The Department of Transportation (DOTr) is eyeing other funding options for projects that were previously eyed for Chinese financing.
DOTr Secretary Jaime Bautista in a forum hosted by the Economic Journalists Association of the Philippines in Manila yesterday the agency is working on three options: official development assistance (ODA) from Japan, Korea and India, investments from private sector or investments from government.
Bautista did not provide details but cited the Bicol South long-haul rail project will partially be funded by ODA with government support and private sector investments in operations and maintenance.
“We are considering ODA… it’s a matter of negotiating with the countries,” Bautista said.
He said DOTr had been in talks with China for projects whose funding were not completed.
“There was not much progress,” Bautista said.
Railway projects in Mindanao and Subic-Clark have been previously eyed for China funding.
Bautista said the Bicol South railway project has a technical assistance and approved loan worth P14 billion but would likely be terminated by the DOTr by the end of the year.He said government is studying if it can still partner with China on the project.
“In China, the procedure is they will lend you money but while the loan is being negotiated, there will be a list of three contractors that will bid. However, if there will be a bidding (and) there is no loan, (the bidding) is not valid, we are not required to contract,” Bautista said.
Bautista said of the 197 infrastructure flagship projects worth P8 trillion approved by the National Economic and Development Authority, 73 valued at P4.78 billion are under the DOTr.
“Today, we handle more than 160 (projects), inclusive of the 73 IFPs, across the project development lifecycle. There are around 28 projects under the aviation sector, 26 under maritime, 59 under railways and 47 under the road sector,” Bautista said.
For the year, the DOTr is looking at P214 billion in funding to finance its various projects. Of the amount, 79.5 percent is for capital outlay, mainly for the big-ticket projects. Almost 100 percent of the budget are new appropriations.
“We want to bridge the gap towards our vision for the transport sector across our four operating sectors – aviation, maritime, railways and road –through infrastructure projects that are designed to improve mobility and connectivity,” Bautista said.
In the railway sector, the DOTr is looking at the possibility of extending the North-South-Commuter Railway towards Laoag, called North Long Haul. The project is currently under feasibility study by the PPP Center Project Development and Monitoring Facility.
The DOTr has also lined up the San Mateo Railway, a 17-kilometer (km) line that connects Light Rail Transit 2 to the municipalities of San Mateo and Rodriguez in the province of Rizal.
Another project is the Mindanao Railway Project Phase 3, a 54.8-km high-capacity, inter-city passenger and cargo rail system connecting the industrial and commercial centers of Metro Cagayan de Oro.
“The feasibility studies of these two projects will be funded by the PPP Center PDMF,” he added. – With Jed Macapagal
