A Department of Transportation (DOTr) official said the Marcos administration needs to renegotiate for three major railway projects after the Chinese government failed to act on the previous Duterte administration’s loan request to fund such projects.
“Ang totoo niyan sa usapang diretso, nag-back out ang China. Umatras ang China to fund the Calamba to Bicol, to fund the Tagum-Davao-Digos, to fund Clark to Subic,” according to Transportation Undersecretary for Railways Cesar Chavez at a press briefing in Pasay City on Friday.
(The truth of that in direct conversation, China backed out. China withdraws to fund Calamba to Bicol, to fund Tagum-Davao-Digos, to fund Clark to Subic.)
According to Chavez, the National Economic and Development Authority (NEDA) Board has approved the said projects, and the funding will come through an official development assistance (ODA) loan from China.
But China allegedly did not act on the Duterte administration’s loan request, which has been negotiating since 2018.
According to the official, former Finance Secretary Carlos Dominguez III said in a letter to Chinese financing agencies that the loan application is “considered withdrawn” if the funding request for railway projects is still not approved by June 2022, the last month. of the Duterte administration.
“Walang action, therefore withdrawn, therefore walang pondo,” said Chavez.
(No action, therefore withdrawn, therefore no funds.)
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Chavez: China withdraws funding for three railway projects
The Philippine National Railways South Long Haul project or PNR Bicol from Banlic, Calamba to Daraga, Albay costs P142-billion.
Meanwhile, P83-billion is needed for the Tagum-Davao-Digos segment of the Mindanao Railway Project — a campaign promise by former President Rodrigo Duterte.
The Subic-Clark Railway project is worth P51 billion.
According to Chavez, President Ferdinand “Bongbong” Marcos Jr. ordered to renegotiate with the Chinese government.
He also said other plans to fund projects, such as public-private partnerships (PPP).
A comparable definition of PPP is a contract between the government and a private company that aims to finance, construct, implement, and operate infrastructure facilities and services previously offered by the public sector.
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