BY KHRISCIELLE YALAO
After China backtracked on its loan commitments to three major railway projects in the country, Department of Transportation (DOTr) Secretary Jaime Bautista said the agency is looking at Japan, South Korea, and India as new potential funding sources.
“There are offers from other countries and we are exploring this. For ODA (Official Development Aid), we are looking at Korea, Japan, and India,” Bautista said in a forum "Powering the Economy Through Infrastructure Development" with the Economic Journalists Association of the Philippines on Monday, Nov. 6.
He has not disclosed details regarding these offers as of yet, but he noted that if the infrastructure projects will find other lenders, these respective countries’ will bring their own advisors onboard.
“If there is one country who is interested, they want their people to do the technical assistance, management and construction,” he said in a press interview.
Bautista emphasized that he is “open to working with anybody” for the agency’s infrastructure projects.
Previously, the national government entered into partnerships with China to fund three projects namely Philippine National Railways (PNR) South Long Haul Railway Project or PNR Bicol, Subic-Clark Railway Project, and the Mindanao Railway Project.
Last January 2022, the national government signed a P142 billion contract with Chinese contractors for PNR Bicol. P51 billion was awarded to China Harbour Engineering Co. in December 2020, and the Mindanao Railway Project Phase 1-Tagum-Davao-Digos Segment was agreed to be funded via ODA worth P83 billion.
He mentioned that a feasibility study has been conducted for the PNR Bicol build, and all three projects have been approved by the National Economic and Development Authority (NEDA).
However last October, Bautista said that China’s interest in financing the railway projects have dissipated, with the agency seeing little to no progression.
Bautista said they have approved a loan worth P14 billion for technical assistance with the planning and implementation of PNR Bicol. “We have drawn P1.4 billion, but perhaps we have to terminate it,” he remarked.
He said the agency may terminate the PNR Bicol contract with China by the end of the year, but he emphasized that the agency is still willing to cooperate with China on other matters.
“[For China], the procedure is they will tell you they will lend you money while the loan is being negotiated, they will give you a list of three contractors who will bid. The bidding has been conducted, but since there’s no loan, we are not required yet to contract,” he explained.
For Bautista, funding is the main hindrance to the progression of the projects since the designs have already been set. The agency cannot also guarantee a timeline for the projects’ delays, he added.
“Because of the delay, we may need to get NEDA approval for a change in costs because they might have increased. But we’ll study that,” he said.
However, Bautista guaranteed that the railways can be finished and operational within the term of the Marcos administration, noting that the railways can be constructed faster compared to the North-South Commuter Railway because of its existing alignment and its at grade roads and paths.
The agency is also continuing to work on processing the right of way for the roads, he said.
To date, the DOTr has 160 active infrastructure projects, particularly 28 in aviation, 26 in maritime, 59 in railways, and 47 for roads.
It has appropriated P222.607 billion for the first half of 2023, and aims for a proposed budget of P214.296 billion for 2024.
Among its main projects include the 800-km North Long-Haul Project that will connect the National Capital Region (NCR) to Ilocos Norte and Cagayan; the 17-km San Mateo Railway that will connect LRT Line 2 to San Mateo and Rodriguez, Rizal; and the 54.8-km Mindanao Railway Project Phase 3 in Metro Cagayan De Oro (CDO).
It is also pursuing its privatization of the Ninoy Aquino International Airport (NAIA), with the awarding of contract to the qualified bidder slated for early 2024.
The agency has also completed 70 to 75 percent of land development for the New Manila International Airport in Bulacan worth P735 billion.
