Philippines looking at Japan, India for railway funding deals
THE Philippines is looking at Japan and India for alternative financing deals after dropping Chinese loans as a funding source for three railway projects valued at more than US$5 billion, according to Finance Secretary Benjamin Diokno.
Diokno said he expects negotiations for the new financing deals to conclude by the first quarter. Partnering with multilateral lenders is also an option, he said. “It could be a combination of Japan and ADB. We’re exploring all sorts of financing,” he said, referring to the Asian Development Bank.
Manila has said it will no longer pursue Chinese financing for the first phase of the 100-kilometre Mindanao Railway Project as well as for the Subic-Clark freight railway, which links two former US military bases turned commercial zones and a proposed long-haul commuter railway in the southern part of the main Luzon Island.
Asked if the stalled projects could also be funded to the Maharlika Investment Fund, the country’s first sovereign wealth fund that is currently being set up, the finance chief said it’s possible but the government would only fund a minority share.
On Monday, the government listed its US$1.26 billion retail dollar bond on the nation’s bond exchange. The proceeds from the bonds sold last month “will help finance the government’s priority infrastructure flagship projects aimed at driving long-term economic growth”, Diokno said. BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Asean
Magnitude 6.0 quake strikes Philippines, aftershocks and damage expected
Indonesia central bank says SRBI auction will be held twice a week to attract more inflow
Thai police raid illegal bitcoin mining operation
Thailand’s April inflation rises slightly, first time in 7 months
Myanmar junta bans men from applying to work abroad: statement
Microsoft CEO pledges RM10.5 billion in cloud, AI investment in Malaysia