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Phillipines Trade with China can Grow to $60B in 5 Years

Posted on October 24, 2016

By Doris Dumlao-Abadilla, GlobalNation

The Philippines is bringing home around $13.5 billion worth of investment and financing deals from China following a historic state visit that rekindled ties with the economic superpower, according to Trade Secretary Ramon Lopez, who added that the country’s trade with the Asian economic giant could reach $60 billion in five years as targeted.

Lopez announced the estimated sum of all the government-to-government and business-to-business deal sizes during the Philippines-China Business Forum on Thursday.

The trade czar also expressed optimism that with the renewed friendship between the Philippines and China, trade between the two countries could double or even triple in the next few years to reach the $60 billion target in five years. He said the same could be expected from investment flows and influx of tourists.

He said in a text message that the $13.5 billion total package included the private sector memorandums of understanding signed by Philippine business delegates with their Chinese counterparts.

The amount also includes the concessional loans and private sector funding committed to public and private Philippine enterprises.

JG Summit Holdings president Lance Gokongwei, owner of a company set to sign a financing deal with the Bank of China, said the group would use the proceeds for infrastructure projects.

Filinvest Development Corp. president Josephine Gotianun-Yap likewise said her conglomerate was signing a financing deal with the Bank of China to fund infrastructure projects.

Businessman Reghis Romero is among the business delegates who have scored a number of big-ticket deals involving Chinese contractors during his trip.

In a chance interview on Thursday, Romero said he was set to sign that evening the Davao Coastline and Port Development project worth around P39 billion, a project to be constructed by the China Dredging Corp. and Construction Communication Corp. (CCC). The 214-hectare coastline project, which will be undertaken by his company Mega Harbor Port and Development Inc., is a five-year project to transfer the coastline of Davao City from Agdao and Poblacion Districts into a “well-planned, decrement and self-contained community.” This is a partnership with the local government of Davao.

Romero was also set to sign a P16.5 billion Cebu International Container and Bulk Terminal project, which would build a berthing facility of up to 1,200 meters as part of the 35 hectares allotted for port development.

The third project is a P7.5-billion 50-hectare Harbor Center Port Terminal extension project in Manila, which seeks to alleviate port congestion in Manila.

Earlier, it was reported that China Railway Group Ltd. had committed to invest up to $3 billion in Philippine infrastructure projects.

Source: GlobalNation

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