DENR to streamline processing of permits

The Department of Environment and Natural Resources (DENR) will soon implement major policy reforms that will do away with the tedious processing of permits and licenses.

This was announced yesterday by DENR Secretary Jose L. Atienza.

According to Atienza, the policy reforms will have a big impact on prospective investors particularly in the mineral industry.

The initial reform to be undertaken is in the processing and issuance of environmental compliance certificates (ECC) which has caused the delay in investment flows into the country.

“I will not change the ECC as it is now. In fact this will become more stringent. But the reforms will ensure transparent process of documentation and license processing to eradicate the long tedious process turning prospective investors away, particularly mining companies planning to invest in our country,” Atienza said.

The DENR will draft the guidelines after consultation with the private sector.

Atienza acknowledged that the more transparent the transactions, the more it becomes sustainable and at the same time makes the DENR graft free.

“If there will be no corruption that accompanies in the processing of permits in the beginning, there will be no corruption in the process,” Atienza said.

“An ECC is already a license in itself, an outline of environmental conditions that should be monitored regularly. However, the impression is that once the ECC is issued the work of the department is done, it should not be the case, instead monitoring will be strengthened,” Atienza said.

Atienza added that if an investor can immediately bring in his money and is not restricted by a very tedious process and very long delay from the first step of an ECC issuance, more investors will come to the country.

The ECC, according to the DENR chief, will remain a measure to ensure that the environment is protected, but should not delay investment from flowing in.

Aside from strengthened monitoring, Atienza said he would reform the attitude of how investors are viewed.

The DENR, particularly the Mines and Geosciences Bureau (MGB) should look at every company coming in as legitimate investors.

Another reform Atienza wants implemented in the coming months is the 60-40 joint venture agreement where the government can partner with the prospective investors.

With the new scheme Atienza expects more investors to come in.

Under the new scheme, the government share will increase tremendously to 40 percent which is better than the present agreement which limits the government share to only two per cent on excise taxes.

“The objection of many anti-mining is the two percent government share on excise taxes which is very small considering the fact that the government is the owner of the minerals and as such should receive a larger share,” Atienza explained.

Atienza is optimistic that with the 60-40 agreement, it will reduce if not eradicate squabbles among key industry players.

Atienza admitted though that the scheme will not stop any company from partnering with any local institution. Companies operating now, and following the provision of the law, will not be affected by the new policy.