Philippine, China to ink “at least 10 perhaps” projects during Xi’s visit, says Diokno

August 29, 2018

The Philippines and China are expected to sign "at least" 10 loan agreements for huge infrastructure projects with an estimated cost of P292 billion during the visit of Chinese President Xi Jinping in the country, an official said on Wednesday.

In a forum, Budget Secretary Benjamin Diokno said that the recent high-level meeting between the two countries in Beijing was "in preparation" for Xi's visit in November.

"I think he will go to Papua New Guinea first for the APEC (Asia-Pacific Economic Cooperation) meeting and on his way back, he will pass by the Philippines and so everybody is now gearing towards signing, and he might even have some surprises, pleasant surprises," said Diokno, a member of the high-level officials who went to China last week.

Asked how many loan agreements could be signed during Xi's visit, Diokno said, "at least 10 perhaps."

Data from the National Economic and Development Authority showed that the projects targeted for signing in November were the P50.031-billion Subic-Clark Railway Project; P39.219-billion Ambal Simuay River and Rio Grande de Mindanao River Flood Control Projects; and P1.595-billion Palanca-Villegas (2nd Ayala) Bridge Project.

NEDA said the other projects, which loan deals could be signed during Xi's visit, are the P1.386-billion Beata-F.Y. Manalo Bridge (initially submitted as Pandacan-Sta Ana Bridge); P1.103-billion Blumentritt-Antipolo Bridge; P3.176-billion East-west Bank Bridge 2; P8.029-billion North and South Harbor Bridge (initially submitted as Robinson Bridge); P175.318-billion PNR South Long-haul (Manila-Bicol) railway project; and P12.2-billion New Centennial Water Source - Kaliwa Dam Project.

Diokno, meanwhile, assured that the Duterte administration is exercising "due diligence" in processing the approval of the Chinese-funded projects.

He said the government is asking China to vet for three Chinese contractors who could possibly do each project.

The Budget chief said the Philippines, on the other hand, will award the project from one of the three Chinese contractors based on the government's procurement law. Celerina Monte/DMS