MANILA – President Ferdinand Marcos Jr. has ordered the Department of Transportation (DOTr) to renegotiate three loan deals from China that did not push through under the past administration, the agency said Saturday.

• 'Build! Build! Build?' Several China-backed railways yet to get funding says DOTr

DOTr Undersecretary for Railways Cesar Chavez said Marcos wants his agency to seek funding for the following major railway projects:

• Subic-Clark Railway Project
• Philippine National Railways (PNR) South Long-Haul Project
• Davao-Digos segment of the Mindanao Railway Project (MRP)

“There was a policy discussion on three China ODA Rail Projects in last Tuesday’s Cabinet Meeting during which the President commented that as a matter of policy, we should encourage more investments in rail and that we should focus more on rail transport,” Chavez said in a statement.

While the National Economic and Development Authority (NEDA) has already approved the three projects, funding has been “considered withdrawn after the Chinese government failed to act on the funding requests by the former Duterte administration,” the statement read.

“From 2021 to 2022… the Department of Finance (DOF) informed China Eximbank that the submitted loan applications would only be valid until May 31, 2022, and would be automatically withdrawn if not then approved,” it read.

Former Finance Secretary Carlos Dominguez III “later decided to cancel the loan applications with China in the light of the upcoming transition of government and in deference to the incoming administration.”

The Subic-Clark Railway Project was awarded to the China Harbour Engineering Co. as early as December 2020 with a price tag of P51 billion, according to data from the DOTr.

• Duterte, ADB sign loan agreement for South Commuter Railway Project

The development of the PNR’s Bicol Express service was supposed to be built by three Chinese companies for P142 billion, while the P83-billion extension of the MRP did not proceed “after China was unable to submit a shortlist of contractors for its design-build contract,” the DOTr said.

The government is now considering other funding options for these railway projects, Chavez said.

Contracts may be opened for Filipino contractors since the “the government thrust is towards public-private-partnerships (PPP).”

Meanwhile, the government has received loans from China for the following projects:

• P12.18 billion - Kaliwa Dam project
• P5.9 billion - Binondo-Intramuros and Estrella-Pantaleon bridges
• P4.37 billion - Chico River Pump Irrigation project
• P998 million grant - Marawi City rehabilitation.

Former President Rodrigo Duterte during the last days of his term urged the Marcos administration to continue railway projects, saying this will provide "better opportunities" to Filipinos.

• Duterte urges next DOTr chief to continue improving railway systems

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