Senior Associate Justice Antonio Carpio has expressed concern over a loan agreement between the Philippines and China for the Chico River irrigation project. The deal, signed in April 2018, raises questions about sovereignty and the potential for asset seizure if the Philippines defaults on payments.
Carpio pointed out that under the agreement, the Philippines waived its sovereign immunity over certain assets, including those dedicated to commercial use. This includes oil and gas reserves within the country’s exclusive economic zone in the West Philippine Sea (WPS).
The arbitration process, governed by Chinese law, is also a source of concern. Carpio noted that China has a majority in the arbitral panel, which could lead to biased decisions.
Read more about this story on GMA News Online.