Philippines drops China as funding source for Mindanao Railway

The Philippines is no longer pursuing Chinese loan financing for the Mindanao Railway Project, Transportation Secretary Jaime Bautista said Wednesday.

At the sidelines of the 49th Philippine Business Conference and Expo in Manila, Bautista confirmed to reporters that the government already dropped Chinese official development assistance (ODA) financing for a major railway project in Mindanao.

“Wala na (It’s out)… We’re now talking to other possible ODA partners,” the Transportation chief said.

He said that the negotiations with China were not advancing.

“Wala masyadong development (There is no significant development),” he said.

To recall, in July 2022, Transportation Undersecretary for Railways Cesar Chavez said the Chinese government did not act on the Duterte administration’s request for loan financing for three major railway projects which include the Phase 1 or the P83-billion Tagum-Davao-Digos segment of the Mindanao Railway Project along with the PNR South Long Haul and the Subic-Clark Railway Project.

In September 2022, the Transportation Department said the Philippines will be resubmitting its loan applications for three China-funded projects.

In 2021, it was indicated that the construction of the railway project’s phase 1 will begin in the second quarter of 2022 and is targeted to be partially operable by the latter part of the year. The Mindanao Railway was originally set to begin construction for its phase 1 or Tagum-Davao-Digos segment in January 2019.

Asked if the rising tensions between Manila and Beijing was to blame, Bautista said, “Hindi naman (Not necessarily).”

He did elaborate, but reiterated that negotiations were not moving.

The Philippines and China earlier this week accused each other of raising tension in the West Philippine Sea, with Manila saying the China Coast Guard intentionally collided with its boats on a resupply mission to a small contingent of troops stationed on the BRP Sierra Madre grounded on Ayungin Shoal (Second Thomas Shoal) two decades ago.

Defense Secretary Gilbero Teodoro said on Wednesday the country will boost multilateral activities including freedom of navigation patrols in the West Philippine Sea, expressing hope that more countries would "join our fight" after an altercation with China this week.—AOL, GMA Integrated News