Don’t be like Duterte, senator tells Marcos

SENATOR RISA Hontiveros has warned President Ferdinand Marcos Jr against overborrowing, noting the previous Duterte administration’s huge debts have become a burden to all Filipinos.

“Huwag 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,” Hontiveros said.

During the budget debates the Senator cited the case of two major projects: the Kaliwa Dam (P18-B) project and the South Luzon Long Haul Rail Project from Calamba to Matnog in Sorsogon (P171-B), now both 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.

Hontiveros said that the delay is actually a blessing in disguise. “Dapat maiwasan ni Pres. Marcos ang mga dambuhalang utang na naka-amba dahil kay President Duterte, lalo na kung hindi naman pala utang ang kailangan ng mga proyektong ito. We should do everything so the government avoids taking on the heavy loan burden itself,” Hontiveros stressed.

She noted that as early as 2016, there had been a shortlist of private sector proponents that were pre-qualified to bid for the opportunity to make the capital investments to realize these two major projects.

Additionally, Hontiveros encourages a National Economic and Development Authority (NEDA) review of the economic viability of the Mindanao Rail and of the Subicclark 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. Baka wala pong sumakay at maging white elephant projects lang ang mga ito," Hontiveros warned.

"Duterte's pivot to loan financing to the exclusion of PPP for his flagship projects was an unsustainable tactic, and reliance on China for loans even more so," she added.

According to the Bureau of the Treasury, the Philippine debt ballooned to a record P13.5 trillion, because of the recent depreciation of the peso. The Philippine government has also exceeded the borrowing limit that it set for 2022.

Hontiveros then secured the commitment of NEDA Secretary Arsenio Balisacan and Department of Finance Secretary Benjamin Diokno that non-debt financing options will be pursued more deliberately from hereon.

The economic managers also assured the Senator that it is possible for the government to partially contribute to the finance of flagship projects and even to take on some of the financial risks. This will make the project attractive to the creditors of the PPP proponents and it will help the country avoid taking on unnecessarily massive debts.

"We need to make sure that the projects get underway soon, however. Kailangan lang ituwid ang baluktot na naging kalakaran. Huwag nating hayaang nakatengga ang mga riles na ito. These railways can be an absolute gamechanger for Filipinos. It is high time we make these projects happen for our country," Hontiveros said. (Mindanao Examiner)