Palace insists Chinese-funded irrigation project constitutional

April 10, 2019

Malacanang reiterated on Wednesday that the $62-million loan that the Philippines contracted with China for the Chico River Pump Irrigation Project underwent evaluation and is constitutional.

Presidential Spokesperson Salvador Panelo issued the statement after the Supreme Court ordered the Duterte administration to answer the petition filed by the opposition lawmakers to declare the loan agreement unconstitutional.

"The loan agreement has passed through many channels. There has been many reviews/evaluations. We feel that it’s not in violation of the Constitution as alleged by the petitioner," he said.

He said the government would respond to the petition filed by the members of the Makabayan bloc asking the Supreme Court to issue a temporary restraining order on the China-funded project, which they believed as onerous.

The petitioners led by senatorial candidate Neri Colmenares, in their petition, have argued that the loan agreement with China was onerous due to the confidentiality clause, after-the-fact approval by the Monetary Board, and the need for a Chinese company to be the contractor for the project. Celerina Monte/DMS