LIKE the temperature in Manila, ties between the Philippines and China are “pretty high,” Chinese Premier Li Kequiang said, as both sides signed 14 agreements Wednesday for $7.34 billion in Chinese loans and grants to finance 10 big-ticket projects here, on top of a 150 million renminbi ($23 million) grant for reconstruction and rehabilitation of Marawi City.
“Winter has come to the northern hemisphere, but the temperature in Manila is still running pretty high. I think that somewhat reflects the temperature of China-Philippine relations, which [are] also going pretty high on the basis of the improvement in relations between the two counties,” Li said in a speech in Malacañang.
“We hope that we will continue to work together to strengthen this positive momentum and work together to make up for the time we might have lost,” he added.
Li, the first Chinese premier in 10 years to visit Manila, said Duterte’s twin visits to Beijing last year broke the ice amid tensions between the two countries.
Since the beginning of this year, Li noted the “boom” in practical cooperation between Philippines and China.
After the first 10 months of the year, Li said that China has been the country’s top trading partner and has imported some 13,000 batches of tropical fruits from the Philippines.
Some 14 new flights have been opened between Philippines and China, and he expects some 1 million Chinese tourists to visit the country by the end of the year.
Duterte said that Manila’s efforts to seek better ties with Beijing are already “bringing in an early harvest of tangible benefits.”
“I am pleased to note the positive turnaround and vigorous momentum of Philippines-China relations. Mutual trust and confidence-building have led to increased interaction on many levels of our two governments. Practical cooperation in many areas is bringing in an early harvest of tangible benefits. Altogether, these concerted efforts of the Philippines and China have secured peace, stability, and development in the region.”
China has commited $7.34 billion in soft loans and grants for 10 big-ticket projects, the construction of two bridges in Metro Manila and two drug rehabilitation facilities in Mindanao, and assistance in the rehabilitation of war-torn Marawi City in Mindanao, the Finance Department said.
Finance Department data show the loans committed by Beijing to Manila now total $7.19 billion for projects in the infrastructure, energy and public safety sectors, while grants amount to $148.22 million.
The 14 agreements, which were signed include financing for two key infrastructure projects—the $234.92 million Kaliwa Dam-New Centennial Water Source of the Metropolitan Waterworks and Sewerage System and the $72.49 million Chico River Pump Irrigation facility of the National Irrigation Administration. Chinese loans are expected to cover
85 percent of the total contract amounts for the two projects.
Another set of memorandums of understanding were signed between the Finance Department and the Chinese Ministry of Commerce to “jointly identify and study” an indicative list consisting of the second basket of key infrastructure cooperation projects for possible Chinese financing.
Among the proposed projects under the second basket are the development of the Subic-Clark Railway, Davao City Expressway, and Panay-Guimaras-Negros Inter-Island Bridge.
An Agreement on Economic and Technical Cooperation (grant agreement) on providing a 150-million renminbi (about $23 million) Chinese grant was likewise signed to aid the Philippine government’s quick recovery and reconstruction program for Marawi City.
China will also donate heavy equipment worth $3 million also for the government’s reconstruction efforts in Marawi.
The two sides also signed an agreement for the Chinese state-owned Bank of China to underwrite a $200-million issuance of Panda bonds or yuan-denominated securities, taking advantage of the Philippines’ renewed and strengthening ties with China.
Other trade and investments agreements signed were a memorandum of understading for Cooperation on Industrial Parks Development; MOU for Development Cooperation in Production Capacity; and an MOU on Investment and the Bases Conversion and Development Authority and China’s Development Bank.
In the areas of infrastructure, China has also provided a total of $148.22 million in grants, of which $99.27 million will be used for the construction of the Binondo-Intramuros bridge and the Estrella-Pantaleon bridge across the Pasig River, to help ease traffic congestion in Metro Manila.
Li and Duterte held the ceremonial groundbreaking activities for these two bridges in Malacañang.
Also signed were a memorandum of understanding on Jointly Promoting the Philippine National Railways South Long Haul Project and a $22.95-million grant for the construction of two drug rehabilitation facilities.
In defense, both countries signed a memorandum of understanding on Defense Industry Cooperation.
Other agreements signed were MOUs on addressing climate change, cooperation of field of intellectual property and strengthening youth cooperation.
Senators on Wednesday met with Li to discuss the strengthening of ties between the two countries.
At the meeting with Li were Senate President Aquilino Pimentel III, Majority Leader Vicente Sotto III, and Senators Sherwin Gatchalian, Miguel Zubiri and Manny Pacquiao.
Chinese Ambassador to the Philippines Zhao Jianhua was also at the meeting.
Gatchalian on Wednesday hailed the progress toward settling longstanding territorial disputes, after China and the Asean agreed to begin negotiations on a Code of Conduct in the South China Sea.
Li said a peaceful South China Sea is a blessing for all countries, whereas turbulence serves no one’s interests.
“China, as the biggest littoral state and a main user of the shipping lanes in the South China Sea, hopes to see peace, stability and freedom of navigation and overflight there more than any other country,” he said.
With the joint efforts of China and Asean countries, he said the situation in the South China Sea has notably eased and is showing a positive momentum.
But former ambassador to the US, Jose Cuisia Jr., lamented that the administration did not even bring up the UN Arbitral Tribunal’s decision favoring the Philippines in its territorial dispute with China.
“We never even brought up the subject of the arbitral ruling in the discussions. This was a lost opportunity to have gotten the support of Asean countries to get China to respect the rule of law and respect international law,” Cuisia told the ANC news channel.