September 4, 2004
The Chinese government urged Philippine officials and businessmen on Friday to take advantage of its Boao Forum on Asian Business to strengthen regional cooperation among Asian nations and create a stronger economic partnership.
Boao Forum secretary-general Long Yongtu made the call on the second day of President Arroyo's state visit to Beijing, which saw the Philippines secure commitments for more investment, assistance in agriculture, pledges from Chinese travel agencies to bring in "hundreds of thousands," equipment and funding for a $100-million private telecommunications venture, and the signing of a purchase contract for natural gas-fired buses that would ply the country's thoroughfares early next year.
In a statement, Trade Secretary Cesar Purisima said the Philippines would take full advantage of the offer on the Boao Forum from the Chinese government on improving the two countries' economic ties.
"Our trade ties with China dates back to even before the Spanish era and this trade arrangement must be strengthened continuously. Our China partnership is one of the strategies that the government is undertaking to reinvigorate the Philippines' trade and investment with other countries," Purisima said. "By aligning or piggy-backing on China's economic strength, we partake on the gains by this Asian economic powerhouse.
The Department of Trade and Industry reported that Arroyo, together with Philippine government and businessmen, met with Chinese leaders after the Boao briefing. The DTI said officials of Chinese companies, such as the China National Machinery and Equipment, which had previously extended a $100-million credit facility for irrigation, the construction of fish ports and farm machinery, has committed to further increase their investments in the Philippines.
"Officials of Chinese companies with proposed projects in the Philippines have expressed strong interest on the opportunities in the country and their confidence in the country as the place for doing business," Purisima said. "The Filipino-Chinese business community has been taking advantage of this China challenge and we are encouraging other Philippine business groups to follow suit."
Purisima said Chinese agencies and companies involved in tourism not only promised to help the Philippines attract more foreign visitors, they also committed to invest in tourism facilities in the country.
The pledge comes over a month after the Department of Tourism opened its first branch office in Beijing, where it has already struck deals with Chinese tourism operators and travel agencies to make the Philippines a priority destination for China's growing entrepeneurial class who, armed with cash, have been traveling outside their home country.
Another important deal that was struck in Beijing was a contract-signing at the Kerry Center Hotel Arroyo and Energy Secretary Vincent Perez Jr. witnessed between five local transport companies and two Chinese bus manufacturers for the purchase of 140 compressed natural gas (CNG) buses. The vehicles will arrive in the country early next year and be able to immediately service the riding public in major thoroughfares in Luzon, Perez said in a separate statement.
The contract-signing is an offshoot of a visit made by the bus operators in July to inspect natural gas vehicle factories across China. The contract is an important step in the Philippine government's efforts to win the battle against air pollution and wean the country off oil imports by providing a cheaper alternative fuel.
"This is just the first batch of CNG buses that we will be seeing in our major roads. Clean and efficient buses that will improve the quality of our air," Perez said. Arroyo wants to have 60 percent of a targeted 1,500 buses running on CNG by 2010.
Companies purchasing CNG buses are First CNG Inc.; Greenstar Express; HM Transport; NGV AdBus Corp.; and rrcg Transport Systems Co. Inc. Anhui Ankai Automobile and Zhengzhou Yutong Co. will be manufacturing the vehicles, while Cummins Westport Inc. of the United States will provide their engines.
Perez cited that the CNG buses were offered at attractive prices, with nonairconditioned vehicles having a sticker price of about $50,000 and $70,000 for air-conditioned buses. The Philippine government was also able to negotiate with developers of the Malampaya natural gas field off Palawan for a very attractive and competitive price for CNG amounting to a 50-percent discount to current diesel prices.
"China's downstream natural gas industry has fully matured as most of its vehicles have now been converted to CNG. Any cooperation between the Philippines and China will help the Philippines develop its own assembly or manufacturing plants of efficient and economical CNG buses and parts," he said.
The DTI also announced that Huawei Technologies Co. Ltd., one of the largest telecommunications equipment and solution providers in the world, is entering a supply deal with Philippine-based Multilateral Telephone Inc. (MTI) to provide the latest wireless technology.
MTI plans to provide personalized high-speed data services at affordable prices throughout the Philippines. Project expenditures have been estimated by the DTI at $100 million for a nationwide rollout. Purisima said financing the first and second phases of the project have been arranged through China's export-import bank, sinosure.
Philippine officials who joined Arroyo's meeting were Purisima, Perez, Philippine Ambassador to China Willy Gaa, Agriculture Secretary Arthur Yap, and Palawan Governor Joel Reyes. Business leaders included Philippines Inc. chairman Miguel Varela, Federation of Filipino-Chinese Chambers of Commerce president Robin Sy, Philippine Chamber of Commerce and Industry president Sergio Ortiz-Luis Jr., Philippine Airlines chief executive Lucio Tan, and CMLC group of companies chairman Francis Chua.
Chinese business leaders included China Nuctech Co. chairman Duan Qiang, Beijing Tourism Group president Hu Haifeng, Beijing Tae Wei Group chairman Wang Lu Hua, China National Machinery and Equipment Group chairman Ren Hong Bin, and Fuhua International Industries chairman Liu Yeh.
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