China commits $7.34-b loans

China commits $7.34-b loansChina committed to the Philippines $7.34 billion worth of loans and grants for infrastructure projects, construction of drug rehabilitation facilities and reconstruction of war-torn Marawi City, the Finance Department said Tuesday.

Data from the DoF showed that of the total amount committed by Beijing, loans accounted for $7.19 billion while grants amounted to $148.22 million.

The DoF’s International Finance Group reported to Finance Secretary Carlos Dominguez III that the assumed loan amount pledged by China accounted for 85 percent of the total cost of 10 projects.

These cover soft loans under the first “basket” of projects that include $234.92-million for the Kaliwa-New Centennial Water Source in Quezon province; $72.49 million for the Chico River Pump Irrigation

Project in North Luzon; and $2.91 billion for the Philippine National Railways South Long Haul Railway.  These loans totaled $3.21 billion.

For the second basket of projects, the Philippines and China agreed to line up an estimated $3.98 billion in loans that may include $947.64 million for Subic-Clark Railway and $424.81 million for the Davao City Expressway.

“Please note that most projects are still in the feasibility study stages and would require ICC processing to determine final project cost; list may also be changed or updated,” the DoF said. Julito G. Rada

Topics: China , Loans
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