ASIA: Cesar Chavez, the transportation undersecretary of the country’s transport ministry, said Beijing’s “failure to act on funding’s proposal,” and ordered a renegotiation of the entire deal, either with Beijing or other potential partners.
An explanation came after the Philippines withdrew from a 276-billion-peso ($4.9 billion) infrastructure funding deal with China. The plans negotiated by his predecessor, Rodrigo Duterte, were ripped up by new Philippine President Ferdinand Marcos Jr.
So, what is the Philippines planning to do after cancelled its $5 billion railway deal with China?
According to InvestVine, Manila is currently discussing the deal with other partners. One possible candidate is Japan, which offers lower interest rates for potential project loans than the Chinese, which demands annual interest rates above 3%.
The initial agreement called for Chinese construction firms to build the Subic-Clark Railway Project, the Philippine National Railways South Long-Haul Project, and the Mindanao Railway Project’s Davao-Digos segment.
The project is thought to be a component of China’s multibillion-dollar Belt and Road Initiative, which aims to expand China’s global influence throughout the developing world.