AT LEAST 10 loan agreements for infrastructure projects will be signed when Chinese President Xi Jinping visits the Philippines in November, Budget Secretary Benjamin E. Diokno said.
The Philippine and Chinese sides are fast-tracking the financing for the big-ticket infrastructure projects but Diokno told reporters at the sidelines of a press briefing on Wednesday that the Duterte administration was “very careful” in evaluating these projects.
“First of all, there’s a feasibility study, either funded by the Asian Development Bank or the World Bank. After that, the implementing agencies will iron them out and then submit to the National Economic and Development Authority. In Neda, the Investment Coordination Committee will scrutinize them before submitting to the President,” Diokno explained.
“We are very careful in the process. And our rule of thumb is, if the project gives us a rate of return of at least 10 percent or higher, then it’s a go because we can borrow at a much lower cost,” Diokno added.
In a separate statement, Diokno assured that “the Philippine government is exercising due diligence in processing the approval of these projects.”
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