i. There is power over more than one half (1/2) of the voting rights by virtue of an agreement with investors;

ii. There is power to direct or govern the financial and operating policies of the entity under a statute or an agreement;

iii. There is power to appoint or remove the majority of the members of the board of directors or equivalent governing body;

iv. There is power to cast the majority votes at meetings of the board of directors or equivalent governing body;

v. There exists ownership over, or the right to use, all or a significant part of the assets of the entity;

vi. There exists rights or contracts that confer decisive influence on the decisions of the entity; or

vii. There exists the ability to interfere in the management, operation, administration or control of other entity.

i. directly or indirectly owns more than fifty percent (50%) of the capital taking into account both the voting rights and beneficial ownership;

ii. controls, through ownership interests, the exercise of more than fifty percent (50%) of the voting rights; or

iii. holds the power to appoint a majority of members of the board of directors or any other equivalent management body;

i. is engaged exclusively in the following activities:

a) administering or providing a plan for pension, retirement, social security, disability, death or employee benefits, or any combination thereof solely for the benefit of natural persons who are contributors to such a plan and their beneficiaries; and

b) investing the assets of these plans;

ii. has fiduciary duty to the natural persons referred to in subparagraph (i) (a); and

iii. is free from investment direction from the government of the foreign state;

Provided, That (a) investment direction excludes general guidance with respect to risk management and asset allocation that does not deviate from usual investment practices, and (b) the mere presence of government officials on the enterprise's board of directors or investment panel does not demonstrate investment direction.

a. Civil Aeronautics Board;

b. Civil Aviation Authority of the Philippines;

c. Department of Energy;

d. Department of Environment and Natural Resources (DENR);

e. DICT;

f. Department of Transportation;

g. Energy Regulatory Commission;

h. Land Transportation Franchising and Regulatory Board;

i. Land Transportation Office;

j. Local Water Utilities Administration;

k. Maritime Industry Authority;

l. Metropolitan Waterworks and Sewerage System;

m. National Telecommunications Commission;

n. National Water Resources Board;

o. Philippine National Railways;

p. PPA;

q. Toll Regulatory Board; and

r. All other Administrative Agencies that have, or may be authorized to exercise, a similar function as approved by Congress or the responsible authority, as appropriate.

a. To issue certificates authorizing the operation of public service within the Philippines whatever the relevant Administrative Agency that the operation of the public service proposed and the authorization to do business will promote the public interest in a proper and suitable manner: Provided, That any certificate authorizing the operation, management or control of a public service shall be issued to corporations, partnerships, associations or joint manner: Provided, That any certificate authorizing the operation management or control of a public service shall only be issued to corporations, partnerships, associations or joint stock companies that are constituted and organized under the laws of the Philippines and such persons provided under the Act, these Rules and existing applicable laws.

b. To fix and determine the fair and reasonable individual or joint rates, tolls, charges, classifications, tariffs or schedules thereof, as well as commutation, mileage, kilometrage, and other special rates which shall be imposed, observed, and followed thereafter by any public service when the public interest so requires: Provided., That the relevant Administrative Agency may, in its discretion, approve rates proposed by public services provisionally and without necessity of any hearing; but it shall call a hearing thereon within fifteen (15) days thereafter, upon publication and notice to the affected parties in the territory affected, to ratify its prior provisional approval or change, modify or alter the approved rate based on public interest: Provided, further, That in case the public service equipment of an operator is used principally or secondarily for the promotion of a private business, the net profits of said private business shall be considered in relation with the public service of such operator for the purpose of fixing the rates: Provided, finally, That when the public interest requires, the relevant Administrative Agency may establish and enforce a methodology for setting rates, taking into account all relevant considerations, including the efficiency of the regulated public service. The rates must be such as to allow the recovery of prudent and efficient costs and a reasonable rate of return to enable the public service to operate viably and efficiently. The relevant Administrative Agency may adopt alternative forms consistent with internationally accepted rate-setting methodology. The adopted rate-setting methodology shall ensure a reasonable price of the commodity or service and that the rates prescribed shall not be discriminatory.

This provision shall not be interpreted as mandating rate regulation nor amending or repealing: (1) laws providing a deregulation policy, such as R.A. No. 7925, as amended; R.A. No. 8479, otherwise known as the Downstream Oil Industry Deregulation Act of 1998, as amended; R.A. No. 9136, as amended; R.A. No. 9295, otherwise known as the Domestic Shipping Development Act of 2004, as amended; and R.A. No. 6957, otherwise known as the BOT Law, as amended; and (2) regulations promulgated by these Administrative Agencies to deregulate rates.

c. To fix and determine proper and adequate rates of depreciation of the property of any public service which will be observed in a proper and adequate depreciation account to be carried for the protection of stockholders, bondholders or creditors, in accordance with such rues, regulations, and forms of accounts as the relevant Administrative Agency may prescribe. Said rates shall be sufficient to provide the amounts required over and above the expense of maintenance to keep such property in a state of efficiency corresponding to the progress of the industry. Each public service shall conform its depreciation accounts to the rates so determined and fixed, and, as may be required by the proper Administrative Agency, shall set aside the moneys so provided for out of its earnings and carry the same in a depreciation fund. The income from investments of money in such fund shall likewise be carried in such fund. This fund shall not be expended otherwise than for depreciation, improvements, new constructions, extensions or additions to the property of such public service.

d. To suspend or revoke any certificate issued under the provisions of the Act when the holder thereof has failed for three (3) consecutive years the annual performance audit conducted by an independent evaluation team in accordance with the metrics to be set by the relevant Administrative Agency.

In no instance shall this provision be construed as conferring the aforementioned powers of relevant Administrative Agency, upon notice and hearing, where the Administrative Agency's Charter does not provide for such powers and functions.

a. To investigate, upon its own initiative, or upon complaint in writing, any matter concerning any public service as regards matters under its jurisdiction; to require any public service to furnish safe, adequate, and proper service as the public interest may require and warrant; to enforce compliance with any standard, rule, regulation, order or other requirement of C.A. No. 146, as amended, and the Act or of the relevant Administrative Agency, and to prohibit or prevent any public service as herein defined from operating without having first secured a certificate and require existing public services to pay the fees provided for in C.A. No. 146, as amended, and the Act for the issuance of the certificate, under the penalty, at the discretion of the relevant Administrative Agency, of the revocation and cancellation of any acquired right.

b. To require any public service to pay the actual expenses incurred by the relevant Administrative Agency in any investigation if it shall be found in the same that any rate, toll, charge, schedule, regulation, practice, act or service thereof is in violation of any provision of C.A. No. 146, as amended, and the Act or any certificate, order, rule, regulation or requirement issued or established by the relevant Administrative Agency. The relevant Administrative Agency may also assess against any public service reasonable costs with reference to such investigation.

c. To require any public service to keep its books, records, and accounts so as to afford an intelligent understanding of the conduct of its business and to that end to require every such public service of the same class to adopt a uniform system of accounting. Such system shall conform to any system approved and confirmed by the Commission on Audit.

In no instance shall this provision be construed as conferring the aforementioned powers of relevant Administrative Agency, without notice and hearing, where the Administrative Agency's Charter does not provide for such powers and function.

a. Distribution of Electricity;

b. Transmission of Electricity;

c. Petroleum and Petroleum Products Pipeline Transmission Systems;

d. Water Pipeline Distribution Systems and Wastewater Pipeline Systems, including sewerage pipeline systems;

e. Seaports; and

f. Public Utility Vehicles.

a. The person or juridical entity regularly supplies and transmits, and distributes to the public through a network a commodity or service of public consequence;

b. The commodity or service is a natural monopoly that needs to be regulated when the common good so requires. For this purpose, natural monopoly exists when the market demand for a commodity or service can be supplied by a single entity at a lower cost than by two or more entities;

c. The commodity or service is necessary for the maintenance of life and occupation of the public; and

d. The person or juridical entity providing the commodity or service, is obligated to provide adequate service to the public on demand.

a. The relevant Administrative Agency shall submit a written letter to NEDA requesting to review whether a specific public service should be classified as a public utility based on the identified criteria provided under Section 11 of these Rules, and submit the following documents to NEDA:

i. Summary on the profile of the entities providing the public service, including investors or shareholders of such entities for the past three (3) years immediately preceding the date of the submission of request to NEDA;

ii. General Information Sheet and Audited Financial Statements of the entities that were submitted to the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR), among others, for the past three (3) years immediately preceding the date of submission of request to NEDA;

iii. Performance audit and rating of public service entities pursuant to Section 48 (Performance Audit) of these Rules, conducted by the relevant Administrative Agency, for the past three (3) years immediately preceding the date of submission of request of NEDA; and

iv. Market study containing relevant details and information proving that the public service is a natural monopoly and where such study is not older than two (2) years, as of date of submission.

NEDA may periodically issue a list of documentary requirements needed to undertake the review, as contemplated in this Section.

b. Within ten (10) calendar days from receipt of the documents, NEDA shall provide feedback to the relevant Administrative Agency on the completeness of the documents. NEDA shall return incomplete documents, without prejudice to resubmission of the documents by the relevant Administrative Agency. NEDA shall only commence action on the request upon the submission of complete documentary requirements.

c. NEDA, upon consultation with Administrative Agencies, the Philippine Competition Commission (PCC) or other relevant agencies, shall provide feedback on the review of the reclassification of public service to the requesting Administrative Agency, within ninety (90) calendar days upon receipt of the complete documents.

d. NEDA may, motu propio, initiate its own review and recommend the classification of public services as public utility. NEDA shall coordinate with the Administrative Agency and other relevant government agencies in the conduct of its own review, including request for documents under this provision, as may be necessary.

e. NEDA shall also consult with relevant stakeholders as part of its review process.

f. In making a determination with regard to the implementation of this Section, it shall be responsibility of the requesting Administrative Agency to provide the necessary documents or data in support of its request.

g. NEDA shall submit its findings and recommendation to the Office of the President, for appropriate action.

a. The commodity or service can only be regularly supplied, transmitted, and distributed to the public through an infrastructure network, composed of nodes and links, specifically built to facilitate the delivery of the community or service.

b. The commodity or service is a natural monopoly based on, but not limited to, the following:

i. Economies of scale characteristics by declining average cost relative to output;

ii. High fixed cost;

iii. Industry or market demand is insufficient to support two or more firms; and

iv. Monopoly power is not due solely to regulatory or legal restrictions

c. The commodity or service is necessary for the maintenance of live, livelihood or employment of the general public; and

d. An uninterrupted market supply of the commodity or service is required to meet market demand, whether such market demand is actual or potential.

a. To refuse or neglect, when requested by the Postmaster General or his authorized representative, to carry public mail on the regular trips of any public land transportation service maintained or operated by any such public service, upon such terms and conditions and for a consideration in such amounts as may be agreed upon between the Postmaster General and the public service carrier or fixed by the relevant Administrative Agency in the absence of an agreement between the Postmaster General and the carrier. In case the Postmaster General and the public service carrier are unable to agree on the amount of the compensation to be paid for the carriage of the mail, the Postmaster General shall forthwith request the relevant Administrative Agency to fix a jut and reasonable compensation for such carriage and the same shall be promptly fixed by the relevant Administrative Agency in accordance with Section 16 of C.A. No. 146, as amended.

b. To refuse or neglect, when requested by the Administrative Agency to urgently use, deliver or render the public service for the purpose of avoiding further loss on human, material, economic, or environment during a state of calamity.

a. To adopt,establish, fix, impose, maintain, or collect or carry into effect any individual or joint rates, commutation, mileage or other special rate, toll, fare, charge, classification or itinerary. The relevant Administrative Agency shall approve only those that are prudent and efficient and not any that are unjustly discriminatory or unduly preferential, only upon reasonable notice to the public services and other parties concerned, giving them a reasonable opportunity to be heard, and the burden of the proof to show that the proposed rates or regulation are prudent and efficient shall be upon the public service proposing the same.

b. To establish, construct, maintain, or operate new units or extend existing facilities or make any other addition to or general extension of the service: Provided, That only assets that are useful and necessary for the provision of the public service shall form part of the rate base as determined and approved by the Administrative Agency: Provided, further, That construction of such asset and implementation of such project may be allowed for emergency and other extraordinary cases: Provided, finally, That the public service provider files for the approval of such extension or construction of facilities within sixty (60) days from implementation of the project, and without prejudice to the final determination by the Administrative Agency if the said asset is useful and necessary for inclusion in the rate base.

The Administrative Agency may issue regulations prescribing a shorter period than that provided in the preceding paragraphs only in cases of emergency, as may be certified by such Administrative Agency, requiring the installation, construction or maintenance of units, facilities or equipment.

c. To issue any share of stock without par value: Provided, That it shall be the duty of the relevant Administrative Agency, after hearing, to approve any such issue when satisfied that the same is to be made in accordance with law.

d. To sell, alienate, mortgage, encumber or lease its property, franchises, certificates, privileges, or rights, or any part thereof, or merge or consolidate its property, franchises, privileges or rights, or any part thereof, with those of any other public service. The approval herein required shall be given, after notice to the public and after hearing the persons interested at a public hearing, if it be shown that there are just and reasonable grounds for making the mortgage or encumbrance, for liabilities of more than one year maturity, or the sale, alienation, lease, merger, or consolidation to be approved, and that the same are not detrimental to the public interest, and in case of sale, the date on which the same is to be consummated shall be fixed in the order of approval: Provided, however, That nothing herein contained shall be construed to prevent the transaction from being negotiated or completed before its approval or to prevent the sale, alienation, or lease by public service of any of its property in the ordinary course of its business: Provided, finally, That the need for approval of the sale, alienation, mortgage, encumbrance or lease will be required only for properties of the public service that are used and useful in the delivery of the required public service.

e. To sell, alienate or in any matter transfer shares of its capital stock to any alien if the result of that sale, alienation, or transfer in itself or in connection with another previous sale shall be the reduction to less than sixty percent (60%) of the capital stock belonging to Philippine nationals in the operation of a public utility as required by the Constitution. Such sale, alienation or transfer shall be void and of no effect and shall be sufficient cause for ordering the cancellation of the certificate.

a. The relevant Administrative Agency may issue subpoenas and subpoenas duces tecum, for witnesses in any matter or inquiry pending before the relevant Administrative Agency and require the production of all books, papers, tariffs, contracts, agreements, and all other documents, which the relevant Administrative Agency may deem necessary in any proceeding. Such process shall be issued under the seal of the relevant Administrative Agency, signed by one of the Hearing Officers, and may be served by any person of full age, or by registered mail. Disobedience to, or failure to comply with, such subpoena, shall constitute indirect contempt, and may instituted in the manner as provided in the Rules of Court before the appropriate court.

b. Any person who shall neglect or refuse to answer any lawful inquiry or produce before the relevant Administrative Agency, books, papers, tariffs, contracts, agreements, and documents or other things called for by said Administrative Agency, if in his power to do so, in obedience to the subpoena or lawful inquiry of the relevant Administrative Agency upon conviction thereof by the court of competent jurisdiction, shall be punished by a fine not exceeding Thirty Thousand Pesos (P30,000.00) or by imprisonment not exceeding six (6) months, or both, at the discretion of the court.

c. The officials and Hearing Officers of the relevant Administrative Agency shall have the power to administer oaths in all matters under the jurisdiction of the relevant Administrative Agency.

d. Witnesses appearing before the relevant Administrative Agency in obedience to subpoena or subpoena duces tecum shall be entitled to receive the same less and mileage as witness attending regional trial courts in civil cases.

e. Any person who shall obstruct the relevant Administrative Agency or the Hearing Officers while engaged in the discharge of official duties, or who shall conduct himself in a rude, disrespectful or disorderly manner before the relevant Administrative Agency or either of the Hearing Officers, while engaged in the discharge of official duties, or shall orally or in writing be disrespectful to, offend or insult either of the Hearing Officers on occasion or by reason of the performance of his official duties, upon conviction thereof by a court of competent jurisdiction, shall be punished for each offense by a fine not exceeding Thirty Thousand Pesos (P30,000.00), or by imprisonment not exceeding six (6) months, or both, at the discretion of the court.

a. Administrative Agencies shall submit a written letter to NEDA requesting to review whether a specific public service should be classified as a critical infrastructure. Such letter request shall state the grounds for the request and provide the necessary data/documents to support the proposal. This should include information on the good/service being provided by the infrastructure, coverage and the possible impact on national security in case of discontinuance of the service or incapacity of the infrastructure. In the case of motu proprio, the NEDA shall request such information from the relevant administrative agencies.

b. Upon receipt of the letter request and supporting data/documents, NEDA shall verify the completeness of the submitted documents and information and shall provide feedback to the requesting Administrative Agency within ten (10) calendar days after the receipt of the letter request and indicate the submission of additional documents as necessary.

c. NEDA shall conduct an initial assessment based on the criteria listed in Section 34(d) and shall provide feedback to the Administrative Agency within thirty (30) calendar days upon receipt of the complete documents. Should potential grounds for reclassification be found based on the initial assessment, the NEDA shall notify the Administrative Agency that a comprehensive review shall be conducted within sixty (60) calendar days from such notification. Additional information may be requested from relevant administrative agencies as necessary.

d. NEDA shall consider the following in the conduct of the review:

i. The operation of such systems or assets is so vital to the country that the incapacity or destruction of such would impair the country's ability to secure territorial integrity; or

ii. The operation of such systems or assets is so vital to the country that the incapacity or destruction of such would adversely affect the safety, security and well-being of the public.

e. NEDA shall consult with the relevant stakeholders, and agencies in the national security sector, as part of its review process.

f. In making a determination with regard to the implementation of this Section, it shall be the responsibility of the requesting Administrative Agency to provide the necessary documents or data in support of its request.

g. NEDA shall submit its findings and recommendation to the Office of the President, for appropriate action.

h. NEDA shall issue additional guidelines and/or circulars to implement the this provision.

a. Any proposed merger or acquisition transaction, or any investment in a public service entity, that will effectively result in the grant of control, whether direct or indirect, to a foreigner or a foreign corporation,or a foreign government; and

b. The proposed merger or acquisition transaction, or investment in a public service has national security implications, such as but not limited to:

i. Whether the public service entity performs or has previously performed in any contracts that have been classified as top secret, secret or confidential;

ii. Whether the investment transaction is a critical infrastructure or a public service that:

1. Utilizes military or defense-related items, software, and technology that are specifically designed, developed, configured, adapted, or modified for military end-use, including all strategic goods identified in the national strategic goods list (NSGL) as provided in R.A. No. 10697, otherwise known as Strategic Trade Management Act;

2. Utilizes items relating to chemical and biological weapons, nuclear technology, missile technology and other similar articles related to national security that are regulated by the Department of National Defense, Philippine National Police, Department of Health, DENR or any such appropriate government instrumentality with mandate pursuant to multilateral and international agreements; or

3. Stores, maintains, or has access to personal information of defense, security and intelligence personnel, which if accessed or disclosed could compromise national security, excluding personal information of such personnel that are unconnected to their roles relevant to national security.

iii. Whether the public service entity is located in geographical areas critical to national security such as but not limited to areas near sensitive government facilities (e.g., military bases). The list of geographical areas critical to national security will be subject to the approval of the President as provided in the IRR of R.A. No. 11647;

iv. Nature, history, and previous business transactions of the investor and any filed cases against the same, in their country of origin, or in any other country or state that the foreign investor is involved with; or

v. Other circumstances analogous to the foregoing.

a. Submission of Declaration. - Any party to a proposed merger or acquisition transaction or investment in a public service that satisfies the conditions set in Section 36 of these Rules may, jointly or separately, voluntarily declare such transaction with the relevant government department or Administrative Agency, at least thirty (30) calendar days prior to the date of execution of relevant agreements.

b. Contents of the Declaration. - The party or parties filing the declaration shall provide the required information as set by the relevant government department or Administrative Agency. The declaration must be accurate and complete with respect to all parties and to the investment transaction. Additional information may be requested from the parties to the investment transaction if the declaration is insufficient to assess the investment transaction.

c. Acceptance or Rejection of Declaration. - Upon receipt of the declaration submitted, the relevant government department or Administrative Agency shall inspect the declaration and notify in writing, within ten (10) calendar days, all parties to the investment transaction that have submitted a declaration, that:

i. The relevant government department or Administrative Agency has accepted the declaration and the date on which the assessment described in Section 37(d) begins; or

ii. The relevant govenrment department or Administrative Agency has determined not to accept because the declaration is either incomplete or inconsistent with the documents as required in Section 37(b) of these Rules, and an explanation of the material respects in which the declaration is incomplete or inconsistent: Provided, That in the case of merger and acquisition transactions, the relevant government department or Administrative Agency may initiate a review process subject to the rules as specified in Section 38.

If, after then (10) calendar days, the relevant government department or Administrative Agency failed to notify the party or parties to the investment transaction, the declaration shall be deemed accepted to proceed to the conduct of initial risk assessment.

d. Initial Risk Assessment. - Within thirty (30) calendar, the relevant government department or Administrative Agency shall conduct a risk assessment. In the absence of finding of any national security threat, the relevant government department or Administrative Agency shall inform the party/parties to the investment transaction of the result of the risk assessment and that the party/parties may proceed with the transaction.

e. Comprehensive National Security Review. - Within sixty (60) calendar days from the issuance determining the presence of a national security threat during the initial risk assessment, the relevant government department or Administrative Agency shall conduct a comprehensive national security review and submit its recommendation to the President. The PCC shall be informed and consulted on all matters relating to mergers and acquisitions, without prejudice to the PCC's power to review mergers and acquisitions under R.A. No. 10667. Other relevant agencies may also be consulted during the review.

During the course of the review, the relevant government department or Administrative Agency may request for additional documents as necessary.

f. Action of the President. - Based on the recommendation from the results of the comprehensive national security review, the President may, within sixty (60) calendar days from the receipt of such recommendation, suspend or prohibit any proposed merger or acquisition transaction, or any investment in a public service that effectively results in the grant of control, whether direct or indirect, to a foreigner or a foreign corporation. The President may consult with relevant government agencies including the NSC and/or the NEDA, as may be necessary. The relevant government department or Administrative Agency shall inform the party/parties to the investment transaction of the decision of the President.

a. Initiation of the Review. - The relevant government department or Administrative Agency may motu proprio initiate a national security review if the proposed merger or acquisition transaction or investment in a public service is deemed to satisfy the conditions under Section 36 of these Rules. The relevant govenrment department or Administrative Agency shall notify the party/parties and require the submission of relevant documents pursuant to Section 37(b), and at its discretion, request that the party/parties submit additional information within ten (10) working days from the receipt of request, if previous submission is insufficient to assess the investment transaction.

i. The PCC shall notify the relevant government department or Administrative Agency of any proposed mergers and acquisitions involving investments covered by the conditions under Section 36.

ii. The relevant government department or Administrative Agency may request assistance from the PCC to compel party/parties to submit all the required documents.

b. Motu Proprio Initial Risk Assessment. - The relevant government department or Administrative Agency shall conduct a risk assessment within thirty (30) calendar days from receipt of the relevant documents. In the absence of finding of any national security threat, the relevant government department or Administrative Agency shall inform the party/parties to the investment transaction of the result of the risk assessment and that the party/parties may proceed with the transaction.

c. Comprehensive National Security Review. - Within sixty (60) calendar days from the issuance determining the presence of a national security threat during the initial risk assessment, the relevant government department or Administrative Agency shall conduct a comprehensive national security review and submit its recommendation to the President. The PCC shall be informed and consulted on all matters relating to mergers and acquisitions, without prejudice to the PCC's power to review mergers and acquisitions under R.A. No. 10667. The relevant govenrment department or Administrative Agency may consult other relevant agencies during the conduct of the review.

d. Action of the President. - Based on the recommendation from the results of the comprehensive national security review, the President may, within sixty (60) calendar days from the receipt of such recommendation, suspend or prohibit any proposed merger or acquisition transaction, or any investment in a public service that effectively results in the grant of control, whether direct or indirect, to a foreigner or a foreign corporation. The President may consult with relevant government agencies, including the NSC and/or the NEDA, as may be necessary. The relevant government department or Administrative Agency shall inform the party/parties to the investment transaction of the decision of the President.

a. Impact on national security;

b. Applicability of other Philippine laws and policies;

c. Implication of any national security risk arising from the investment on the Philippine economy and community;

d. Whether the investment will affect the ability of the Philippines to protect its strategic and security interests; and

e. Nature, history, and previous business transactions of the investor and any filed cases against the same, in their country of origin, or in any other country or state that the investor is involved with.

a. From the effectivity of the Act, the following are prohibited from making any investment or owning capital in any public service classified as public utility or critical infrastructure:

i. foreign government or foreign state-owned enterprises;

ii. an entity controlled by a foreign government or foreign state-owned enterprises; or

iii. an entity on behalf of a foreign government or foreign state-owned enterprises. An entity is considered to be acting on behalf of a foreign govenrment or foreign state-owned enterprise if the foreign govenrment or foreign state-owned enterprise has the ability to intervene in the management, operation, administration or control of an entity.

b. The Administrative Agencies shall have jurisdiction to monitor and ensure compliance with this Section. For this purpose, the SEC shall provide these Administrative Agencies access to the existing reportorial requirements of these corporations. The Administrative Agencies shall further require documentary evidence to prove the nature of ownership as part of the registration or disclosure of entities intending to operate and maintain public utilities or critical infrastructure in the Philippines.

c. The entities referred to in Section 44(a) which have existing investments or own capital in public utility entities or public service entities classified as critical infrastructure prior to the effectivity of the Act may maintain such investment and capital ownership, but are prohibited from investing additional capital therein after the effectivity of the Act.

d. Sovereign wealth funds (SWF) and independent pension funds of each state may collectively own up to thirty percent (30%) of the capital of such public utility entity or public service classified as critical infrastructure: Provided, That the cumulative investment of such funds in the public service classified as a public utility or critical infrastructure, regardless of source of fund, shall not exceed thirty percent (30%) capital investment. Provided further, that the administrative agencies shall require the SWF to submit proof ot its adherence to international best practices and generally accepted principles of sovereign wealth fund management.

e. In the interest of national security, an entity controlled by, or acting on behalf of the foreign government or foreign-owned enterprises shall not make any data or information disclosure, nor extend assistance, support, or cooperation to any foreign govenrment, instrumentalities, or agents. Provided, That the restrictions on critical infrastructure under this Section shall only apply to investments made after a public service is declared as critical infrastructure.

a. Foreign nationals, whether natural or juridical, shall not be allowed to own more than fifty percent (50%) of the capital of entities engaged in the operation and management of public service classified as critical infrastructure unless the country of such foreign national accords reciprocity to Philippine nationals as may be provided by foreign law, treaty, or international agreement.

b. Reciprocity may be satisfied by according rights of similar value in other economic sectors. For this purpose, the reciprocity requirement shall be deemed satisfied if:

i. Philippine nationals are allowed to own more than fifty percent (50%) of capital stock in any activity related to agriculture, industry, and services in the home country of the foreign national; or

ii. if the home country of the foreign national allows Philippine nationals to invest the same value of capital in any economic activity needed to agriculture, industry, and services.

c. In case of an investment that results in the ownership by a foreign national of more than fifty percent (50%) of the capital stock in a public service classified as critical infrastructure, such public service entity and the relevant Administrative Agency shall ensure that the country of such foreign national accords reciprocity to Philippine nationals as provided under the Act and these Rules.

For this purpose, the Administrative Agency, in case the investment is in existing public service entities classified as critical infrastructure, or the SEC, in case the investment is for public service entities classified as critical infrastructure which are still in the process of registration with the SEC, shall require documentary evidence from the foreign national to prove reciprocity. The documentary evidence may include the following:

i. A copy of the official publication of the law and/or other government issuances granting rights and privileges to Philippine nationals attested by the foreign govenrment officer having legal custody of the record, or his deputy; or

ii. Relevant documents granting rights and privileges to Philippine nationals to invest in the country of the foreign investor and certified in accordance with the Apostille Convention on consularised by the Philippine embassy having jurisdiction in the home country of the foreign investor.

a. Any foreign national seeking admission to the Philippines for employment purposes and any public service entity which desires to engage a foreign national for employment in the Philippines must obtain an employment permit pursuant to P.D. No. 442, otherwise known as the Labor Code of the Philippines, as amended.

b. The public service entity shall strictly comply with the existing rules and regulations and other relevant issuances, promulgated by the Department of Labor and Employment (DOLE), for the issuance of employment permits to foreign nationals.

c. The public service entity employing foreign nationals shall implement an understudy training or skills development program to ensure the transfer of technology/skills to Filipinos.

i. Understudy training program refers to an training plan designed to transfer technology or skills by designating at least two (2) understudies per foreign national employed. Understudies shall be selected by the employer to be trained by a foreign national who works in the country by virtue of an alien employment permit to ensure the actual transfer of technology or skills. Understudies must be next-in-rank Filipino regular employees in the same enterprise.

ii. Skills development program refers to a training plan designed to transfer technology or skills to at least two (2) trainees per foreign national employed through learning sessions or any similar method. It shall be conducted either by a foreign national who works in the country by virtue of an alien employment permit or by a Filipino, with the necessary qualifications. Trainees must be rank-and-file Filipino regular employees.

d. The public service entity employing foreign nationals shall submit its Understudy Training or Skills Development Program to the DOLE Regional Office having jurisdiction over the principal place of business within sixty (60) days from the start of the employment of the foreign national. Monitoring of the Understudy Training or Skills Development Program shall be in accordance with Section 5(c), Rule XIV, Book I, Omnibus Rules to Implement the Labor Code of the Philippines.

a. Exclusive in character;

b. For a longer period than fifty (50) years: Provided, That if a public service has maintained an exemplary record in the delivery of services (based on, among others, the results of the annual performance audit, consumer complaints and actions thereon, service interruptions, and compliance with performance standards and specifications prescribed by law or contract), and has made substantial investments on infrastructure, technology or equipment for its operations, such performance and size of investment shall be taken into consideration, and the application for renewal of the franchise, certificate, concession, or authorization of the public service shall be given priority by the appropriate Administrative Agencies; and

c. Granted except under the condition that it shall be subject to amendment, alteration, or repeal by Congress when the public interest so requires.

a. R.A. No. 6957, entitled, An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes, as amended;

b. R.A. No. 9295, otherwise known as the Domestic Shipping Development Act of 2004, as amended;

c. R.A. No. 9497, otherwise known as the Civil Aviation Authority Act of 2008, as amended;

d. R.A. No. 776, otherwise known as the Civil Aeronautics Act of the Philippines, as amended;

e. P.D. No. 1112, otherwise known as the Toll Operation Decree, as amended;

f. DOTr Department Order No. 2018-13, as amended, on the classification of the Transport Network Companies and Transportation Network Vehicles Service as public utilities; and

g. R.A. No. 7925, otherwise known as the Public Telecommunications Policy Act of the Philippines, as amended, on the classification of all telecommunications entities as public utilities.