MANILA, Philippines — The House of Representatives approved yesterday the measure amending the 84-year-old Public Service Act to allow full foreign ownership in the public service sector including the transportation, communication and power industries. The House plenary voted to pass on second reading House Bill 78, which delineated “public service” from “public utility” that is covered by the 40-percent limit on foreign ownership set by the 1987 Constitution. The measure limits the coverage of public utilities to distribution of electricity, transmission of electricity, water pipeline distribution system and sewerage pipeline system. “Competition and foreign investment are inhibited because limitations that should only apply to the operation of a public utility are applied to all public services,” she explained. “This situation is caused by the ambiguity in the definition of public utility that is often used interchangeably with public service under Commonwealth Act No.

Source: Philippine Star February 18, 2020 16:41 UTC