Beware of onerous China ODA – IBON

Opinion & Analysis Nov 23, 2018 at 4:42 pm

photo-from-websterpolis.com_-848x478In its eagerness to raise billions of pesos in funds for its hyped infrastructure program, the Duterte administration is brokering questionable deals with China that could threaten Philippine sovereignty. Research group IBON raised the warning in anticipation of Chinese president Xi Jinping’s upcoming visit to the Philippines.

IBON said that a number of agreements between both governments are expected to be signed during the state visit. These include China’s official development assistance (ODA) loans for Build, Build, Build infrastructure project like the Php12.2 billion New Centennial Water Source-Kaliwa Dam, which will be 85% funded by China. The Duterte administration needs Php8.4 trillion for its whole term to bankroll Build, Build, Build, said the group, and is apparently counting on China to provide a substantial amount of this.

IBON said the size and value of China investments, loans and interest is not yet as extensive as those of other countries like Japan and the US, or financial institutions like the International Monetary Fund (IMF) and World Bank (WB).

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