The government will prioritize 12 out of the initial 40 projects lined up for funding by the Chinese government at an indicative cost of $4.4 billion, the Finance Department said Friday.
The economic team of President Rodrgio Duterte earlier this week flew to China to finalize the $15-billion investment pacts from Beijing. The team, led by Finance Secretary Carlos Dominguez III, submitted 40 project proposals.
They include the $3.4-billion Chico River Pump Irrigation Project in the provinces of Cagayan and Kalinga with an estimated total project cost of $53.6 million; the New Centennial Water Source-Kaliwa Dam Project in Quezon, $374.03 million; and the South Line of the North-South Railway running from Manila to Legaspi City in Bicol, $3.01 billion.
The other nine projects with an indicative cost of another $1 billion were under feasibility study.
These are North Luzon Expressway East Project, Panay Guimaras-Negros Island Bridges, Davao City Expressway, Ambal-Simuay Sub-Basin of the Mindanao River Basin Flood Control and River Protection Project, Dinagat (Leyte)-Surigao Link Bridge, Luzon-Samar Link Bridge, Agus 3 Hydroelectric Plant, Pasacao-Balatan Tourism Coastal Development Program, and the Camarines Sur Expressway.
These projects aim to interconnect the country’s three main island-groups, boost tourism and construct a flood control system in Mindanao and ensure stable power supply.
Dominguez said the three large projects that would undergo China’s loan application process were already approved by the board of the National Economic and Development Authority and the Investment Coordination Committee.
Dominguez said the Philippine government would recommend three priority projects for loan financing under the $3.4-billion assistance made available by the Export-Import Bank of China to the Philippines, including $2 billion in new commitments.
The three projects aim to raise the productivity of small farmers, improve transportation and logistics services in underserved areas of Luzon, and ensure a steady water supply to Metro Manila, he said.
“We are looking at implementing large infra projects in the rural areas particularly in irrigation, logistics in bridges and roads to connect communities to the major markets,” Dominguez said in an interview with the Chinese media during the Jan. 23-24 mission.