Cagayan de Oro City Rep. Rufus Rodriguez on Friday urged the Marcos administration to no longer consider China for the financing of planned railways and other infrastructure projects.
He made the appeal as he supported the decision of the Department of Transportation (DOTr) to back out of loan negotiations with a Chinese bank for three railway lines in Luzon and Mindanao (see related story in Business page B4 — Editors).
“I think Beijing is linking project funding to raging territorial disputes in the West Philippine Sea. If they believe they could extract concessions from us, they are dead wrong. We cannot compromise our territorial integrity and sovereignty and maritime interests in waters that are ours under international law,” he said.
Rodriguez said the Marcos government should look for other financing sources for the railway projects and other infrastructure, including official development assistance from friendly nations like Japan and South Korea.
“We can even consider internal financing like private investments and the annual national budget for these critical rail lines, including the first railway project in Mindanao,” he said.
The three rail networks that were supposed to be funded out of loans from China were the P36-billion first phase of the Mindanao Railway Project, the P142-billion railway line to Bicol, and the P50-billion Subic-Clark Railway.
According to DOTr Secretary Jaime Bautista, these projects would now be delayed as the government would have to find other financing sources.
Rodriguez said funds for the three railways could be taken from the national budget.
“The total amount needed is P228 billion. This is just a small fraction of the proposed P5.768-trillion spending program for 2024. Obviously, we have fiscal space for important infrastructure projects,” he 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 Mindanao lawmaker urged fellow Mindanaonon Senate President Migz Zubiri to include railway funds especially for the first railway in Mindanao in next year’s budget since the proposed outlay is still pending with the Senate and is yet to be finally approved by the legislature.
“I understand that the Luzon rail line projects are already underway, while the Tagum-Davao City-Digos segment of the Mindanao Railways is still in limbo. We have to give priority to the Mindanao project,” he said.
He said the Mindanao rail network would unlock the development potential of many areas on the island.
“More economic development and additional income and job opportunities for our people would mean prosperity and peace in Mindanao”, he said.