Chinese Government pledges $400.33 million loan for Cyber Education Project

Chinese Government pledges $400.33 million loan for Cyber Education Project In June 2006, China signed a Memorandum of Agreement (MOA) with the Government of the Philippines Department of Trade and Industry (DTI) for the implementation of the Cyber Education Project (CEP).

The CEP aimed to "use of state-of-the-art technology to deliver educational services and resources to even the remotest and most underserved public elementary and secondary schools in the country,".

Under the CEP, a total of 37,794 schools was planned to be linked to a nationwide network that provides 12 video channels (one channel for each grade/year level and a channel for teacher training),wireless wide area networking, local area networking and wireless internet connectivity.

The network was also planned to connect all DepEd administrative units in the country including the central office, 17 regional offices and 187 division offices. The total project cost was $465.5M, or PHP 26.48B.

Of this cost, 86% was to be covered by a loan from the Chinese government, with the remaining 14% being funded by the Philippine's National Treasury.

In April 2007, a Chinese loan, which covered 86% of the total project cost, or $400.33 million USD, was signed with 3% interest and a 20-year maturity date and concessionary terms. The project was expected to be completed by 2010. China's Tsinghua University was supposed to provide technical assistance for the project.

Tsinghua Tongfang Nuctech Co. (Nuctech) was selected as the contractor responsible for implementation of the project. On September 22, 2007, President Arroyo announced the project was suspended "in response to political criticisms". In October 2007, President of the Philippines Gloria Macapagal Arroyo virtually lifted the project's suspension.

During the opening of the National Security Council Cabinet meeting, President Arroyo instructed the China Projects Oversight Panel (CPOP) headed by Trade Secretary Peter Favila to ensure that there were no obstructions in the implementation of the CEP.

However, opposition congressmen stated that they would question the project before the Supreme Court if President Arroyo continued to pursue it.

Chinese financing was ultimately cut off through President Arroyo’s order, although Education Secretary Jesli Lapus said the Department of Education (DepEd) could still pursue “cyber education” in public schools through smaller, local funding.