Duterte China trip pays off with $219M railway loan

The Philippines and China sealed an agreement for a $219.7-million preferential buyer’s credit facility to fund the project management consultancy of the Philippine National Railways’ south long haul project, the Department of Finance said on Thursday.

This infrastructure project under the Duterte administration’s “Build, Build, Build” program will link Metro Manila to Legazpi, Albay; Legaspi to Matnog, Sorsogon; and Calamba, Laguna to Batangas City.

The services to be rendered by the project management consultancy cover the detailed engineering and design; preparation of the terms of reference and bidding documents for a design-and-build procurement process for the civil works, rolling stock and electromechanical system; and the construction supervision.

According to the Finance department, the project management consultant will also provide tender assistance, which includes, among others, the market study, administration of the limited competitive bidding, and tender award to the contractors and suppliers.

President Duterte and Chinese President Xi Jinping witnessed the exchange of the signed loan agreement between Finance Secretary Carlos Dominguez III and Export-Import Bank of China Vice President Xie Ping at the Diaoyutai State Guest House in Beijing.

The dollar-denominated loan has an interest rate of 2 percent with a maturity period of 20 years, inclusive of a seven-year grace period./tsb