Manila Standard
Wednesday, December 16, 1998
HANOI (via PLDT) – Prime Minister Keizo Obuchi of Japan is expected to announce today a new financial package of $60-$80 billion for infrastructure development in the members of the Association of Southeast Asian Nations (ASEAN).
This fresh fund is an additional to the $30-billion Miyazawa fund to bail out ASEAN members immediately from the financial crisis, a source said yesterday. “But unlike the $30-billion Miyazawa fund, the Obuchi financial package will have one condition: Japan will be the source of infrastructure technology and equipment, and possible construction materials,” the source said.
The infrastructure fund and the $30-billion bailout money will be spelled in details ASEAN + 1 meeting after the two-day 6th ASEAN Summit this afternoon.
Last October, Japanese Finance Minister Kiichi Miyazawa announced the $30-billion fund to provide financial aid to selected ASEAN countries hit hard by the financial crisis.
Miyazawa fund is a special interest to the Philippines after Finance Secretary Edgardo Espiritu recommended to President Estrada the possibility of Philippine Airlines (PAL) getting some $150-million financial aid out of the Miyazawa fund that would be availed of by the Philippines.
Presidential Spokesman Jerry Barican, however, indicated that the Philippines may not qualify for that portion of the Miyazawa fund intended to immediately bail out ASEAN countries hard hit by the financial crisis.
Barican noted that the Miyazawa fund has two components: the $15-billion long-term aid and the $15-billion short-term growth boosting fund.
He said the Philippines could perhaps accommodate PAL for the long-term aid.
The Miyazawa fund option became more feasible as renewed talks between PAL and Cathay Pacific could not gain headway.
Such an option is being pursued by the Estrada administration in line with Espiritu’s approach to PAL’s rehabilitation that PAL would do it alone without any foreign partner which is difficult to find anyway.
Lucio Tan, PAL chairman, is here in Hanoi together with some 50 businessmen as part of President Estrada’s official delegation.
Sources said this could indicate that PAL, which has just submitted a P6-billion rehabilitation plan, would have as its partner the government financial institutions through which the Miyazawa fund could be channeled.
If that happens, the government would assume control of PAL, sources added. Carlos Santos
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