Simplifying the Procedures on Philippine Government Approval of Projects/Investments in the Philippines For Purposes of Overseas Private Investment Corporation (OPIC) Political Risks Insurance Coverage and For Other Purposes.

EXECUTIVE ORDER NO. 138 February 27, 1987

SIMPLIFYING THE PROCEDURES ON PHILIPPINE GOVERNMENT APPROVAL OF PROJECTS/INVESTMENTS IN THE PHILIPPINES FOR PURPOSES OF OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) POLITICAL RISKS INSURANCE COVERAGE AND FOR OTHER PURPOSES.

WHEREAS, the Governments of the Republic of the Philippines and the United States of America have entered into an Investment Guarantee Agreement under the Exchange of Notes, dated February 18 and 19, 1952, as amended on February 25, 1965 and August 15, 1966, concerning investment pursuant for projects/investments made by United States nationals in the Philippines against political risks;

WHEREAS, such political risk investment guarantees for United States investments in the Philippines are being issued by the Overseas Private Investment Corporation (OPIC), while Philippine Government approval of projects/investments for purposes Overseas Private Investment Corporation (OPIC) investment guarantees, is presently granted by the National Economic and Development Authority (NEDA);

WHEREAS, it is imperative that the existing procedures which require approval of projects/investments for Overseas Private Investment Corporation (OPIC) investment guarantees be simplified and streamlined;

NOW, THEREFORE, I CORAZON...

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Simplifying the Procedures on Philippine Government Approval of Projects/Investments in the Philippines for Purposes of Overseas Private Investment Corporation (OPIC) Political Risks Insurance Coverage and for Other Purposes

- Approval and Registration Requirements for OPIC Coverage (Sec. 1):
• Approval by Board of Investments (BOI), Technology Transfer Board (TTB), Export Processing Zone Authority (EPZA), or other designated agencies, and registration with the Central Bank of direct investment of U.S. nationals in the Philippines shall constitute Philippine Government approval for OPIC coverage.
• Philippine Government approval shall take effect on the date of registration of the investment.

- Notification Requirement (Sec. 2):
• Within 60 days from the date of OPIC coverage, OPIC shall notify BOI of the amount of insurance issued, as per BOI guidelines.
• Failure to submit such notice within the specified period shall automatically cancel the Philippine Government approval.

- Monitoring Responsibility (Sec. 3):
• The National Economic and Development Authority (NEDA) shall monitor all U.S. investments in the Philippines with OPIC investment guarantees.

- Implementation (Sec. 4):
• BOI shall promulgate the rules and regulations to effectively carry out this Executive Order, which shall take effect after 15 days from the promulgation.

- Effectivity (Sec. 5):
• This Executive Order shall take effect immediately.