Almost half of $22.8B investment pledges in Marcos China visit for green energy

FILE PHOTO: The wind farm in Bangui town is a picture-perfect backdrop for tourists. ALEXIS CORPUZ

MANILA, Philippines – The state visit of President Ferdinand Marcos Jr. to China generated $22.8 billion in investment pledges, with almost half going to renewable energy, Malacañang said on Thursday.

The Presidential Communications Office (PCO) said $13.76 billion of the investment commitments were for renewable energy, while $7.32 billion was for strategic monitoring of electric vehicles and mineral processing and $1.72 billion was for agricultural businesses.

“We look forward to more Chinese investments in renewable energy pursuits such as in solar and wind, as well as in related sectors including battery energy storage systems and off-grid power supply systems,” the PCO said, quoting the President in his roundtable meeting with Chinese business executives.

Investment interest, according to the PCO, leaned towards solar and wind energy, but there were also pledges for manufacturing equipment like wind turbine generation towers, foundations and blades, among others.

Energy Secretary Raphael Lotilla, for his part, said the government is already working towards addressing issues hounding the country’s energy sector, particularly the national power grid.

The National Grid Corporation of the Philippines (NGCP), the country’s sole power transmission line that supplies electricity throughout Luzon, the Visayas and Mindanao, is 40 percent owned by the State Grid Corporation of China (SGCC).

China’s involvement in the NGCP has historically fueled concerns about national security, especially amid the backdrop of the country’s decades-long dispute with the Asian giant over the West Philippine Sea.

The NGCP, however, has repeatedly dismissed claims that China has direct control over the country’s power transmission network.

READ: NGCP on security risk: Chinese just technical advisers 

Other investments

The PCO said the President also invited Chinese business executives to invest in mineral processing,  battery precursor production, assembly and manufacturing of e-vehicles and its parts.

“I assure you that our government is committed to [supporting] your business activities in the country,” Marcos said.

Investments in coconut and food processing, durian production and development, alternative green technology for livestock were also committed over the course of the state visit, according to the PCO.

READ: Marcos: PH durian market in China ‘now open’

The Department of Affairs (DFA) earlier said Marcos was accompanied by a “sizable” business delegation, noting that  14 bilateral agreements were expected to be signed during the three-day state visit.

READ: Things to expect from Marcos Jr.’s China visit: ‘Durian diplomacy,’ talks on WPS, others

/MUF