The Philippine Economic Zone Authority said Tuesday the controversial $360-billion investments of a Filipino, Taiwanese and Singaporean conglomerate is above board, despite the group’s alleged links to businessman Chen Yu Hao whom Taiwan tagged as an “economic criminal”.
Peza director-general Charito Plaza said in a news briefing Xianglu Dragon Group owned by Chen was not the investor in the project, although the company would act as the coordinator and consolidator of projects that would be located inside the proposed $360-billion mixed-use special economic zone in Pangasinan.
“While it may be true that Chen is an economic fugitive in Taiwan, we do not have any diplomatic relations, neither do we have extradition agreement with Taiwan. The Taiwan court can try his case in Taiwan but we are giving the project the rightful due diligence procedure. It will be up to the President [Rodrigo Duterte] if he will approve this in the presidential proclamation,” Plaza said.
She said the government’s directive for Peza was to continue the due diligence on the project despite a letter from the Taiwan Economic and Cultural Office warning the Philippine government of a possible fraud case by Chen.
“We do not want to be swayed by any biased statement saying Chen is a convicted criminal and fugitive from justice without any support proof or verifiable evidence. Otherwise, it will make Peza biased as well if it will rely alone on mere allegations forwarded by a single party as its basis in denying the project. At the rate this bad publicity by Teco is being carried out, it is like we are prejudging already the concerned party. We feel this not the proper way to treat a prospective investor,” Plaza said.
Teco, in a letter last week, said Chen was a wanted fugitive in Taiwan with several cases of fraud and capital usurpation.
The Pangasinan project is envisioned to bring in huge investments that will provide massive employment and economic opportunities to the country.
“Surely we do not see the same negative reaction and media expo in the US, Japan and Thailand which hold substantial investments of Xianglu and whose governments treat Chen in high regard despite the derogatory report as circulated in the Philippines and in social media,” Plaza said.
The project proponent for the Pangasinan ecozone is First Pangasinan Industrial Corp., a consortium of Filipino and Taiwanese investors owning 60 percent of the project and a group of Singaporean investors with the remaining 40 percent, and not Xingalu as reported earlier, Plaza said.
The first phase will involve the development of the first 400-hectare land for $20.9 billion. It will host the petrochemical plant project of Xianglu.
The entire ecozone project that will cost $360 billion will be undertaken in a span of 30 years.
The project passed pre-qualification by the Peza board on Aug. 24, 2017 but still has to undergo due diligence and presidential proclamation to qualify as a legitimate Peza-registered project.
Preferred activities inside the zone involve agro-processing, petrochemical, cement manufacturing, international hotels and tourism facilities, research and development centers, power plant, water utilities, port facilities, logistics hub and environment facilities.
Another project of the Taiwanese Group is the P14-billion Walforf Astoria Building, a tourism-cum-IT park building that is expected to rise along Roxas Boulevard.
Proponent for the project is Unilink Land Properties Inc., another partner of the Taiwanese consortium. The proponent intends to seek Peza registration as soon as the land procurement is finalized.