Newly-installed China Minister of Commerce Zhong Shan visited the Philippines and committed over $3.4 billion worth of funding support for three major infrastructure projects.
The Philippines and China signed the 28th Joint Commission of Economic and Trade Cooperation, highlighted by specific agreements that included a $3.42-billion credit facility.
Trade Secretary Ramon Lopez said three priority projects were identified mainly for the credit facility, including the $53.9-million Chico River Pump Irrigation project; $374-million New Centennial Water Source-Kaliwa Dam Project; and the $3-billion North-South railway – South Line.
“We are pleased that our efforts in government are moving in parallel with opportunities being opened for the private sector to come in. This cooperation has taken us five years to agree upon and sign,” he said.
The first two projects are expected to be finalized within the first semester of 2017, while the third project which is the North-South railway is expected to be signed by end of the year.
Zhong said both sides agreed to “execute the important consensus that was reached between our leaders with emphasis on Chines-Filipino economy which are both complementary.”
“The Philippines have very strong potential to tap and promote trade growth with China which is a 1.3-billion strong consumer market. We are open to Philippines products,” he said.
China is also keen on helping the Philippines expedite infrastructure programs that have direct bearing on the “population” such as job-intensive projects “to improve [the Filipinos’] living standards,” he said.
The signing culminated with ten agreements that include the 6-year development program for economic trade cooperation that will serve as the overall framework for bilateral economic cooperation of the Duterte administration exchange of notes on operational procedure to utilize China’s concessional loans and Chinese assistance in the form of grants for the construction of two bridges over the Pasig River.
It also involves the conduct of capacity building programs for rice experts and aquaculturists; establishment of alert mechanism and undertaking prompt notification on the incidence of plant and animal diseases; and development of a protocol governing the handling and resolution of cases of detection and non-compliance.
The other agreements include the proposed expansion of the scale of agricultural trade; identifing possible locations of the proposed Philippines-China Industrial Park; and endorsement of complementary areas for further studies and private sector participation for infrastructure projects, industrial parks development and cross-border e-commerce.
“The Trade Department foresees a more meaningful engagement with China as a good neighbor in the coming years as we work with renewed vigor towards a deepened and strengthened cooperation based on mutual values, goals and results,” Lopez said.
Possible investments from China are estimated at $10.4 billion, creating fresh employment reaching 11,500 jobs for the Filipinos, as evidenced by the signing of several letters of intent from potential private sector investments on oil downstream projects, aviation industry including aircraft parts manufacturing, waste to energy through gassification, shipbuilding and ship repair facility and integrated steel facility.