THE Department of Finance (DOF) said big-ticket infrastructure projects to be rolled out by the Philippines in cooperation with China are proceeding as discussed, with an initial three loan accords due for signing before the year ends.
The DOF reported the Philippines and China aim to conclude three more loan agreements for major infrastructure projects, namely, the New Centennial Water Source-Kaliwa Dam Project of the Metropolitan Waterworks and Sewerage System; the Project Management Consultant for the Philippine National Railway South Long Haul Project of the Department of Transportation; and the Safe Philippines Project, Phase 1 of the Department of the Interior and Local Government, along with several bilateral documents.
At present, the Philippines has already signed four grant agreements totaling 1.25 billion renminbi (RMB), or about $198.77 million, to finance projects and feasibility studies for various infrastructure projects in the country.
Under the RMB 500-million grant signed in April 2018, about RMB 110.33 million, or $17.55 million, has been allotted for the project feasibility studies of the Davao City Expressway Project and Panay-Guimaras-Negros Island Bridge Project, to be implemented by the Department of Public Works and Highways. “In fact, the proposed infrastructure projects we are undertaking with the cooperation of China all go through a very stringent process of approvals to ensure they comply with the Government Procurement Act and other applicable laws,” the DOF said in a statement. During high-level meetings between the Philippines and China held in Beijing last August, an indicative list of 12 infrastructure projects proposed for feasibility-study assistance was submitted to the Chinese government for its consideration.
On April 10, 2018, on the sidelines of the four-day Boao Forum for Asia in Hainan, China, Finance Secretary Carlos G. Dominguez III, on behalf of the Government of the Philippines, and Chinese Ambassador to the Philippines Zhao Jianhua, on behalf of the Export-Import Bank of China, signed the $62.09-million loan agreement to help fund the construction of the Chico River Pump Irrigation Project in Northern Luzon.
The DOF said “the topic of joint [oil] exploration was never raised in our discussions with our counterparts particularly during loan negotiations and processing of new loans, even during the bilateral meetings and high-level meetings with this office.”
The statement was issued by the DOF to debunk false claims published online about a Chinese embassy official supposedly using China’s offers of loans and grants to force the Philippines to agree to a joint exploration deal in the West Philippine Sea.
“This is a grossly malicious claim without any basis. There is no link whatsoever between the Chinese loans and grants and the proposed joint oil exploration deal between the two countries,” it said.
Technical discussions on the loan agreements to be signed between the two countries are ongoing, with delays encountered “mostly due to our [the Philippine government’s] internal processes,” the DOF said.
In July, the Department of Foreign Affairs (DFA) reported a draft framework for the conduct of a joint exploration by the Philippines and China for oil and gas in the West Philippine Sea is expected to be out in September.
Foreign Affairs Secretary Alan Peter S. Cayetano said both countries have listed proposed principles to be included in the framework and are closely looking at the draft agreement.