Metro Manila (CNN Philippines, March 18) — A high-level government delegation will meet with Chinese officials in Beijing in the hopes of scoring new infrastructure deals with the Asian giant.
The Finance department said Monday that the delegation headed by Executive Secretary Salvador Medialdea will meet with top officials of China’s Ministry of Commerce on Tuesday “to firm up possible new agreements on infrastructure cooperation between the two countries.”
This is part of a series of meetings between Philippine and Chinese officials scheduled this week to coordinate with the Chinese government regarding the Duterte administration infrastructure projects under the Build, Build, Build program.
Some members of the delegation will also meet with officials of Beijing’s foreign aid office, the China International Development Agency. They are also expected to meet with Chinese Vice President Wang Qishan and officials of the Export-Import Bank of China officials.
An economic briefing will also be held on March 20 to show potential investors the opportunities available in the Philippines.
Beijing has been helping finance projects under Build, Build, Build, but critics have pointed out that some of these carry high interest rates and may lead to the Philippines falling into China’s “debt trap” — a fate that befell Sri Lanka, which had to give up a strategic port as payment for a high-interest loan.
A former lawmaker even warned that a ₱3.6-billion loan agreement that would partially finance an irrigation project puts the Philippines at risk of letting go of “patrimonial assets.”
But the government continues to assure the public there is nothing to fear about loans from China, even as the Finance department admitted that deals with Beijing come at a heftier interest rate of 2 to 3 percent, compared with Tokyo’s 0.10 percent interest rate.
China has pledged nearly ₱400 billion in loans and grants for big-ticket infrastructure projects in the Philippines.
