TAIPEI (Taiwan News) — Manila said it does not intend to accept loans from Beijing to fund three planned railway projects following a deterioration in diplomatic relations.
Transportation Secretary Jaime Bautista confirmed on Oct. 26 the Philippines is seeking funding from other sources for the Mindinao Railway project, the Subic-Clark Railway project, and the Philippine National Railways South Long Haul project, reported Panay News. There have been increasing tensions between Manila and Beijing over territorial disputes in the South China Sea.
The Mindinao Railway project, valued at approximately US$1.4 billion (NT$45.4 billion), was formally canceled last month. This week, Philippine officials confirmed the country no longer seeks to work with China to finance the Subic-Clark project valued at US$880 million, or the National Railways South Long Haul project, valued at US$3 billion.
The previous administration of Rodrigo Duterte made deals with China’s Import Export Bank in 2018 for loans to fund the construction of the railway. However, progress has stalled since President Ferdinand Marcos Jr. took office last year.
Marcos has cultivated stronger ties with the United States as diplomatic relations with China have soured. The Philippines has also taken a stronger position on protecting its territory in the South China Sea under Marcos’ administration.
Negotiations with China to fund the railway projects were likely put on hold by Beijing as a result of these developments, reported the Inquirer. Now, the Philippines is tired of waiting, and Transportation Secretary Bautista has confirmed the country is actively seeking other partners to help fund the projects.
According to Bautista, the government is in preliminary talks with two Asian countries that may be interested in financing one or more of the railway projects. Manila is also floating the possibility of partnering with private companies or banks to help finance the infrastructure projects, reported Bloomberg.
