Sudden Shift in Philippine Policy! Risk Alert for Chinese Central State-Owned Construction Enterprises in the Philippines

2023-08-14 2008 0人评论

Recently, due to the Ren'ai Reef incident, relations between China and the Philippines have once again become tense. After China expelled the Philippine warship that had illegally intruded into China's Ren'ai Reef, the United States even openly fanned the flames behind the scenes in support of the Philippines... 

We do not comment on politics, but politics often involves projects of Chinese enterprises in the Philippines. For example, according to a report by Singapore's Lianhe Zaobao (August 11): "The Philippine government has suspended 22 reclamation projects in Manila Bay contracted to Chinese companies in order to assess the projects' environmental and social impacts and whether they comply with regulations." Everyone should know that these reclamation contracts are in black and white and were signed and confirmed by the Philippine side. Since Marcos Jr. took office as President of the Philippines, relations between the Philippines and China have begun to take a sharp turn for the worse, but now Philippine President Marcos Jr. is playing clever tricks, using the so-called reason that "rivers connected to the bay may be blocked" to halt these projects, showing that he can turn hostile faster than turning the pages of a book!

The Philippines is an important partner under the "Belt and Road" initiative, so this also serves as a reminder to Chinese enterprises with projects in the Philippines that they must have political risk awareness and a sense of which way the wind is blowing. According to the Jichutong Belt and Road big database, several major central construction enterprises have signed new contracts or have projects under construction in the Philippines in recent years. Let us briefly look at a few specific projects along the timeline: 

China Communications Construction Company (CCCC)

In July 2023, the Philippines handed over two of the six approved reclamation projects to China Communications Construction Group, with a total project value of up to US$624 million (approximately RMB 4.4 billion);

In June 2023, the reclamation works of the Manila Seaside New City Project (Phase I) of CCCC Guangzhou Dredging Co., Ltd. began backfilling construction;

In November 2022, the groundbreaking ceremony for the Davao-Samal Island Bridge, constructed by China Road and Bridge Corporation under CCCC, was grandly held in Davao City, Philippines;

CCCC has been cultivating the Philippine market for more than 30 years and has the deepest perception of the Philippines' "face-turning." For example, in February 2020, CCCC and a Philippine company jointly won the bid for a US$10 billion airport renovation and upgrade project in the Philippines. However, in January 2021, the Philippines unilaterally announced the cancellation of the project contract on the grounds that the project "had various deficiencies in the requirements for submitting the Joint Venture Agreement." If you want to convict someone, you can always find a pretext; such behavior by the Philippines is truly shameful... 

China State Construction Engineering Corporation (CSCEC)

In April 2023, China Construction First Building Group won the bid for the Philippines' first LEED Gold-standard smart intelligent factory — the Zhonglei Electronics Factory Project in Calamba, Philippines.

In March 2023, China Construction First Building Group won the bid for the first super high-rise building in Manila Chinatown, Philippines — the Antai Tianzhu Super High-rise Residential Project Phase I in Manila, Philippines; 

China Railway Group Limited (CREC)

In January 2022, a consortium composed of China Railway Group Limited and its subsidiaries China Railway No. 3 Engineering Group Co., Ltd. and China Railway Engineering Design and Consulting Group Co., Ltd. (hereinafter referred to as the "Consortium") signed with the Department of Transportation of the Republic of the Philippines the Design and Construction General Contract Package 1 for the Philippine South Long Haul Project (PNR South-Long Haul Project, Package 1). The contract stipulates that the Consortium will be responsible for the design and construction of this railway, with a contract value of approximately 141.793 billion Philippine pesos, equivalent to approximately RMB 17.554 billion, and a contract duration of 36 months. 

China Railway Construction Corporation (CRCC)

On December 7, 2022, amid the roar of machinery and the slow rotation of the cutterhead, the "Jasmine" dual-shield hard rock tunnel boring machine for the Philippine Kaliwa Dam Project, in which China Railway 21st Bureau Group participated in construction, successfully launched... 

China Energy Engineering Corporation (CEEC)

On August 10, 2023, a consortium composed of China Energy International Group and China Energy Engineering Group Guangdong Electric Power Design Institute signed an EPC general contract with Philippine ABOITIZ Group for the 172MW photovoltaic project in Olongapo, Philippines;

On March 22, 2023, China Energy Engineering Group International Company and Shizen Company held a signing ceremony in Manila, Philippines, for the EPC contract of the 75.2MW photovoltaic general contract project in Zambales Province, Philippines; 

Power Construction Corporation of China (POWERCHINA)

On August 1, 2023, POWERCHINA and Leizong Group successfully signed in Manila, Philippines, the Wawa 500MW pumped storage cash project;

In July 2023, Sinohydro Bureau 4 Co., Ltd. under POWERCHINA successfully won the bid for the Philippines' largest wind power project — the wind turbine tower manufacturing project for the Talim 212.5MW onshore wind farm and the Sablan 93.75MW onshore wind farm; this is also the first time the Philippines has purchased Chinese wind turbine products, marking the official entry of Chinese wind turbines into the Philippine market.

On November 16, 2022, POWERCHINA and Philippine company Coheco Badeo Corporation formally signed in Manila the EPC general contract for the Kibungan 500MW pumped storage power station project in the Philippines; 

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