Wednesday, August 29, 2012

Govt shuns Sino funding, doubts Beijing’s sincerity


By Othel V. Campos  
Manila Standard Today
The government is no longer interested in tapping Chinese funding for the P2.7-billion port rehabilitation program of the 35-year-old Navotas fish port complex, given the strained relations between the two countries over territorial issues.
Manila and Beijing had clashed over claims in the islands in the South China Sea, specifically the Scarborough Shoal, which emerged as the focal point of the conflict after the Philippine Coast guard caught Chinese fishermen poaching with the country’s 200-mile exclusive, economic zone.
Beijing had since strengthened its claim over the entire South China Sea by establishing Sansha City and a military garrison aimed at protecting their “sovereignty.”
In a text message, Alcala said the foreign department was apparently unconvinced that Beijing was willing to help us economically because of the row in Scarborough Shoal.
The ongoing conflict prompted Philippine officials to entertain doubts whether Beijing will still extend economic help to the country.
In a text message, agriculture department secretary Proceso Alcala voiced out the same concern as expressed by the Foreign Affairs department.
“Dahil sa nagkakaproblema na tayo sa prutas natin, nagkaproblema na tayo sa Scarborough, nagduda po yung DFA kung tayo ay gusto talagamg tulungan ng Chinese governemnet o hindi.”
“Because of our problems in our fruits and the Scarborough Shoal, the DFA now doubts if the Chinese government really wants to help or not,” Alcala said.
“Financing the project using government funds is an option that we are considering. The upgrade of the Navotas fishport complex has been identified as a very necessary, if not, a critical project,” Agriculture Undersecretary for operations Joel Rudinas said in an interview.
Previously, the Agriculture Department was looking at sourcing as much as P2.56 billion from the China Export-Import Bank to upgrade the country’s premier port complex.
“We figured that the required funding is not that big anyway. I suppose the Philippine government can finance it on its own,” he said.
It is the second project with Chinese financing terms that the government amended.
Agriculture Secretary Proceso Alcala said Wednesday the government shunned financial assistance from China for the second phase of the P7-billion Casecnan multipurpose irrigation and power project.
The government earlier asked the Chinese government for a P5.29-billion loan to fund the multipurpose project.
The Philippine government turned instead to Korea for assistance. Agriculture officials said the government asked for credit facility from the Korean Exim Bank for the irrigation component of the Casecnan project.
The National Economic Development Authority board has yet to give its approval for the Navotas fishport project.

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