Manila, Philippines - The Department of Transportation (DOTr) is considering various funding options, including official development assistance (ODA) and public-private partnerships (PPP), for three significant railway projects after deciding to discontinue China's partnership for financing these ventures.
According to Philippines News Agency, Transportation Secretary Jaime Bautista announced that the South Long-Haul Project, Mindanao Railway Project, and Subic-Clark Railway would potentially be funded through ODA and PPP, with the government bearing the expenses for right-of-way acquisitions. Bautista, in a news release, stated that these three railway projects could be financed by ODA, PPP, or direct government funding, noting the government's responsibility for right-of-way costs. The DOTr is considering funding options from the Japan International Cooperation Agency, World Bank, and Asian Development Bank. However, project costs need to be updated due to implementation delays and rising costs of materials and labor, requiring approval from the National Economic and Development Authority. Additionally, the DOTr signed contracts with the Public-Private Partnership (PPP) Center and International Finance Corp. (IFC) for advisory services on various transportation projects in aviation and railways. The IFC will provide transaction advisory services for modernizing and upgrading regional airports and strengthening the Light Rail Transit Line 2 (LRT-2). Bautista highlighted the value of private sector participation in government projects, mentioning successful PPP projects like the Clark International Airport and the LRT-1.