Aside from the controversial US$330 million ZTE broadband deal, other Chinese loans to the Philippines are similarly marred by corruption and onerous loan agreements.
BY IBON FOUNDATION
Posted by Bulatlat
Vol. VII, No. 34, September 30-October 6, 2007
Aside from the controversial US$330 million ZTE broadband deal, other Chinese loans to the Philippines are similarly marred by corruption and onerous loan agreements.
In January 2007, China agreed to fund a number of infrastructure development projects of the Arroyo administration that cost more than US$1.1 billion (P49.5 billion at P45.50:$1). Four more major infrastructure projects worth at least US$1.7 billion are under negotiation. (See Table) The loan package includes the continuation of the controversial Northrail Project.
In the loan agreement of the Northrail Project, China has the sole authority to determine the payment schedule; the right to impose immediate payments even before the project begins; and it places China’s laws as the governing laws for the agreement and that the Philippine government irrevocably and unconditionally waives its immunity from any suit or judgment arising from the contract.
The loan package also includes US$1 billion in funding for the Laiban Dam Project, which, similar to the Northrail, threatens to displace thousands of indigenous peoples and upland settlers.
According to IBON, the deals signed with China should be opposed, not only because they worsen the country’s indebtedness, but also because they perpetuate the flawed neoliberal framework of economic development that has aggravated the country’s permanent crisis of maldevelopment and widespread poverty. IBON Foundation/posted by Bulatlat
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Table. China-funded infrastructure development projects (in million US dollars) |
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Approved under the package of Jan.15, 2007 agreements |
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Project |
Agency |
Cost |
Brief description |
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Northrail Project Phase I, Section 2 |
NLRC |
673.67 |
Extension of Northrail from Malolos to Clark covering 48 km. |
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Main Line South Railway Project Phase 1 |
PNR |
314.80 |
Rehabilitation and upgrading of the 77.4-km. section of railroad line from Calamba to Lucena City |
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Non-Intrusive Container Inspection System Project Phase 2 |
BOC |
115.00 |
Purchase, installation, and operation of 20 mobile X-ray machines |
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Sub-total |
1,103.47 |
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Projects in the pipeline |
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Laiban Dam Project |
MWSS |
1,000.00 |
Construction of a concrete dam, intake structures, hydropower plants, & other structures |
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Metro Manila Skyway Stages 2 & 3 |
NDC |
633.54 |
Construction of an elevated expressway to link South Luzon expressway & the North Luzon expressway |
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Angat Water Utilization & Aqueduct Improvement Project Phase 2 |
MWSS |
63.58 |
Construction of an 11.5-km. new aqueduct to secure existing raw water supply in Metro Manila |
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Laoag International Airport Expansion Project |
DOTC |
– |
Upgrading & modernization of the airport’s various facilities |
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Sub-total |
1,697.12 |
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GRAND TOTAL |
2,800.59 |
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Compiled by IBON based on information and data from the Development Information Staff, NEDA |
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IBON Foundation, Inc. is an independent development institution established in 1978 that provides research, education, publications, information work and advocacy support on socioeconomic issues.
