DOF, DOH ink pact on Chinese grant for drug rehab/rehabilitation facilities

April 25, 2017

The departments of finance and of health have signed a memorandum of agreement (MOA) on the construction of drug rehabilitation facilities to be funded by a RMB 50-million yuan grant from China. The RMB 50-millionyuan aid, equivalent to $7.5 million, is half of the RMB 100-million yuan grant that China has pledged to the Philippines during President Duterte’s state visit to Beijing last October, through an agreement on economic and technical cooperation signed by Finance Secretary Carlos Dominguez III and China Commerce Minister Gao Hucheng. The agreement states that “in accordance with the needs of the Government of the Republic of the Philippines, the Government of the People’s Republic of China agrees to provide the Government of the Philippines with a grant of RMB Yuan 100,000,000, which shall be disbursed to implement the projects for illegal drugs and law enforcement security cooperation.” According to Dominguez, the other half of the grant will be used to procure law-enforcement-related equipment to be divided among the Philippine National Police, Philippine Drug Enforcement Agency and the Presidential Security Group. Under the MOA signed by Dominguez and Health Secretary Paulynn Ubial, the finance department is tasked to coordinate with the Chinese government all concerns that will ensure the “successful and smooth implementation of the sub-grant to the DOH.” Assistant Finance Secretary Maria Edita Tan said the agreement also states that the DOF (Department of Finance) shall “coordinate with and/or secure the approval of the DOH (Department of Health)” on all matters relating to the design and specifications of the sub-grant” and the “supply, delivery, implementation and acceptance arrangements” related to it. In turn, the DOH will be responsible for, among others, identifying and providing the sites for the proposed drug rehabilitation facilities and securing the necessary clearances, approvals and permits for their construction, Tan said. The DOH is also responsible for providing the necessary information and assistance to the Chinese government or its designated consultants to enable the latter to facilitate the supply and delivery, and installation or construction, of the drug rehabilitation facilities, the agreement stated. Under the agreement, the counterpart funding for the construction, installation and maintenance of utilities necessary for the smooth operation and implementation of the sub-grant shall be provided by the DOH either through its own budget, assistance from the private sector, or, if allowable, the Chinese government. DMS