The Department of Finance of the Philippines signed an agreement relating to concessional loans under a Renminbi-denominated loan facility with China International Development Cooperation Agency. It also signed a preferential buyer’s credit loan agreement relating the Philippine National Railways (PNR) South Long Haul Project with the Export-Import Bank of China.
According to Xinhua net Chinese president Xi said that "it's necessary to promote the synergy between the belt and road initiative and the Philippine 'build, build, build' program".
Philippine president Rodrigo Duterte said the Philippines hopes for China's help in aspects of its economy and infrastructure construction.
The Philippines has increased infrastructure investment in recent years. In 2017 the Philippine government launched the 'build, build, build' (BBB) infrastructure development programme. It aims to raise public spending on infrastructure to 7% of gross domestic product by 2022 from less than 2% 10 years earlier, with total required investment estimated at $180bn.
Recent plans have focused on transport infrastructure. The Philippines signed a $1.3 billion loan with Asian Development Bank (ADB) on financing of the Malolos-Clark railway project this July. Meanwhile, a new plan on building up new airport had been proved, which is valued at PhP735.6 billion ($14.12bn).
China's investments in the Philippines reached 48.7 billion pesos ($930 million) in 2018, making China the Philippines' top foreign investor, Xinhua net reported.
Other agreements signed between China and the Philippines last month include agreements on higher education cooperation and on science and technology cooperation.
A cooperative arrangement was entered into between China’s General Administration of Customs and the Philippine Bureau of Customs (BOC) on the implementation of the intergovernmental agreement regarding cooperation and mutual assistance in customs matters. An implementation contract on the China-aided container inspection equipment project also has signed by the Chinese Ministry of Commerce and BOC.