Dominguez signs 3 economic, infra cooperation agreements with Chinese officials

November 15, 2017

Finance Secretary Carlos Dominguez III signed Wednesday three agreements on behalf of the Philippine government on economic and infrastructure cooperation with China, including an accord providing a $23 million grant to aid the rehabilitation of war-torn Marawi City, the Department of Finance said Wednesday.

Topping the list is a financing cooperation agreement signed by Dominguez and Liu Liange, president of the Export-Import Bank of China, for two of the Philippines’ flagship infrastructure projects—the Kaliwa Dam-New Centennial Water Source of the Metropolitan Waterworks and Sewerage System (MWSS) and the Chico River Pump Irrigation facility of the National Irrigation Administration (NIA)—that will cover 85 percent of the total contract amounts of the projects.

The signing ceremonies held at Malacañang Palace on Wednesday afternoon were witnessed by President Duterte and Chinese Premier Li Keqiang, who is in Manila to take part in this year's 31st Association of Southeast Asian Nations (ASEAN) Summit and Related Meetings.

China will provide soft loans estimated at $234.92 million for the Kaliwa dam and $72.49 million for the Chico River irrigation facility under the first basket of infrastructure projects presented by the Philippines for possible Chinese financing, according to the Department of Finance-International Finance Group (DOF-IFG).

Dominguez also inked a memorandum of understanding with China Vice Commerce Minister and International Trade Representative Fu Ziying to “jointly identify and study” an indicative list consisting of the second basket of key infrastructure cooperation projects for possible Chinese financing.

Among the proposed projects under the second basket are the development of the Subic-Clark Railway, Davao City Expressway, and Panay-Guimaras-Negros Inter-Island Bridge.

According to the DOF-IFG, the  pre-feasibility studies of the Davao City Expressway and Panay-Guimaras-Negros Inter-Island Bridge projects of the Department of Public Works and Highways (DPWH) were funded by a grant from the Chinese Government. The support for full feasibility studies will be facilitated next by the Chinese Government.

An agreement on economic and technical cooperation on providing a 150-million renminbi (approximately $23 million) Chinese grant to aid the Philippine government’s quick recovery and reconstruction program for Marawi City was also signed by Dominguez and Fu.

China has committed an estimated $7.34 billion in soft loans and grants thus far to the Philippines for the implementation of 10 big-ticket projects, the construction of two bridges in Metro Manila and two drug rehabilitation facilities in Mindanao.

The estimated $7.34 billion includes assistance package for the Marawi rehabilitation program.  DMS