Dominguez: Halt in aid talks won’t stall pace of gov’t infra plan
The head of the Duterte administration’s economic team said the suspension of new foreign aid agreements would have minimal impact on the country’s big-ticket infrastructure projects.
“The suspension of talks with the countries which voted in favor of the [United Nations Human Rights Council] resolution will not have a significant impact on the country. First, it will not affect existing grants and loans, if any, already being implemented,” Finance Secretary Carlos G. Dominguez III said.
A confidential memo dated Aug. 27 from the Office of the President ordered a suspension of all negotiations or signing of all loan and grant agreements with 18 countries that voted to approve the UN resolution calling for an investigation of summary killings related to President Duterte’s drug war.
Dominguez said a total of $377.43 million in existing grants will not be affected—$228.89 million from Australia; $151.31 million from Germany; $6.72 million from France; $4.71 million from Italy; and $570,000 from Spain.
The 18 countries that voted for the UN resolution were Argentina, Australia, Austria, Bahamas, Bulgaria, Croatia, Czech Republic, Denmark, Fiji, Iceland, Italy, Mexico, Peru, Slovakia, Spain, Ukraine, the United Kingdom of Great Britain and Northern Ireland and Uruguay.
Besides these 18 countries, Dominguez said: “I was made to understand that France and Germany were among those that sponsored the resolution.”
Also, “all proposed engagements with said countries except for one small project loan in the amount of 21 million euros are technical assistance grants and hence will not significantly affect the infrastructure program of the government,” he said.
He said multilateral institutions have already signified their interest to finance the 21 million euros mentioned.
“And finally, the rates offered by said countries [if ever] are no better than the rates already offered by multilateral development financial institutions and bilateral development partners,” he said.
The Finance chief said the projects that would be affected by the ban included the Metro Manila Bus Rapid Transit Project partly to be funded by France—the value of the project in euro was 21 million euros; from Germany, $46.58 million; and Spain, $200,000.
