Revisiting Foreign Investment Limits on Renewable Energy Contracts in Light of the Text and Context of the 1987 Constitution 93 Philippine Law Journal 2020

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93 Phil. L.J. 962 (2020)
Revisiting Foreign Investment Limits on Renewable Energy Contracts in Light of the Text and Context of the 1987 Constitution

handle is hein.journals/philplj93 and id is 1003 raw text is:

REVISITING FOREIGN INVESTMENT LIMITS ON
RENEWABLE ENERGY CONTRACTS IN
LIGHT OF THE TEXT AND CONTEXT
OF THE 1987 CONSTITUTION*

Dr. Joseph Emmanuel L. Angeles*

I. INTRODUCTION

When the 1935 Constitution was drafted, the Commissioners framed
the debate in nationalist terms and restricted foreign investment and
management in various sectors.1 These provisions were retained in the 1973
and 1987 Constitution,2 hindering foreign investment,3 promoting import
substitution and protectionism, and penalizing the Filipino consumer with
high prices and poor service.4 Professor Gerardo Sicat traces the Philippines'
economic lethargy to these investment limits.5

The economic provisions of the 1987 Constitution are being revisited
to undo this self-inflicted economic stultification. While long overdue, other
potential reforms may likewise be explored. One such regulation is a 2009
Department of Energy circular that restricts the award of renewable energy
(RE) service/operating contracts to Filipino citizens or corporations at least
60% of whose capital is owned by Filipinos. This article revisits the propriety
of this circular in light of the text and context of the 1987 Constitution.

* Cite as Joseph Emmanuel Angeles, Revisiting Foreign Investment LImits on Renewable
Energy Contracts in Light of the Text and Context of the 1987 Constitution, 93 PHIL. L.J. 962, [page
cited] (2020).
** Member of the Philippine Bar; President, Angeles University Foundation; Faculty,
Angeles University Foundation School of Law & University of the Philippines College of Law;
Ph.D., University of the Philippines Virata School of Business (2014); M.S. Management,
University of the Philippines Virata School of Business (2011); LL.M., New York University
School of Law (2007); LL.B., University of the Philippines College of Law (2002); B.S.
Business Administration, University of the Philippines Virata School of Business (1998).
1 Gerardo Sicat, Philipine Economic Nationalism, 45 PHIL. REV. ECON. 1, 3 (2008).
2 Id. at 4.
3 Id. at 10.
4 Id. at 10, 12 & 15.
s Id. at 21.
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