Dominguez signs $62-M loan, $79-M grant from China

The Department of Finance (DOF) sealed the government’s loan agreement with China to help fund the construction of an irrigation facility in Luzon as well as a grant to support at least four other projects of the Duterte administration.

In a statement, Finance Secretary Carlos G. Dominguez III said that he signed the $62-million loan deal with China to help fund the construction of the Chico river pump irrigation project in Northern Luzon.

Aside from the loan, Dominguez also said the Philippines and China signed an accord on economic and technical cooperation for at least four other projects undertaken by the Duterte administration in cooperation with Beijing.

The finance chief said the Chinese grant involves $79 million.

According to the DOF, the $62.09 -million loan agreement on the Chico river irrigation project, which will be implemented by the National Irrigation Administration, covers 85 percent of the total contract amount of $73.04 million.

The total project cost of the Chico river irrigation project is $86.57 million.

The interest rate on the US-dollar denominated loan is 2.0 percent per annum with a maturity period of 20 years, inclusive of a seven-year grace period, the DOF said.

According to the government, the irrigation project one completed will provide a stable supply of water to around 8,700 hectares of agricultural land, benefit 4,350 farmers and their families, and serve 21 barangays in the provinces of Cagayan and Kalinga.

Meanwhile, the agreement on economic and technical cooperation involves a 500 million renminbi grant, or around $79 million, to finance four projects and activities of the Philippine government.

These are the Binondo-Intramuros and Estrella Pantaleon bridges in Metro Manila of the Department of Public Works and Highways (RMB 264.8 million, partial funding), as well as the feasibility study for the Davao City expressway project (RMB25.83 million).

The third project is the provision of radio and broadcasting equipment to the Presidential Communications Operations Office (RMB17.82 million) and the Philippine-Sino center for agricultural technology-technical cooperation program phase II.

The remaining amount of RMB164.03 million under the RMB500 million grant will be used to finance other projects, the DOF said.