THE Department of Transportation (DoTr) said it will seek the approval of the National Economic and Development Authority (NEDA) to raise the loan amount taken on to finance its three major railway projects.
“We need updated approval… because the cost will be higher due to the delays, it needs to be updated,” Transportation Secretary Jaime J. Bautista told reporters on sidelines of a forum on Wednesday.
In mid-November the DoTr said it will also seek approval to adjust the cost estimates and loan terms for the Metro Rail Transit Line 4 project.
The Philippines withdrew its request for official development assistance (ODAs) from China for the three railway projects due to lack of progress on the financing decision.
Mr. Bautista has said that the government is exploring its funding options and is considering ODA from Japan, South Korea and India to fund Bicol’s South Long-Haul, Mindanao Railway, and Subic-Clark Railway.
The government may also tap funding from the World Bank, Asian Development Bank and the Japan International Cooperation Agency, the DoTr has said.
Phase 1 of the Mindanao railway project is projected to cost around P83 billion. This railway runs from Tagum, Davao del Norte to Digos City, Davao del Sur and is expected to accommodate 122,000 passengers per day and cut travel time between Tagum and Digos from three hours to one.
Meanwhile, the Subic-Clark railway and the Philippine National Railway’s South Long-Haul railway are estimated to cost around P50 billion and P142 billion, respectively. — Ashley Erika O. Jose