China Development Bank collaborates with BCDA to seek best financing option for USD4.5B-worth infrastructure projects
MALACANANG - Philippine President Rodrigo Duterte and Chinese Premier Li Keqiang witness the signing of a Memorandum of Understanding (MOU) between the Bases Conversion and Development Authority (BCDA) and China Development Bank (CDB) that will establish the framework for financing cooperation to speed up implementation of high impact infrastructure projects worth US$4.5B under the Build Build Build program. The signatories of the MOU are Chairman Gregorio Garcia III of BCDA and Chairman Hu Huaibang of CDB.
CDB is China’s largest bank for international investment and financing cooperation. It is also the world’s largest development finance institution. As of end 2016, CDB's international business has spanned 115 countries and regions, around the globe with US$347 billion outstanding loans, accounting for about one fourth of the bank’s RMB and foreign currency portfolios.
Under the MOU, CDB and BCDA are expected to collaborate in the next 5 years, to determine the most cost effective and efficient financing option for BCDA's projects in Clark and Metro Manila—so that people can immediately feel their benefits. Collaboration between BCDA and CDB will also cover the research, study and implementation requirements of BCDA's major infrastructure projects. CDB intends to team up with qualified Chinese enterprises to take part in project implementation. Their participation can be in the form of investments, feasibility studies, independent consultancies, detailed engineering design, equipment procurement and construction, among others.
Among the high impact infrastructure projects which stand to benefit from the financing cooperation are the New Clark City, the Subic-Clark Railway Project and the BGC-NAIA-Makati Bus Rapid Transit.
New Clark City (NCC) will be the country's first smart, green and disaster-resilient metropolis that is envisioned to be one of the most liveable cities in the region. The Subic Clark Railway Project is a 70-km cargo rail running parallel to the Subic-Clark-Tarlac Expressway (SCTEx) and the Subic Freeport Expressway (SFEx). It supports the movement of goods and services between major economic hubs in Central Luzon such as the New Clark City, Clark Freeport and Special Economic Zone, Subic Bay Freeport Zone, and Tarlac Industrial Park. On the other hand, the Bonifacio Global City (BGC)-Ninoy Aquino International Airport (NAIA) Bus Rapid Transit (BRT) is a mass transport system that will facilitate a 15-minute travel time from Fort Bonifacio to NAIA, preventing delays for passengers rushing to catch their flights whether for leisure or business.