BEIJING, China—The Philippines has secured around $24 billion worth of investments and credit facilities to cap President Rodrigo Duterte’s “highly successful” four-day state visit in China.
The influx of Chinese investments to the Philippines on renewable energy, transportation network, manufacturing, among others, is expected to generate more than two million jobs in the next five years, according to Trade Secretary Ramon Lopez.
“The latest amount being formed now in terms of investments and credit facilities opened is $24 billion,” Lopez said in a media interview in Beijing, a few hours before the President flies back to the country.
Of the bagful of investments, Lopez said around $15 billion involves private business deals between Filipino and Chinese firms while $9 billion covers credit facilities to be made available for development projects and other businesses.
The investments “cut across different industries—agriculture, renewable energy, tourism, food, manufacturing, telecommunications, infrastructure,” the trade chief added.
The investments came after President Duterte and Chinese President Xi Jinping agreed to forge stronger closer diplomatic and economic cooperation despite a lingering maritime conflict.
The two leaders met last Thursday at the Great Hall of the People where they witnessed the signing of 13 cooperation agreements on various fields.
Repairing relations
An agreement was also reached to resume bilateral consultations on the proper resolution of the territorial dispute in the South China Sea.
Lopez described the president’s visit as “highly successful.” “In renewing this friendship and economic relationship, it’s like opening a faucet,” the trade chief said, citing the renewed interest of Chinese investors in the country.
Lopez also welcomed China’s recent decision to lift the travel advisory warning its nationals against traveling to the Philppines, saying it would certainly boost the country’s tourism arrivals.
“From the current 500,000 tourists, we now expect it easily to double or triple in one year or two years. We will need more hotels, more tourism structures, airports, seaports,” he said in Filipino.
Big-ticket investments
Early in the day, at least 17 private business contracts worth $11.3 billion were sealed on the sidelines of the president’s visit here.
Among the big-ticket investments are $3-billion agreement between MVP Global Infrastructure group and Suli Group Limited on the construction of cabling manufacturing facilities, as well as $2.5-billion agreement between China Railway Engineering Corp. (CREC) and MVP Global Infrastructure group.
Another agreement forged was the $1-billion development of the 300 megawatt Pulangui-5 Hydro project between Greenergy Development Corporation and Power China Guizhou Engineering Corporation.
Other business deals signed during the President’s visit are:
- An agreement between Zonar Systems and Power China Sino Hydro for a nationwide island provinces link bridges for sustained development worth $800 million
- A memorandum of understanding between Sino Hydro and Zonar Construct on the Pasig River Marikina River Manggahan Floowdway bridges construction project worth $600 million
- A memorandum of understanding between Mega Harbour Port and Development, Inc.and China Harbour Engineering Co. Ltd. (CHEC) on Davao coastline port development project worth $780 million
- A memorandum of cooperation between Global Ferronickel, Inc. and Baiyin International Investment Ltd. to invest about $500 to $700 million to construct a steel plant
- A memorandum of understanding between Mega Harbour Port and Development Inc. and CCCC Dredging Company (CDC) for the Cebu International and Bulk Terminal Project worth $328 million
- An agreement between One White Beach Land Development Corp and Sino Hydro for the Ambal Simuay Sub-river Basin of the Mindanao river basin flood control project worth $325 million
- A letter of investment inked by Zhuhai Granton Bus and Coach Company to invest $300 million to build a manufacturing facility
- Strategic cooperation agreement between the Mannage Resources Trading Corporation and SIIC Shanghai International Trade Hong Kong to infuse $200 million to build and operate a new generation steel manufacturing plant
- A cooperation agreement between SL Agritech Group and Jiangsu Hongqi Seed Co. Ltd. to invest $160 million to produce hybrid rice for 2 million hectares of rice fields
- A memorandum of understanding between R-II Builders, Inc. and China Harbour Engineering Co. Ltd (CHEC) for the Manila Harbor Center Reclamation Project worth $148 million
- A memorandum of understanding between Colombus Capitana and China CAMCE Engineering Co. Ltd. for joint development projects worth $100 million in renewable energy, major infrastructure and real estate
- A memorandum of understanding between the Philippine State Group of Companies and Yangtse Motor Group Ltd. and Minmetals International (HK) Ltd. to develop the Manila EDSA bus transportation program and for other places with an initial investment of $100 million
- A memorandum of understanding between AVLP Asia Pacific Conglomerate, Inc. and the Shanghai Xinwo Agriculture Development Co. Ltd to invest $100 million for a banana plantation project
- A memorandum of understanding between TBEA Xinjing Sunoasis Co. Ltd and Trademaster Resources Corp. and Servequest Inc.jointly pursue development and construction of renewable energy projects in various locations
