G.R. No. 217590 - Philippine Contractors Accreditation Board vs. Manila Water Co., Inc.

On July 9, 2012, Manila Water Company, Inc. (respondent) requested PCAB accreditation of its foreign contractors for waterworks and sewerage facilities.
On November 8, 2012, PCAB replied that under Section 3.1, Rule 3 of the IRR of R.A. 4566, “Regular Licenses” are reserved to firms with at least 60% Filipino equity; foreign firms must secure “Special Licenses” limited to single projects.

Respondent filed a Petition for Declaratory Relief in RTC, arguing Section 3.1 Rule 3 IRR is unconstitutional and exceeds PCAB’s rule-making authority.
RTC issued a February 24, 2014 Resolution and February 10, 2015 Order declaring Section 3.1 void as an unreasonable classification that adds restrictions not found in R.A. 4566. PCAB’s motion for reconsideration was denied.

PCAB (petitioner) asserts authority under Sections 5 and 17 of R.A. 4566 to issue and classify licenses, and contends the IRR merely regulates foreign contractors.
Manila Water contends only Congress may impose nationality requirements (Const. Art. XII, Sec. 10), and PCAB’s provision conflicts with R.A. 4566 and current liberalization policy (DOJ, DTI, PCC inputs).

Whether PCAB validly exercised its delegated rule-making power under R.A. 4566 in promulgating nationality-based license classifications in Section 3.1, Rule 3 of the IRR.
Whether the nationality-based classification constitutes an unreasonable barrier to foreign contractors and violates economic rights or amounts to unfair competition.