By Joann Villanueva, March 15, 2019
MANILA — Finance Secretary Carlos Dominguez III on Friday said terms of loans extended by the Chinese government for Philippine infrastructure projects are at least 30 percent better in the current administration than in the past.
Dominguez stressed this as he continued to decry claims that the government was falling into a debt trap because of its “Build, Build, Build” infrastructure program.
“The terms of the loan obtained by the Duterte administration are at least 30 percent better than the loan secured by the Arroyo administration and wholeheartedly accepted by the Aquino administration,” Dominguez told journalists in a Viber message.
Aside from China, Japan is also financing some of the current administration’s infrastructure program.
One the projects China is financing is the New Centennial Water Source-Kaliwa Dam Project, which will be constructed in the village of Pagsangahan in General Nakar and the village of Magsaysay in Infanta, both in Quezon province.
During the visit of Chinese President Xi Jinping in the Philippines in November 2018, officials from both countries exchanged documents for the USD211.21-million loan for the construction of the dam.
Citing data collected by the DOF’s International Finance Group (IFG), Dominguez, in a statement Friday, said loan for the Kaliwa dam project has an annual rate of two percent, lower than the three percent per annum rate for the USD116.6-million loan secured by the Arroyo administration for the Angat Water Utilization and Aqueduct Improvement Project Phase II.
Loan agreement for the Angat aqueduct project was signed on January 7, 2010.
Both projects have 20-year maturity period, but grace period for the dam project is seven years while the aqueduct project is at five years.
Commitment fee for the Kaliwa dam is 0.3 percent of the undisbursed amount of the loan while it is 0.4 percent for the Angat aqueduct project.
Management fee for the Kaliwa dam project is 0.3 percent of the loan amount while its 0.4 percent for the Angat aqueduct. (PNA)