Joint oil exploration not tackled during PHL-China loan talks —DOF

There were no discussions regarding joint oil exploration in the West Philippine Sea during loan negotiations between the Philippines and China, the Department of Finance (DOF) said Wednesday.

“The topic of joint exploration was never raised in our discussions with our counterparts, particularly during loan negotiations and processing of new loans, even during the bilateral meetings/high-level meetings with this office,” the DOF said in a statement.

The DOF said there were “false claims” online, citing a Chinese embassy official supposedly using China’s loans and grants to compel the Philippines to a joint exploration deal.

“This is a grossly malicious claim without any basis ... There is no link whatsoever between the Chinese loans and grants and the proposed joint oil exploration deal between the two countries,” the DOF said.

Last week, the DOF defended the terms of a loan agreement with China, after the Filipinos Opposed to Corruption and Unjust Systems (FOCUS) urged the Ombudsman to launch a probe over the loan terms.

Earlier this year, a Chinese newspaper also claimed that Chinese-funded loans to the Philippines could use natural resources as collateral. Malacañang denied the allegation.

Philippine economic officials were in Beijing last August to discuss “issues and challenges” regarding local infrastructure projects to be funded by China.

According to the DOF, it hopes to secure more loan agreements with China to cover three projects:

• New Centennial Water Source-Kaliwa Dam
• Project Management Consultant for PNR South Long Haul
• Safe Philippines, Phase 1

Finance Assistant Secretary Tony Lambino said the DOF has so far entered into only one deal with China, an agreement that was approved by proper agencies. —VDS, GMA News