SHANGHAI”•Despite the ongoing tensions over the West Philippine Sea, Shanghai authorities have assured the Philippines of being “impartial” in helping out on the major infrastructure projects under the $100-billion Asian Infrastructure Investments Bank financing by the China-led financial institution.
The assurance came after Senate President Aquilino Pimentel III claimed he does not share the enthusiasm expressed by Finance Secretary Carlos Dominguez about the country being a founding member of the AIIB.
The Duterte administration may have to decide whether to forgo the opportunity or cash in on the $100-billion financing facility under AIIB not later than December this year.
Shanghai Development and Reform Commission Director Guo Yu said that, since the focus of China was “outward,” it would be beneficial for the Philippines to be a member of AIIB.
“China’s and the AIIB’s priority is outward, to help developing countries with their major infrastructure projects,” Guo told Manila-based journalists who were invited to a “goodwill tour” under the “media exchange tour” program of the publicly-listed Xinmin Evening News, the largest and most influential newspaper in China.
While the Philippines is a signatory to the AIIB, which former President Benigno Aquino III signed in 2014, the country has yet to sign up as a full-fledged member as the Senate has yet to ratify the agreement.
At least 57 countries have already signed up as founding members but 10 countries, including the Philippines, have yet to ratify the pact.
Canada was the latest to join the AIIB last week.
Under the time frame given, the signatories have until the end of this year to decide whether or not to officially join AIIB.
As a shareholder, the Philippines will have to shell out some $198 million for membership. In return, the country will be able to tap into the financing facility to bankroll major infrastructure projects.
The Canadian government believes in the thrust of the AIIB, which is to help member-economies in developing critical infrastructure projects.
The Canadian participation in the AIIB was announced Wednesday by its Finance Minister Bill Morneau in Beijing, shortly before the start of the G20 summit in Hangzou.
Morneau was quoted as saying by the Shanghai Daily that Canada’s participation in the AIIB was in its “best interest.”
The China-backed AIIB is closely patterned after the multilateral agencies like the Asian Development Bank steered by the Japan, and the Washington-based International Monetary Fund and its Brettonwoods sister, the World Bank.
Dominguez at the very outset has indicated his full support for AIIB membership, citing the huge financing requirement the government needs for infrastructure projects.
In the proposed P3.35-trillion General Appropriations Act of 2017, Duterte’s first budget, the government has allocated some P860.7 billion for capital outlay.
Budget Secretary Benjamin Diokno said the country would bankroll P7 trillion worth of infrastructure projects over the next six years.