The Department of Finance (DOF) said the big-ticket infrastructure and development projects to be rolled out by the Philippines in cooperation with China are proceeding as discussed during the regular high-level meetings between the two countries, with an initial three loan accords due for signing before the year-end.
It said that not once did the issue on the West Philippine Sea crop up during the regular meetings on the negotiations and processing of new loans with China, and even in the bilateral, high-level meetings between DOF officials and their Chinese counterparts.
“The topic of joint (oil) exploration was never raised in our discussions with our counterparts particularly during loan negotiations and processing of new loans, even during the bilateral meetings/ high-level meetings with this office,” the DOF said in a statement.
It issued the statement to debunk false claims published online about a Chinese embassy official supposedly using China’s offers of loans and grants to force the Philippines to agree to a joint exploration deal in the West Philippine Sea.
“This is a grossly malicious claim without any basis,” the DOF said. “There is no link whatsoever between the Chinese loans and grants and the proposed joint oil exploration deal between the two countries.”
The DOF said that technical discussions on the loan agreements to be signed between the two countries are ongoing, with delays encountered “mostly due to our (the Philippine government’s) internal processes.”
“In fact, the proposed infrastructure projects we are undertaking with the cooperation of China all go through a very stringent process of approvals to ensure that they comply with the Government Procurement Act and other applicable laws,” the DOF said.
To date, the Philippines has signed four (4) grant agreements totaling RMB 1.250 billion (about US$198.77 million) to finance projects and feasibility studies for various infrastructure projects.
Under the RMB 500 million grant signed in April 2018, about RMB 110.33 million (US$17.55 million) has been allotted for the project feasibility studies of the Davao City Expressway Projectand Panay-Guimaras-Negros Island Bridge Project to be implemented by the Department of Public Works and Highways (DPWH).
Moreover, during the High-Level Meetings between the Philippines and China held in Beijing last August, an indicative list of 12 infrastructure projects proposed for feasibility study assistance was submitted to the Chinese Government for its consideration.
Last April 10, 2018, on the sidelines of the four-day Boao Forum for Asia in Hainan, China, Finance Secretary Carlos Dominguez III, on behalf of the Government of the Philippines, and Chinese Ambassador to the Philippines Zhao Jianhua, on behalf of the Export-Import Bank of China, signed the US$62.09million loan agreement to help fund the construction of the Chico River Pump Irrigation Project in Northern Luzon.
By the end of the year, both countries aim to conclude three (3) more loan agreements–1) New Centennial Water Source-Kaliwa Dam Project of the Metropolitan Waterworks and Sewerage System (MWSS), 2) Project Management Consultant for the PNR South Long Haul Project of the Department of Transportation (DOTr), and 3) Safe Philippines Project, Phase 1 of the Department of the Interior and Local Government (DILG), along with several bilateral documents, the DOF said.
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