RP to ink billion dollar loan deals with China

By Joel Guinto
INQUIRER.net
Last updated 05:57pm (Mla time) 01/15/2007

MANILA -- President Gloria Macapagal-Arroyo and Chinese Premiere Wen Jiabao will witness the signing of over one billion dollars worth of loan agreements between the Philippines and China when the two leaders meet in Malacañang Palace on Monday, one of Arroyo’s economic managers said.

Socioeconomic Planning Secretary Romulo Neri said a $500-million loan agreement would be for the continuation of the Northrail Project, which connects Metro Manila to Central and Northern Luzon.

The Chinese government is financing 83 percent of the Northrail through official development assistance (ODA).

Another memorandum of understanding (MoU) worth $500 million will be allotted for other key infrastructure projects, Neri said in an interview with reporters.

“Most likely, it will be for the Southrail and other water supply projects,” Neri said, referring to a multi-million-dollar rail project that will link the capital to Southern Luzon provinces.

Arroyo is expected to receive Wen in Malacañang at around 6:20 p.m. The agreements will be signed before 8 p.m., after a 45-minute bilateral meeting between the two leaders, who had just come from the East Asia Summit in Cebu City.

The two leaders had also met in late October during Arroyo’s official visit to China for the China-ASEAN Summit.

Neri said a $100-million loan agreement would bankroll the second phase of the Non-Intrusive Container Inspection System Project.

The Chinese government also gave a 15-million RMB yuan or P100-million grant to finance projects under the two countries’ Agreement on Economic and Technical Cooperation, Neri said.

China and the Philippines will also enter into a framework agreement for the “expanding and deepening” bilateral trade and economic cooperation, which would prioritize agriculture, fishery, public works, infrastructure and housing among others, Neri said.

Another MoU -- between the China Export & Credit Insurance Corporation and NEDA, the Department of Finance and TIDCORP -- will be for risk protection for financing trade and civil engineering investments, he said.

An MoU between the NEDA, the Department of Trade and Industry and the Ministry of Commerce of the People’s Republic of China will provide for the establishment of an Economic Cooperation Working Group (ECWG).

Click here to access article as posted on INQUIRER.net