3 stalled rail projects seek new NEDA approval

MANILA, Philippines — Three big-ticket railway projects, that were supposed to be funded by China are slated for a new round of approval from the National Economic and Development Authority (NEDA) due to the expected upward adjustments in their costs because of delays.

Transportation Secretary Jaime Bautista said the Marcos administration is keen on pursuing the development of the Mindanao Railway, Philippine National Railways South Long Haul or PNR Bicol and the Subic-Clark Railway. The Philippines has dropped its request for official development assistance (ODA) from China for the three projects.

“The Mindanao Railway will be the first railway system in Mindanao, so we will pursue the project. The loan that was initially discussed with the Chinese government was already withdrawn even before the Marcos administration came in. These are similar to the loans that should finance the Bicol South Long Haul and Subic-Clark railway,” Bautista said.

“But these projects are part of the 197 flagship infrastructure projects of the government. These three railway projects are important projects of the government,” he said.

Bautista said the government is looking at the possibility of financing the three railway projects through other ODAs, public-private partnerships or from government funds.

“We’re talking to certain organizations right now. We cannot divulge yet. But there are parties interested to finance these three projects,” the transport chief said.

“At the same time, because they are already delayed, we will need to again review the projects. There will be change in cost and these will need NEDA approval,” he said.

Cost for the development of the Mindanao Railway Phase 1 was previously pegged at P83 billion, while the PNR Bicol was at P142 billion and Subic-Clark Railway at P50 billion.

“What we will do first is we will get an updated approval because even though its part of the 197 infrastructure flagship projects, these will have a change of cost because these projects are from the previous administration. But I think these will have additional costs because of the delay, because of the increase in the cost of materials, cost of labor. So we need to update those, and for us to be able to continue the project, we will need to get approval from NEDA for an increase in costs,” Bautista said.