Spain has proposed two agreements with the Philippine government that will enable Madrid to invest in the Duterte administration’s various projects, specifically in the areas of infrastructure, agro-food and tourism.
The Department of Finance (DOF) reported that Spanish Ambassador-Designate to the Philippines Jorge Moragas, at a recent meeting, informed Finance Secretary Carlos G. Dominguez III of Spain’s proposed memorandum of understanding (MOU), for a €300-million facility that it will open to the Philippines for project funding.
Moragas also said that another agreement on economic and financial cooperation between Manila and Madrid is being proposed by Spain, pointing out that the country is interested in investing in the Duterte administration’s “Build, Build, Build” (BBB) program especially in railway projects.
Dominguez, in response said, that Spain and its companies are most welcome to take part in the 75 flagship projects under the BBB, particularly in providing rolling stock and other equipment for the rail projects in Metro Manila and Luzon.
The proposed MOU on economic and financial cooperation between the Philippines and the Kingdom of Spain aims to further enhance the bilateral relations between the two countries through the creation of a Joint Intergovernmental Committee that will identify opportunities for cooperation in such fields as agriculture, transportation, basic infrastructure, disaster-risk finance, energy and environmental economics.
The DOF said that the joint committee would be composed of representatives from both countries, to be cochaired by an undersecretary of the National Economic and Development Authority (Neda) and the Secretary of State for Trade of the Ministry of Economy, Industry and Competitiveness of Spain, with a representative from the DOF as member.
Meanwhile, the proposed MOU on the mechanisms for the €300-million financing facility covers possible projects in infrastructure, energy and renewable energy, telecommunication, water treatment, solid waste treatment, agro-food industry and tourism sectors.
The MOU is currently being finalized by the Spanish Embassy and the DOF’s International Finance Group (IFG), which is headed by Undersecretary Mark Dennis Y.C. Joven.
In August 2018, DOF Assistant Secretary Maria Edita Z. Tan explained that the Philippines was offered to either tap the Spanish government’s euro- or dollar-denominated facilities, which offer a 0.25-percent interest rate over a 35-year period and a 1.15-percent rate over a 20-year period, respectively.
During the same meeting, Dominguez also took the opportunity to thank Spain for pledging last November an additional $50 million, or P2.619 billion, for the reconstruction and rehabilitation of the damaged City of Marawi in Mindanao.
Spain’s pledge is on top of the technical assistance it had provided to government agencies in preparation for the implementation of projects under the Bangon Marawi Comprehensive Rehabilitation and Recovery Program.