ECCP slams accreditation body over foreign-owned construction companies

The European Chamber of Commerce in the Philippines (ECCP) assailed the Philippine Contractors Accreditation Board (PCAB) for its refusal to accept the accreditation of fully owned foreign construction companies that are willing to invest in the country.

According to Henry Schumacher, ECCP vice president, under a PCAB resolution, a foreign company must have P1 billion to allow 100-percent foreign equity under the Quadruple A category of the PCAB.

Aside from this, they are not allowed to obtain a license unless 60 percent of the equity of the company is owned by Filipino.

Schumacher said they were seeking clarification on this matter, since Republic Act 4566 does not include this restriction in the issuance of licenses.

“Republic Act 4566 provides only for the following qualifications of applicants: at least two years of experience in the construction industry and knowledge of the building, safety, health and laws of the Republic of the Philippines and the rudimentary administrative principles of the contracting business as the board deems necessary for the safety of the contracting business of the public. The law neither requires 60-percent Filipino equity nor provide for foreign equity restrictions,” Schumacher said.

He also said the full involvement of international contractors who can bring in new technologies is needed to address the infrastructure need of the economy.

The willingness of foreign construction companies to invest in the country is affected by the restrictions imposed by the PCAB, and they will not risk bringing in new technology and investing their money and owned only 40 percent of the company,” Schumacher said.