Gov’t readies new infra package for China funding

China and the Philippines are set to identify a second basket of infrastructure projects for joint implementation, Chinese Ambassador to the Philippines Zhao Jianhua said these initiatives all reflect a golden era in China-Philippines relations, a period that is expected to translate to more “splendid years of great friendship and a strong partnership.”

The second basket of infrastructure projects can be implemented in the following years, Zhao said in his speech during the 68th founding anniversary of the People’s Republic of China .

“We are also working on the possibility of setting up an industrial park in the Philippines,” Zhao said.

He outlined the list of Philippine infrastructure projects that China is supporting, saying these projects reflect China’s strong commitment to infrastructure development to synergize China’s Belt & Road Initiative and President Duterte’s Build Build Build Initiative.

“China has provided grants to build two bridges over the Pasig River. The groundbreakings are expected to take place in November. China will provide concessional loans to the Philippines’ three priority projects, namely the south line of the North-South Railway, New Centennial Water Source Kaliwa Dam and Chico River Pump Irrigation project. China will finance feasibility studies for the construction of the Davao City Expressway and PanayGuimaras-Negros Link Bridge,” Zhao said.

The Duterte administration vowed to usher in the so-called golden age of infrastructure in the country. Projects in the pipeline include 12 bridges over the Pasig River, the ambitious North South Railway from Metro Manila to Legazpi City, the Kaliwa Dam and Chico River Pump Project. In all, there are 75 projects in the pipeline.

In the area of trade and investment, Zhao committed more investments from China.

“Our warming bilateral relations have been translated into economic benefits for both sides. China is now the largest trading partner, largest import market and fourth largest export destination of the Philippines.

“According to China’s statistics, our bilateral trade volume hit $27.86 billion in the first seven months of 2017, with a 7.6 percent year-on-year increase. In December 2016, the Chinese importers committed to import 100,000 tons of tropical fruits from the Philippines. Since October 2016, the Philippines’ fruits export to China registered a sharp increase of 50 percent,” Jianhua said.

Philippine mangoes, pineapples, dragon fruits and durians are among the most welcome commodities in the Chinese market, he said.

“China’s FDI to the Philippines reached $35 million in 2016, a rise of 47 percent on a yearly basis, and in the first seven months of 2017.

Outside trade and investment, Zhao said China is also a staunch supporter of the Philippines’ war on drugs.

“China fully understands and firmly supports the Philippines’ fight against illicit drugs. China already provided the Philippines with two batches of equipment worth P436 million, among which were drug detecting and testing equipment. The law enforcement agencies from China joined hands with their Philippine counterparts in preventing drug trafficking and secured significant achievements. Two drug rehabilitation facilities in Mindanao are expected to be launched this November,” he said.