UK to boost export financing for PHL infra projects

THE United Kingdom (UK) said it will make available £4.5 billion ($6 billion) worth of export credit to support Philippine infrastructure projects which have British participation.

UK trade envoy to Malaysia and the Philippines Richard Graham, a member of parliament, told reporters during the official resumption of UK beef imports to the Philippines that UK Export Finance will be providing the funding.

“[This will encourage] business activities in the Philippines with UK companies… that’s a commitment from the government. So how much of that will be used? I don’t know but it will be available,” Mr. Graham added.

Interest in the Philippines is due to the Philippines’ aggressive plans to boost infrastructure spending, which London hopes UK companies will take part in.

A bulk goods port in Mariveles, Bataan has been funded by UK Export Finance.

Mr. Graham said he will also be looking into the Clark Economic Zone for possible projects connected to the Clark Airport redevelopment and the upcoming Smart City.

According to a statement released by the British embassy, UK-Philippine bilateral trade in 2015 amounted to £1.5 billion, with the UK in deficit by £628 million.

The event marked the formal resumption of UK beef imports after 20 years.

UK beef imports were banned in 2001 due to bovine spongiform encephalopathy (BSE), better known as mad cow disease. In 2015, UK beef was found to be BSE-free. Director for Trade and Investment from the Department for International Trade of the UK embassy Mike Moon said he expects beef imports by the Philippines of £30-34 million. Globally, UK beef exports amount to £350 billion.

“What’s important is, it doesn’t really compete with what the Philippines (offers) because you have the top end of the market ... and things like mangoes and other exotic fruits which we can’t grow but we have the perfect climate for beef because we got lots of rain and we got wonderful thick grass so this is perfect for animals and meat. So I think this is one good example of where the Philippines and the UK are actually working quite well together,” Mr. Graham said. —