THE Philippines has submitted to the new aid agency of the People’s Republic of China an indicative list of 12 big-ticket infrastructure projects that will undergo feasibility studies with possible Chinese grant financing, said Finance Secretary Carlos Dominguez III. Two of these are bridges connecting Cebu with its neighboring provinces.
In a meeting between a Cabinet-level delegation from Manila and China International Development Cooperation Agency (CIDCA) chairman Wang Xiaotao, an agreement was also reached in which Beijing will provide a $13.4-million grant to fund the feasibility study of the proposed bridge project that will link the islands of Panay, Guimaras and Negros in the Philippines’ Visayas region.
The Exchange of Letters for the Panay-Guimaras-Negros Island Bridge Project was signed by Chairman Wang and Public Works Secretary Mark Villar during the meeting held at the CIDCA Headquarters in Beijing last week.
During the meeting, Socioeconomic Planning Secretary Ernesto Pernia presented before Wang the indicative list of 12 flagship projects proposed for Chinese grant financing.
This list includes the future phases of the Mindanao Railway Project, Luzon-Samar (Matnog-Alen) Bridge, Dinagat (Leyte)-Surigao Link Bridge, Camarines Sur-Catanduanes Friendship Bridge, development of the Luzon Eastern Seaboard, Bohol-Leyte Link Bridge, Cebu-Bohol Link Bridge, Negros-Cebu Link Bridge, Ipo Dam No. 3, Port Irene Development-Navigational Channel, Cabadbaran Small Reservoir Irrigation Project, and the River Basin and Watershed Management Project in Camarines Sur.
“These projects are selected considering geographic spread, the size of the investment requirement, and the Duterte administration’s focus on connectivity, rural development and disaster prevention, among other considerations,” Pernia said.
The Philippine officials also discussed with top executives of the Asian Infrastructure Investment Bank the possibility of coming up with flexible loan financing arrangements for the Duterte administration’s flagship infrastructure projects.
Following the meeting with CIDCA, the Philippine delegation also met with Export-Import Bank of China (China EXIM) chairperson Hu Xiaolin to further discuss loan financing and co-financing arrangements for the Philippines’ infrastructure projects.
CIDCA is China’s new organization responsible for administering foreign aid and development assistance to other countries. CIDCA was among the reforms unveiled by China during its National People’s Congress held in March 2018.
Given that the aid agency was newly established, Dominguez suggested to Wang that a technical working group (TWG) composed of officials from the Chinese Embassy in Manila and Philippine officials from the National Economic and Development Authority (Neda), Department of Foreign Affairs (DFA), Department of Finance (DOF) and the Philippine Embassy in China be formed to further discuss CIDCA’s operational procedures.
Dominguez also asked Wang to consider assigning a CIDCA portfolio officer for the Philippines.
Wang, in response, said Dominguez’s suggestions are “very necessary.” (PR)