China eyes prospects in RP's energy sector

MANILA, Philippines - China is looking at the enormous potential of geothermal exploration in the Philippines and the possibility of jointly developing other clean and renewable resources such as wind and solar power, a top Chinese diplomat said.

Ambassador Liu Jianchao said China will continue to boost cooperation with the Philippines in even broader areas of infrastructure, mining, farming, telecommunication and education.

“We will continue the effective and fruitful cooperation with the Government of the Philippines, and we are also very much looking forward to working even closer with the private sectors which you very well represent,” Jianchao told delegates at the 17th Metro Manila Business Conference.

With the full implementation of the Economic Resiliency Plan (ERP) in 2009 and expected global recovery, Jianchao said the Philippines is now poised to eke out growth this year.

“Next year, the bulk of stimulus spending would zero in on larger infrastructure projects including transportation and water networks, where our two countries have had solid cooperation and enjoy greater potential to do so in the future,” he said.

Earlier this year, State Grid Corporation of China joined a consortium that was granted the franchise to operate the power transmission network in the Philippines.

Jianchao said the project represents the largest of that kind ever invested by China in the Philippines.

In late May, a Chinese company signed a contract with the National Irrigation Authority on the Agno Integrated Irrigation Project, designed to nurture 35,000 hectares of farmland and benefit 28,000 Filipino farmers.

Another contract agreement was signed Tuesday to kick off Phase II of the Angat River water utilization and aquaduct improvement project.

“A stable, sound and dynamic Chinese economy will bring about great development opportunities for the rest of the world, including the Philippines,” Jianchao said. “As China’s economy picks up, the trade and economic cooperation between our two countries will grow closer and our strategic and cooperative relationship will be hoisted to a new high. Together, we can find better ways and enjoy brighter days.”

The envoy said China has encountered unprecedented difficulties and challenges noting that geographical distance to the epicenter of the financial crisis obviously cannot guard Asia against harm.

He cited China’s experience of huge pressure on economic growth with its GDP growing only 6.1 percent in the first quarter of 2009, representing a nearly 3 percent year-on-year decrease, decline in imports and exports, slow industrial production, job loss and unemployment pressure.

“The much thornier case facing China, however, is that the financial crisis coincides with a crucial juncture in our efforts to transform the growth pattern and adjust the economic structure. New challenges coupled with existing problems have made our task all the more arduous,” he said.

“Crises are good opportunities for critical policies to be made that would be of great significance to a country in the future. China has such a critical decision to make: transformation of its growth pattern,” he added.

“We should try to find the handle to turn the crisis into opportunities to take on a better pattern of growth, namely, to work for a successful transformation while retaining a sound and fast growth.”

Jianchao said measures taken by China produced encouraging initial results with its GDP growth rate rising up to 7.9 percent in the second quarter this year, making it an average of 7.1 percent in the first half of the year, approaching the 8 percent target for 2009.

 The industrial production in China, he said, is now regaining its momentum by registering a growth rate of 7 percent in the first half of 2009.

“Therefore, the only way out of a recession that is global in scope should be a response that is global in cooperation. That is why the international community including China and the Philippines is pleased to see G20 agreements on a series of unprecedented steps that will be a turning point in our pursuit of a global economic recovery,” he said.