Chinese ambassador says Philippines won’t fall into “debt trap”

July 17, 2018

Chinese Ambassador to the Philippines Zhao Jianhua on Tuesday dismissed concerns the Philippines is falling into the “debt trap” as it seeks to borrow more from Beijing to fund its “Build, Build, Build” infrastructure program.

"There is no mention or no avenue for ownership. Your government will own all those projects. So there will be no question of putting yourself in debt. I think your economic team is smart enough," Zhao said in a chance interview during groundbreaking rites for construction of two bridges in Manila that Chinese government donated to the Philippines.

 "Actually there has never been a debt trap. It’s all based on mutual agreement," he said.

In his speech during the event, Zhao said: “China will honor this commitment to make sure those projects will benefit Filipinos and will not have a negative impact on the socio-economic development of the Philippines."

Zhao said the 506.46-meter Estrella-Pantaleon Bridge and 734-meter Binondo-Intramuros Bridge will be financed and constructed by China for free.  "Let me make it quite clear, these projects, these two bridges are going to be financed by Chinese grants. That is, we’re going to build it for free," Zhao said.

 The Department of Public Works and Highways said construction of the bridges is set to start this week. It is to be completed on 2020. DMS