Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

China loan application for three rail projects ‘deemed canceled’; PPP, funding from other countries eyed

by
July 15, 2022
in Investing News
0
China loan application for three rail projects ‘deemed canceled’; PPP, funding from other countries eyed
0
SHARES
23
VIEWS
Share on FacebookShare on Twitter
The Balagtas Station of the Philippine National Railway Clark Phase 1 Project is currently under construction. Photo taken on June 14. — PHILIPPINE STAR/ MICHAEL VARCAS

By Arjay L. Balinbin, Senior Reporter

The Beijing funding commitment for Calamba-Bicol, Clark-Subic, and Mindanao railway projects is “deemed canceled” as China has been unresponsive to the Philippine government’s loan application since 2019, a Transport official said on Friday.

“There was no explicit communication” from China indicating they were withdrawing their commitment to lend money for the three projects, Transportation Undersecretary for Rails Cesar B. Chavez told BusinessWorld in a phone interview.

“But it is deemed canceled because Beijing was nonresponsive despite repeated meetings and communications letters asking them to provide us with a shortlist of contractors so that we can begin with the procurement of the contractor,” he said.

Following contractor selection, the Transportation department will be able to enter into a contract with the winning bidder, and then proceed to sign the loan deal.

“Wala silang binigay (They have not given us any shortlist),” Mr. Chavez said.

He said the government, through the Department of Finance (DoF), had written a letter to China stating that if it does not provide the shortlist or confirmation that Beijing will lend money to the Philippines, the loan application is “considered withdrawn.”

The Philippine government has been waiting for a response from Beijing since 2019, he noted.

“The DoF, according to former Secretary Carlos G. Dominguez III who phoned me this morning, canceled the loan application because the Chinese government is nonresponsive.”

NEXT MOVE

The Marcos administration is considering three financing alternatives for the three projects.

Mr. Chavez said that the government “may go back to the negotiating table and also look at the public-private partnership mode.”

“The DoTr (Department of Transportation) has already written to and has started coordination with the DoF to initiate policy discussions on the way forward for the three China ODA (official development assistance) rail projects, taking into account China’s willingness to lend and the Philippine government’s ability to borrow, for example the current fiscal standing affected by COVID-19 and global economic headwinds,” he explained.

He noted the government is also open to negotiating with countries other than China.

“Policy discussion on the way forward for the three projects has… been initiated in the July 12 Cabinet meeting, during which (President Ferdinand R. Marcos, Jr.) commented that as a matter of policy, both foreign and private sector support will be pursued to develop railways,” Mr. Chavez said.

“There is no specific (country or mode), but the President’s statement is very clear that as a matter of policy, we should have more investment in the rail sector.”

The P142-billion Calamba to Bicol project is a 380-kilometer railway from Banlic in Calamba, Laguna, to Daraga, Albay, while the P50.03-billion Subic-Clark railway is a 71.13-kilometer railway divided into two sections: a 64.19-kilometer main line connecting Subic Bay Freeport Zone and Clark Freeport Zone and a 6.94-kilometer link to the Subic Bay Port’s New Container Terminal.

P82-billion Mindanao railway project phase 1 stretches from the Tagum Station and depot in Davao del Norte to Digos City in Davao del Sur. It will have stations in Carmen, Panabo, Santa Cruz, and three in Davao City, including a sub-depot.

ShareTweetPin

Related Posts

Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case
Investing News

Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case

August 23, 2022
ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts
Investing News

ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts

August 23, 2022
Malaysian trade official urges PHL to sign up for RCEP  
Investing News

Malaysian trade official urges PHL to sign up for RCEP  

August 23, 2022
Next Post
Defaults set to soar as borrowing costs bite

Defaults set to soar as borrowing costs bite

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Jason Hineman Discusses His Role As a Private Chef and His Focus on Sustainability

Jason Hineman Discusses His Role As a Private Chef and His Focus on Sustainability

July 27, 2022
Cebu City mayor revives call for dam project for water supply

Cebu City mayor revives call for dam project for water supply

July 17, 2022
Gov’t planning more bridges across Pasig, Marikina rivers

Gov’t planning more bridges across Pasig, Marikina rivers

July 26, 2022
DoTr urged to upgrade, privatize EDSA busway

DoTr urged to upgrade, privatize EDSA busway

August 22, 2022
Marcos takes power 36 years after father’s ouster 

Marcos takes power 36 years after father’s ouster 

June 30, 2022
Art in the Mall: Ortigas Art Fest celebrates 5th year with art, films, music, and fashion

Art in the Mall: Ortigas Art Fest celebrates 5th year with art, films, music, and fashion

July 12, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.