5 first-time Chinese investors mull $10.3 B worth of projects in PH

First-time Chinese manufacturing investors are seen pouring in at least $10.3 billion in the country’s steel, aviation, green energy, downstream oil, and ship building/repair industries before end this year, the Board of Investments (BOI) yesterday announced.

Trade and Industry Undersecretary for industry development Ceferino Rodolfo, who is also BOI managing head, received and noted the Letters of Intent (LOIs) yesterday from the five Chinese project proponents namely Aviation Industry Corporation of China (AVIC) International Aero-development Corporation, Liaoning Bora Enterprise Group Co., Ltd., Huili Investment Fund Management Co., Ltd., Dalian Wanyang Heavy Industries Co., Ltd., and YiDingTai (YDT) International.

According to Rodolfo, the projects could generate at least 15,500 jobs once they go into full commercial operation.

The projects proponents are conducting feasibility studies in three to four months and expect a more concrete investment plans before end of this year. Once the studies are completed, these prospective investors will have to determine which government investment promotion agency to locate their specific projects. They are also weighing the possibility of taking in local partners.

Of the five projects, only AVIC refused to divulge its investments. AVIC is an ultra large state-owned enterprise in China, focusing on the manufacture and provision of helicopters, aircraft and aviation related products, equipment and services is exploring opportunities in industrial cooperation for aerospace parts manufacturing, aviation maintenance and training. The company also plans to cooperate with local partners on aerospace parts manufacturing, maintenance-repair-overhaul facilities and other industrial sectors.

Liaoning Bora Enterprise Group Co., Ltd. and its Philippine partner meanwhile agreed on a joint venture in the construction and operation of retail network, oil storage terminal, refinery projects, and allied industries in the country worth $3 billion. The project will provide 3,000 jobs within two years from start of commercial operation.

Dalian Wanyang on the other hand is currently doing feasibility studies for a 4,000-5,000 metric tons waste to energy gasification project generating up to 312 megawatts of power using solid waste collected from homes and businesses using state-of-the-art technology, with preliminary results ready by the end of March 2017. This is in partnership with the Philippine government and private sector entities to reach its goal of investing in two sites of waste-to-energy facilities in the country using gasification technology amounting to $2.8 billion and employing at least 4,500 workers by 2022.

Another firm YDT International, an affiliate