GMA sets aside $120M of China loan for big-ticket projects

President Arroyo has set aside $120 million out of China’s $1.8-billion loan assistance to finance anti-poverty projects and programs drawn up by local government units (LGUs).

China extended a $1.8-billion loan facility earlier this year to finance the roll out of big-ticket projects in the country, including rail projects and the Cyber Education Project.

Mrs. Arroyo also highlighted the connection between poverty, terrorism, human rights and peace in her speech at the regional workshop on the Establishment of National Human Rights Institutions in Asia at the Traders Hotel in Pasay City on Monday.

“To prioritize the provision of jobs, livelihood and basic services to eradicate extreme poverty, I hereby order the China Projects Oversight Panel to earmark an initial $120 million for programs and projects to be drawn up by local government units (LGUs) and agencies to uplift areas and communities suffering extreme poverty as identified by the National Anti-Poverty Commission,” she said.

Mrs. Arroyo was referring to the panel she formed last month to review projects funded by official development assistance (ODA) from China owing to the controversy over the government broadband deal.

The $120 million will be sourced from the Chinese ODA, said Secretary Cerge Remonde, Presidential Management Staff chief, who is also a member of the panel.

Trade Secretary Peter Favila, who heads the panel and is “minister-in-charge” for China, said the ODA was one of the outcomes of the economic cooperation pact earlier signed between the two countries.

He said the terms were very “concessional.”

Mrs. Arroyo said top priorities are LGUs with high incidence of severe and/or high unemployment. She said the move would be in consultation with bishops and non-government organizations.

The projects, she said, should be proposed by the end of the year for launching in 2008.

To expedite the implementation of projects, she also directed the Cabinet to begin preparatory work on programs and projects identified in the proposed P1.227-trillion national budget as approved by the House of Representatives.