MOUs were signed in China, not ‘hard contracts’ — Palace official

Following reports some of the companies that bagged infrastructure deals with the Philippines have a tainted past, Malacañang on Friday clarified the agreements were memorandums of understanding (MOUs) and not binding contracts.

At a news conference in Malacañang, presidential spokesperson Ernesto Abella noted the projects will still go through the necessary process. 
 
“Those are simply understandings that they can submit feasibility studies which will still be subject to public biddings and the necessary processes. So these are not necessarily contracts or commitments to contract,” he clarified.

The statement came after it was reported that the World Bank blacklisted China Road and Bridge Corp. (CRBC) until January 2017 due to bid-rigging. President Rodrigo Duterte was also warned against China CAMC Engineering, an affiliate of China National Machinery Industry Corporation (SINOMACH), the contractor of the anomalous North Rail project.
 
“Those are not hard contracts. Those are simply an invitation to – What do you call it? – an understanding that they can submit feasibility studies. And these are also open to others, okay? So there are no hard and fast rules that say, 'Yes we have to accept this particular company',” Abella said.

Another company that signed a deal during Duterte’s four-day state visit to China was CCCC Dredging – said to be involved in reclamation activities in the South China Sea. The state-owned company signed a deal to create four artificial islands totaling 208 hectares of reclaimed land in Davao City, Duterte’s bailiwick.

Asked about the implication of the deal on Philippines' claim, Abella said Malacañang has yet to confirm if indeed CCCC Dredging is one of the companies that signed an MOU during Duterte’s visit.

Philippines and China have overlapping claims over the South China Sea, particularly the West Philippine Sea. — VDS, GMA News