5 China firms eye $10 bn investment in RP

Trade Undersecretary and BOI managing head Ceferino Rodolfo said the companies had submitted their letters of interest to the government, reflecting some of the earliest fruits of a warming relationship between China and the Philippines.
Each company would now pursue a feasibility study that would take around three to four months and cover business opportunities in the aviation, oil downstream, renewable energy, iron and steel, and shipbuilding and ship repair industries.
While more concrete plans were expected to come out some time this year, the projects were already estimated to add a total of at least 14,500 jobs by 2022, assuming they would begin their commercial operations in 2020, he said.
If the companies choose to register their investments, this would help boost foreign direct investment pledges from China, which rose by only 4.4 per cent to 1.52 billion pesos (Bt1.1 billion) last year from 1.46 billion pesos the year before, data from the Philippine Statistics Authority showed.
The Chinese companies are Aviation Industry Corporation of China (AVIC) International Aero-development Corp, Liaoning Bora Enterprise Group Co, Huili Investment Fund Management Co, Dalian Wanyang Heavy Industries Co and YiDingTai (YDT) International.
Liaoning and its Philippine partner agreed on a $3-billion joint venture in the construction and operation of a retail network, oil storage terminal, refinery projects and allied industries in the Philippines. 
About 2,000 jobs are estimated to be created.
Huili Investment wants to set up a $3-billion world-class steel mill, which could make the Philippines a major producer of high-quality steel products by 2030. 
The project, which will be in partnership with both the national government and the private sector, is expected to have a production output of three million MT of rolled steel, and give jobs to 6,000 people.
Dalian is looking at a $2.8-billion project to convert household and commercial solid waste to energy. 
The project, which will generate 312 megawatts for every 4,000-5,000MT of waste, will employ at least 4,500 workers by 2022.
YDT International, an affiliate of Dalian Wanyang, wants to develop a $1.5-billion shipbuilding and ship repair facility in the country, which can produce regional-size vessels up to 15,000 deadweight tonnes.
This was a welcome development, especially since most roll-on, roll-off ships in the country were second-hand imports from Japan, with the ones in the Philippines averaging 30 years of age.
The BOI said the company was studying the proposal with a Philippine partner and the venture was expected to create 2,000 jobs.
AVIC International, which did not disclose its estimated investment, will explore the manufacture and provision of helicopters, aircraft and aviation related products, equipment and services.