Leni Robredo Worries Over China Debt Trap To Finance Duterte Infrastructure Projects
Vice President Leni Robredo warned the Philippines against falling into a “debt trap” by acquiring huge loans from China to finance its mega-structure projects under the Duterte administration’s “Build, Build, Bulld” program.
In a statement, VP Robredo cited as an example the government’s Bicol Express, a rail project connecting Manila to the Bicol Region that would cost $34 billion through a loan from China.
“First of all, it’s debt. Very, very huge, $34 billion. That’s very huge,” VP Robredo pointed out as she urged the government to look into other alternatives for fund such projects.
VP Robredo said there were rising concerns from certain sectors over the need to seek huge loans from China due to the profitability of the projects
As a result, VP Robredo warned the Philippines could fall into a China “debt trap,” citing as an example the experience of other countries like Sri Lanka that borrowed heavily from China to finance its projects which turned out to be unprofitable.
In Sri Lanka’s case, it relied heavily on foreign loans, mostly from China to the extent that 95 percent of all government revenues now go to debt repayment, VP Robredo said, based on a BBC.com report.
“Our fear,” the vice president said, “is we might get into a debt trap like the one experienced by Sri Lanka.”
When he took over Malacanang Palace in June 2016, President Rodrigo “Rody” Duterte announced he would pursue an independent foreign policy, highlighted by lesser dependence on the US, the country’s long-time ally and former coloniser.
Instead, President Duterte said he would pursue closer relations with other nations, especially Russia and China which, in turn, vowed to reciprocate in terms of economic and military ties.
Malacanang Palace has yet to react to the statement of VP Robredo, a former congresswoman from Camarines Sur province in the Bicol Region, who won as vice president in the May 2016 election.
But her closest rival former senator Ferdinand “Bongbong” Marcos, the only son and namesake of the late President Ferdinand Marcos, filed an election protest by questioning VP Robredo’s victory for alleged cheating and related poll anomalies.
source: gulf today