FIVE Chinese companies intend to invest a combined $10.3 billion in the Philippines, a Trade official said on Friday.
The companies have submitted letters of intent (LoI) to the Board of Investments (BoI), signifying keen interest in exploring business opportunities aviation, oil downstream, renewable energy, iron and steel and shipbuilding and ship repair industries, Trade Undersecretary for Industry Development and BoI Managing Head Ceferino Rodolfo said.
Speaking at a news conference, Rodolfo said he has received and acknowledged the LoIs of Aviation Industry Corp. of China (AVIC) International Aero-development Corp., Liaoning Bora Enterprise Group Co. Ltd., Huili Investment Fund Management Co. Ltd., Dalian Wanyang Heavy Industries Co. Ltd. and YiDingTai (YDT) International.
“These projects are seen further spurring industrial development across the regions of the country, including those in the countryside. At the same time, with more business activities happening, we also provide better and quality job opportunities for our countrymen,” Rodolfo said.
AVIC International, an ultra large state-owned enterprise focusing on producing helicopters, aircraft and aviation related products, equipment and services is exploring opportunities in industrial cooperation for aerospace parts manufacturing, aviation maintenance and training.
The company plans to do business with local partners in manufacturing aerospace parts, maintenance-repair-overhaul (MRO) facilities.
Liaoning Bora Enterprise Group Co. Ltd. and its Philippine partner agreed on a joint (JV) venture in construction and retail network, oil storage terminal, refinery projects and allied industries in the Philippines. The JV is estimated at $3 billion, and is supposed to generate 3,000 jobs two years from the start of commercial operation.
On the other hand, Dalian Wanyang is now doing feasibility studies for a 4,000 to 5,000 metric ton waste-to-energy gasification project that could generate up to 312 megawatts of power using solid waste collected from homes and businesses using the latest technology. Preliminary results of the studies should be ready by the end of March 2017.
This in partnership with the Philippine government and private sector entities. The goal is to invest in two waste-to-energy facilities using gasification technology. The project is estimated to cost $2.8 billion and employ at least 4,500 workers by 2022.
YDT International, an affiliate company of Dalian Wanyang Heavy Industries Co. Ltd., intends to develop shipbuilding and ship repair facility that could accommodate vessels up to 15,000 deadweight tons, including advanced ship design and repair as well as sales and financial support.
YDT is conducting feasibility studies on a facility with a Philippine company. The facility is worth $1.5 billion and is expected to at least 2,000 by 2022. Initial results of the study are due this month.
Huili Investment Fund Management Co. Ltd wants to set up a world-class integrated steel mill and share its advanced technological know-how in support of the Philippines’ bid to be a major producer of high-quality and safe steel products by 2030.
The company intends to partner with the Philippine government and private sector entities to implement a two-phased project to realize an output of 3 million metric tons of rolled steel. The project is valued at $3 billion, with the potential to employ 6,000 workers by 2022.
The firm intends to engage and train Filipinos to become specialists in operating and managing an integrated steel mill.
Trade Secretary and BoI Chairman Ramon Lopez welcomed the expression of interests, saying the gesture is proof of the confidence of foreign investors in the country’s macroeconomic fundamentals.
“Together with further building the competitiveness of our local industries and our intensive investment promotion efforts, international investors have gained greater awareness of our strong economy and the country’s competitive advantages,” Lopez said.
“China remains a strong investments partner of the Philippines, and we are positive that these LoIs will sustain the level of interests and open up more business opportunities for the Chinese investors,” he said.
China is one of the country’s biggest trading partners. Data from the Philippine Statistics Authority (PSA) showed bilateral trade between the two countries reached $21.2 billion in 2016, accounting for 15.4 percent of the Philippine trade.
Exports to China reached $6.2 billion, while imports totaled $15.2 billion for a trade deficit of $9 million against the Philippines.