Manila-Beijing to meet this week on China-funded projects

MANILA, Philippines — Manila and Beijing are scheduled to discuss ways to address the issues and challenges involving infrastructure projects under the Duterte administration’s Build Build Build program to be funded by China through official development assistance (ODA) loans and grants.

Finance Secretary Carlos Dominguez will lead the Philippine delegation that will provide updates on the progress of the “first basket” and “second basket of projects for Chinese loan financing.

Dominguez will be joined by Budget Secretary Benjamin Diokno, Socioeonomic Planning Secretary Ernesto Pernia, Transportation Secretary Arthur Tugade, Public Works and Highways Secretary Mark Villar and Bases Conversion and Development Authority (BCDA) president and CEO Vivencio Dizon.

Foreign Affairs Secretary Alan Peter Cayetano is also expected to join the Philippine delegation from Aug. 22 to 24.

Dominguez and the other members of the delegation are set to meet with China’s State Councilor and Foreign Affairs Minister Wang Yi and Commerce  Minister Zhong Shan, director Wang Xiaotao of the China International Development Cooperation Agency (CIDCA), chairperson Hu Xiaolian of the Export-Import Bank of China (China EXIM), and Jin Liqun, president of the Asian Infrastructure Investment Bank (AIIB).

The delegation is also set to pay a courtesy call on Vice Premier of Economic Cooperation Hu Chunhua.

 “The high-level meetings will focus on strengthening and enhancing our bilateral engagement and cooperation. “We express the hope that a number of bilateral documents would be presented and signed during the meeting, among them the exchange of letters for the feasibility study of the Panay-Guimaras-Negros Inter-Island Bridges Project,” the Finance department said.

The “first basket” of projects covers the Chico River Pump irrigation project, New Centennial Water Source-Kaliwa dam project, the Philippine National Railways’ South long haul project, and the Davao-Samal bridge construction project, along with the Binondo-Intramuros and Estrella-Pantaleon bridges that are being funded with grants from China.

On the other hand, the “second basket” includes the Ambal-Simuay River and Rio Grande de Mindanao River flood control projects, Pasig-Marikina River and Manggahan Floodway bridges construction project, Subic-Clark Railway project, Safe Philippines project Phase I, and the rehabilitation of the Agus-Pulangi hydroelectric power plants project.

The groundbreaking ceremony of the Binondo-Intramuros and Estrella-Pantaleon bridges across the Pasig River was held last July 17. Both bridges are expected to ease traffic in Manila’s heavily congested areas where major business and commercial hubs thrive.

Dominguez  and Chinese officials signed a $62 million loan agreement in Hainan, China last year to fund the construction of the Chico River Pump Irrigation project and a separate accord on economic and technical cooperation providing for a $79 million grant for at least four other projects undertaken by the Philippine Government in cooperation with China.

Meanwhile, the Agreement on Economic and Technical Cooperation involves a 500 million Renminbi grant to finance the the Binondo-Intramuros and Estrella-Pantaleon bridges in Metro Manila (RMB 264.8 million); the conduct of feasibility study for the Davao City expressway project (RMB25.83 million); the provision of radio and broadcasting equipment to the Presidential Communications Operations Office (RMB17.82 million); and the Philippine-Sino Center for Agricultural Technology-Technical Cooperation Program Phase III (RMB 27.52 million).

The DOF said the remaining amount of RMB164.03 million would be used to finance other projects.