RP to ask China to extend $5-B loan to fund infra projects

The Philippines is planning to ask China to extend a $5-billion loan/assistance to fund various infrastructure projects to be determined by the National Economic and Development Authority (NEDA).

The loan request is expected be made during the three-day visit to the country of Chinese President Hu Jin Tao who arrives today.

The loan/assistance would be on top of several other bilateral and commercial loan agreements that are scheduled to be signed during the visit of President Hu Jin Tao.

The Philippines and China are expected to sign at least 10 bilateral agreements and six commercial agreements worth about $1 billion.

According to Ambassador Jose Antonio, special envoy to the People’s Republic of China, the 10 bilateral agreements and six commercial agreements represents "the first wave of Chinese investments in the country."

The six commercial agreements, Antonio disclosed, would include a $1-billion investment in the Philippine Nickel Co., formerly Nonoc Corp and a $300-million glass manufacturing plant.

Another agreement would cover a $25 million investment by a Chinese biotech pharmaceutical to manufacture traditional Chinese medicine in the Philippines.

The other agreements, Antonio said, would cover investments in power plants and processing of various coconut products.

Previously, there had been reports that the Shanghai Bao Steel Group Corp. and Jin Chuan Non-Ferrous Metals Corp. are planning to rehabilitate Philnico.

Likewise, the Jing Niu Crystal Ball Group of Co. had also indicated their interest in putting up a glass manufacturing either in Subic or nearby Bataan.

Another Chinese firm, Seeinglong Biotech Pharmaceuticals Inc. had also expressed its intention to put up a local manufacturing facility for traditional Chinese medicines.

As for the bilateral agreements, there are at least 13 RP-China bilateral agreements up for signing, but only 10 of which will be signed during President Hu Jintao’s visit starting on April 26.