Press message

Undersecretary Austere A. Panadero

Department of the Interior and Local Government


Ease of Doing Business (EODB) Task Force (AO 38) Press Conference on Monday, April 30, 2018, 10:00 a.m. at 6F Audio Visual Room, BOI Penthouse, 385 Sen. Gil Puyat Ave., Makati City. 

Good morning to all.

President Rodrigo Duterte 0-10 socio-economic point agenda

In line with President Rodrigo Roa Duterte’s commitment to increase competitiveness and ease of doing business. He directed all government agencies with frontline services is for “speedy reforms” that will further streamline their respective services to make these truly efficient and people-friendly and “to ensure that the people receive the quality services that they surely deserve minus the delays by the bureaucratic red tape.”

To achieve this, the Department is pursuing a whole -of-government approach that promotes simplification of government transactions, inter-operability of government processes and strengthened linkages and coordination specially among local governments.

In International Finance Corporation’s (IFC) Doing Business Report, the LGUs are substantially contributing in the criteria on “starting a business” particularly the issuances of the building permit and “dealing with construction permits” for the issuances of building permit and certificate of occupancy.


Streamlining the issuance of business permits, building permits and certificates of occupancy

In August 2016, the Department with our partner agencies, Department of Trade and Industry (DTI) and Department of Information and Communication Technology (DICT) launched that campaign for streamlined the standards for issuing business permits into 3 steps, 2 days for new business application and 2 days for renewal, use of a unified form with max 2 signatories.

Today, after 20 months of advocacy, capability building and coaching, there is a good number of compliance among LGU.  I am pleased to inform everyone that per DILG monitoring of LGU compliance to the new BPLS standards per JMC 2016 conducted by DILG last January 2018, out of 1,419 LGUs (that’s 94% of all cities and municipalities) which responded in our Online Monitoring Survey, 61-62% are compliant with all 4 BPLS Standards.

To validate the declaration of our LGUs, the National Competitiveness Council has conducted an annual customer experience survey for renewal of business permits aimed at assessing customer’s experience in the business permitting procedures.

This year last January 4, 2018, in partnership with the Department of Public Works and Highways (DPWH), the Department of Information and Communications Technology (DICT), and the Department of Trade and Industry (DTI) and Bureau of Fire Protection, we moved to yet another systems/processes targeted to streamline, the issuance of the building permits and certificates of occupancy. The new JMC sets uniform standards for processing building permits and certificates of occupancy, including a unified application form, only 4 sets of plan requirements, 4 steps in 5 days processing time, and one-time assessment and payment of fees.

These will significantly contribute in reducing the entire process of securing construction permit form 23 steps in 122 days to 8 steps in 36 days.

For LGUs to comply, they are encouraged to implement the necessary requisites:

  1. Set up of a One-Stop Shop for Construction Permits which requires co-location of different LGU offices and BFP in the OSS
  2. Unify the Assessment and Payment for Building Permits and Certificates of Occupancy, there promotes 1-time assessment and 1-time payment including that for the OBO and BFP
  3. Prepare a checklist of procedures and requirements for securing building permits and certificates of occupancy and use of an evaluation checklist for processing building permits to standardize processes for OBOs.
  4. Automation/Computerize their processes (e.g. online application, monitoring of application status, and release of order of payment).

We have started with Quezon City moving to all cities, first NCR, later to other cities and municipalities. 

The Oversight Committee on Construction Permit have convened composed of DILG with BFP, DPWH, DTI and DICT.  We are now to constitute teams-coaches and mentors at the regional and provincial levels to assist cities and municipalities cut out unnecessary steps and requirements and meet the new standards on building permits and certificate of occupancy. 


Moving Forward 

Mowing forward, we will continue instituting reforms to further ease doing business, particularly on the cost of doing business. DILG with DOF-BLGD is working on the mechanisms on rationalizing fees and charges of LGUs including barangays, that computation of fees and charge will be based on the cost of regulation.

Another big challenge is the integration of barangay clearances in the permitting processes at the city and municipal levels.

Complementary to this initiative, the DILG also committed to promote economic and social development with Public-Private Partnerships (PPP) playing a key role.  Our PPP campaign dubbed as “LGU P4, Local PPP for the People” is our vehicle for private sector participation in the provision of infrastructure and social services to local constituencies.  The private sector has always played a significant role in the country’s growth and development bridging the gaps in the economy and social development.


Solicit support 

We enlist the participation of the LGU Leagues particularly the ULAP, League of Cities of the Philippines (LPP), League of Municipalities of the Philippines to facilitate peer learning between and among cities and municipalities to emulate model practices such that of Valenzuela City, Quezon City, Cagayan de Oro City and Batangas City. 

Special mention is our partnership with PCCI to monitor the implementation of compliance of LGUs as they are the main business clients of the cities and municipalities. 

We also solicit the support of our development partners, the private sectors, and the civil society organizations to help cities and municipalities institutionalize the reforms, more particularly in re-engineering and automating processes, and integrating on-line mechanisms thru out the entire process from application to release of permits, and standardizing the business establishment databases approximating international standards. 

With all stakeholders working together, we are assured of the success of this campaign to improve ease of doing business in our localities and in the Philippines as a whole, and ultimately leapfrog to the top 1/3 rank in the EODB Report. 

Let us join hands and move ahead together for a Better Philippines!

Good day and Mabuhay!♦