Chinese island-building firm wins contract with South China Sea rival claimant, the Philippines
CCCC Dredging deal finalised during Philippines President Rodrigo Duterte’s visit in Beijing last week, during which he announced ‘separation’ from long-standing ally the US
A Chinese state-owned infrastructure company that helped build artificial islands in a disputed area of the South China Sea has signed a land reclamation deal in the Philippines, a rival claimant in the sovereignty dispute, according to a Chinese newspaper report.
CCCC Dredging, a subsidiary of China Communications Construction Company, would carry out a 208-hectare land reclamation project in the harbour at Davao, where Philippine President Rodrigo Duterte once served as a mayor before assuming the top office in June, Beijing Youth Daily reported this week.
The deal was signed last Thursday during a business dinner that Duterte attended while on a state visit to China, the dredging firm said on its website. The project was expected to be completed by the end of 2019, it said.
Another deal sealed during the visit involving a separate CCCC subsidiary – China Road and Bridge Corporation – had also raised eyebrows, according to Philippine media, as the firm has been blacklisted by the World Bank for alleged “collusive practices” relating to a local project.
CCCC Dredging will create land along an 8km stretch of coast in Davao Bay. The site would be used for government offices, businesses, housing, port terminals and industry, the report said.