Metro Manila (CNN Philippines, November 11) — A senator called on President Ferdinand “Bongbong” Marcos Jr. to avoid debt buildup through more foreign borrowings.
“Wag sanang tularan ni President Marcos si ex-President Duterte na nagpumilit umutang sa China kahit hindi naman kailangan. Kaya, President Marcos, hinay-hinay lang sa pera ng bayan,” Senator Risa Hontiveros said in a statement on Friday.
[Translation: President Marcos should not follow ex-President Duterte, who insisted on borrowing funds from China even though the country does not need it. So, President Marcos, be careful with the public’s money.]
Her statement comes as the Senate holds plenary discussions on the proposed national budget for 2023.
Hontiveros cited two major projects backed by Chinese investors — the ₱18-billion Kaliwa Dam and the ₱171-billion South Luzon Long Haul Rail Project from Calamba, Laguna to Matnog, Sorsogon.
These massive developments remain “in limbo as their Chinese investors have yet to make good on their commitment to lend money to the Philippine government to finance these projects,” she said, calling the delay “a blessing in disguise.”
The lawmaker added there were private sector groups that wanted to bid for the projects.
“We should do everything so government avoids taking on the heavy loan burden itself,” she said.
Hontiveros also urged the National Economic and Development Authority to review the viability of the Mindanao Rail and the Subic-Clark Rail projects.
“We have reason to believe that economic evaluation of these projects was not thorough at all. These two projects were also originally offered for China to finance, but the need for them at this time should really be re-examined,” she said.
“Duterte’s pivot to loan financing to the exclusion of PPP (public-private partnership) for his flagship projects was an unsustainable tactic and reliance on China for loans even more so,” the senator added.
Data from the Bureau of the Treasury last week showed that outstanding debt ballooned to an all-time high of ₱13.52 trillion in end-September.
READ: PH debt soars to ₱13.52T in September
