The National Economic and Development Authority (NEDA) Board, which is chaired by President Duterte, approved on Monday the Guidelines for the Availment of Chinese Support for the Conduct of Pre-investments and Investment Activities.
This set of guidelines, which is the upshot of the investment commitments and pledges that were made by Beijing and Chinese business groups during President Duterte’s successful official visit to China last month, are designed for better coordination between both parties on the rigid screening of proposed ventures and the judicious use of funds for the projects that are to be eventually approved for the benefit of the Filipino people.
Such a vetting process in both the pre-investment and investment stages is meant to ensure that all projects to be approved by the Philippine government and its Chinese counterpart are aboveboard, cost effective, implemented on time, and with the genuine interests of the Filipino people as the paramount concern.
The Guidelines aim to improve, streamline, and enhance transparency and coordination in the availment of National Government Agencies, Government Owned- and Controlled- Corporations, Government Financial Institutions, and Local Government Units of Chinese support for the conduct of feasibility studies and implementation of projects subject to ICC review and approval.
To avail of the Chinese support or preferential/concessional financing, proponent agencies are required under the newly approved Guidelines to: (i) adhere to the implementation procedures of both the Chinese and Philippine governments; (ii) employ qualified, legitimate, and good standing Chinese consultants/contractors; (iii) engage different entities in the development and implementation of projects for Chinese support; and, (iv) undertake competitive selection in the procurement of Chinese contractors.
The Department of Finance and NEDA have been jointly tasked to monitor the overall implementation of the said Guidelines.
Finance Secretary Carlos Dominguez III said, “the Guidelines will allow for smoother coordination between the Philippine and Chinese governments to facilitate the efficient utilization of Chinese development assistance and immediate implementation of mutually agreed upon projects for the satisfaction of Chinese taxpayers and the benefit of the Filipino people”.
The Guidelines will apply to the projects covered under the two (2) Memoranda Of Understanding signed by Secretary Dominguez with the Ministry of Commerce and the Export-Import Bank of China during President Duterte’s China visit.
The two agreements provide the general arrangements on which the Chinese government will extend grant financing for the conduct of feasibility studies and preferential and concessional loan financing for the implementation of priority projects of the Duterte Administration in infrastructure, agriculture, and rural development, among others.
Dominguez said earlier that President Duterte has agreed to designate the NEDA Investment Coordinating Committee (ICC) as the “focal point” to jointly vet or accredit with its proposed counterpart in Beijing the Chinese companies that can do business in the Philippines under the pledges or agreements reached during the Chief Executive’s China visit.
He said the ICC will send a group to China to ask the Chinese government to put up a similar “focal point” group so that the future project transactions could be done on a government-to-government basis and enable the Philippine side to know which companies to deal with in China.
He clarified that at this point, the Philippine government is “just in the stage of doing the feasibility studies so there is no commitment that these companies are going to get the contracts.”
“Once the feasibility study is done, these projects will be bid out and of course, if there are companies not acceptable in the international field, they will not be able to bid for the project,” he said.
Dominguez chairs the ICC with NEDA director-general Ernesto Pernia as co-chairperson.
The other ICC members are Executive Secretary Salvador Medialdea; Secretaries Benjamin Diokno of budget and management, Emmanuel Piñol of agriculture and Ramon Lopez of trade and industry; and Bangko Sentral ng Pilipinas Gov. Amando Tetangco Jr.
