Senators Poe and Gatchalian Advocate Alternative Funding to Chinese ODA for Infrastructure Projects

Manila — Senators Grace Poe and Sherwin Gatchalian stated on Thursday that the Philippine government could continue with its “Build Better More” infrastructure program without requiring official development assistance (ODA) from China.

According to a new release by the Philippines News Agency, a letter was sent to Chinese Ambassador Huang Xilian informing him that the Philippine government is withdrawing its request for ODA designated for the PHP83-billion Mindanao Railway Project Phase 1. Senator Poe emphasized in a statement that the withdrawal should not hamper the nation’s infrastructure plans. She remarked that Chinese banks have in the past delayed loan applications from the Philippine government, putting several projects at risk.

Poe advised that it is time for the government to explore ODA from other countries and consider funding options from multilateral institutions and international assistance agencies. She also suggested involving the private sector as a strategic move, citing its potential to expedite infrastructure development and offer innovative services.

Senator Gatchalian echoed Poe’s concerns in an interview with ANC, highlighting the problems in the feasibility and higher financing charges associated with Chinese ODAs compared to those from other countries. “We have to remember ODAs are still considered loans even though they are concessionary in nature, but they’re still considered loans and the taxpayers will pay for it,” he said.

Apart from the Mindanao Railway Project Phase 1, the Philippine government is also examining alternative financing options for the supposedly Chinese-funded Philippine National Railways South Long-Haul Project.