China rail loan talks reopen

Securing loans from other countries is still possible if there’s interest in the projects

The Philippines reached out anew to the Chinese government to renegotiate loans that will primarily fund several stalled big-ticket railway projects, the Department of Transportation said yesterday.

“The Department of Finance wrote to China again (last) December, telling them that we are ready to reopen the discussion for the loans that we will need for the Bicol South Long Haul project,” Transportation Secretary Jaime J. Bautista told reporters in a recent interview.

Bautista said the Finance department will also communicate about getting possible Chinese financing for other projects such as the Mindanao Railway Project.

However, they decided to prioritize securing Chinese Official Development Assistance for the Philippine National Railways Bicol Project.

“Securing loans from other countries is still possible if there’s interest in the projects, but the Bicol Long Haul Project, really, from the very start, we were talking to Chinese partners. Even in the feasibility study, the ones who did it were Chinese partners,” Bautista said.

Positive outputs

The Transportation chief added that they expect President Ferdinand R. Marcos Jr.’s three-day state visit to China this week will bring in “very positive developments.”

Last July, barely a month into the Marcos administration, Transportation Undersecretary for Railways Cesar Chavez disclosed that the Chinese government withdrew funding for the multi-billion railway projects under the massive “Build Build Build” program of the previous administration.

The financing covers contracts of the first package of the Philippine National Railways Bicol Project, the Subic-Clark Railway Project, and the first phase of the Mindanao Railway Project.

The P142-billion Calamba to Bicol project is a 380-kilometer railway from Banlic in Calamba, Laguna to Daraga, Albay.

The P50.03-billion Subic-Clark railway is a 71.13-kilometer railway. It is divided into two sections — a 64.19-kilometer main line connecting Subic Bay Freeport Zone and Clark Freeport Zone and a 6.94-kilometer link to the Subic Bay Port’s New Container Terminal.

On the other hand, the P82-billion Mindanao railway project phase 1 stretch from the Tagum Station and depot in Davao del Norte to Digos City in Davao del Sur. It will have stations in Carmen, Panabo and Santa Cruz, and three in Davao City, including a sub-depot.

Former Finance Secretary Carlos G. Dominguez III, according to Chavez, said the DoF “canceled the application instead of keeping it in suspended animation.”

According to applicable Executive Agreements between the Philippines and China, the DoTr has procured and awarded contracts for the Subic-Clark Railway Project Engineering, Procurement, Construction, and Commissioning Contractor, the PNR South Long Haul Project’s Design-Build Contractor, and the Mindanao Railway Project’s Project Management Consultant.