It would also be good to look at current practise in our neighboring ASEAN Countries specifically for Private Construction.

Brunei. Indonesia, Malaysia, Thailand and Vietnam require some form of Joint Venture as a condition for foreign contractors to do business for private domestic construction.

Only Singapore appears to be full open to foreign contractors. It may be worth mentioning however that the construction industry in Singapore appears to be dominated by foreign contractors.

Myanmar and Laos have no clear policies on foreign contractors operating for domestic private construction as their policies are more geared towards foreign investments.

Please see the attached Summary of Existing Regimes of ASEAN Member Countries

prepared by the Philippine Overseas Construction Board.

This is confirmation that our current practice and recommendation of encouraging foreign contractors to form joint ventures with local companies is a consistent policy with majority of our ASEAN neighbors.

4. Government support is essential in providing the local contractors the exposure in more complex projects and larger scale so that they can be encouraged to capitalize and develop.

C. Public Safety

In discussing Public safety, we must also consider Public Policy/National Interest that are provided for by law.

1. Declaration of Principles and State Policies

Philippine Constitution, Art. 2, Sec. 19

The state shall develop a self-reliant and independent national economy effectively controlled by Filipinos.

2. Civil Code, Art. 1723

Contractor’s Liability/Warranty

“The engineer or architect who drew up the plans and specifications for a building is liable for damages if within fifteen years from the completion of the structure, the same should collapse by reason of a defect in those plans and specifications, or due to the defects in the ground. The contractor is likewise responsible for the damages if the edifice falls, within the same period, on account of defects in the construction or the use of materials of inferior quality furnished by him, or due to any violation of the terms of the contract. If the engineer or architect supervises the construction, he shall be solidarily liable with the contractor.” (underscoring supplied)


Without the significant Filipino component, enforcing the warranties and liabilities of contractors under the law would be most difficult as the foreign contractor could simply fold up and leave the Philippines without a trace.

In the interest of publics safety, and to ensure compliance with Art. 1723 of the New Civil Code, it is not recommended to completely lift the foreign equity restrictions for Contractors in general. We must also be consistent with the Declaration of the Principles and State Policies of the Philippine Constitution.

Due consideration to Public Policy and National Interest must be given careful consideration especially in construction activities where there is limited local capability to promote technology transfer.

D. Compliance with Legal Standards

In order to comply with legal standards, we recommend the following:

1. Foreign Companies wishing to engage in construction in the Philippines must be registered with the Securities and Exchange Commission (SEC).

2. Foreign Companies shall also be subject to compliance with the local Contractor’s Licensing Law under RA 4566, PD 1746 and its Implementing Rules and Regulations.

3. Foreign Companies shall be subject to the usual taxes provided by law that covers all local construction contractors including VAT.

4. Foreign Contractors shall also be subjected to all other regulatory requirements including but not limited to the legal requirements of Department of Labor and Employment (DOLE), Department of Environment and Natural Resources (DENR), Bureau of Internal Revenue (BIR), National Building Code, Department of Immigration, Registration with the Social Security System, Phil-Health and Pag-Ibig, among others.

III. SUMMARY

a. The PCAB sees no legal impediment in licensing a foreign contractor with 100% foreign equity who wishes to engage in EPC Contracts for PPP Projects since this is specifically already provided for under the Philippine BOT Law in RA 7718, provided they are categorized and classified within the existing legal framework.

b. The creation of a sub-classification of EPC under the main classifications of Specialty, General Engineering, and/or General Building can be created because the board is empowered to add to the existing sub-classification under Sec. 5.1 of the IRR.

c. creation of a new 4A category will require an amendment of the IRR.

d. Under the present framework of the IRR, there is no legal basis for granting a license, regular or special, to a foreign constructor who wishes to undertake a private construction project.

e. Construction, while a business, is still considered a practise of profession and is therefore subject to nationality requirements consistent with the IRR.


f. No form of interim/provisional/temporary license can be issued to a new applicant.

g. There is a need to consider relaxing the current policies on foreign contractors entry into the Philippines for the purpose of encouraging technology transfer and capacity building of local contractors. This can provide certain benefits to promote and accelerate the growth and development of the Construction Industry.

h. Joint Ventures are to be encouraged compared to Sub-Contracts.

i. There are a number of local contractors who are capable of doing projects between 5-10 Billion pesos in amount.

j. There are some contractors who have already started to develop by joint venture arrangements in specialized construction with foreign contractors.

k. Government support is essential in providing the local contractors the exposure in more complex projects and larger scale so that they can be encouraged to capitalize and develop.

l. Joint Venture arrangements appear to be a consistent policy among other ASEAN Contractors with the exception of Singapore.

m. In the interest of Public Safety and to be consistent with Declaration of the Principles and State Policies of the Philippine Constitution and to ensure Compliance with Art. 1723 of the New Civil Code, it is not recommended to completely lift the foreign equity restrictions for Contractors in general.

n. Due consideration to Public Policy and National Interest must be given careful consideration especially in construction activities where there is limited local capability to promote technology transfer.

o. Compliance with legal standards and adequate measures should be put in place to assure public safety and interest.

IV. RECOMMENDATIONS

Lifting the foreign equity restrictions for EPC Contracts is a very complex matter. The preceding discussions show that currently there is lack of legal basis and framework to get this done.

However, we can also note that there may be some advantages to relaxing current policies in place, not only for EPC Contracts but for projects that would promote technology transfer and promote capacity building to the local construction industry.

The current Implementing Rules and Regulations restricts changes in policy and rules that are necessary to make it more responsive to current construction industry practices.

There are other complex issues that need to be considered in addressing the changes. Among them are the following:

1. Should a foreign group who wants to make a private investment in the Philippines not be allowed to bring with him a foreign contractor of his choice?

2. Should a domestic investor not be allowed to deal with a 100% foreign contractor if he so chooses considering it is his money anyway?


3. Lifting the foreign equity requirement for larger projects will allow competition with the local contractors. Will this provide any beneficial experience which could possibly set the tone for our local contractors to compete abroad?

The PCAB recommends that a study be conducted to revise the existing Implementing Rules and Regulations in order to make it more responsive to the current practices. It will also provide the chance to study possible changes that would accelerate and promote the Construction Industry and provide an important venue to align the IRR with the Construction Industry Roadmap.

The issues facing the industry are bigger than the members of the Board of PCAB as they will affect the Licensing of Contractors which ultimately will affect the Construction Industry.

It may therefore necessary to obtain the services of Industry experts, as much consultation with stakeholders need to be done. The services of legal experts should also be engaged to ensure that all holes are plugged so the resulting IRR can be responsive, and flexible, while minimizing if not eliminating the possibility of being abused.


SUMMARY OF EXISTING REGIMES OF ASEAN MEMBER COUNTRIES

BRUNEI INDONESIA MALAYSIA SINGAPORE THAILAND VIETNAM MYANMAR LAOS

Regulations & Relevant Info

companies must either be incorporated locally or registered as branch of a foreign company (Berhad)

foreign investment policy ensures foreign business activities are done thru JV with local companies, preferably w/ Brunei partner holding a 51% stake

resident engineers or architect registered w/ the Min. of Dev’t. are allowed to practice (submit plans)

flow of immigrant workers is controlled by labor quota & employment passes issued by the Commissioner of Labor & Controller of Immigration, respectively

pioneer company is exempted from paying import duties in raw materials not available or produced in Brunei; tax exemptions are granted for 2-5 years from the 1st day of production

expansion of

Regulation of the Min. of Public Works No.50/Prt 1991

foreign const. & eng’g. consulting company are required to open a representative office & secure a license valid for 3 years

foreign const. & eng’g. consulting company is allowed to undertake projects only in joint operation w/ local contractor/consultant who is a member of local contractor or consultant association. with “A” qualification

foreign contractor or consulting eng’g. company is not allowed to undertake projects locally funded even in joint operation or JV

Joint Venture - equity participation of local partner should be at least 5% of paid-up capital

- local partner must be a member of local contractor association with “A” qualification

Direct Investment - project proponents

ACT 520 Lembaga Pembangunan Industri Pembinaan Malaysia

1994

foreign contractors are registered on a per project basis

no equity limitation for projects requiring high technology or producing priority products for the domestic market

foreign contractors are obliged to ensure transfer of technology & train local personnel

100% foreign co. incorporated outside Malaysia is required to establish a representative office

contractors are required to secure a provisional license before bidding & registration after winning the bid

types of arrangement

1. JV incorporated as entity

a. foreign equity < 30% local equity > 70%

* treated as local entity, can undertake any project

b. for ASEAN Citizens foreign equity < 51%


all companies must secure registration with the Registry of Companies and Businesses (RCB)

contractors’ registration is open to both local and foreign construction companies

registration is only required for companies (local & foreign) undertaking govt. projects

RCB grants registration to sole proprietorship or partnership firms at grades G1 (S$500,000) for const. works & L1 (S$100,000) for other const. works

contractors’ applicants who have insufficient track record may be registered at the lowest grade of G1 or L1 provided they employ a person w/ relevant tech. qualification with at least 3 years experience

Alien Business Law of Nov. 26, 1972

foreign equity is allowed up to 49% of total capital

foreign contractors may undertake projects. with foreign funding, private sector projects with concessions from the govt. & projects calling for high technology thru JV with local company

JV between a foreign contractor and Thai company must be registered with Min. of Commerce

building construction is classified under Cat. “A” of the Alien Business Law which is reserved to local contractors unless an exemption is made via a special law or treaty

other const. projs. such as roads, railways, seaways, dams, tunnels, etc. are covered by the Alien Business Law under Cat. “C” which empowers the Min. Of Commerce to

Circular No. 08/ BXD-CSXD (03-30-95) of the Min. of

Const. (MOC) on the Mngt. of Foreign Direct

Investment Const. Projs. & Foreign Contractors

foreign survey designer or foreign const. contractor’s permit is granted by the MOC on a project basis

foreign contractors must be a company legally registered and have the permit to carry out surveys, undertake const. issued by the home country & permitted to practice according to the laws of that country - reciprocity, awarded the work thru tender or selected by the investor

foreign contractors’ maximum share issued or legal capital:

1. US$ 5M for building works tendering as contractor

2. US$ 100,000 for design works tendering as sub-contractor or contractor

3. not less than 20% of the levels stipulated in 1 & 2 for each part of work including surveys tendering as sub-contractor or contractor

Union on Myanmar Foreign Investment

Law (1988)

foreign investment may be carried out in the form of JVs with private or state-owned enterprise with foreign share at least 35%

may also be 100% foreign owned enterprises

minimum foreign capital is US$500,000 for production and US$300,000 for services

registered foreign company under MFIL may enjoy the following:

1. tax incentives or tax holidays

2. tax exemption up to 3 years

3. income tax exempt if profits are placed in a reserve fund and reinvested in the business within 1 year

- accelerated capital assets depreciation

- income tax relief of up to 50% on profits from exports

- deduction of


foreign investors are permitted to choose any of 2 forms of investment, namely a JV or wholly foreign-owned investment

promotes investment projects which aimed at exports, generating earnings, maximization of use of domestic resources & training in relevant skills

import tax exemption or reduction to 1% for materials, machinery and eqpt needed for the investment project

exemption or reduction of the profit tax to 20%

customs duty exemption for imports used in export products

expatriate skilled workers encourage


BRUNEI INDONESIA MALAYSIA SINGAPORE THAILAND VIETNAM MYANMAR LAOS established company is given tax exemption for 5 years if it incurs new capital expenditures of at least B$1 M or more than B$100,000

implemented under the BOT scheme are treated as investors & can bring in their own contractors but encouraged to associate with local companies, not necessarily under JV

100% foreign-owned company incorporated in Indonesia is considered as local company & enjoys the same treatment as local company

Electricity & telecom facilities under BOT projects shall be undertaken as BOO, other projects such as water & toll facilities are undertaken as BOT projects

foreign contractors are encouraged to associate with local contractors

low level occupation are reserved for local citizens however, limited exceptions are granted to citizens of Malaysia, Brunei, Singapore, Australia, & Papua New Guinea

local equity > 49%

* treated as local entity, can undertake any project

c. foreign equity > 30% local equity < 70%

* treated as foreign entity can undertake project to project basis only

2. no foreign equity limitation for joint operation not locally incorporated but can undertake on a per project basis only

3. 100% foreign co. locally incorporated, can undertake on a per project basis only

4. 100% foreign co. not locally incorporated, can undertake on a per project basis only & required to establish representative office

registration is valid for 3 years and will thereafter lapse automatically unless renewed

grant an alien business license to foreigners who wish to start business on the ff. conditions:

1. business will bring in at least 2M Bhat of equity capital during the first year

2. total of 5M Bhat over the period of 5 years

3. required to divest a majority of its foreign ownership over a given period of time

Other Regulations

business under Category A & C are allowed a maximum foreign equity up to 49% and treated as a local company

representative office of foreign const. company is not allowed in Thailand

foreign contractor must have a turnover of US$ 4M per year for the last 2 years for building works contractor

foreign contractor must have a JV with at least one identified local contractor

domestic funded projects are open to foreign contractors, value is usually less than US$ 1M

BOT projects are open to foreign investors and contractors

research & dev’t. expenses within Myanmar

- duty free entry for eqpt., machinery & spare parts during the period of const.

Myanmar Investment Committee determines the number, types of foreign experts & technicians to be used on a the project and for how long

enterprise permitted to operate by MIC must make arrangements for local & foreign training for local personnel

Compiled by: Philippine Overseas Construction Board (POCB)

Documents

on lifting foreign equity restrictions for epc contractors