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THE
government said Tuesday it will implement its national
broadband network deal with Chinese company ZTE Corp.,
contrary to reports it has junked the project.
Transportation Secretary Leandro Mendoza said after the
Legislative-Executive Development Advisory Council (Ledac)
meeting there are two conditions prior to implementing
the ZTE deal, one of which had already been complied
with—the Department of Justice opinion upholding the
government-to-government transaction regarding the
project.
Mendoza
is awaiting the fulfillment of the other condition,
being addressed by the Department of Finance (DOF). “On
the financial side, the DOF has to determine the terms
of the loan, interest rate, how much. And they have to
coordinate with the China Exim Bank.”
Trade
Secretary Peter Favila said the ZTE deal has not matured
into a contract yet and what was signed in
Boao,
China,
was a memorandum of agreement (MOA) saying the
signatories would venture into the project subject to
conditions.
“Once
both sides comply with whatever is written in that MOA,
then they can draw up the contract. Once it is
completed, that’s when you sign a loan agreement, a
supply contract and whatever operative documents are
needed,” Favila said.
Under
the MOA, Beijing will provide a soft loan facility whose
terms are being negotiated by the DOF, and requires
approval by finance and monetary officials. Favila said
the original MOA stolen after signing in China was
"useless." |
