China ODA withdrawal should not derail infra programs – Poe

MANILA, Philippines — The Philippines’ withdrawal of its request for official development assistance (ODA) from China for a railway project should not derail the implementation of infrastructure programs, according to Sen. Grace Poe.

Poe, chairperson of the Senate committee on public services, issued the statement after the Department of Finance informed Chinese Ambassador Huang Xilian that the country’s request for ODA from Beijing for the P83-billion Mindanao Railway Phase 1 Tagum-Davao-Digos segment is being pulled out.

“In the past years, Chinese banks have also kept us in suspended animation with delays in our loan applications putting in limbo a number of government projects,” she said.

While appearing attractive, Poe said “the loans are not exactly that benevolent as they come with hefty interest rates and other strings that could be detrimental to the country in the long term.”

“It’s time to explore ODAs from other countries and seek available funding options from multilateral institutions and international assistance agencies that can deliver the goods,” she added.

“A strategic move would also be to tap the private sector which holds the potential of accelerating infrastructure development and bringing innovative and efficient services,” she noted.