The Philippine government secured US$15 billion worth of investment pledges from China for development projects in infrastructure, transportation, communication, energy, real estate, and manufacturing following a trip to the mainland by top Filipino officials.
The recent state visit to China of Philippine President Rodrigo Duterte reaped $24 billion worth of investments, of which $15 billion are investment pledges and $9 billion represent credit facilities. Trade and Industry Secretary Ramon Lopez, who was part of the delegation to China, said the signed agreements will boost trade and investment levels between the two countries.
Under the investment pledges, projects for the port sector include the Davao coastline and port development by Mega Harbor Port and Development, Inc. (MHPSI) and China Harbour Engineering; Manila Harbour Center reclamation by R-II Builders Inc. and China Harbour Engineering; and Cebu International and Bulk Terminal project by MHPSI and CCCC Dredging Company. The three initiatives are all part of the conglomerate of businessman Reghis Romero II.
President Rodrigo Duterte and MHPSI last June signed an agreement to construct a P38-billion port city and mount an urban renewal program in Davao within the next five years. The local government of Consolacion, Cebu last month forged an agreement for a joint venture contract with MHPSI to construct a new international container port in Tayud. The Cebu Port Authority said, however, that it would not approve MHPSI’s Tayud port project because a similar one has been cleared by the National Economic and Development Authority-Investments Coordination Committee.
Also committed under the pledge is a transportation and logistics infrastructure at Sangley Point to be undertaken by Cavitex Holdings, Inc., International Container Terminal Services Inc., and China Harbour Engineering Company, Ltd. (CHECL).
For rail, projects to be carried out are the Subic-Clark railway by Bases Conversion and Development Authority (BCDA) and CHECL, and a railway project study by MVP Global Infrastructure Group Ltd. and China Railway Engineering Corp.
Meanwhile, road programs planned include the Bonifacio Global City-Ninoy Aquino International Airport (NAIA) Segment of the Metro Manila Bus Rapid Transit-EDSA project by BCDA and China Road and Bridge Corp.; and Manila-EDSA Bus Transportation Program by Phil State Group, Yangtse Motor Group, and Minmetals International.
A bus manufacturing facility by Zhuhai Bus and Coach Co. is also among the pledges.
Projects for the energy sector are the North Negros biomass and South Negros biomass development by North Negros Biopower and Wuxi Huaguang Electric Power Engineering; a joint undertaking in renewable energy by Columbus Capitana and China CAMC Engineering; renewable energy projects by Xinjiang TBEA Sunoasis; and the 300-megawatt Pulangi-5 Hydro Project by Greenergy Co. and Power China Guizhou Engineering Corp.
For agriculture, SL Agritech and Jiangsu Hongqi Seed Inc. will work on hybrid rice production, while AVLB Asia Pacific and Shanghai Xinwo Agriculture Development Co. have a planned banana plantation project.
Other pledges are a memorandum of understanding for the BCDA-China Fortune Land Real Estate project; safe and smart city projects by BCDA and Huawei Technologies; a joint venture agreement between Jimei Group of China and Expedition Construction Corp. for infrastructure projects; Globe Telecom projects to improve network quality and capacity; and Jin Jiang hotel’s capacity expansion from 1,000 rooms to 2,000 by Double Dragon Properties and Hotel of Asia Inc.
Likewise promised are a new-generation steel manufacturing plant by Mannage Resources and SIIC Shanghai International Trade HK; a joint venture on steel plants by Global Ferronickel and Baiyin International; cabling manufacturing facilities by MVP Global Infrastructure Group and Suli Grp Ltd.; construction of Pasig River, Marikina River and Manggahan Floodway bridges by Zonar Construct and SinoHydro; Ambal Simuay sub-river basin flood control project by One Whitebeach Land Development and Sino Hydro; and nationwide link bridges to connect island provinces by Zonarsystems and PowerChina Sino Hydro.
The credit facilities, meanwhile, will come from the China State ($6 billion) and the Bank of China ($3 billion), Lopez said.
Aside from the $24 billion in investment pledges, the two countries signed various memoranda of agreement and understanding to further strengthen bilateral relations in different sectors such as transportation, infrastructure, economic development, security, and financial cooperation.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
