MANILA, Philippines — A geopolitical and geo-economics expert has issued a warning about the dangers of relying on Chinese Official Development Assistance (ODA) due to the potential for substantial debt. Instead, the government is being encouraged to strengthen Public-Private Partnerships (PPP).
In a forum conducted by the Stratbase ADR Institute (ADRi), its president Dindo Manhit emphasized the need for safeguard mechanisms against corrosive capital.
“Lacking transparency and accountability, these have the potential to incite debt dependencies,” Manhit stated during the event.
He further elaborated, “Without proper oversight, investments in infrastructure flagship projects, particularly those funded by Chinese ODA or through the Belt and Road Initiative (BRI), could be exploited to circumvent Philippine laws. These could then undermine the country’s democratic institutions and make it vulnerable to political and economic manipulation.”
In collaboration with the Center for International Private Enterprise, ADRi released a study comparing two infrastructure flagship projects: the Kaliwa Dam Project and the Wawa Bulk Water Supply Project-Upper Wawa Dam.
The Kaliwa Dam was funded by a concessional ODA loan from China, while the Wawa Dam was funded through PPP.
Manhit highlighted the risks associated with heavy reliance on ODA in financing infrastructure and development projects, as it can lead to the accumulation of substantial debt and vulnerability to external shocks.
“The sudden changes in global economic conditions can jeopardize economic stability. The Philippines has experienced this vulnerability during times of global economic uncertainty, highlighting the risks associated with dependence on foreign capital,” he said.
Manhit also pointed out that the nature of the loan used to fund the Kaliwa Dam project may not be favorable to Filipinos. He cited the project’s two percent interest rate, which will be borne by all Filipinos, regardless of whether they benefit from the project or not.
Contrarily, tapping into the private sector is seen as a more strategic approach.
Manhit emphasized that while the government finances large-scale infrastructure, PPPs can already develop urgently needed projects.
“Public-Private Partnerships hold the potential to accelerate infrastructure development and bring innovative solutions to the table. It is not just about building bridges. It is also about building trust between the public and private sectors, as well as the Filipino people,” he stated.
During the forum, Senator Grace Poe also highlighted the importance of focusing on PPPs to revitalize infrastructure growth in the country.
“Through PPPs, this government can do more with less. PPPs offer stable funding for capital-intensive infrastructure projects with the promise of efficient and innovative services,” Poe said.
She further emphasized that PPPs provide cost-effective solutions, bring smarter and technology-driven projects, and promote sustainable and climate-responsive design in infrastructure development.
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