NEDA: Chinese infra promises still unrealized

The National Economic and Development Authority (NEDA) is now opening the door to alternative funders for infrastructure projects that were initially offered to China during the previous administration.

In a briefing on Wednesday, July 19, NEDA Secretary Arsenio M. Balisacan said that pledges made by China to finance infrastructure projects in Metro Manila and Mindanao, particularly railways, have yet to come to fruition.

“There was a lot of promise initially and there was a lot of indication that they would fund many of the projects in Manila, in Mindanao, railways, and so on. But many of these have not materialized yet or haven’t materialized,” Balisacan said.

Data from the Department of Finance showed that the total loan commitments from China for ongoing projects in the Philippines amount to a mere $1.06 billion, equivalent to only P57.82 billion.

For this reason, Balisacan emphasized the need to broaden the scope of negotiations for the intended infrastructure projects, originally designated for Beijing’s funding.

He suggested engaging with various potential partners, including the local private sector, to explore alternative avenues of financing and ensure the projects’ successful implementation.

“We are opening our doors to all potential partners, including PPP [public-private partnership],” the NEDA chief said.

The Mindanao Railway Project, once touted as a flagship initiative in former President Rodrigo R. Duterte’s infrastructure program, now stands as an example of Beijing’s unfulfilled promises.

Despite initial assurances, China’s pledged support for the railway system in Mindanao has not materialized, leaving it in a state of uncertainty and raising concerns about its viability moving forward.

Although the Mindanao railway project is currently at a standstill, Balisacan said it should not be interpreted as a lack of effort on the part of the Marcos government to pursue its implementation.

“We are [seeking for its implementation] but I think that we want to see the translation of verbal commitments to the actual delivery,” Balisacan said. “Hopefully, China and the Philippines will be able to resume discussions for this project.”

However, the NEDA chief clarified that the funding for the Mindanao railway under the Marcos administration is not reliant on any specific country.

“We are not dependent on any particular country or should not be dependent on any particular country because we want to diversify,” Balisacan said.

“Whoever comes first and if those pass the metrics that we employ in judging whether we should go or not go” will be evaluated, he added. — Chino S. Leyco