SUMMARY
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MANILA, Philippines – The subsidiaries of China Communications Construction Company Limited (CCCC) signed a memorandum of understanding (MOU) with a local design consultancy firm and a construction company, which is seen to reap up to $100-billion worth of infrastructure deals here.
T&D Design Consultancy Company and Prime Century Core Construction Incorporated signed a memorandum of understanding for “stronger cooperation and collaboration” with 5 Chinese companies. (READ: What Duterte accomplished in China)
These Chinese firms are CCCC Dredging Company, China Marine Construction & Development Company Limited, China Road and Bridge Corporation, China Energy Engineering Group Guangxi Hydroelectric Construction Bureau Limited, as well as China GaZhouBa Group Company.
T&D Design said it is helping these Chinese firms sign contracts with undisclosed local partners “to secure private and government infrastructure projects worth up to $100 billion.”
“The MOU is just an initial step,” Telesforo Peña, managing partner and founder of T&D Design, said on the sidelines of the signing ceremony in Makati City on Wednesday, December 7.
“The Chinese investors will finance, develop, and construct infrastructure projects. Our participation is we will look for the right projects and help them find the right local partners. So we arrange legal documentation for them,” Peña added.
Tabled for discussion, among others, are the P10-billion 172-hectare green space and pier in Davao City, a dredging project outside Metro Manila, and another industrial park with a power plant and shipbuilding facilities in Davao City.
“One requirement is they have to invest a minimum of $20 billion here – each of them. That is if they want to participate in a public-private partnership (PPP) project and become a AAAA company,” Peña added.
Quadruple A or “AAAA” allows foreign companies to be registered as regular contractors and does away with the old requirement of a per-project basis construction permit.
“For the unsolicited proposals to the government, I cannot say which among those. It is very confidential. At the same time, I’m not of authority to say it,” Peña told reporters. (READ: Philippines shopping for ‘nice’ China-funded infra deals)
More jobs to generate
Asked if CCCC firms are keen on participating in railway PPP deals, Peña replied: “Yes. They will participate in some PPP projects being offered by the government. They are expert on dredging, ports, highways, etc.”
After the MOU, Peña said his company will help the Chinese firms look for their local partners and sign service contract agreements.
“This is where we will determine the scope of work. There will be generation of jobs here, architects, engineers, and more,” the chief of the design consultancy firm said.
The World Bank website showed that, in 2011, the multilateral lender banned CCCC and all its subsidiaries from engaging in any of its road and bridge projects until January 12, 2017, due to “fraudulent practices under Phase 1 of the Philippines National Roads Improvement and Management Project.”
Asked why it still chose the CCCC subsidiaries to be its MOU partner, Peña replied: “That is the direction of the President, so we capitalized on that route.”
During President Rodrigo Duterte’s recent state visit to China, around 17 MOUs were also signed between Chinese and Philippine firms – mostly by CCCC subsidiaries.
“After the President visited China, he asked the firms to visit the Philippines and look for a project… We have the network and connection with these firms,” Peña said.
“The trend of President Duterte is that he wants them (Chinese firms), specifically, to invest in the Philippines. We rode on that direction,” he added. – Rappler.com
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