Chinese gov’t to release $1-B loan package to RP

The Chinese government is expected to release at least $1 billion loan package to the Philippines next year, a top economic manager said.

In an interview over the weekend, Socioeconomic Planning Secretary Romulo L. Neri said the first $500 million will be signed in January while the remaining $500 million is still under negotiations.

"We have to renegotiate for next year but the indicative is $500 million," Neri explained.

As of the moment, he said they are focusing on the first tranche of the loan package. "Once we sign this, we can have more later," Neri, who is also the concurrent director general of the National Economic Development Authority (NEDA), said.

The first loan package was supposed to have been signed this month but was delayed after the scheduled December ASEAN conference in Cebu was postponed. The package is expected to be finalized when Chinese Premier Wen Jiabao visits the country in January for the meeting of regional leaders.

The $500 million will be divided into three projects, of which $170 million will be for housing projects, $50 million for an aqueduct project and $280 million for the Southrail project.

Neri said the Southrail project linking Calamba, Laguna and Lucena, Quezon will involve the rehabilitation of railroads and the purchase of electric and diesel trains.

For the Caloocan to Alabang and Alabang to Calamba route, Neri said the National Government is talking to the Korean government.

Meanwhile, the Bulacan-Pampanga route of the Northrail project will finally be completed after NEDA approved the $673.66-million project.

In a statement, NEDA said the second part of Northrail’s first phase was part of the $912.59 million worth of projects the agency has endorsed.

The project is a 48-kilometer double narrow-gauged rail track plying the towns of Malolos and Calumpit in Bulacan, and Apalit, Minalin, Sto. Tomas, San Fernando, Angeles and Clarkfield in Pampanga.

The railroad project includes civil and track works, signaling, communications and ticketing systems, procurement of rolling stock and right-of-way acquisition.  

NEDA said 83 percent of the project will be financed through official development assistance (ODA) under the Chinese Concessional Loan, while the rest will come from local and foreign commercial loans.