Japan express interest in funding PNR South Long Haul
By Robina Asido
Japan has expressed interest in funding the Philippine National Railways South Long Haul, also called the PNR Bicol that was supposed to be financed by China.
In a press chat Thursday, Economic Secretary Arsenio Balisacan said Japan is one of the countries that expressed interest in funding the PNR Bicol project.
"Yes, that is one of the projects initially identified by China. They had interest to fund but it did not go far after (2022-2023) nothing happened... So what we are trying to do now is that we open it up so that we can identify new partners .... the World Bank, the ADB, Japan is also interested in looking at it, there are many, even India is expressing interest in it," he said.
National Economic Development Authority (NEDA) Undersecretary Joseph Jay Capuno noted that as the top source of Official Development Assistance (ODA) the Philippines expect more Japan funded projects in the future.
"Yes definitely we expect more Japan funded ODA's in fact almost quarterly they visit our office... They increase the available loan amount but the problem is our ability to absorb, you know, project preparations approval all the way to implementation and completion... They have a bigger ever increasing loan facility," he said.
"Japan has been the top source of ODA funds for the longest time, I think maybe at least ten years running if not longer," he added.
According to NEDA, the Philippines has made significant strides in its economic recovery and infrastructure development efforts, with a notable 27 percent increase in the financial disbursement of Official Development Assistance (ODA) loans in 2023.
"This improvement in disbursement, which reached a cumulative total of $15.80 billion last year, underscores the government’s commitment to efficiently utilize ODA funds for critical projects that support the country’s socioeconomic agenda," it added.
According to the 2023 ODA Portfolio Review Report, the country’s active ODA portfolio of loans and grants reached $37.29 billion in 2023. The report, released on August 8, detailed 113 loans amounting to $35.07 billion and 325 grants worth $2.22 billion.
Balisacan lauded the increase as a significant progress in the utilization of the ODA funds.
“This is a welcome opportunity as we boost the government’s capabilities and introduce crucial reforms to sustain our country’s socioeconomic progress. We assure the public that the government is maximizing the opportunity to utilize additional funding for economic recovery and infrastructure development under the Marcos Administration’s Build-Better-More program,” he said.
The report said the Philippines’ ODA includes 13 new program loans amounting to $6 billion and 17 new project loans worth $6.08 billion.
It noted that "among the new program loans is a $1 billion allocation for the Post-COVID-19 Business and Employment Recovery Program."
In addition, NEDA said "the country secured 57 new ODA grants totaling $240.53 million in 2023 which "designed to enhance the capacities of the government and local stakeholders in public service delivery and in addressing the country’s developmental challenges , such as inequitable growth, vulnerability to natural disasters, lacking access to education, and limited innovation, among others."
“We have made significant progress in securing and utilizing our funding sources. We are committed to ensuring that these funds are efficiently spent by addressing critical challenges such as procurement delays and problems in right-of-way acquisitions. This underscores the need for a whole-of-government approach, coupled with assistance from our other development partners, to implement strategic interventions and enhance our project management practices,” said Balisacan. Robina Asido/DMS
