DOF signs agreements with China on infra funding, panda bond float


Posted at Nov 21 2018 04:59 PM

MANILA - The Department of Finance (DOF) has signed three agreements with China covering infrastructure projects in Mindanao, particularly in the Davao region, the agency said Wednesday. 

Among projects covered are the Davao City Expressway, the Davao-Samal Bridge, the Bucana-Davao River Coastal Bypass Road and the Mindanao Railway.

"These accords, signed by Finance Secretary Carlos Dominguez III on behalf of the Philippine government, were among the 29 agreements exchanged between the two countries to cap President Xi Jinping’s historic state visit to the Philippines, the first by a Chinese leader in 13 years," the DOF said. 

Details have yet to be released, spurring calls for government's transparency over the deals with China, with which the country remains locked in a dispute over the resource-rich South China Sea. 

The DOF said besides infrastructure projects, China also agreed to fund feasibility studies on other priority development projects of the Duterte administration.

Dominguez and Chen Siqing, chairman of the Bank of China, also exchanged documents on future issuances of panda bonds.

"The MOU covers the Philippines’ plan to return to the China Interbank Bond market in 2019, with a possible application for a multi-tranche RMB 6 billion bond issuance," the DOF said. 

Xi left Manila Wednesday afternoon following a historic 2-day visit, where China and the Philippines agreed to elevate their ties into a strategic cooperation.