MANILA, Philippines — The Philippines has relayed to China its willingness to renegotiate the terms for the P142 billion railway that will connect Metro Manila with the southern regions in Luzon.
According to Transportation Secretary Jaime Bautista, the government, through the Department of Finance (DOF), has written to China to convey its desire to return to the negotiating table for the P142 billion Philippine National Railways (PNR) South Long Haul.
“Last December the DOF wrote to China telling them that we are ready to reopen the discussion for the loans, that we have to finance the Bicol South Long Haul,” Bautista said.
The PNR South Long Haul, also called PNR Bicol, extends for 639 kilometers and manages 35 stations all in all. The project will link Metro Manila with Southern Tagalog and Bicol Region and is expected on to improve both trade and travel in Luzon.
Last year, however, the Philippines took back its loan request from China to fund three rail lines, including PNR Bicol Package 1. Former finance secretary Carlos Dominguez said the Duterte administration had to withdraw the application because Beijing failed to act on the rail loans.
Further, Dominguez warned that China would slap an interest rate of three percent, exceeding the level charged by alternative lenders like Japan’s 0.1 percent.
Bautista said the DOF prioritized the loan application for the PNR South Long Haul because the Philippines had talked to China about it, from feasibility to funding.
“The Bicol Long Haul, from the very start, was pitched to the Chinese. The feasibility study was made by the Chinese. We really engaged them on this project from the get go,” Bautista said.
President Marcos is scheduled to make a state visit to China from Jan. 3 to 5. Bautista hopes that the Beijing trip will reap positive developments, in particular, the revival of negotiations for rail financing.
Apart from the PNR Bicol Package 1, China was supposed to bankroll the completion of the P83 billion Mindanao Railway Phase 1 and the P50 billion Subic-Clark Railway Project.
Bautista said he also expects the President to raise the possibility of reactivating talks on these railways.
“Of course, as with any foreign trips of the President, we are expecting that there will be positive developments on our interests,” Bautista said.
Under the Marcos administration, the government eyes to finish rail projects left by the previous leadership and build new railways, as well like the Panay Railway Project and the Cebu Railway System.