RP, China strengthen financial, economic ties

MANILA, Philippines - The Philippines is seeking the help of China for more development and economic aid through better cooperation.

The National Economic and Development Authority (NEDA) and the National People’s Congress of China recently forged an agreement for strengthening financial and economic affairs between the Philippines and China.

NEDA and the Chinese officials discussed the Philippine economic development situation and prospective areas of investment and cooperation between the two countries during a recent meeting.

Areas being explored for further cooperation are infrastructure, electronics and renewable energy.

NEDA officials said inputs from the meeting with the China delegation would help form part of the Medium-Term Philippine Development Plan (MTPDP).

“We see the very strategic role that China has in the region, and we’d like to see that this be strengthened, particularly in Southeast Asia, together with the Philippines,” said NEDA public investment staff director Jonathan Uy, who recently welcomed Chinese officials in the country during a recent meeting.

The Chinese delegation was led by Wang Shucheng, deputy head of the NPC’s Financial and Economic Affairs Committee.

Uy told the delegates that the Philippines has an increasing portfolio of official development assistance (ODA) since 2004, and a sustained cooperation with China will aid in the implementation of economic and development programs in the Philippines.

Marites Oliva of NEDA’s National Planning and Policy Staff told the foreign officials that among the economic opportunities that could be developed through the Philippine-Chinese cooperation are in the areas of infrastruc ture, electronics and renewable energy.

Oliva said that as a primary source of competitiveness, the government is committed to accelerating public investment in infrastructure through the Comprehensive and Integrated Infrastructure Program (CIIP).

“The total investment requirement of the updated CIIP amounts to P3.326 trillion. Available estimates indicate that the annual CIIP investment from 2009 to 2013 is at an average of 6.4 percent of GDP,” Oliva told the Chinese officials.

Oliva also said the electronic sector is seen to surpass growth targets this year, according to the Semiconductors and Electronics Industry of the Philippines. “Growth will come from the sustained demand from China, India, Japan and South America,” she said.

Another prospect is the investment in renewable energy which Oliva said is timely given the power crisis in the Philippines.

“The Energy Department projects that the country’s electricity demand will require an additional capacity of 16,550 megawatts from 2010 to 2030, assuming an average of 4.6-percent economic growth per year. This power requirement can be supplied by the available energy resources, including renewable energy resources,” said Oliva.

Uy said the meeting with Chinese officials was timely, as both countries will be crafting their respective medium-term development plans this year. Uy noted that similar with the six-year MTPDP, 2010 also marks China’s end of its 11th five-year plan.

“We would like to develop further our cooperation between the two countries. Our development goal is to invest in our people, because our people provide us all the support for our economy. We look forward to further coordination and communication between our two governments,” Uy said.