Finance Secretary Carlos Dominguez III said that China’s grants for the construction of drug rehabilitation facilities and bridges in Manila indicate its “understanding and sympathy” for the challenges faced by the Philippine government as the Duterte administration moves toward achieving its goal of a truly inclusive economy.
On behalf of the government, Dominguez also thanked China for the launching of the two projects, which will provide for the construction of two drug rehabilitation facilities to be funded by a $22.95 million grant from Beijing, and another $99.27 million aid to build the Binondo-Intramuros bridge and the Estrella-Pantaleon bridge across the Pasig River in Manila.
The launching ceremonies were held at Malacanan Palace last Wednesday with President Duterte and Chinese Premier Li Keqiang witnessing the event.
“These projects indicate China’s understanding and sympathy for the challenges that confront our people as we move forward towards a truly dynamic and inclusive economy,” Dominguez said.
He also thanked the Bank of China for assisting the Philippines in facilitating its planned Panda bond issue in the Chinese market, and in organizing the Philippine Economic Briefing in Shanghai last September to present to investors the economic gains that the Philippines have made on the Duterte watch.
“On behalf of the Philippine government, we express our sincerest thanks to the Government of the People’s Republic of China for the projects we launch today. These projects, which will be purely funded by grants, will bring immediate benefits to our people,” Dominguez said at the launching ceremonies for the projects held at the Heroes Hall of Malacanan Palace.
“The rehabilitation centers for drug-dependents are significant contributions to help us win the war against abuse of illegal substances. Meanwhile, the two bridges to be built at the heart of Metro Manila will help ease the traffic congestion in the area. More than that, they symbolize the friendship we are building between our two peoples,” added Dominguez.
He said that “over the next months and years,” the government also expects to commence construction of the first batch of major infrastructure projects funded with China’s package of assistance.
“Furthermore, we thank the Bank of China (BOC) for taking the lead in helping us gain a foothold in the panda bond market. We are very happy that the BOC has come to our assistance. We also welcome the Bank’s efforts in bringing the Philippines’ growth narrative to the Chinese investors as demonstrated in the last Philippine Economic Briefing in Shanghai, and look forward to a strengthened partnership,” Dominguez said.
The Department of Finance (DOF) said the projects on the construction of the drug rehabilitation facilities and the bridges across the Pasig River will be financed purely through the Chinese Government’s grant assistance (China Aid).
China has also provided $23 million in aid for Marawi’s rehabilitation program, and donated heavy equipment worth $3 million also for the government’s reconstruction efforts in Marawi.
The agreement on providing financial aid to Marawi was among the four accords signed by Dominguez on behalf of the Philippine government on Wednesday.
Topping the list is a financing cooperation agreement signed by Dominguez and Liu Liange, president of the Export-Import Bank of China, for two of the Philippines’ flagship infrastructure projects—the Kaliwa Dam-New Centennial Water Source of the Metropolitan Waterworks and Sewerage System (MWSS) and the Chico River Pump Irrigation facility of the National Irrigation Administration (NIA)—that will cover 85 percent of the total contract amounts of the projects.
The signing ceremonies held at Palace on Wednesday afternoon were also witnessed by President Duterte and Chinese Premier Li, who was in Manila to take part in this year’s 31st Association of Southeast Asian Nations (ASEAN) Summit and Related Meetings.
Dominguez also inked a Memorandum of Understanding (MOU) with China Vice Commerce Minister and International Trade Representative Fu Ziying to “jointly identify and study” an indicative list consisting of the second basket of key infrastructure cooperation projects for possible Chinese financing.
The finance chief also signed an underwriting agreement on behalf of the Philippine government as issuer for its planned Panda bond float in the Chinese market, with the Bank of China Limited and Standard Chartered Bank (China) Limited as lead underwriters.