Gezhouba Group, a Chinese construction, and engineering company based in Wuhan, Hubei, is reportedly investing $2 billion to transform a former US base at Clark Air Base in Pampanga, the Philippines into an industrial park.
Vicencio Dizon, head of the Bases Conversion and Development Authority, said the investment could be one of the biggest Chinese investments in the country.
Representatives from Gezhouba Group confirmed the planned investment to Financial Times but said official announcement to finalize agreements will be coming from the Philippines side.
The development is another mark of the Duterte administration's warming relations to China, a signal that the Philippines may be letting go of its long-term alliance and dependency with the United States. From the time that PH President Rodrigo Duterte assumed office, Chinese investment in the Philippines increased by 15 percent from $27 million in 2016 to $31 billion in 2017.
Most recently, China Telecom has won the bid for provisional rights to become Philippines third telecom provider.
Dizon told the Financial Times that a memorandum of agreement with China Gezhouba Group will be signed this week, coinciding with the official visit to the Philippines of Chinese President Xi Jinping.
Under the MOU, the Chinese construction and engineering company will be developing 500 hectares of the Clark Air Base into an industrial zone where technology and manufacturing companies can set up their plant and production facilities. Dizon estimated that the project can bring in thousands of new jobs in the country.
Ultimately, the Duterte administration aims to transform Clark Air Base into a new business hub. One of the administration's key agenda is to modernize infrastructure in the Philippines under the $180 billion "Build Build Build" project, of which $69 billion is allotted to jumpstart or finish projects until 2022.
The "Build Build Build" project was the focus of Duterte's speech at the opening ceremonies of the Boao Forum for Asia held in Hainan, China on April 10.
Speaking before the forum's attendees comprised primarily of businessmen, the Philippine president said the program will not only upgrade his country's infrastructure but is also expected to enhance the interconnectivity between people and communities. The project is also designed to create more jobs and strengthen the investment climate in the country. Ultimately, "Build Build Build" project shall sustain the Philippines inclusive growth as the country continues to thrive as a third world nation.
Responding to these plans, President Xi assured the Philippine president that China fully supports the "Build Build Build" project
