Saturday, May 26, 2007 Arroyo brings 1 million US dollars in investments from Tokyo
PRESIDENT Gloria Macapagal-Arroyo arrived Friday afternoon from her four-day visit to Japan bringing home with her more than US$1 billion worth of investments, mostly in mining.
Arroyo was greeted by Vice President Noli De Castro, Executive Secretary Eduardo Ermita, PNP Chief Oscar Calderon, Armed Forces Chief Hemrogenes Esperon Jr. and accorded full military honors upon her arrival at 12:35 p.m. at the Ninoy Aquino International Airport (Naia) Terminal 2 on board Philippine Airlines flight PR-431.
Trade Secretary Peter Favila who accompanied the President to Tokyo, described the trip as one of her most successful trips in light of the several investments and commitments that the country got during her visit which was mainly for the 13th Nikkei International Conference.
Favila, in a press conference following their arrival, said Arroyo was able to send a message to both Japanese investors and officials that the Philippines is now more competitive for doing business and now more politically stable.
He said officials and representatives of top Japanese companies had called on the President during her stay in Tokyo to inform her either of their plans to invest in the Philippines or expand existing businesses in the country.
Arroyo, in a statement, said the investment of several Japanese companies in the Philippines is no mistake.
She said Japanese are now taking notice that "the Philippines is back and open for business."
Arroyo said the economic growth and achievements against poverty are proof that their programs and strategies are working and she sent this message across during her meeting with the various business and financial leaders whom she encouraged to "again tell the Philippine story and encourage them that the Philippine turnaround is here to stay, that our politics have stabilized, and that we are the best value in Asia."
Favila said the biggest investment that would come into the country as a result of the trip would come from the US$1 billion to US$1.2 billion investment of Sumitomo Metals Mining Co. Ltd. into the nickel mining industry in Surigao del Norte. Sumitomo at present has already invested US$300 million in the mining industry in Palawan.
He said both Aizawa Securities and Nomura Holding Inc. also expressed their intentions to participate in the privatization programs of the Philippine Government, particularly those pertaining to San Miguel Corporation and the Manila Electric Company (Meralco).
Press Secretary Ignacio Bunye said Nomura is also interested in the privatization of government shares at the Philippine National Oil Company-Energy Development Corportion (PNOC-EDC), while Aizawa Securities has also launched a US$100 million Philippine Fund to raise investments for the country.
Favila said the Japan Bank for International Cooperation (JBIC), during the call of Governor Kyosuke Shinozawa, also informed the President that they are now preparing a 28-Yen-Loan-Package in anticipation of the conclusion of the 27-Yen-Loan-Package, which was intended for at six projects that includes the Mt. Pinatubo Project and the Agra-reform Infrastructure Support System.
Bunye other projects that JBIC is involved in are the US$300 million power sector development program for the National Power Corporation, the US$70 million Pasig-Marikina River Channel Improvement for flood control and the P4 billion Agno River Irrigation Project.
Batangas Representative Hermilando Mandanas, who also joined the presidential delegation to Tokyo, said JBIC as well as the Japan International Cooperation Agency (Jica) also assured that aside from the infrastructure and other developmental projects that they intend to pursue in the Philippines, they would also sponsor livelihood programs to benefit informal settlers and other residents who maybe affected by the projects.
Mandanas said one such livelihood program is intended for the informal settlers in Batangas who would be affected by a Batangas Port project.
Bunye said among the highlights of the Tokyo visit was the securing of new country assistance programs for the next five years which is focused on three priority development areas that includes: sustained economic growth aimed at the creation of employment opportunities; poverty reduction; and assistance for peace and stability in Mindanao.
He said the Malmar Irrigation Project State II, the Kaebulnan Irrigation Project Maganoy Dam Phase, and the Awang-Upi-Lebak-Kalamansig Road are among the Japanese Government-assisted projects that are expected to help bring in development and stability in Mindanao.
He said Marubeni, which is already investing US$4 billion in the power industry in the country together with Tokyo Electric, has also committed to look at other possible power projects in the Philippines.
Yazaki Corporation, which supplies about 30 percent of the wiring harness in the world had also expressed their intention to expand current investment in the country along with Terumo Corporation Pharmaceuticals and Toyota, which is investing in a US$100 million transmission plant which are all expected to create more jobs for Filipinos.
Aside from enjoining the Japanese to invest more in the Philippines particularly in the power, mining, and information technology sectors, Arroyo also assured Prime Minister Shinzo Abe, and the members of the Japanese business community, that the Philippine Senate would work on immediate ratification of the controversial Japan-Philippines Economic Partnership Agreement (Jpepa).
During the bilateral meeting of Arroyo and Abe, which was witnessed by Representatives Mandanas and Edcel Lagman of Bicol, the Prime Minister assured the Philippines that the Jpepa does not include the dumping of toxic waste and materials in the country.
Lagman said aside from the JPEPA, Arroyo also acknowledged the Japanese Government's role in the peace monitoring in Mindanao and effort to forge a peace agreement between the Philippine Government and the Moro Islamic Liberation Front (MILF).
Arroyo, who is scheduled to return to Japan in September, would again leave on Sunday for a state visit to New Zealand and Australia where she would have bilateral meetings with Prime Ministers Helen Clark of New Zealand and John Howard of Australia and meet with several business groups and prospective investors in the Philippines. (JMR/Sunnex)
