In her newspaper column “Get Real,” UP Economics professor Winnie Monsod concluded that the Chinese loan the Philippines is getting for the Kaliwa Dam Project is onerous or one-sided.
However, US-based Pinoy blogger and accountant Reyna Elena countered via Luminous Trixie FB page that Monsod isn’t telling the truth, backed by proofs to prove Monsod was lying through her teeth.
For starter, Reyna rejected Monsod’s claim that the Chinese loan, specifically for the Kaliwa Dam project, was onerous because the Chinese outbid by the Japanese firm.
As per Reyna Elena’s post, Japan’s bid to build the dam was $410 million while China’s bid was $231 million.
Check out Reyna’s full FB post below for the brief but clear explanation, courtesy of Atty. Trixie Cruz-Angeles.
In her column “Get Real,” Solita Monsod said:
“Who would you rather borrow from: Japan and Korea, who give you 40 years to pay (with 10 or 12 years before you pay the principal), at interest rates ranging from 0.09 percent to 0.26 percent; or China, who gives you 20 years to pay (with seven years’ grace), at interest of 2.0 percent? A no-brainer.”
Patutunayan kong hindi nag-sasabi nang true and nothing but the true si Miss Solita Monsod. Because she saw dun sa DOF loan schedule na yong Japan and Korea offers 40-year repayment, her conclusion is that lahat nang loans were all born to be equal.
Ah’ah. Kanya kanyang specific terms and special characteristics sya. Wag akong lilituhin ni Professora. I not only have two crystal balls, da left and da right, I also have a third eye.
Now let’s dissect, sha’we?!
Global Utility Development Corporation (GUDC), was the Japanese firm which proposed the Kaliwa Intake weir project estimated at $410 million. China’s proposal to build the Kaliwa Dam project will only cost $231 million which is cheaper than the proposal of GUDC.
So how can Solita Monsod claim that the Chinese loan is onerous? Unang ratsada pa lang, outbid na. Pag-uusapan pa ba ang repayment terms and interest? Hindi na Oy!
You can read that story in this link: http://en.businesstimes.cn/articles/109609/20190321/china-funded-kaliwa-dam-construction-cheaper-japanese-firm-s-proposal.htm?fbclid=IwAR0WFH7N0bEBzXW075XbPd0lNPBgDHSzeZ6fLaNR5YOgx31btm_hIFiROds
Now, let’s talk about the tenor or the number of years to repay the loan. Solita Monsod claims that Japan offers 40-year repayment compared with China’s 20. The question is, where did Solita get the 40 years? Eh di dun nga sa loan schedule! Like I said, na outbid na yong Japan sa Kaliwa Dam. Pag-uusapan pa ba ang repayment terms and interest?
Etong Lola naten kasi simply saw that Japan’s repayment years on the other loans were 40. Therefore, she concluded that all other loans would be 40. Well, the Professor is incorrect because GUDC’s offer was 25 years. You can read that story in this link:
I will not analyze the Chico Pump Irrigation Project because given that I was able to prove that Solita Monsod’s claim was incorrect, I would assume that she is also incorrect on the 1st one.
So let’s re-phrase the sentence to a correct one:
On “The New Centennial Water Source – Kaliwa Dam Project”
“Who would you rather borrow from Japan for an estimated project of $410 million, or China for an estimated project of $231 million? A $179 million savings right off the bat.”
A no-brainer, Miss Monsod dahil paano naging onerous ang $231 million?!
Link to the Loan Agreements – https://www.dof.gov.ph/index.php/data/loan-agreements/