China bank may invest $1 billion in RP

MANILA, Philippines - The China Development Bank (CDB) has expressed interest in investing in the country’s mining and forestry sectors, as well as in a pulp and paper plantation.

This was disclosed over the weekend by Environment and Natural Resources Secretary Ramon Paje during his speech at the 59th Annual Meeting of the Philippine Wood Producers Association (PWPA) held   at the Manila Polo Club.

According to Paje, he had met with CDB’s assistant governor Zhao Jianping Friday morning.

Paje said the bank executive has expressed interest in gold, copper, and coal mining projects, as well as in infrastructure, forestry and in the pulp and paper sector.

‘’Zhao expressed the bank’s interest in investing in big projects, ‘’ he said.

Paje estimates that CDB’s interest would be in projects in the range of $500 million to $1 billion.

CDB is the most profitable bank in China and is owned by the Chinese Government.

Aside from CDB, Paje also disclosed that the German Deutsche Bank had also expressed their willingness to help extend financing for mining projects, particularly those that have been granted with an FTAA (Financial and Technical Assistance Agreement) or an MPSA (Mineral Processing and Sharing Agreement) and with a negotiated supply contract.

According to Paje, Deutsche Bank representatives assured him that they would no longer require a collateral from the mining firms as long as they have secured a supply contract.

He vowed that if he catches DENR employes accepting bribes, he would punish the employes and would run after the bribers as well.

He also assured the PWPA members that he would no longer sign any new Integrated Forestry Management Agreements (IFMAs), but would be glad to sign new types of forest plantations.

Paje also reiterated that he would no longer bid out confiscated logs, but would turnover all confiscated logs to the Department of Education, Culture and Sports (DECS) for the construction of new school buildings.