Noli in Beijing to seek more investments

Vice President Noli de Castro met yesterday with Chinese Premier Wen Jiabao in Beijing and reiterated the Philippine government’s commitment to strengthen relations between the two countries, his office said yesterday.

De Castro, who is on a six-day official visit, arrived in Beijing last Sunday and will return to the country Friday.

De Castro urged China to invest more in the Philippines during separate meetings with Wen and Vice President Zeng Qinghong.

During the meeting with the two Chinese officials, De Castro said there have been advances in trade between the two countries, but that Chinese investments in the Philippines still need to be improved.

De Castro said Chinese investment in the Philippines during the first three quarters of 2005 amounted to only P82.3 million, accounting for only 0.14 percent of the total foreign investments for the period.

"We would appreciate the assistance of the Chinese government in promoting investment opportunities in the Philippines among your investors, particularly in infrastructure development, agriculture and fisheries, housing and mining," he said.

De Castro told the two Chinese leaders that the Philippine government welcomes Chinese investments in housing "to help us cope with the country’s massive housing need."

De Castro, who is also chairman of the Housing and Urban Development Coordinating Council, also assured the Chinese government and its business sector of the Philippine government’s commitment to completing the North Rail project.

The HUDCC is in charge of relocating informal settler families affected by the Rail Linkage Project (North Rail and South Rail).

De Castro relayed to Wen and Zeng the request of President Arroyo that China provide similar financial support for the Main Line South project, which would rehabilitate the existing railway line to the Bicol region.

"This will spur economic and social development and boost tourism in that area," he said.

In April 2005, the Philippine National Railways signed an agreement with the China National Technical Import Export Corp. (CNTIC) for the Main Line South project.

De Castro told Wen that preparations were underway for his visit to the Philippines in December.

De Castro said there is a possibility of coming up with agreements in at least 10 areas of cooperation, including energy, customs, inspection and quarantine as well as a framework for economic partnership in the next 10 years.

"China is one of our most important partners and neighbors," he said.

"Our partnership with them has grown by leaps and bounds since the establishment of diplomatic ties in 1975, but there are areas of cooperation that we still need to work on to address our common concerns."

Meanwhile, Trade Secretary Peter Favila expressed confidence yesterday that the memorandum of understanding (MOU) signed between the Philippines and China would encourage more Chinese businessmen to invest in the Philippines.

Based on Chinese figures, China has invested $2.3 billion in the Philippines, compared to the $4.7 billion that Philippine companies have invested in China.

Chinese taipans led by Lucio Tan, Henry Sy and conglomerate San Miguel Corp. have made substantial investments in China.

During the opening of the two-day Philippines-China Economic Partnership Forum, President Arroyo invited Chinese businessmen to invest in agriculture, housing, infrastructure, tourism and mining.

The Philippines has presented China with a $32 billion list of projects that need funding.

In yesterday’s closing of the forum, China committed $200 million in additional financing for the South Rail Project, and reiterated its promise to study the possibility of funding several other key infrastructure projects.

However, Chinese officials led by Commerce Minister Bo Xilai emphasized the need for the Philippines to address impediments to key projects like the North Rail project.

China’s willingness to invest in the Philippines is shown by its decision to provide an additional $200 million to the South Rail Project, even though the project has been delayed, Francis Chua, Filipino-Chinese Chamber of Commerce and Industry president, said. — Pia Lee-Brago, Marianne Go