China funding pledges to PH top P7B – DoF

THE Chinese government has so far committed a combined $7.34 billion in soft loans and grants to the Philippines, the Finance department said

In a statement on Tuesday, the department said the funding commitment would be used to implement 10 big-ticket projects, construct two bridges in Metro Manila and two drug rehabilitation facilities in Mindanao, and rehabilitate war-torn Marawi City.

Finance department data showed that loans committed by Beijing now total $ 7.19 billion for infrastructure, energy and public safety projects while grants amount to $148.22 million.

Of the $7.19 billion, about $ 3.98 billion—representing the estimated total funding requirement of a second project basket under various stages of prepara- tion—still needs further discussions.

The Finance department stressed that the amounts were only estimates and would be finalized once the loans are process.

According to the department’s International Finance Group (IFG), the assumed loan amount pledged by China accounted for 85 percent of the total cost of 10 major government projects.

These cover soft loans under the first basket that includes $ 234.92 million for the Kaliwa- New Centennial Water Source in Quezon province, $ 72.49 million for the Chico River Pump Irrigation Project in North Luzon and the $ 2.91- billion Philippine National Railways South Long Haul Railway for a total estimated loan amount of $ 3.21 billion.