BEIJING (via PLDT) – The Philippines is hoping to get $2 billion to $7 billion in investments from President Aquino’s state visit here where trade and economic cooperation will be the focus.
However, Trade Undersecretary Cristino Panlilio said the agreement to allow Chinese government-owned firm Sino Petroleum Corp. to conduct oil exploration in the disputed Spratly Islands in the West Philippine Sea would no longer push through, as the company would have to make further consultations and get permission from the state to enter into a final deal with the Philippines.
Panlilio, the overall program head for the business sector for the state visit, earlier said Sino Petroleum was prepared to invest over $1 billion for oil exploration only. But he noted negotiations for the project would continue and the prospects were still very good.
Panlilio said they were working hard to ensure that the agreements to be signed were concrete investments and not hollow pledges or commitments.
He said the investment from the State Grid Corp. of China had been inked and that China Trend Investments Ltd. was expected to invest $1 billion in the Philippines.
From the China-ASEAN Fund, Panlilio said the Philippines only got an investment for Negros Navigation but investments for an industrial park in Clark Freeport, Pampanga, a geothermal plant, as well as Public Private Partnership projects could also come in.
He said there would also be talks on possible investments in mining, energy, infrastructure, shipbuilding and agriculture.
He added that the meeting between the Department of Public Works and Highways and LED Chinese contractors could open doors for many other bidders for Philippine projects.
Panlilio said there was much interest in President Aquino’s state visit and that the business delegation was a “historic high” because they never had as many participants as those coming with Aquino at this time.
He also said they would like to explore China’s appetite for imports and that they were happy about the good atmosphere of the visit, especially with the support from the business groups.
He said the ballpark figure was $2 billion to $7 billion but they could not tell how many “homeruns” they would make at the end of the trip.
Earlier, Malacanang assured the public that any joint exploration of the West Philippine Sea with China would be confined within disputed areas to avoid constitutional violations.
Presidential spokesman Edwin Lacierda said the government would see to it that any agreement would serve the national interest.
Panlilio said the agreement with Sino Petroleum was supposed to be part of the $2-billion to $7-billion investment package the Philippine contingent was expected to get during the visit.
Lacierda said although the details were not yet firmed up, “it’s a good sign because it shows that both sides continue to dialogue, notwithstanding some disagreements.”
He echoed Foreign Affairs Secretary Albert del Rosario’s statement that the West Philippine Sea was not the sum total of the country’s relations to China, as these have always been multifaceted.
Lacierda also said the discussion on the oil exploration would only be on the ministerial level since it had been made clear that the Philippines and China had agreed to disagree on the issue and discuss it on a multilateral level.
“We have differences but we can move forward beyond those differences,” he said.
He said Del Rosario had also stated that “we know what is ours, we know what is disputed so I think any time we’re going to discuss exploratory talks with other countries, we will have to bear in mind which is ours and which is disputed.”
“And because of that, by the way, we have certain levels of treatment, when (the area) is ours and when it’s disputed,” Lacierda said.
The Chinese firm was already looking for a local partner and is considering Oriental Petroleum, Basic, Petron and Philippine National Oil Co.
Panlilio said they did not expect any problems with the Spratlys operations because Sino Petroleum has already agreed to conduct the oil exploration “under Philippine laws.”
This is not the first time that the Philippine and Chinese governments forged an oil exploration agreement. The first was the controversial survey agreement at the Recto (Reed) Bank, which is part of Philippine territory near the Spratlys. The accord was forged during the term of former President Gloria Macapagal-Arroyo.
Panlilio said a top official of Sino Petroleum would meet Aquino during the state visit.
P-Noy will run state affairs via phone
While in China on his first state visit, President Aquino will rely on his mobile phone to run the country’s affairs and not let a caretaker – normally the vice president – do the job.
The President begins today his five-day state visit to China through which he hopes to expand trade and business relations with the Philippines?Õ third largest trading partner.
In a memorandum, Aquino directed Executive Secretary Paquito Ochoa Jr. to preside over Cabinet meetings while he was away and, if necessary, decide on matters deemed not sensitive or controversial.
Papers that need the President’s signature would have to wait.
The executive secretary, based on the memorandum, should also consult the President on matters needing urgent attention through the “fastest and most convenient” communications technology available.