Diokno hopeful of infra projects financing pact w/ China by Nov ’18

Diokno declined to give figures on the amount of these projects but said discussions are “moving fast” (File Photo: Department of Budget and Management)

MANILA — Budget and Management Secretary Benjamin Diokno expressed optimism for the signing of at least 10 infrastructure-related agreements with China in November during the visit to the Philippines of Chinese President Xi Jinping.

The Chinese government has committed to help in the financing of priority projects included in the Duterte administration’s “Build, Build, Build” program as the two countries renewed its relationship.

In his weekly press briefing, Diokno declined to give figures on the amount of these projects but said discussions are “moving fast.”

He noted that even if financing of the current administration’s infrastructure projects will be provided by foreign governments through loans, feasibility studies will be done and funded either by the Asian Development Bank (ADB) or the World Bank (WB).

These feasibility studies will then be ironed out by the implementing agencies before these are submitted to the National Economic and Development Authority (NEDA).

NEDA’s Investment Coordination Committee will then scrutinize the projects before submitting them to the President, Diokno said.

The Department of Budget and Management (DBM) Secretary also said there is nothing in the pacts with foreign governments that allow the latter to pick a particular contractor for any particular project.

In the case with China, it needs to submit names of at least three entities considered among the best to implement the projects.

The final decision will come from Philippine authorities based on their assessment on the proposals of the companies vetted by the Chinese government, Diokno said.

He also discounted the possibility that local workers will be disadvantaged by this set-up because the financiers might bring in their own workers.

“We will use our own procurement law,” he said.

On Wednesday, the DBM identified some of the projects that are included in the first basket to be financed by the Chinese government.

These are the Chico River Pump Irrigation Project, the New Centennial Water Source – Kaliwa Dam Project, the PNR South Long Haul Project, and the Binondo-Intramuros and Estrella-Pantaleon Bridges Construction Projects.

The DBM said the construction of the two bridges will be funded through grants totaling PHP6 billion.

“Target completion date for the Binondo-Intramuros Bridge is December 2020, while the Estrella-Pantaleon Bridge is projected to be finished on May 2020,” it said in press release.

Projects under the second basket include the Safe Philippines Project Phase 1, the Subic-Clark Railway Project, the construction of five bridges across the Pasig-Marikina River and Manggahan Floodway, and the Ambal-Simuay River and Rio Grande de Mindanao River Flood Control projects, it said.

Diokno said the funding for the planned New Clark City will also be fast-tracked.

The Duterte government has prioritized the construction of various infrastructure projects nationwide, especially in Mindanao where these are badly needed, to ensure that growth of the domestic economy will remain robust and will be sustainable.

It plans to invest at least PHP8 trillion until 2022 for its massive infrastructure program, with construction of most projects to be financed by official development assistance (ODA) loans.

On Tuesday, Diokno said 45 of the 75 projects identified as priority under BBB will be funded by ODA, 12 through the General Appropriation Act, seven by the Asian Development Bank, six through public-private partnership, and one each by the World Bank and a private loan.