When Chinese President Xi Jinping made a landmark visit to the Philippines last month, many expected the leader to make good on a previous reported pledge to deliver as much as US$24 billion in aid and investment on his host.
Despite a slew of new signed agreements, Xi’s visit failed to clarify China’s commitment to Philippine President Rodrigo Duterte’s expansionary economic agenda, including his much ballyhooed “Build, Build, Build” infrastructure-building scheme.
Until now, despite Duterte’s bullish pronouncements, China is not a big donor to the Philippines in terms of foreign aid and official development assistance (ODA). Indeed, as of June, China has only one outstanding loan project in the Philippines, namely the Chico river pump irrigation project worth US$62.1 million.
As a percentage of total ODA received by the Philippines as of June 2018, China accounted for a mere .8% of the estimated US$13 billion received, according to National Economic and Development Authority (NEDA) statistics.
Japan, on the other hand, accounted for 40.3% of the total, while the World Bank and Asian Development Bank extended 20.6% and 17.7% respectively. China also trails Australia, South Korea, the European Union and France in total ODA given.
When Duterte visited China in October 2016, his administration boasted of a coming aid and investment bonanza, proof of his trip’s self-professed “success.”
The US$24 billion sum was supposed to be delivered in 13 cooperation, financial assistance and investment pledges, with US$15 bill in business to business contracts and US$9 billion in ODA, US$7 billion of which were to be tied loans and US$2 billion in concessional loans.
The proposed projects included a US$3 billion memorandum of understanding (MoU) commitment with the MVP Global Infrastructure Group and Tianjin Suli Cable to produce high-end cables in the Philippines.
Another vague MoU with MVP Global Infrastructure and China’s Railway Engineering Group vowed to spend US$2.5 billion in infrastructure. Another memorandum with the Green Energy Development Corporation and PowerChina Guizhou aimed to build a US$1 billion power plant.
In March 2017, China’s Vice Premier Wang Yang visited Davao City, Duterte’s hometown, to reaffirm Beijing’s commitment to building and co-financing a southern railway projected to cost around US$4 billion on the southern island.
In November 2017, China Prime Minister Li Keqiang visited Manila and vowed to fund two projects, namely the Chico river pump irrigation project for US$62.1 million at 2% interest over a 20 year repayment period, and the so-called New Centennial Water Source Project, or Kaliwa Dam, for US$374 million.
When President Xi visited Manila last month, he and Duterte formalized and signed 29 additional agreements, including a MoU cooperation agreement on China’s US$1 trillion Belt and Road Initiative (BRI) and joint oil and gas development in the contested South China Sea.
Yet nearly all of China’s ODA and investment promises to Duterte remain unfunded. And many of the proposed deals, if ever actualized, are on less-than-generous terms. The interest rates on the proposed projects range between 2-3% per annum, versus only 0.25-0.75% interest for Japanese ODA funded projects.
Moreover, the terms of the 29 new agreements agreed to when Xi visited Duterte have not been publicly disclosed, raising criticism about the lack of transparency surrounding the deals.
The NEDA approved last year the first phase of the China-backed Mindanao rail project for US$726 million. Construction was targeted to start in the third quarter of 2018, though so far for unclear reasons no ground has been broken.
China’s ODA projects in the Philippines have been hounded by controversy in the past.
For instance, a China-backed North Rail Project was terminated under a previous administration before the loan was closed after the Supreme Court has that it was a commercial deal and not a government-to-government one that should have undergone competitive bidding.
The Gloria Macapagal-Arroyo administration was hounded by irregularities in a US$329 million government national broadband project with China’s ZTE Corporation. That project was cancelled in 2007 due to corruption allegations, including alleged kickbacks paid to the first family.
China’s ODA funneled through the Export-Import Bank of China prescribes that no less than 50% of total procurement for concessional loans should be done through Chinese contractors, often making them more costly compared to using local contractors.
The Kaliwa Dam project, which aims to supply an additional 600 million liters per day of drinking water for Metro Manila and surrounding provinces and augment the 4,000 million liters from the existing Angat Dam, will be much more costly to build under China’s proposed terms than Japan’s competing offer.
A Japanese firm, Global Utility Development Corporation (GUDC), previously submitted an unsolicited proposal for the project as part of an Integrated Public-Private Partnership (PPP) scheme.
That proposed deal would have seen the Japanese company finance all of the construction, operation and maintenance, and thus would not have entailed any foreign borrowing from Manila.
China’s proposed funding agreed during Xi’s visit for the same though revised project will be done under a so-called hybrid PPP, with construction led by China contractors and operation and maintenance done by a local firm.
Eighty-five percent of the construction costs, unlike under the self-funded Japanese proposal, will come from ODA and thus be shouldered by Filipino taxpayers.
The cost of the China-backed project, including a proposed waste water treatment, will be US$640 million, compared to Japan’s more modest and less environmentally impactful US$410 million proposal. It will also take five years to build compared to Japan’s faster four year plan.
Meanwhile, there are ongoing negotiations for more China ODA, including funding for a long haul North-South Railway Project and the Bases Conversion and Development Authority’s Subic-Clark Railway project.
While Duterte aims to “build, build, build” the country to a “golden age of infrastructure,” it’s not clear China is the best or most reliable source for financing that vision.
And I wouldnt trust the Chinese
And I wouldnt trust the Chinese
Yashad Rizvi who is more foolish? The fool? Or the fools who follow the fool?
Yashad Rizvi who is more foolish? The fool? Or the fools who follow the fool?
Josef Raphael where did you get the 80% idea?
Josef Raphael where did you get the 80% idea?
George Stan what brown traitors? You mean Duterte?
George Stan what brown traitors? You mean Duterte?
Do you have a source for this statement: "It is a Washington’s pressure to China not to materialized right then the $24 Billion USD promised of China to the Philippines in RETURN IS A TEMPORARY TRUCE OF USA-CHINA TRADE WAR."?
Do you have a source for this statement: "It is a Washington’s pressure to China not to materialized right then the $24 Billion USD promised of China to the Philippines in RETURN IS A TEMPORARY TRUCE OF USA-CHINA TRADE WAR."?
If china doesnt commit so be it..PDu30 has been doing his job with or without china..buid build3x is really happening today.
If china doesnt commit so be it..PDu30 has been doing his job with or without china..buid build3x is really happening today.
China only promise,promise.dont deliver
China only promise,promise.dont deliver
Acara Shogun you get lost mister
Acara Shogun you get lost mister
You are very right.except few items,all others fail in quality and does not last long.donno why.very frustrating.i used to buy only Chinese items once.not any more
You are very right.except few items,all others fail in quality and does not last long.donno why.very frustrating.i used to buy only Chinese items once.not any more
Josef Raphael
You’re a racist Chinese Wumao pretending an using a fake American face as cover. Unlike the Chinese in China, we never spit on the aisle of the bus. It’s very common.
Phils is a very beautiful country and maybe not that rich as China. But, your gleaming skyscrapers are but an advertizement by Satan. But, living there is like buring hell. So much pollution, corruptions, mountains of manufactured fakes, like milks (with melamine), fake eggs, fake shomai, fake brand clothes, fake shoes, fae machines, fake cellphones, even fake people like Wumaos. It’s really like living in Satan’s hell. Good on the outside but burning hell on the inside. That’s what China is all about.
Josef Raphael
You’re a racist Chinese Wumao pretending an using a fake American face as cover. Unlike the Chinese in China, we never spit on the aisle of the bus. It’s very common.
Phils is a very beautiful country and maybe not that rich as China. But, your gleaming skyscrapers are but an advertizement by Satan. But, living there is like buring hell. So much pollution, corruptions, mountains of manufactured fakes, like milks (with melamine), fake eggs, fake shomai, fake brand clothes, fake shoes, fae machines, fake cellphones, even fake people like Wumaos. It’s really like living in Satan’s hell. Good on the outside but burning hell on the inside. That’s what China is all about.
We don’t wan’t to be like China, with gleaming skyscrapers (Satan’s advertizement) but like burning hell inside. We don’t want your evil society standards. Period.
We don’t wan’t to be like China, with gleaming skyscrapers (Satan’s advertizement) but like burning hell inside. We don’t want your evil society standards. Period.
David Mak The Philippines does borrow from Japan. It’s why over 40% of the ODA received is from Japan. However, Japan has a stringent requirement in that the projects they fund must be able to pay back the loans after so many years or else have a clear non-monetary benefit that’s worth funding (e.g., the PCG ships). In contrast, China doesn’t care whether a project is economically viable or has a significant benefit. If a project ends up a loss, that’s not their problem. You still have to pay up or else. If a project is just a vanity project, that’s fine with them. As long as you pay up, with interest.
David Mak The Philippines does borrow from Japan. It’s why over 40% of the ODA received is from Japan. However, Japan has a stringent requirement in that the projects they fund must be able to pay back the loans after so many years or else have a clear non-monetary benefit that’s worth funding (e.g., the PCG ships). In contrast, China doesn’t care whether a project is economically viable or has a significant benefit. If a project ends up a loss, that’s not their problem. You still have to pay up or else. If a project is just a vanity project, that’s fine with them. As long as you pay up, with interest.
Shakespeare statement. FULL OF SOUND AND FURY ONLY FOR POOR DRUGS USER OR VENDOR.
Shakespeare statement. FULL OF SOUND AND FURY ONLY FOR POOR DRUGS USER OR VENDOR.
David Mak because Japan’s is Development assistance to poorer countries and the funds are limited and has to go through a rigid process. It is better to pay higher interest than being lagged behind by neighboring countries.
David Mak because Japan’s is Development assistance to poorer countries and the funds are limited and has to go through a rigid process. It is better to pay higher interest than being lagged behind by neighboring countries.
You are a genius. Duterte know how to play the game of thrones.
You can genius. Duterte knows how to play the Game of Thrones.
You are a genius. Duterte knows how to play the Game of Thrones!!!
You are a genius. Duterte knows how to play the Game of Thrones!!!
There appears to be a foundation of the entitlement mentality between the lines of the article. No surprise there. The culture of the Philippines is one of entitlement. Other countries can continue to pour monies into that country. Don’t expect results equal to the development other countries which receive like aid.
There appears to be a foundation of the entitlement mentality between the lines of the article. No surprise there. The culture of the Philippines is one of entitlement. Other countries can continue to pour monies into that country. Don’t expect results equal to the development other countries which receive like aid.
Josef Raphael
How can China provide money when it is still poor (pretending to be rich) as written.
https://geopoliticalfutures.com/china-is-still-really-poor/
No need to worry gents ! The writing’s on the wall and collapse is inevitable come 2019 !
China will meet the same fate of USSR or Yugoslavia. Be fragmented or balkanized. History repeats itself. No big communist country had escaped total collapse. To all Chinese Wumaos, keep on dreaming while it last !!! LOL !!!!
https://theprint.in/…/this-is-why-china-could…/97464/
http://www.crusoeresearch.com/…/jim-rickards-debt-bomb…/
https://www.theepochtimes.com/china-may-be-experiencing…
https://m.theepochtimes.com/the-fragile-chinese-empire…
Josef Raphael
How can China provide money when it is still poor (pretending to be rich) as written.
https://geopoliticalfutures.com/china-is-still-really-poor/
No need to worry gents ! The writing’s on the wall and collapse is inevitable come 2019 !
China will meet the same fate of USSR or Yugoslavia. Be fragmented or balkanized. History repeats itself. No big communist country had escaped total collapse. To all Chinese Wumaos, keep on dreaming while it last !!! LOL !!!!
https://theprint.in/…/this-is-why-china-could…/97464/
http://www.crusoeresearch.com/…/jim-rickards-debt-bomb…/
https://www.theepochtimes.com/china-may-be-experiencing…
https://m.theepochtimes.com/the-fragile-chinese-empire…
Low Shen-Cheang
Ok. We don’t want Taiwanese also, if you’re not pretending to be one. What the fuvk?
Low Shen-Cheang
Ok. We don’t want Taiwanese also, if you’re not pretending to be one. What the fuvk?
Scott Shero-Amba
If you’re money is, o, r part of aid contributors, better sock it to your ass or throat as we don’t need them. Like you, a poor guy including poor Wumaos, are the same as our poor guys, does need the money. Not like us.
Scott Shero-Amba
If you’re money is, o, r part of aid contributors, better sock it to your ass or throat as we don’t need them. Like you, a poor guy including poor Wumaos, are the same as our poor guys, does need the money. Not like us.
NOTICE FOR ALL AND ASIA TIMES
As some of you have seen or read my post, be it known to everyone that Asia Times, is not partial to all contributors of opinions or commentators.
For numerous times, Asia Times removes, edits, or cut links I provided that you may not be able to view or read. In view of this, I would encourage everyone who’s interested to know the real facts and truth to paste the links on URL’s or use Google search to learn more about these articles.
If I may, I would encourage everyone further, to request Asia Times to refrain from doing such DASTARDLY PRACTICE of removing, editing and cutting of links to latest and factual news. This is to maintain editorial balance. Otherwise, we will all be just like Wumaos, making 0.50rmb/post. Do you want to be part of this charade ? We are not part of and under China !
Otherwise, all you will be reading in Asia Times are comments more in line with CCP-Xi Jin Pig’s ideas. Let’s cut through the propaganda and reveal the truth and facts.
NOTICE FOR ALL AND ASIA TIMES
As some of you have seen or read my post, be it known to everyone that Asia Times, is not partial to all contributors of opinions or commentators.
For numerous times, Asia Times removes, edits, or cut links I provided that you may not be able to view or read. In view of this, I would encourage everyone who’s interested to know the real facts and truth to paste the links on URL’s or use Google search to learn more about these articles.
If I may, I would encourage everyone further, to request Asia Times to refrain from doing such DASTARDLY PRACTICE of removing, editing and cutting of links to latest and factual news. This is to maintain editorial balance. Otherwise, we will all be just like Wumaos, making 0.50rmb/post. Do you want to be part of this charade ? We are not part of and under China !
Otherwise, all you will be reading in Asia Times are comments more in line with CCP-Xi Jin Pig’s ideas. Let’s cut through the propaganda and reveal the truth and facts.
Don’t hold back, tell us what you really think.
Don’t hold back, tell us what you really think.
Never ever trust a liar. Our past experiences with China showed how China can touch your weakness and make you dream of golden infrastructures for the country, only to realize at the end that you have fallen into a debt trap.
Never ever trust a liar. Our past experiences with China showed how China can touch your weakness and make you dream of golden infrastructures for the country, only to realize at the end that you have fallen into a debt trap.