China will extend a total of P172.42 billion in loans to the Philippine government to bankroll three key infrastructure projects this year, according to the National Economic and Development Authority (Neda).
Neda Secretary Ernesto M. Pernia recently told reporters the amount would be used for the construction of a railway, a bulk-water facility and irrigation facilities.
“What we kept on stressing is that we need to deliver that, so there should be substantial progress this year,” Pernia said.
The bulk of the loans will go to the P151-billion-worth North-South Railway Project (NSRP) to be implemented by the Department of Transportation.
The NSRP involves the construction of a 581-kilometer standard-gauge long-haul railway from Manila to Legazpi City in Albay province. The line will also have an extension to Matnog in Sorsogon.
Apart from the NSRP, Chinese loans will also fund the P18.724-billion New Centennial Water Source-Kaliwa Dam Project of the Metropolitan Waterworks and Sewerage System and the P2.696-billion Chico River Pump Irrigation Project of the National Irrigation Administration.
The Kaliwa Dam project involves the construction of a dam and conveyance tunnel to provide 600 million liters of raw water for Metro Manila and parts of Cavite and Rizal.
The Chico River Pump Irrigation Project aims to irrigate 8,700 hectares and benefit some 4,350 farmers. It will serve 21 barangays in Tuao and Piat in Cagayan and Pinukpuk in Kalinga.
Apart from the loans, Pernia said China will finance the feasibility study for nine projects costing P53.17 billion.
Neda documents provided by Pernia showed the amount is just an estimate, as five of the nine projects still do not have cost estimates.
These five projects are the Davao City Expressway project; Ambal-Sumuay Sub-Basin of the Mindanao River Basin Flood Control and River Protection Project; Dinagat (Leyte)-Surigao Link Bridge; Luzon-Samar Link Bridge; and the Agus 3 Hydroelectroc Plant.
Of the four projects that have cost estimates, the project that accounts for the lion’s share is the North Luzon Expressway East Project, formerly the Junction Abbag-Nagtipunan-A.Castañeda/Nagtipunan-Digdig Road Project, which costs P23.63 billion.
This was followed by the Panay-Guimaras-Negros Island Bridges, worth P22.544 billion; the Pasacao-Balatan Tourism Coastal Development Program, P4.74 billion; and the Camarines Sur Exprressway Project, P2.251 billion.
Last year Pernia said the Investment Coordination Committee (ICC) Cabinet Committee (Cabcom) will be assigned to screen Chinese companies wanting to undertake publicly funded projects.
Screening companies undertaking government projects is not part of the current functions of the ICC Cabcom. It is only tasked to evaluate publicly funded projects costing P5 billion and up.
Pernia said Beijing will also create or assign its own group to act as the first level of screening for Chinese companies wanting to participate in Philippine projects.
The Chinese firms will be assessed based on certain qualifications, including their track record in undertaking projects and financial capability to complete a project.
The ICC Cabcom will screen Chinese companies only. Pernia said this is because the country does not have any “sour experience” with contractors of other nationalities.
Image credits: PPP.gov.ph