Philippine Transportation Department seeks new development partners after withdrawing loan applications to China

The Department of Transportation (DOTr) in the Philippines is exploring alternative development partners after the Philippine government withdrew its loan applications to China for certain projects.

During a hearing of the Congressional Oversight on Official Development Assistance, Transportation Undersecretary Timothy John Batan revealed that the applications were considered withdrawn in July 2022 when the new administration took over, with the loans still pending approval.

The government reapplied for loans in December 2022 for the Philippine National Railways (PNR) South Long Haul and in January 2023 for the Subic-Clark Railway project.

With no response from China by the end of October, the loan application for the Subic-Clark railway was considered withdrawn.

The Philippine government is giving China until the end of December to act on the loan application for the South Long Haul project. In the absence of Chinese action, the Philippines is exploring other development partners for these projects.

According to lawmaker Joey Salceda, maritime issues with China are a factor in the withdrawal. Pampanga 2nd District Rep. Gloria Macapagal-Arroyo urged the transportation department to actively seek alternative funding sources for the projects.

The Department of Public Works and Highways (DPWH) reported progress on the China-funded Chico River Pump Irrigation Project and the ongoing construction of the Samal-Davao connector and the New Centennial Water Source-Kaliwa Dam projects.