The Philippines will no longer pursue Chinese financing for a major railway line in Mindanao after learning that Beijing’s interest in the project has waned.
In a letter to the Chinese Embassy, the Department of Finance (DOF) said the Philippines “is no longer inclined to pursue the Chinese ODA (official development assistance) financing for the Mindanao Railway Project Phase 1- Tagum-Davao-Digos Segment (MRP-TDDS).”
Transportation Secretary Jaime Bautista said his department is in talks with other foreign donors for the Mindanao Railway Project after the government decided not to pursue funding from the Chinese government.
“That’s probably gone,” Bautista said in Filipino, referring to Chinese funding. “ We’re talking to other possible ODA partners [to fund the project].”
The P83-billion Mindanao Railway Project: Tagum-Davao-Digos segment of the Mindanao Railway, is expected to reduce travel time from Tagum City, Davao del Norte to Digos City, Davao del Sur from 3.5 hours to 1.3 hours once it starts operations.
A Chinese senior official had earlier expressed concern regarding “geopolitical factors” as the reason for the lack of progress in infrastructure projects with Beijing.
The other Chinese-funded projects that have yet to be implemented are the P142 billion Philippine National Railways South Long Haul Project and the P 51 billion Subic-Clark Railway Project.
The Department of Transportation (DOTr) signed a P142 billion contract with Chinese companies to build the first 380 kilometers of the Philippine National Railway Bicol Project from Banlic, Calamba to Daraga, Albay in January 2022.
Former Transportation secretary Arthur Tugade signed the design-build contract with the joint venture of China Railway Group Ltd., China Railway No. 3 Engineering Group Co. Ltd. and China Railway Engineering Consulting Group Co. Ltd. The agreement covered the design, construction and electromechanical works of the project.
The first 380 kilometers of PNR Bicol from Banlic, Calamba to Daraga, Albay will span 39 cities and municipalities, four provinces and two regions. It will involve the construction of 23 stations, 230 bridges, 10 passenger tunnels and a 70-hectare depot in San Pablo, Laguna.
The P51-billion Subic-Clark Railway Project, on the other hand, will cut the travel time between Clark in northern Pampanga province and Manila from two to three hours by bus to one hour by train, with a maximum rail speed of up to 160 kilometers per hour.