The Philippines and China signed two key agreements that will allow the government to tap Beijing’s financing facilities and technical expertise, and help fund the country’s infrastructure and rural development projects.
In simple rites at the Great Hall of the People in Beijing, China, Finance Secretary Carlos G. Dominguez III and Sun Ping, vice president of the Export-Import Bank of China (China Exim), signed the memorandum of understanding (MOU) on financing cooperation, signifying China’s intent to provide funding for Philippine projects in infrastructure, agriculture and energy, among other priority sectors, through concessional loans and other preferential financing facilities.
Dominguez and Sun signed the agreement in the presence of President Duterte and Chinese President Xi Jinping at the Great Hall of the People on Thursday.
The specific projects open for financing through China Exim, which is solely owned by the Chinese government, would still be agreed on and would undergo the usual approval processes.
The MOU states that projects focused on infrastructure, energy, transportation, engineering and manufacturing would be considered by the two governments as priorities.
A separate MOU signed by Dominguez and Chinese Commerce Minister Gao Hucheng provides Manila with financing support in conducting feasibility studies for the government’s major projects in infrastructure, agriculture and rural development, among other priority areas.
Under the agreement, China would provide support for the feasibility studies “through the dispatch of technical experts and consultants” for period of three years.
The agreements were among the 13 agreements signed by the Philippines and China during President Duterte’s state visit.
Another agreement was signed providing Manila with a grant of 100 million renminbi to help the government implement projects strengthening the war on illegal drugs, law enforcement and security cooperation between the two countries.
The pact was among the many agreements forged between the two countries during President Duterte’s
four-day state visit to China.
The agreement states that, “in accordance with the needs of the government of the Republic of the Philippines, the government of the People’s Republic of China agrees to provide the government of the Philippines with a grant of RMB 100 million, which shall be disbursed to implement the projects for anti-illegal drugs and law-enforcement security cooperation.” The amount is equivalent to almost $15 million.
The agreement further states that the specific projects covered by the grant “shall be stipulated in the agreements to be signed subsequently between the two sides.” The pact shall be effective until the day the two governments have fulfilled their obligations under the grant.