Metro Manila (CNN Philippines, November 24) — A lawmaker on Friday expressed support for the Department of Transportation’s (DOTr) decision to back out of loan negotiations with a Chinese bank for three mega-railway projects in Luzon and Mindanao.
Following the delay in the projects, Cagayan de Oro City 2nd District Rep. Rufus Rodriguez said the Marcos administration may consider internal financing like private investments, annual national budget allocation, and assistance from friendly nations like Japan and South Korea.
“The total amount needed is ₱228 billion. This is just a small fraction of the proposed ₱5.768-trillion spending program for 2024. Obviously, we have fiscal space for important infrastructure projects,” Rodriguez said.
“We do not have to appropriate the required amount in one year. We can have multi-year or continuing appropriation so we won’t have to depend on outside financing and so we can continue to fund ongoing projects and start those that have been delayed,” he added.
The ₱36-billion first phase of the Mindanao Railway Project, the ₱142-billion railway line to Bicol, and the ₱50-billion Subic-Clark Railway were supposed to be funded through Chinese loans.
The DOTr on Wednesday said it will no longer pursue China as its funding source following the growing tensions in the West Philippine Sea.
READ: PH repackaging 3 mega railway projects without China loan – DOTr
https://www.cnnphilippines.com/news/2023/11/22/3-mega-railway-project-without-china-loan.html
The loan negotiation started in 2018 and had been approved by the Duterte administration.
However, President Ferdinand Marcos Jr. ordered the DOTr in July 2022 to renegotiate the funding with China. Then DOTr Usec. Cesar Chavez explained that the country withdrew its applications after the Chinese government failed to act on the funding requests.
READ:
PH may drop China funding for railroad project by year-end without Beijing’s confirmation
https://www.cnnphilippines.com/news/2023/9/4/PH-may-drop-China-funding-for-railroad-project-by-year-end-without-Beijing-s-confirmation.html
DOTr to renegotiate funding for China-backed railway projects
https://www.cnnphilippines.com/transportation/2022/7/16/DOTr-renegotiate-railway-projects-China-.html
“I think Beijing is linking project funding to raging territorial disputes in the West Philippine Sea. If they believe they could extract concessions from us, they are dead wrong,” Rodriguez said.
“We cannot compromise our territorial integrity and sovereignty and maritime interests in waters that are ours under international law,” the lawmaker stressed.
The Mindanao lawmaker also urged the House to include Mindanao’s first railway in next year’s budget.
