Filipino and Chinese businessmen on Wednesday signed a memorandum of understanding (MOU) that may eventually translate to $100 billion of investments in the country.
“We have an understanding that we will have cooperation work in future projects, either private projects or government projects. Our primary purpose is invite the investors here and put their money here in the Philippines,” Telesforo E. Peña, managing partner at T&D Design Consultancy Co., told reporters on the sidelines of the MOU signing in Makati City.
The MOU was also signed by Filipino firm Prime Century Core Construction Inc., and five Chinese firms:
- CCCC Marine Construction & Development Co. Ltd.
- CCCC Dredging (Group) Co. Ltd.
- China Road and Bridge Corp.
- China Energy Engineering Group Guangxi Hydroelectric Construction Bureau Ltd.
- China GaZhouBa Group Co.
Both sides have a list of possible projects, which they aren't willing to reveal at this point, Peña noted.
On the part of the private sector, the plan was in place and was simply offered to the Chinese. "On the government side, we will participate in the projects offered by the government, possibly under the PPP (public-private partnership) or under the unsolicited proposals,” he said.
Should the Chinese businessmen decide to push through with the PPP projects, Peña said the companies could invest up to $100 billion.
“Actually, one requirement of the government is they have to invest $20 billion – each of them – if they want to participate in a PPP project and be qualified as ‘Quadruple A’ or ‘AAAA’,” Peña said.
According to the PPP Center, some of the projects currently under procurement include the following:
- Light Rail Transit Line 6 (P65.09 billion)
- Regional Prison Facilities (P50.20 billion)
- New Centennial Water Source-Kaliwa Dam (P18.72 billion)
- Road Transport Information Technology Infrastructure (P298 million)
- Davao Sasa Port Modernization (P18.99 billion)
- O&M of five regional airports (P108.19 billion)
- O&M of Light Rail Transit Line 2 (P12.5 billion)
Under Philippines laws, only companies rated "AAAA" may bid for PPP projects. — VDS, GMA News