Gov’t issues IRR on regulatory relief to private projects under Bayanihan 2

The government has issued the implementing rules and regulations (IRR) for the identification of private sector projects that will qualify for regulatory relief under certain conditions in the Bayanihan To Recover As One Act or Bayanihan 2.

In a statement on Thursday, the Department of Finance (DOF) said Finance Secretary Carlos Dominguez III, Trade Secretary Ramon Lopez, and Environment and Natural Resources Secretary Roy Cimatu signed the IRR.

The IRR took effect following its publication in a newspaper general circulation on January 7, 2021, according to the DOF.

It said the Office of the National Administrative Registrar of the University of the Philippines (UP) Law Center, the official repository of all IRRs issued by the different agencies of the government, were provided three certified copies of the new IRR.

The DOF leads a committee - with the Department of Environment and Natural Resources (DENR) and the Department of Trade and Industry (DTI) as members - tasked to identify the specific permits, licenses, certificates, clearances, consents, authorizations, or resolutions that shall be waived in accordance with the IRR of the Bayanihan 2 provision.

Under Republic Act No. 11494 or Bayanihan 2, private projects determined to be “nationally significant,” ”with high economic returns” or “with high employment potential” may have certain permits, licenses or other requirements waived, “to avoid delays in their implementation, and immediately stimulate economic activity and create jobs during the state of national emergency declared by the President as a result of the COVID-19 pandemic.”

Such regulatory relief measures exclude those relating to taxes, duties, border control and environmental laws and regulations, as stated in Bayanihan 2 and in Section 6 of the IRR.

Meanwhile, Section 4 of Bayanihan 2 states that the authority of the DOF-led committee “shall be valid during the state of national emergency as declared by the President and the economic rehabilitation period or until the last day of June 2022, whichever is later.”

Under the IRR, the DOF shall serve as the committee secretariat, where the private sector proponent of the project is required to submit the application for regulatory relief.

In identifying which covered projects shall be granted regulatory relief and the specific requirement or requirements that shall be waived, the committee is mandated to evaluate them on a per-requirement basis; and determine the economic and social impact of the project based on economic returns, job generation potential, effect on the delivery of critical services on both the national and local economies. 

The committee shall also consider the impact of the lack of the requirement to be waived on the operations and quality of the output of the covered project, and the health and safety of the personnel working on the project, among other factors as stated under Section 5d of the IRR.

Taking into account the new normal, the IRR states that covered projects under the following sectors may also be considered by the committee as projects of national significance:

• housing and resettlement in support of the Balik Probinsya, Bagong Pag-asa Program (BP2P)
• water supply and sanitation to accelerate achievement of full coverage
• watershed rehabilitation and protection
• power generation, transmission and electrification to support the digital economy
• provision of other critical services that contribute to providing security and promoting peace

In determining the national significance of a project, the committee shall consider “the significant sectors that would accelerate the recovery and bolster the resilience of the Philippine economy” and may also take into account “the project’s direct and indirect contribution to economic growth and development, implementation readiness, and such other facets that would stimulate the local economy.”   

“As such, the total project cost of the covered project is not necessarily the sole basis in determining national significance,” the IRR states.

Section 10 of the IRR prohibits any court, except the Supreme Court (SC), from issuing any temporary restraining order (TRO), preliminary injunction or preliminary mandatory injunction against the committee and the operation of the covered project granted regulatory relief.

A technical working group (TWG) composed of representatives from the DOF, DTI, DENR and other government agencies identified by the committee may be created to serve as its technical arm in evaluating applications, the IRR states.

The TWG is responsible for conducting the necessary inter-agency coordination and consultation in evaluating the applications for regulatory relief; and in submitting  a comprehensive report to the committee with its recommendations supported by factual, technical and legal reasons.

The procedures and requirements in applying for regulatory relief and the limitations and coverage of such relief measures are outlined in the IRR.

It also states that “(t)he Committee shall not be held liable if there will be a subsequent finding by the appropriate agency that the application should be disapproved.”

Under the IRR, any approval of regulatory relief by the Committee may be revoked at any time in case the project “is determined to have violated any condition given in the grant of such relief.”—LDF, GMA News