RP regains confidence of US businesses

The Philippines is back on the radar screen of American business.

President Arroyo, back from an official visit to New York and Washington, said yesterday there was renewed interest in the country from the US private sector.

"The vigorous support of the US government and the firm agreements of investment from the private sector are signs of growing confidence in our economy and in our future," the President said when she arrived at the Ninoy Aquino International Airport (NAIA).

The Philippines secured Tuesday a total $4.6 billion in investments, development assistance, trade commitments and tariff concessions from the US government and companies.

Mrs. Arroyo said it is now up to the Philippine government to do the rest in achieving goals of economic growth and stability for the country.

"This is just the beginning. We can do more if we are united and setting aside too much politics," she said.

Among the deals she highlighted:

• New York-based Cerberus group, led by former US Vice President Dan Quayle, will provide up to $1 billion to support mass housing programs by buying home loans from the government. A legal framework has to be established for the deal to go ahead, officials said.

• US finance house AIA will raise $200 million to invest in the Philippines’ stock market, a move stock analysts said will boost local shares.

• A firm named as Futrex is to build a $500-million railway system to link the terminals at NAIA, providing 1,500 jobs and increasing security in the terminals.

• Halliburton Co. to invest $100 million to operate a shipbuilding and ship repair facility at Subic, employing 4,000 workers and producing $300 million in annual sales.

• Ford Phils. to start exporting cars and special utility vehicles to Thailand and Indonesia, generating estimated sales of $300 million a year.

• Six US companies will set up call centers in the Philippines worth $23 million and create 11,300 jobs.

The President said the Philippines may become eligible for US debt relief of nearly $430 million through forest conservation.

US President George W. Bush has promised to provide nearly $100 million in "security assistance" to help the Arroyo administration combat the Abu Sayyaf, a Muslim extremist group believed to be linked to Osama bin Laden’s al-Qaeda network.

"To help consolidate peace and to promote economic and social development in Muslim communities, President Bush announced that US assistance for Mindanao for 2001 and 2002 will amount to over $55 million," Mrs. Arroyo also said.