DOTr woos new funders for rail projects 

The Department of Transportation said it is exploring other development partners after the Philippine government withdrew its loan applications to China for some of its projects, according to a report by ABS-CBN.

Speaking at a hearing of the Congressional Oversight on Official Development Assistance, DOTr Undersecretary Timothy John Batan said 
the applications were deemed withdrawn in July 2022 when the new administration stepped in with the loans still not approved.

The government decided to reapply for the loans in December 2022 for the Philippine National Railways (PNR) South Long Haul and in January 2023 for the Subic-Clark Railway project. 

With no action from China by the end of October, the loan application for the Subic-Clark railway, Batan said, "was deemed withdrawn" as well.

The Philippine side is giving the Chinese side until the end of December to act on the loan application for the South Long Haul project to Bicol.

The Philippines, he said, no longer pursued further loan applications for the Mindanao rail project "since we have not gotten any action from China’s side on the first 2 projects, Subic Clark and on South Long Haul."

"In the third quarter of this year, in coordination with the Department of Finance, there was a discussion on — essentially, how long are we going to wait for China’s side to act on or approve our loan applications?" Batan said when asked by Senate panel chair Senator Win Gatchalian on the status of China-funded or ODA projects. 

"That is why within November, not having had action or approval for our loan application, the loan application for Subic Clark was deemed withdrawn," he also said.

“For the South Long Haul project, Mr. Chair, since we already have 1 loan for the South Long Haul project, which is the project management consultancy, the direction is to give a little more time to China for them to act on and approve our loan application and that time or that period is up to the end of December,” he said.

"We are exploring other development partners for each of these 3 projects so that we have an alternative considering that we were not able to get financing from the Chinese side on these 3 rail projects," he added.

EFFECT OF WEST PHILIPPINE SEA ISSUE

Albay Rep. Joey Salceda said the “whole story” behind the Philippine withdrawal of its loan applications involves maritime issues with China.

He said that among the tasks of Inter-Agency Investment Promotion Coordination Committee (IIPCC) under the implementing rules and regulations of the Foreign Investments Act is to conduct a comprehensive national security review of foreign investments. 

“It was not disapproved (by China). We withdrew. We keep on saying it was disapproved when in fact we withdrew our documents from China after we signed that Foreign Investments Act IRR where there was an IIPCC wherein if we have territorial disputes, then it is subject to review for national security purposes,” Salceda said. 

Pampanga 2nd District Rep. Gloria Macapagal-Arroyo, House panel chair, urged the DOTr to start actively looking for alternative funders for the projects.

“We must also start actively looking already for other funders now and not wait until the year ends,” Arroyo said. 

SOME CHINA PROJECTS ONGOING

Meanwhile, the DPWH said the ODA for the China-funded Chico River Pump Irrigation Project project has been delivered while construction for the Samal-Davao connector project is ongoing. 

Construction for the New Centennial Water Source- Kaliwa Dam project is also ongoing and is an active ODA loan from China.