A party-list member of the House of Representatives said the government should explore Japan as a feasible funding source to jumpstart the implementation of stalled projects.
Rep. Brian Raymund Yamsuan of Bicol Saro party-list group noted that Japan continues to offer highly concessional financing packages to the Philippines for infrastructure projects.
For instance, the third tranche of the loan for the proposed Metro Manila Subway funded by the Japan International Cooperation Agency (JICA) carries an annual interest rate of 0.3 percent for non-consulting services and 0.2 percent for consulting services with a lengthy 40-year repayment period, according to a recent statement from the Department of Finance (DOF).
“JICA’s concessional loan terms for the Philippines remain competitive enough for the Department of Transportation (DOTr) to consider Japan as a viable funding option for the revival of the Bicol Express rail line,” said Yamsuan, chair of the House committee on Bicol Recovery and Development.
The first phase of the reconstruction of the once-famed Bicol Express railway, known as the South Long Haul Project, is estimated to cost about P142 billion.
“We need to see far into the future and not merely set our sights on easing traffic congestion in Metro Manila. With bustling urban hubs sprouting outside the National Capital Region, traffic would sooner or later be a problem for commuters residing in these areas. Reviving the Bicol Express is one way to ease the increased traffic going to South Luzon and broaden transportation choices for commuters,” Yamsuan said.