3 Asian countries want to finance railway projects in the Philippines
(Baonghean.vn) - According to Reuters, Japan, South Korea and India have offered to finance three railway projects in the Philippines with a total value of nearly 5 billion USD.
The information was announced by the Philippine Minister of Transport on November 6, after Manila no longer considered China as a source of funding last year.
Transportation Secretary Jaime Bautista said the Philippine government could tap official development assistance (ODA) from the three countries. He said the Philippine government could also partially fund the railway projects or seek private sector investments.
“We are studying the contents. We cannot provide any details yet,” Mr. Bautista said at a media forum.
Railway projects in the Philippines include the Subic-Clark Railway Project, the Philippine National Railways' South Long-Haul Project and the Davao-Digos section of the Mindanao Railway Project, with a total value of US$4.95 billion.
Last year, President Ferdinand Marcos Jr. ordered officials to renegotiate loan agreements with China, after the Chinese government failed to act on funding requests.
However, Mr. Bautista said the Philippine government must look for other financing options as there has been no progress in loan negotiations with China for the railway projects, which began in 2018 under former President Rodrigo Duterte.
As president, Duterte pursued warmer ties with Beijing and set aside territorial disputes in exchange for billions of dollars in aid, according to Reuters. President Marcos replaced Duterte in June last year.
Philippine government data shows that from more than 1,100km before World War II, the Philippines had just 77km of operational railways by 2016, far behind other urban centres across Asia. Mr. Marcos has promised to modernize the country’s railway system.
Construction of the Philippines' first subway line, funded by loans from Japan, is underway in Metro Manila.
