Rappler.com-July 19
China’s loan terms, local elites’ interests, and tycoons’ lobbying stall Duterte’s train projects. Can Marcos get them back on track? The Department of Transportation pins the blame on China for the stalled railway projects. But corruption on land acquisitions have long stonewalled projects. The new administration must remain extra cautious in dealing with Beijing, as experts found that its loan terms have unusual clauses and higher interest rates. President Ferdinand Marcos Jr. can tap public-private partnership financing, but his team has to woo private investors after they were somewhat shunned by his predecessor. President Ferdinand Marcos Jr. is set to renegotiate loan terms with China for railway projects worth $4.9 billion (P276 billion). The Subic-Clark Railway Project (P51 billion), the Philippine National Railways South Long-Haul Project (P142 billion), and the Davao-Digos segment of the Mindanao Railway Project (P83 billion) have been on the pipeline for years, but have yet to be funded. Transportation Undersecretary Cesar Chavez claimed that China “failed to act” on the official development assistance (ODA) funding requests made by then-president Rodrigo Duterte. Why would China do this during what seemed to be the final step after years of negotiations? The Department of Transportation’s track record and local politics point to some clues. The fine print on China’s loan conditions also hints of struggles in getting the trains up and running. Read more at:
https://www.rappler.com/business/what-marcos-jr-must-untangle-get-train-projects-on-track/
