Lawmaker backs DOTr's move to drop China loan in railway projects, suggests taking funds from national budget

Metro Manila (CNN Philippines, November 24) — A lawmaker on Friday expressed support for the Department of Transportation's (DOTr) decision to back out of loan negotiations with a Chinese bank for three mega-railway projects in Luzon and Mindanao.

Following the delay in the projects, Cagayan de Oro City 2nd District Rep. Rufus Rodriguez said the Marcos administration may consider internal financing like private investments, annual national budget allocation, and assistance from friendly nations like Japan and South Korea.

«The total amount needed is ₱228 billion. This is just a small fraction of the proposed ₱5.768-trillion spending program for 2024. Obviously, we have fiscal space for important infrastructure projects,» Rodriguez said.

«We do not have to appropriate the required amount in one year. We can have multi-year or continuing appropriation so we won't have to depend on outside financing and so we can continue to fund ongoing projects and start those that have been delayed,» he added.

The ₱36-billion first phase of the Mindanao Railway Project, the ₱142-billion railway line to Bicol, and the ₱50-billion Subic-Clark Railway were supposed to be funded through Chinese loans.

The DOTr on Wednesday said it will no longer pursue China as its funding source following the growing tensions in the West Philippine Sea.

READ: PH repackaging 3 mega railway projects without China loan – DOTr

https://www.cnnphilippines.com/news/2023/11/22/3-mega-railway-project-without-china-loan.html

The loan negotiation started in 2018 and had been approved by the Duterte administration.

However, President Ferdinand Marcos Jr. ordered the DOTr in July 2022 to renegotiate the funding with China. Then DOTr Usec. Cesar Chavez explained that the country withdrew its applications after the Chinese government failed to act on the funding requests.

READ:

PH may drop China funding for railroad project by year-end without Beijing's confirmation

https://www.cnnphilippines.com/news/2023/9/4/PH-may-drop-China-funding-for-railroad-project-by-year-end-without-Beijing-s-confirmation.html

DOTr to renegotiate funding for China-backed railway projects

https://www.cnnphilippines.com/transportat