Carlos T. Ocampo

January 8, 2001 SEC OPINION Carlos T. Ocampo Ocampo Manalo & Ureta Law Offices Herrera cor. Leviste St., Salcedo Village, Makati City Dear Sir : This refers to your letter requesting for an opinion regarding the foreign equity allowed by law in companies engaged in the construction business. Please be advised that there is no foreign equity limitation to companies engaged in construction and repair work on buildings, houses and other structures except those which involve the construction and repair of locally-funded public works as defined under Sec. 1 of CA 541, LOI 630 which places the maximum foreign equity to 25%. However, this exception is also subject to two exceptions where foreign equity limitation is again relaxed: a) The fast exception covers infrastructure/development projects covered in RA 7718 and b) projects which are foreign-funded or assisted and required to undergo international competitive bidding (Sec. 2 of RA 7718). Attached is a xeroxed copy of the 4th Regular Foreign Investment Negative List for your information and reference. Very truly yours, (SGD.) BENITO A. CATARAN Director Company Registration and Monitoring Department