Permanent Secretary for the Environment, Transport & Works Lo Yiu-ching says setting up business networks between Hong Kong, the Mainland and the Philippines' construction sectors will bring a winning outcome for all three places.

Mr Lo and a delegation from the Mainland and Hong Kong arrived in the Philippines yesterday for a three-day visit.

Addressing a dinner tonight, Mr Lo said the Philippines was Hong Kong's eleventh largest trading partner in 2004, signifying their close relationship.

Development demand

"We are glad to learn that the Philippines' economy has been experiencing strong growth in the past few years and is continuously on an upswing. The Gross Domestic Product grew by 5.1% and the Gross National Product rose by 5.7% in 2005 as compared with 2004, and in 2005 the Philippine peso was East Asia's best performing currency," Mr Lo said.

"With the rapid growth of the economy, there is a strong demand for infrastructure development in the Philippines. The total investment in infrastructure for the period 2006 to 2010 is estimated to be around 1.5 trillion pesos. It is obvious the high demand for infrastructural and related facilities will unleash tremendous opportunities for developers, contractors and consultants," Mr Lo said.

He said Hong Kong possessed world-class construction professionals who were conversant with international standards, trends and practices.

Hong Kong's strength 

"Hong Kong is strong in management skills especially in project and contract management of large scale infrastructural projects, is familiar with the most advanced construction technology and can provide boundless innovative solutions to tackle the most challenging engineering problems," Mr Lo said.

"Hong Kong has a stable political structure and a comprehensive legal framework and is one of the most vibrant international financial centres in the world. So our companies have good track records of self-financing the construction of some mega infrastructure projects under a build-operate-transfer model."

As China has become the most energised economic powerhouse in the region following accession to the World Trade Organisation, Hong Kong is best positioned to perform as the launchpad for Mainland enterprises in developing a global presence.

Hong Kong's gateway position and the Pan-Pearl River Delta Region framework can provide the construction sectors with an unprecedented opportunity to pursue collaboration at a regional level, he added.