MANILA, Philippines — The government is seeking funding support from China and the World Bank for the P54 billion rehabilitation of the Agus-Pulangi hydroelectric power plants, according to the Department of Finance (DOF).
During a meeting in Beijing last Thursday, Finance Secretary Carlos Dominguez discussed with Chinese officials a proposed parallel financing arrangement between Beijing and the World Bank for the rehabilitation of the Agus-Pulangi hydroelectric power plants of the National Power Corp. (Napocor).
Dominguez described the project as “a very important project” which the Duterte administration wants to implement right away.
Chinese Commerce Minister Zhong Shan, who led the Chinese delegation, said the Ministry of Commerce is supportive of the proposal.
Earlier, Dominguez said the rehabilitation of the five Agus-Pulangi power plants would increase their capabilities and extend their service life by 30 more years.
The Agus power plants currently operate at roughly 60 percent of their total capacity, according to the DOF.
A Philippine delegation led by Finance Secretary Carlos Dominguez went to Beijing last week to provide updates on the progress of the Duterte administration’s infrastructure projects that are proposed for Chinese loan financing.
Both sides also discussed ways to address the issues and challenges involving the implementation of the projects.
Dominguez, for his part, said the Philippine government last April created the China Projects Task Force, which is tasked to monitor the preparation and processing of China-funded infrastructure projects.
Since then, Dominguez said the team has been meeting regularly to perform its duties and to address the challenges faced in the projects’ implementation.
The finance chief said the task force has so far been effective in monitoring and facilitating the preparation and implementation of projects proposed for China’s official development assistance.
During the meeting, Dominguez also welcomed the creation of the China International Development Cooperation Agency (CIDCA). The CIDCA, which is directly under China’s State Council, is the lead agency that provides government concessional loan financing.
“We look forward to working with them,” the secretary said.
Dominguez also expressed appreciation for China’s continuing support to the Philippines and said that he is looking forward to greater cooperation and stronger engagement between the two countries to ensure the timely implementation of the priority projects under the Duterte administration.
In response, Zhong said China is willing to step up the exchange of information with the Philippines.
Zhong said one way of enhancing cooperation between the two countries is to establish an industrial park in the Philippines with assistance from China, which is willing to share its experience and expertise on this aspect.
Dominguez said an agreement would soon be signed on the establishment of an industrial park in New Clark City, Pampanga, to strengthen commercial ties between the two countries.