MANILA, Philippines - The Philippines is open to the idea of joining the China-backed Asian Infrastructure Investment Bank (AIIB) despite disagreements over control of the West Philippine Sea, a ranking official of the Department of Finance (DOF) said.
Rommel Herrera, director IV at the DOF’s International Finance Group, however, was quick to point out that the government is still carefully weighing the merits of signing up to China’s AIIB which is seen to rival the United States’ World Bank.
Herrera said the decision to sign up would depend on a lot of issues, such as the the outcome of discussions on the governance structure of the AIIB.
“We are regarded as one of the prospective founding members [of the AIIB],” Herrera said.
The Philippines, along with other countries, signed last October a non-binding agreement to become a founding member of the $50 billion China-led multilateral institution which would finance infrastructure projects in the Asia-Pacific.
Beijing’s flagship economic outreach project was conceived last year as part of efforts to rejuvenate its economy and attract more investments in the Asia-Pacific region.
Just recently, three of Europe’s most powerful nations – Germany, France and Italy – announced their desire to participate in China’s Asian development bank despite objections from the US. This came on the heels of Britain’s decision to join the bank.
Europe’s participation reflects the eagerness to team up with China, the world’s second largest economy.
Earlier this month, China said about 26 countries, mostly from Asia and the Middle East, had already signed up to be founding members of the bank. It hopes to finalize the articles of agreement by the end of the year.
Nations interested to join as founder-members of the AIIB have until March 31 to signify their intention.
Finance Secretary Cesar Purisima earlier said the AIIB would complement the Japan-led Asian Development Bank and the World Bank.
Ties between China and the Philippines, however, have been strained by a territorial row over the West Philippine Sea.