Renewable Energy Companies Limited to 40% Foreign Equity

In SEC-OGC No. 16-29, the Office of the General Counsel (OGC) of the SEC considered renewable energy to be within the ambit of businesses involved in the “exploration, development, and utilization of natural resources”, among others, and thus subject to a 40% foreign equity limitation.  This limitation is in accordance with Article XII, Section 2 of the Constitution, which declares that “all forces of potential energy… and other natural resources are owned by the State” and allows the State to “enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens.”

Legal

Contact Us

Betita Cabilao Casuela Sarmiento
Suite 1104, Page One Building
1215 Acacia Avenue
Madrigal Business Park, Ayala Alabang
Muntinlupa City 1780
Metro Manila, Philippines

Tel No. +63 2 555 1750
Email: info@bccslaw.com