Five Chinese companies on Friday committed to the Board of Investments to invest about $10.3 billion in the Philippines.
BoI managing director and Trade Undersecretary Ceferino Rodolfo said the Chinese commitments ranged from aviation to power generation projects.
“If before our relation with China was defined by resource-generating sectors, extractive industries and import-export trading, now it has really been deepening to investments and manufacturing activities,” he said in a press briefing.
China’s Liaoning Bora Enterprise Group Co. Ltd. pledged to invest $3 billion in an oil refinery, while Huili Investment Fund Management Co. Ltd. committed to build a $3-billion integrated steel mill.
Dalian Wanyang Heavy Industries Co. Ltd. promised to build a $2.8-billion waste-to-power generation project, while YiDingTai International plans to invest $1.5 billion for shipbuilding and ship repair facilities.
Aviation Industry Corp. of China International Aero-development Corp. did not disclose its investment pledge.
“These projects are seen to further spur industrial development across the regions of the country, including those in the countryside. At the same time, with more business activities happening, we also provide better and quality job opportunities for our countrymen,” Rodolfo said.
AVIC International, a large state-owned enterprise in China, focuses on the manufacture and provision of helicopters, aircraft and aviation-related products, equipment and services. It is exploring opportunities in aerospace parts manufacturing, aviation maintenance and training.
The company also plans to team up with local companies on aerospace parts manufacturing, maintenance-repair-overhaul facilities and other industrial sectors.
Liaoning Bora 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 Philippines.
Dalian Wanyang is doing a feasibility study on a 4,000 to 5,000 metric ton waste-to-energy gasification project that can generate up to 312 megawatts of power using municipal solid waste collected from homes and businesses. The preliminary results of the study are expected to be ready by the end of March 2017.
YDT International, an affiliate company of Dalian Wanyang Heavy Industries Co. Ltd., plans to build frontier-island, regional size vessels with 15,000 deadweight tons and below, including advanced ship/vessel designing, manufacture, repair, sales and financial support to support the Philippines’ roll-on roll-off operations.
Huili Investment is setting up a world-class integrated steel mill, sharing its advance technological know-how in support of the Philippines’ bid to be a major producer of high-quality and safe steel products by 2030.
The Chinese investments are estimated to contribute at least 15,500 jobs to the Philippine workforce.
China’s new commitments could boost approved investments by triple digits in 2017 from just P1.52 billion in 2016.