Question & AnswerQ&A (IRR of Republic Act No. 11659)
These rules shall be known as the ‘Implementing Rules and Regulations (IRR) of Republic Act (R.A.) No. 11659’.
'Public Service' refers to those persons defined under Section 13(b) of Commonwealth Act (C.A.) No. 146, as amended by laws and jurisprudence.
The relevant Administrative Agency to which the powers and duties of the Public Service Commission were transferred pursuant to existing laws, including agencies such as the Civil Aeronautics Board, Department of Energy, National Telecommunications Commission, among others.
The President may recommend classification to Congress upon the recommendation of NEDA based on several criteria including: the entity regularly supplies a commodity or service of public consequence through a network; the commodity or service is a natural monopoly; it is necessary for the maintenance of life and occupation of the public; and there is an obligation to provide adequate service on demand.
No. No public service shall operate without a valid certificate or authorization from the relevant Administrative Agency, ensuring that the public interest is promoted properly.
Violations may be subject to fines ranging from 5,000 to 2,000,000 pesos per day and penalties including suspension or revocation of certificate after due notice and hearing.
Any person, including juridical persons whether foreign or domestic, and officers, directors or employees holding managerial positions knowingly responsible for such violations, may be fined or imprisoned.
The President may, within 60 calendar days from recommendations, suspend or prohibit any proposed merger, acquisition, or investment in public services that would grant control to foreigners if such transactions pose national security risks.
Foreign governments or foreign state-owned enterprises, entities controlled by them, or acting on their behalf are prohibited from making new investments or owning capital in such public services.
They must comply with the Labor Code and other issuances, obtain employment permits, and implement understudy training or skills development programs to ensure transfer of technology or skills to Filipinos.
Control exists when a parent company owns more than 50% of capital, controls over 50% of voting rights, or under specific conditions where ownership is 50% or less but there is power to govern financial and operating policies or appoint majority of board members among other factors.
Examples include distribution and transmission of electricity, petroleum and petroleum products pipeline transmission systems, water and wastewater pipeline systems, seaports, and public utility vehicles.
NEDA may recommend the classification based on criteria related to national security impact, and the President may declare a public service as critical infrastructure via an executive order following review procedures outlined in the IRR.
Factors include whether the investment grants control to foreigners, potential national security implications like access to defense-related technology, location in critical geographical areas, and the investor's background including any prior cases.
The Administrative Agency may suspend or revoke any certificate issued under the provisions of the Act after due notice and hearing.