Philippines diversifying funding sources for infra projects, says Diokno

Finance Secretary Benjamin Diokno said the Philippines is diversifying its sources of financing for its big-ticket infrastructure projects amid calls to ban Chinese firms from taking part in government contracts.

“We look for the best. We would like to diversify our source of funding,” Diokno told members of the Finance press corps during his weekly briefing in Manila.

Last week, the Finance chief warned against banning Chinese companies from from participating in the government’s infrastructure program, saying this could affect the financing and the implementation of the government’s infrastructure projects.

Senate President Juan Miguel Zubiri earlier made a call to ban the participation of Chinese government-owned companies in government infrastructure projects considering the “bullying” of Filipinos in the West Philippine Sea (WPS).

The Marcos administration’s chief economic manager reiterated his stance about the implications of banning Chinese firms, noting that “some of the projects will suffer.”

Furthermore, Diokno said, now “we have a wider source, let's put it that way.”

The Finance chief recalled that during the administration of former President Rodrigo Duterte, the government had limited sources because “ayaw niya makipag-usap sa mga Europeans ‘di ba.”

Duterte had launched a series of tirades against the European Union during his term due to the bloc’s raising of human rights concerns over his campaign against illegal drugs.

Diokno had served as Budget secretary and central bank governor during the previous administration.

“Now, we're discussing extensively with some European countries like Sweden, France, Italy, England. So we're diversifying our funding source,” he said.

Based on the National Economic and Development Authority’s official development assistance (ODA) review report for 2021, the total ODA loans and grants received by the country reached $32.239 billion.

Of the said amount, China accounted for 2.93% or $943.49 million.

Meanwhile, Japan is still the top ODA provider for the Philippines, accounting for 32% or $10.356 billion followed by the Asian Development Bank with 28% or $8.985 billion share to the total. — BM, GMA Integrated News