Manila: President of the Philippines Ferdinand Marcos Junior ordered the transport ministry to renegotiate loan agreements signed by his predecessor with China for railway projects worth $4.90 billion, an official said on Saturday.
Transport Under Secretary Cesar Chavez said official development aid loan agreements for the three projects were considered “withdrawal” after the Chinese government “failed to act on funding requests” made by the government of then-President Rodrigo Duterte.
Chavez said other funding options are also being considered for projects worth 276 billion Philippine pesos: the Subic-Clark Railway Project, the Philippine National Railway South Long-Haul Project and the Davao-Digos section of the Mindanao Railway Project.
He said alternatives include tapping private capital through public-private partnerships.
Asked for comment, a Chinese official said on condition of anonymity: “I can say that China-Philippines cooperation on railways will continue. China is open to discussions with the Philippines.”
More than 1,100 km (680 mi) before World War II, the Philippines had only 77 km of operational railways as of 2016, lagging behind other urban centers across Asia, government data shows.
Negotiations for rail projects began in 2018, during the administration of Duterte, who has pursued heated ties with Beijing, setting aside a long-standing territorial dispute over the South China Sea in exchange for billions of dollars in aid, loans and investment pledges. given, including for them. infrastructure program.
Marcos has vowed to defend national sovereignty, but has spoken strongly of the need to enhance ties with China in other areas.
Transport Under Secretary Cesar Chavez said official development aid loan agreements for the three projects were considered “withdrawal” after the Chinese government “failed to act on funding requests” made by the government of then-President Rodrigo Duterte.
Chavez said other funding options are also being considered for projects worth 276 billion Philippine pesos: the Subic-Clark Railway Project, the Philippine National Railway South Long-Haul Project and the Davao-Digos section of the Mindanao Railway Project.
He said alternatives include tapping private capital through public-private partnerships.
Asked for comment, a Chinese official said on condition of anonymity: “I can say that China-Philippines cooperation on railways will continue. China is open to discussions with the Philippines.”
More than 1,100 km (680 mi) before World War II, the Philippines had only 77 km of operational railways as of 2016, lagging behind other urban centers across Asia, government data shows.
Negotiations for rail projects began in 2018, during the administration of Duterte, who has pursued heated ties with Beijing, setting aside a long-standing territorial dispute over the South China Sea in exchange for billions of dollars in aid, loans and investment pledges. given, including for them. infrastructure program.
Marcos has vowed to defend national sovereignty, but has spoken strongly of the need to enhance ties with China in other areas.