Finance Secretary Carlos Dominguez III has cited the looming economic integration of the member-states of the Association of Southeast Asian Nations (ASEAN) plus China’s plan to invest heavily in its trading partners’ infrastructure via its Belt and Road Initiative as key factors that will shape the development of the region’s economies as they blaze a trail through this Asian Century.

This convergence of decisive actions by China and the ASEAN designed to ensure the seamless flow of trade in the region is “most fortuitous for the Philippines,” said Dominguez, given the Duterte administration’s economic strategy to similarly invest in an infrastructure modernization program to attract investments, sustain high growth and make its benefits inclusive for all Filipinos.

“The nations of Southeast Asia stand to benefit hugely from the Belt and Road initiative. That complements our own efforts at regionalization. It will help make regional integration and economic cooperation more intensive,” Dominguez said at the 7th Executive Board Meeting of the China-ASEAN Bank Association (CAIBA) held recently at the Shangrila at the Fort in Taguig City.

Banco de Oro and the China Development Bank organized this year’s CAIBA executive meeting to offer top officials of leading banks in the region a platform to exchange ideas on financial cooperation. This year’s theme for the CAIBA event is “Enhancing Financial Cooperation Between China and the ASEAN within the context of the Belt and Road Initiative.”

“The convergence is perhaps most fortuitous for the Philippines. The economic strategy of the Duterte administration aims precisely to achieve high and equitable growth for its people through the modernization of infrastructure,” Dominguez said. “The ‘Build, Build, Build’ program looks precisely at easing the movement of people and goods to encourage more investments. A shift to investment-led growth is the key to achieving inclusive economic growth.”

Dominguez said CAIBA’s aptly chosen theme for this year’s event “accurately addresses the convergence between ASEAN’s intensive efforts towards the regional integration of its member economies and China’s historic decision to invest heavily in infrastructure to strengthen our trade relationships.”

“This convergence is the central dynamic that will shape the development of the region’s economy through the length of this Asian Century,” Dominguez said. “The Belt and Road initiative is the most significant enterprise since the construction of the Great Wall. Unlike the Great Wall, however, this initiative enhances cooperation instead of repelling interaction.”

In lauding CAIBA for organizing the event, Dominguez said the Association “has proven itself a valuable partner in the effort to facilitate regional cooperation in support of economic development of the region.”

Established in October 2010 during the 13th ASEAN-China Leaders’ Meeting, the CAIBA has for its members the major financial institutions of China and the ASEAN countries.

Dominguez said the banking system will play a central role in the emerging processes of ASEAN integration.

“This meeting indicates that the converging dynamics of intensified trade and investments is fully grasped by those who mobilize the funding for modernizing our economies,” he said.

The CAIBA meeting, Dominguez said, “could not have happened at a more opportune time” when the leaders of the ASEAN have affirmed their commitment to the common market by 202o and China has affirmed its pledge to the region’s rapid progress through the facilitation of trade.

In his keynote speech at the opening of the CAIBA meeting, Dominguez also thanked China for its strong support for the Philippines’ efforts “to close the infrastructure deficit and raise investment inflows to fuel growth.”

He cited, in particular, the two bridges across the Pasig River in Manila that will be built over the next few months with 100 percent funding from China and which “symbolize such closer relationship between our two countries” and the Metro-Manila Flood Management Program that will be co-financed by the China-led Asian Infrastructure Investment Bank (AIIB) and the World Bank.

Dominguez said the Metro Manila flood control program, which will prevent flash floods during the monsoon season, “highlights the convergence between our new and our traditional sources of funding for development projects.”

The finance chief also took the opportunity to thank the Bank of China “for taking the lead in helping [the Philippines] gain a foothold in the Panda bond market.

“As you know, the Philippines is set to issue a $200 million renminbi-denominated bond in the Chinese market within the next few months. We are very happy that the bank has come to our assistance,” Dominguez said. “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.”

Dominguez, on behalf of the Philippines, has signed an underwriting agreement with the Bank of China and Standard Chartered Bank (China) on the Panda bond float, on the sidelines of the 31st ASEAN Summit in Manila.

A financing cooperation agreement was also 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).

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.

An Agreement on Economic and Technical Cooperation (grant agreement) on providing a 150-million renminbi (approximately $23 million) Chinese grant to aid the Philippine government’s quick recovery and reconstruction program for Marawi City was also signed by Dominguez and Vice Minister Fu.

During President Duterte’s visit to Beijing in October 2016, the Philippines reaped $24 billion in investment and trade pledges as well as development support from China. Of this amount, $15 billion are in the form of business deals and investments while $9 billion was committed by President Xi Jinping in the form of official development assistance and loans from the Export-Import Bank of China, the China Development Bank and the Bank of China.

Dominguez described China’s package of assistance and investment pledges as “a crucial element in (the Philippines’) efforts to spur faster growth.”

The first basket of the Philippines’ China-supported flagship infrastructure projects is now ready for loan financing and include the PNR South Long Haul Line from Manila to Bicol, Dominguez said.