Duterte to bring home $12.165B in investments from China

27 April 2019

BY: CATHERINE S. VALENTE, TMT

President Rodrigo Duterte will bring home an estimated $12.165 billion in investments and loan pledges from China, the Trade department said on Friday.

In a statement, Trade Secretary Ramon Lopez said Duterte had witnessed the signing of 19 business deals that were expected to generate more than 20,000 new jobs for Filipinos.

Lopez said majority involved energy, infrastructure, food, telecommunications, agricultural products, tourism, and economic zone and industrial park development.

“The Duterte administration is pushing for investments in energy and manufacturing for the Philippines to broaden its manufacturing base and increase its exports,” the Trade chief said.

“Among the agreements are energy projects that will help the country decrease its dependence on oil and gas imports. There will also be several industrial parks to bring jobs to Filipinos in the countryside,” he added.

Among the signed deals is a contract for the proposed 250-megawatt South Pulangi Hydroelectric Power Plant Project in Damulog, Bukidnon, which aims to improve power supply reliability and resilience in the country, particularly in Mindanao. The project is valued at $800 million and will create 5,000 jobs.

The Cagayan Economic Zone Authority also signed six MoUs with Chinese firms. The projects include a $150-million yacht club, a $500-million green textile industry park, a $500-million expansion of the Cagayan North International Airport, a $100-million fintech hub and financial center, a $500-million smart city, and $150-million for various projects including a resort and theme park and a lithium battery manufacturing plant.

A framework agreement for thermal, hydro, and renewable power plants was also signed between the Philippines’ Tranzen Group and China Power Investment Holding. Valued at around $1.5-2.0 billion, the venture is expected to create 1,000 jobs.

The Davao Occidental local government and Fengyuan Holdings, meanwhile, signed an MOU for a $1.5-billion petrochemical refinery processing plant complex at the Tubalan Cove Business and Industrial Park.

As part of the long-term plan to reduce dependence on imported energy fuels, the Department of Energy, Shanghai Electric Group Co. Ltd, and Deluxe Family Co Ltd also inked a $40-million MoU to collaborate in the promotion of indigenous, new, and renewable energy resources.

Tranzen also signed two MoUs for infrastructure and telecommunications projects. One was with China Harbour Engineering Company Ltd for construction of the LRT in Manila, housing, and roads in North Luzon. The projects have a combined value of $4 billion and are expected to generate 1,000 jobs.

The other was with CITIC Guoan Information Technology for a $500-million project to construct infrastructure for nationwide Wi-Fi Internet connectivity that is expected to create 1,000 jobs.

Two Philippine companies also inked purchase frameworks to supply agricultural products to Chinese firms. Philpack Corporation will supply $40 million worth of pineapples to China’s Goodfarmer Foods Holding Group, while Eng Seng Food Products will supply $36.5 million-worth of green coconuts to China Artex Corp.

The Pampanga local government and Chinese firm Macrolink Group likewise inked a $1.5-billion framework agreement to construct and develop the Yatai Industrial Park, estimated to create 10,000 jobs.

A third framework agreement between GFTG Property Holdings and Sanya CEDF Sino-Philippine Investment Corp., meanwhile, is for a $298-million project to develop
Grande and Chiquita Islands under the Subic Bay Matropolitan Authority.

Adnama Mining Resource, Inc., Fu Properties Inc, and Xiamen C&D Incorporation also signed an MoU to construct a $50-million iron processing plant in Agusan Del Norte.

Aside from these agreements, Lopez said AAC Technologies expressed intent to expand its current operations in Philippines during a courtesy call at the sidelines of the business forum.

“The company plans to invest $30 million to engage in stepper motor and motor reducer manufacturing and create about 3,000 jobs in the next three years,” he said.

Photo Caption:

LEADERS’ MEETING President Rodrigo Duterte, Myanmar leader Aung San Suu Kyi and Pakistani Prime Minister Imran Khan arrive for the opening ceremony of the second Belt and Road Forum for International Cooperation in Beijing on Friday. AP PHOTO

https://www.manilatimes.net/duterte-to-bring-home-12-165b-in-investments-from-china/546058/