China signs deals for Kaliwa Dam, Chico River irrigation funding

THE government has signed three loan agreements on economic and infrastructure cooperation with China, the Department of Finance (DoF) said in a statement.

Finance Secretary Carlos G. Dominguez III and Liu Liange, president of the Export-Import Bank of China, signed the loan agreements in Malacañang on Wednesday.

The signing ceremony was witnessed by President Rodrigo R. Duterte and Chinese Premier Li Keqiang, who was in Manila to participate in the 31st Association of Southeast Asian Nations (ASEAN) Summit and related meetings.

The loan agreements cover the $ 234.92- million New Centennial Water Source-Kaliwa Dam project and the $72.49 million for the Chico River irrigation project.

Mr. Dominguez also signed a Memorandum of Understanding with 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 P57.6- billion Subic- Clark Railway, the P25.63- billion Davao City Expressway, and the P27.16- billion PanayGuimaras- Negros Inter-Island Bridge — all currently under review by the National Economic and Development Agency’s Investment Coordination Committee.

The Finance department said that the pre- feasibility studies of the Davao City Expressway and PanayGuimaras- Negros InterIsland Bridge projects of the Department of Public Works and Highways were funded by a grant from the Chinese government. The full feasibility studies will also be backed by China.

An agreement on Economic and Technical Cooperation, a $ 23 million grant for Marawi City’s reconstruction program, was also signed by Mr. Dominguez and Mr. 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 DoF said. —