Thailand
Philippines to sign 2 big-ticket infrastructure project with China
MANILA, Philippines — Manila and Beijing are expected to close financing deals on two big-ticket infrastructure projects during Chinese President Xi Jinping’s visit to the country this November, the Department of Budget and Management (DBM) said yesterday.
In a press briefing, Budget Secretary Benjamin Diokno said the government is preparing to sign with China the loan agreements for the New Centennial Water Source-Kaliwa Dam Project and the Philippine National Railways South Long Haul poject.
The budget chief said these are among the 18 agreements that are in the pipeline for possible signing during Xi’s visit to the country in the third week of November.
In addition to these agreements, Diokno said President Xi might also announce additional aid to the Philippines during his visit, but declined to specify the amount.
“I think President Xi Jinping might announce additional aid to the Philippines. I’m not at liberty to announce how much, but it’s big,” Diokno said.
Earlier this week, a high-level Chinese delegation, led by Foreign Minister Wang Yi, visited Davao City to meet with Philippine officials and firm up the details of some economic agreements prior to the visit of Xi.
The Chinese government has pledged $9 billion in assistance to the Philippines during President Duterte’s visit to Beijing in October 2016.
Since then, the Philippine government has submitted two baskets of infrastructure projects for possible financing assistance from China.
The first basket includes various projects, such the P2.7 billion Chico River Pump Irrigation project, the P10.9 billion Kaliwa Dam project, and the P151.3 billion PNR South Long Haul project.
The second basket includes the Subic-Clark Railway Project, the construction of five bridges across Pasig-Marikina River, and the rehabilitation of the Agus-Pulangi hydro power plants, among others.
Last April, Manila and Beijing signed a $62.09 million Preferential Buyer’s Credit Loan Agreement for the Chico River project.
The government is targeting to spend as much as P8.4 trillion until 2022 for its massive infrastructure program dubbed Build Build Build.
To fund this program, economic managers are exploring different sources of financing, including official development assistance, loans, and “hybrid” public-private partnerships.
They have also adopted an expansionary fiscal policy by widening its deficit ceiling to three to 3.2 percent of the country’s gross domestic product over the medium term.
Source: https://www.philstar.com/business/2018/11/01/1864805/philippines-sign-2-big-ticket-infrastructure-project-china#IXQvTXrUO4IbivOv.99