The idea of banning Chinese state-owned firms from taking part in the government’s infrastructure projects may result in negative consequences, such as delays in big-ticket undertakings and the lack of available workers.
Finance Secretary Benjamin Diokno, the head of the administration’s economic team, said this Wednesday after Senate President Juan Miguel Zubiri floated the idea of banning Chinese companies amid the reported harassment of Filipinos in the West Philippine Sea recently (see related story on A1—Editors).
The latest incident was the Chinese Coast Guard’s firing of water cannons at Philippine Coast Guard vessels that were escorting ships carrying supplies to Filipino troops stationed in the Ayungin Shoal.
“In case a decision is made to ban Chinese contractors from participating in pipeline projects of the national government, it may have potential effects,” Diokno said during a hearing in the Senate.
“For example, implementation of official development assistance projects from bilateral and multilateral ODA partners alike, particularly for projects considering multiple country participation including China as a member of the ADB, Asian Infrastructure Investment Bank, and the World Bank, so that might affect the implementation of those projects,” Diokno said.
It would also impact the procurement of locally-funded projects and even public-private partnership implementation, especially if the main contractors, suppliers, or subcontractors are Chinese firms, he added.
Diokno also cited the possible impact on the economy if delays in these big-ticket projects take place.
“And of course, we have to shift to the financing for those projects that have been requested from China,” he said.
Likewise, Diokno said the country currently lacks workers in government projects, which is also experienced in the private sector.
“We need foreign workers, maybe Indian workers, Chinese workers…especially in renewable energy and power projects,” he said.
Zubiri said it would not be fair if the government gave billions of pesos to a Chinese state-owned contractor, brought that profit to China, that would later on finance their activities in the West Philippine Sea.
The Senate leader added that the government could tap other countries—such as South Korea, Japan, Vietnam, or India—to help in the implementation of these big-ticket infrastructure projects.
“We also have to stand up for our troops in the West Philippine Sea, they should not be allowed to be bullied,” Zubiri said.
He went even further, saying that the infrastructure contracts the government entered into with China failed.
