The Philippines has submitted to China’s new aid agency an indicative list of 12 big-ticket infrastructure projects that will undergo feasibility studies with possible Chinese grant financing, according to Finance Secretary Carlos Dominguez III.
In a recent meeting between a Cabinet-level delegation from Manila and China International Development Cooperation Agency (CIDCA) chairman Wang Xiaotao, an agreement was also reached in which Beijing will provide a US$13.4-million grant to fund the feasibility study of the proposed bridge project that will link the islands of Panay, Guimaras, and Negros.
The exchange of letters for the Panay-Guimaras-Negros Island Bridge Project was signed by Wang and Public Works Secretary Mark Villar during the meeting held at the CIDCA headquarters in China.
The 12 flagship projects proposed for Chinese grant financing include future phases of the Mindanao Railway Project, Luzon-Samar (Matnog-Alen) Bridge, Dinagat (Leyte)-Surigao Link Bridge, Camarines Sur-Catanduanes Friendship Bridge, development of the Luzon Eastern Seaboard, Bohol-Leyte Link Bridge, Cebu-Bohol Link Bridge, Negros-Cebu Link Bridge, Ipo Dam No.3, Port Irene Development-Navigational Channel, Cabadbaran Small Reservoir Irrigation Project, and the River Basin and Watershed Management Project in Camarines Sur.
“These projects are selected considering geographic spread, the size of the investment requirement, and the Duterte administration’s focus on connectivity, rural development and disaster prevention, among other considerations,” National Economic and Development Authority (NEDA) director general Ernesto Pernia said.
Following the meeting with CIDCA, the Philippine delegation also met with Export-Import Bank of China (China EXIM) chairperson Hu Xiaolin to further discuss loan financing and co-financing arrangements for the Philippines’ infrastructure projects.
CIDCA is China’s new organization responsible for administering foreign aid and development assistance to other countries. CIDCA was among the reforms unveiled by China during its National People’s Congress held in March 2018.
Given that the aid agency is newly established, Dominguez suggested to Wang that a technical working group (TWG) composed of officials from the Chinese Embassy in Manila and Philippine officials from NEDA, Department of Foreign Affairs, Department of Finance, and the Philippine Embassy in China be formed to further discuss CIDCA’s operational procedures.
Dominguez also asked Wang to consider assigning a CIDCA portfolio officer for the Philippines.
