Philippines Delays Key Manila Bay Bridge Amid Chinese Bidder Security Concerns

Philippines Postpones Major Manila Bay Bridge Project Amid Chinese Security Concerns

MANILA – The Philippines has put on hold the awarding of a crucial contract for a segment of what is envisioned to be one of the world's longest marine bridges. The decision comes after significant local opposition emerged concerning the potential involvement of a Chinese company, citing serious national security fears.

The proposed land approach project, valued at 7.25 billion pesos (approximately S$160 million), is part of a larger US$3.9 billion (S$5 billion) initiative to construct a 32-kilometer bridge spanning the entrance of Manila Bay. This ambitious infrastructure project is intended to significantly enhance transport and logistics across Luzon island, a key promise of President Ferdinand Marcos Jr.'s administration.

Thorough Review Underway

Manila's public works ministry confirmed on December 1 that the project proposals are currently undergoing an "exhaustive review" by the Asian Development Bank (ADB). The ADB serves as both a lender and an oversight body, ensuring that all aspects of the project comply with rigorous international environmental and governance benchmarks. The ministry clarified that the winning bidder would be announced only after the ADB completes its evaluation of technical and financial compliance and issues a "no-objection letter." While the initial award notice was anticipated by November 29, the ministry did not explicitly mention the national security concerns raised against a Chinese bidder.

Concerns Over Chinese Bidder's Involvement

Strong objections from the Philippine Interisland Shipping Association and other maritime industry stakeholders prompted this delay. In a letter addressed to Public Works Minister Vince Dizon and Defence Minister Gilberto Teodoro Jr., these groups urged the government to reject the bid from China Harbour Engineering Company. China Harbour, which submitted the lowest tender at 4.87 billion pesos, is a subsidiary of China Communications Construction Company.

The association articulated grave concerns, stating that awarding such a critical project, which would link Bataan and Cavite provinces, to a Chinese state-owned entity "creates an untenable and unacceptable risk of sabotage and intelligence gathering on vital national assets." They further highlighted "unmitigated national security risks and serious concerns over business integrity" associated with the firm.

International Scrutiny and Geopolitical Backdrop

The scrutiny of China Harbour Engineering Company is not unprecedented. In 2020, the US State Department sanctioned units of its parent company, China Communications Construction, for their alleged role in "destructive dredging" activities associated with Beijing's disputed outposts in the South China Sea. These sanctions also cited concerns over "corruption, predatory financing, environmental destruction, and other abuses across the world."

This bridge project delay unfolds against a backdrop of heightened geopolitical tensions between the Philippines and China, particularly concerning their maritime disputes in the South China Sea. The Marcos administration has actively challenged Beijing's expansive territorial claims, leading to increased maritime patrols and occasional confrontations between vessels from both nations.

Despite these geopolitical frictions, the Philippine government has concurrently endeavored to safeguard its economic relations with China, its leading trading partner. General Andres Centino, former military chief and now Mr. Marcos’ adviser on the South China Sea, acknowledged that other government security agencies are indeed scrutinizing the bridge project. He noted that agencies provide counsel on whether projects should proceed, especially when a company's background might be deemed "spurious."

The path forward for this vital infrastructure project remains uncertain as the thorough review continues, balancing economic development goals with pressing national security imperatives.