Project Title

Comprehensive Review of Potentially Anti-Competitive Laws and Regulations 

Project Year

2018   

Project Number

EC 04 2018A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EC 04 2018A 

Project Title

Comprehensive Review of Potentially Anti-Competitive Laws and Regulations 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Renewed APEC Agenda on Structural Reform (RAASR) 

Project Year

2018 

Project Session

Session 1 

APEC Funding

123,200 

Co-funding Amount

8,000 

Total Project Value

131,200 

Sponsoring Forum

Economic Committee (EC) 

Topics

Structural Reform 

Committee

Economic Committee (EC) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Philippines 

Co-Sponsoring Economies

Japan; Mexico; Papua New Guinea; United States; Viet Nam 

Expected Start Date

01/08/2018 

Expected Completion Date

31/12/2019 

Project Proponent Name 1

Dr Benjamin E  Radoc, Jr 

Job Title 1

Director, Economics Office 

Organization 1

Philippine Competition Commission (PCC) 

Postal Address 1

2nd Floor, DAP Building, San Miguel Ave, Pasig City, Philippines 

Telephone 1

63-2 6356522 

Fax 1

Not Applicable 

Email 1

beradocjr@phcc.gov.ph 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Dr Benjamin E Radoc, Jr 

Project Summary

Some laws and regulations in the Philippines substantially prevent, restrict, or lessen competition in the market. This Project aims to improve the legislative and regulatory environment to promote market competition. Project activities include: (i) preparation of a Manual that provides detailed guidance to government agencies on how to systematically review existing and proposed legislation, (ii) pilot-testing of the Manual in three (3) government agencies, and (iii) the conduct of an international workshop in the Philippines to share the Project outputs and pilot-test results with regulatory and competition agencies in the APEC region, relevant APEC fora and sub-fora, and other stakeholders. All activities will be led by a consultant in collaboration with an interagency technical working group.

Relevance

Relevance – Region: With the passage of the Philippine Competition Act (PCA), the Philippines has taken a big step forward to improve market competition. However, regulatory asymmetries, such as the differential treatment between domestic and foreign businesses, hinder market competition. Several laws passed many years before the PCA are implemented without consideration of the potential competition-related consequences they cause. In the Philippine Competition Commmission’s (PCC) rapid review of the National Competition Policy in 2016, some legislations have been identified to address other development objectives but have unwarranted consequences on market competition. Examples include the Agriculture and Fisheries Modernization Act of 1997 (Republic Act No. 8435), the Philippine Fisheries Code of 1998 (Republic Act No. 8550), the Agricultural and Fisheries Mechanization Law of 2013 (Republic Act No. 10601), Tariffication Act of 1996 (Republic Act 8178), and the Metropolitan Waterworks and Sewerage System (Republic Act No. 6234, as amended). 

The review of legislation and the regulatory environment is a priority under the Philippine Development Plan 2017-2022. However, capacity building among government agencies is necessary to allow a systematic evaluation of laws and regulations, and to implement concrete steps to take corrective actions. This Project aims to fill this gap. 

The outputs under this Project shall build on the APEC-OECD Framework on Competition Assessment, and the Product Market Regulation indicators developed by the OECD and the World Bank Group. The Manual to be developed will be a capacity building tool for government agencies in the Philippines, which other APEC member economies may adopt if they decide to pursue a similar review in their respective jurisdictions. 

Consequently, lower barriers to entry and a more level playing field will have direct benefits on both domestic and foreign businesses operating in the Philippines. This in turn will contribute to an improvement in the business environment in the region and increase the flow of foreign direct investments. Review of laws with the ultimate objective of improving market access is attractive for local and multinational businesses. The project and its results may be a good reference document for advanced-APEC member economies when they develop potential support or technical assistance. 

Relevance – Eligibility: This Project directly supports the RAASR Individual Action Plan of the Philippines. In line with the first pillar of the RAASR, this Project aims to contribute to the creation of more open, well-functioning, transparent and competitive markets. Explicitly stated as one of the priorities under this pillar in the Philippines’ IAP is to assist in making the economy’s legislative and regulatory framework more conducive to the promotion of market competition by systematically reviewing potentially anti-competitive legislations and regulations and taking corrective action. Given the direct alignment with APEC’s structural reform priority, the proposed Project fits into the Rank 1 category of the APEC Funding Criteria for 2018. 

Relevance – Capacity Building: In support of APEC’s structural reform agenda, the proposed Project shall address capacity building needs of government agencies in terms of the substantive and operational dimensions of evaluating potentially anti-competitive laws and regulations, and steps in taking corrective action. The Manual to be developed under this Project shall build on the APEC-OECD Framework on Competition Assessment, and the Product Market Regulation Framework developed by the OECD and the World Bank Group. In addition to the systematic review of potentially anti-competitive laws and regulations, the Project shall also include capacity building for government agencies on how to proceed with strategies to delist, amend, repeal, or consolidate anti-competitive laws and regulations. 

This tool will be useful to other developing member economies that wish to perform a similar review. The experience of pilot government agencies in the Philippines shall be showcased in an international workshop where APEC member economies will be invited to participate and share their inputs to further refine the Manual.

Objectives

The following are the key objectives of this Project:

1) Identify and review potentially anti-competitive laws and regulations in three (3) government agencies in the Philippines where the Manual to be developed will be pilot-tested;

2) Identify concrete action plans to delist, amend, repeal or consolidate the anti-competitive laws and regulations identified; and

3) Provide a venue for an open discussion on the contrasting objectives of the Philippine Competition Act vis-à-vis other development objectives.

Alignment

Alignment - APEC:  This Project contributes to the achievement of the objectives under the RAASR Individual Action Plan of the Philippines. Promoting competition and reducing barriers through the review of potentially anti-competitive legislations and regulations is also supportive of initiatives towards improving economic linkages and development among APEC member economies. 

Alignment – Forum: The Project supports the priorities of the Economic Committee and Competition Policy and Law Group particularly on regional collaboration towards regulations and government policy that promote market competition. If corrective action on anticompetitive laws and regulations are made, this Project shall directly contribute to the reduction of barriers to entry and/or expansion for businesses, promote a more level playing field that will benefit local and foreign businesses, and help facilitate investment growth.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs: The Project will produce the following outputs:

1)   Manual:  A preliminary Manual will be developed for government agencies in the Philippines to assess potentially anti-competitive laws and regulations. This document shall give detailed  technical and operational guidance to end-user government agencies. This guidance includes methods used in the assessment of the competitive effects of laws and regulations, as well as on matters like prioritization and strategies on how to take corrective actions. The consultant will lead the drafting of the Manual and conduct desk research, interviews, and engage selected end-user agencies such as the Department of Trade and Industry, Department of Agriculture, and the Department of Transportation.

2) Pilot Test Report: The Manual will be pilot tested in three (3) government agencies in the Philippines to validate effectiveness and ease of use. The consultant shall prepare the pilot test reports for each of the government agencies involved in the pilot-testing of the Manual. The report shall cover the necessary refinements to the Manual, the results on the actual evaluation of rules and regulations including action plans for corrective measures. The preliminary list of government agencies identified include the Department of Agriculture, Department of Transportation, and the Department of Trade and Industry. These agencies were chosen due to their involvement in the oversight and regulation of industries with contentious competition issues. The actual pilot-test will take three (3) to five (5) months depending on the complexity of regulations to be reviewed. The results of the pilot test will be jointly validated by the consultant, senior staff directly involved in the pilot test, the Department’s key officials, and the Project Overseer. Summaries of the discussion in these activities will be included in the Pilot Test Report. Agencies involved in the pilot-test will also answer questions regarding the effectiveness of the Manual and these will be included in the Pilot Test Report as well. These are sufficient interventions to ensure that the goal of determining the Manual’s effectiveness will be achieved in a timely manner.

3)  Workshop: The two-day international workshop to be held in Manila in May 2019 shall be an avenue:

i) to showcase the Project outputs including the experiences of the government agencies involved in the pilot-test, and

ii) to discuss potential difficulties of a government agency when there is disagreement between the promotion of market competition and other development objectives. Other APEC developing economies will be invited to participate and explore possibilities in adopting the Manual for a similar review in their respective jurisdiction. Experts on competition impact assessment from other development partner institutions may also be invited.

4) Post-workshop evaluation: This document, to be prepared by the consultant, shall assess the success of the workshop in terms of participation and the quality of discussions, and identify areas for improvement.

5) Finalized Manual: The final version of the Manual shall incorporate suggested improvements gathered during the pilot test and the workshop. This document will be shared in the APEC publication website. Printed copies shall also be provided to all Departments under the executive branch of the Philippine Government.

6) Project Summary Report: A project summary report shall be prepared by the consultant detailing the key lessons learned, primarily on the experiences of the pilot agencies, as well as inputs from experts and stakeholders during the workshop. Feedback obtained through the workshop survey shall also be included in the report. This document will be shared as an APEC publication. 

Outcomes: Ultimately, the project aims to promote market competition and enhance the legislative and regulatory environment in the Philippines through amendments to anti-competitive laws and regulations. Through the creation of a Manual and the subsequent review, government agencies are envisioned to build their capacity in detecting anti-competitive laws and regulations both in existing and future scenarios. The pilot-testing is aimed at evaluating the effectiveness of the Manual and the appropriateness of this approach in order to achieve regulatory reform. Refinements to the Manual will be made after the pilot test. The conduct of a workshop will allow other member economies to learn from the Philippine experience and undertake similar steps in addressing their own needs for regulatory reform to promote market competition. In the medium-term, amended legislations will allow for more efficient markets. Addressing issues such as competitive neutrality improves the business environment in the Philippines and encourages greater flow of investments from other member economies. 

Beneficiaries: Prospectively, the primary beneficiaries are the users of the Manual and workshop participants. These are mid-level to senior officials in the Legal Office and/or Policy Research Office of government agencies. The three (3) government agencies selected for the pilot-test are the immediate beneficiaries of the project. Apart from mid-level to senior government officials, workshop participants will also come from competition authorities of developing economies. The Manual shall provide detailed guidance to these agencies on how to systematically assess a potentially anti-competitive law or regulation and what steps to take for the necessary corrective action. 

The results and recommendations from the outputs of this Project shall be compiled, submitted to the EC, and disseminated to APEC member economies for their reference. As such, secondary beneficiaries are other APEC member economies who may use the Manual and learn from the Philippine experience. Finally, the improvement of the overall competitive landscape due to the regulatory reforms will greatly benefit the business environment in the Philippines and is expected to spill over to other economies in terms of trade and investment flows.

Dissemination

Preliminary Project outputs shall be disseminated through the workshop and the final outputs and project summary report shall be made available online for easy reference of APEC member economies. Apart from the APEC website where all reports will first be published, the Manual will also be disseminated via the Philippine Competition Commission’s website thereafter. Printed copies of the Manual shall also be made for future training activities and for distribution to government agencies which will perform a review. All Departments under the executive branch of government will be tasked to perform a review, and hence, will receive copies of the Manual. The Manual, along with the completion report, will also be shared with the APEC Committee on Trade and Investment and the Working Group on Small and Medium Enterprises. 

Reporting, and other written outputs associated with this project, which will be publicly available, will be presented to the Secretariat in a standard of English which requires no further copy-editing. The Manual and Project Summary Report which will be distributed and published as APEC publications, will be prepared in accordance with the Guidebook on APEC Projects, the APEC Publication Guidelines and the APEC Logo Guidelines. Where contracted labour is used to produce reports or other written outputs, contractor terms of reference will state that all will be presented in a level of English fit for publication and require no further copy-editing by the APEC Secretariat. 

If an author (PO or contractor) is unable to fulfil this requirement, a copy editor shall read and edit the public documents related to this project, especially the final report to be distributed and published on the APEC website. This will ensure that language nuances are checked, and the quality is within the APEC standard.

Gender

The project does not have an adverse impact on women and/or girls or widen gender inequality. Instead, the project is expected to contribute in improving market access and consumer welfare in general, thus indirectly benefitting women as a class of business owners and consumers. 

To date, government agencies invited to the interagency technical working group have provided a mix of men and women as their representatives. This provides some assurance that neither men nor women are disadvantaged in the preparation of the Project outputs. The technical working group that will assist the Project Overseer during Project implementation will ensure that a mix of men and women government officials are involved in the actual review of laws and regulations and are invited to participate in the culminating workshop. Given that market competition issues are typically gender-neutral, a separate session on the interplay between gender and market competition may be unnecessary. However, the Project Overseer will attempt to achieve gender parity among invited workshop participants, speakers, and experts by having a 50% ratio of females to males. Sex-disaggregated data for all speakers, experts, and participants will be collected at the point of the project event in order to assess the achievement of the project’s gender parity goal. 

To ensure that potential gender-specific issues on competition are given proper attention in this project, the perspectives of male and female mid-level to senior officials in the Legal Office and/or Policy Research Office of government agencies shall be sought during the preparation of the Manual. The actual review of laws and regulations is expected to capture any gender-specific rules and regulations that may have anti-competitive effects. Also, the post-workshop evaluation will attempt to differentiate responses from male and female participants.

Work Plan

Date

Activities

Deliverables

Aug 2018

Convene the interagency technical working group

Consultant’s terms of reference

Sep 2018

Hire the consultant

Signed contract

Oct 2018

Draft inception report

Inception report

Nov 2018 - Feb 2019

Draft the Manual

Draft Manual

Mar - Aug 2019

Pilot test Manual in 3 government agencies

Pilot test schedule and deliverables

Jun - Aug 2019

Finalize workshop program and invitations

Workshop materials

Sep 2019

Two-day workshop in the Philippines

Workshop and documentation

Sep 2019

Submit pilot results of 3 government agencies, including action plans

Pilot test documentation and action plans

Oct - Nov 2019

Finalize the Manual

Finalized Manual

Dec 2019

Draft, circulate, and submit Summary Report

Summary Report

Feb 2020

Submit Project Completion Report to EC

Completion Report

Dec 2020

Long-term Evaluation of APEC Project

Evaluation Report

Risks

1) There is uncertainty on the ease of hiring a suitable consultant. The Project Overseer and the technical working group will assist in advertising and searching for potential bidders.

2) There could be difficulty in getting the concurrence and full participation of the 3 government agencies selected for the Project. However, the technical working group can leverage on the pending Executive Order of the President of the Philippines requiring government agencies to do a self-assessment of the competition impact of laws and regulations that guide their operations. As senior government officials, the members of the technical working group can also assist in convincing the target agencies to participate in the Project. Alternatively, the agencies of the technical working group’s members can participate in the pilot test.

3) There is a risk of the Pilot Test failing to achieve its desired effect due to the lack of participation by the selected government agencies. The PO and technical working group will ensure the cooperation and participation of the pilot agencies. In the same way that the PO and technical working group will assist in convincing agencies to participate in the project, the senior officials will also mitigate the risk by seeking the buy-in of top officials of the agencies included in the pilot test.

4)  There is a risk of Manual failing to attain the desirable impact on the change of regulations this project wishes to achieve, due to inadequate content, or overambitious scope. Prior to pilot-testing, the Manual will undergo scrutiny by the members of the technical working group and PO in terms of clarity and ease of use. Necessary revisions will be made before the pilot-test, and after the pilot-test before the Manual is finalized.

5) There are risks of low participation in the workshop. The Project Overseer will ensure that the project’s relevance is well-communicated to other member economies and that invitations and primers are sent out well in advance to avoid scheduling conflicts.

Monitoring and Evaluation

The Project has concrete milestones. The completion of these activities shall serve as basis in tracking the Project’s progress. During the drafting of the Manual, the Consultant shall collaborate with competition experts at the World Bank Group, the OECD, and other development partner agencies to ensure complementarity with ongoing and prospective initiatives to promote market competition in the Philippines. These collaborations will be reflected in the Consultant’s interim report submissions to the Project Overseer. During the pilot activities, the Project Overseer shall gather feedback through interviews from key participants in the selected government agencies to ensure that issues in the Project implementation are adequately addressed. The Project Overseer will also ensure that the action plans are properly adopted by the agencies through periodic updates on the various stages of the amendment process for the identified anti-competitive laws and regulations. These commitments are aligned with deliverables identified in the Philippine Development Plan 2017-2022. 

Albeit the Project activities and the usefulness of the outputs do not differentiate between genders, the Project Overseer and the technical working group shall ensure a good mix of men and women participants in the Project activities by targeting 50% participation of women as participants, speakers, and experts. The primary impact indicators for the Project include:

1) Number of laws and regulations reviewed by the 3 government agencies selected for the pilot activities (target: at least 1 regulation assessed for each of the agencies involved in the pilot-test)

2)   Number of staff and officials in the 3 government agencies trained in the actual evaluation of potentially anti-competitive laws and regulations (target: at least 5 staff and officials trained for each of the agencies involved in the pilot-test)

3) Proportion of anti-competitive laws and regulations identified with concrete plans for correction action (target: 100%) As part of the pilot-testing, concrete plans for corrective action need to be drafted for each of the 4 anticompetitive regulations. The 100% indicator refers to a concrete plan, and not the actual correction of an anticompetitive regulation which may require legislative action. These target outputs are expected to be completed in December 2019.

Linkages

The Project, which shall build on the APEC-OECD Framework on Competition Assessment that includes the use of a checklist for government agencies to identify any anti-competitive laws or regulations, aims to improve the legislative and regulatory environment in the Philippines to promote market competition. The success of this Project could have a far-reaching impact for the Philippines, and APEC member economies with close economic ties with the Philippines by lowering barriers to entry and promoting a more level playing field, which will have direct benefits on both domestic and foreign businesses operating in the Philippines. In addition to the Competition Policy and Law Group under the Economic Committee, the Project will be of interest to the Committee on Trade and Investment and the Working Group on Small and Medium Enterprises. The Committee on Trade and Investment may use the learnings from the project in order to further improve economic linkages with the reduction of trade barriers and the improvement of the business environment. The Working Group on Small and Medium Enterprises may also benefit from the project outputs by learning how competitive neutrality may help the SME sector flourish.

Sustainability

The Manual to be produced under this Project shall be made available online to ensure easy access for government agencies in the Philippines and in other APEC member economies. To facilitate continued use of the Manual, at least one local institution in the Philippines shall be tapped to offer training to government agencies. Note that improvements in the competition landscape including the review of potentially anti-competitive laws and regulations are commitments of the government under the Philippine Development Plan 2017-2022. The Philippine Government requires that the progress on competition-related indicators are closely tracked and reported annually. The PO will also report the same to the APEC Economic Committee in order to ensure the sustainability of the project. This will also be done on an annual basis.


Project Overseers

The Philippine Competition Commission (PCC), an independent quasi-judicial body created to promote and maintain market competition in the Philippines, shall serve as Project Overseer. Given the direct involvement of other government agencies in the Project activities, the PCC shall convene and work closely with a technical working group, consisting of the same agencies which drafted the competition chapter of the Philippine Development Plan 2017-2022. These include the National Economic and Development Authority, Department of Trade and Industry, Department of Justice–Office for Competition, and the Governance Commission for Government-owned and Controlled Corporations. 

Below are the contact details of the PO:

Benjamin Jr Radoc, PhD
Director, Economics Office, Philippine Competition Commission
25/F Tower 1 Vertis North Corporate Center, Vertis North, Quezon City, Philippines 1105
Email: beradocjr@phcc.gov.ph; economics@phcc.gov.ph
Phone: +632 513 7259

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

The Consultant shall be responsible in drafting the Manual, and pilot testing the Manual in three (3) government agencies identified by the Project Overseer and the technical working group.

The Consultant shall also arrange all logistics requirements for the workshop and other pre-workshop meetings that may be necessary.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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