The China-funded projects include the 51 billion peso (US$905 million) Subic-Clark freight railway, which links two former US military bases that have been turned into commercial hubs. The project was greenlighted during Chinese foreign minister Wang Yi’s visit last year.
The other two are the 142 billion peso Calamba-Bicol commuter railway, located south of Manila; and the 83 billion peso Davao-Digos commuter railway in the southern Davao region.
Cesar Chavez, transportation undersecretary for railways, told Nikkei Asia that financing was “considered cancelled” when China failed to send a shortlist of possible contractors in June. The official did acknowledge that China has invested in preliminary studies for these projects.
“Our first step is to renegotiate with them,” Chavez said, hinting the projects could be offered to the private sector instead.
The Chinese Embassy in Manila did not immediately respond to a request for comment.
Chavez said the finance department has been asked to discuss the status of project financing with Beijing, “taking into account China’s willingness to lend and the Philippine government’s ability to borrow”.
Finance secretary Benjamin Diokno said in a mobile message that he “will check” the matter.
Beijing’s initial pledge to fund the projects came as Duterte nurtured closer economic ties with China while setting aside a territorial spat in the South China Sea between the two countries.
Beijing pledged tens of billions of dollars worth of credit and infrastructure deals during Duterte’s term, but few deals have materialised or been completed.
Marcos has said he wants relations with China to “shift to a higher gear” and discussed infrastructure during a meeting with Wang in Manila on July 6.
Chavez said the policy on the three China-funded railway projects was discussed during a July 12 cabinet meeting when Marcos commented “that as a matter of policy, both foreign and private sector support will be pursued to develop railways”.
The Marcos administration is considering reviving the nation’s public-private partnership programme to ease the government’s financial burden on building infrastructure. The programme was put on the back burner by the Duterte administration, which focused on seeking funding from partners like Japan and China for large-scale infrastructure projects.
The new Philippine president is expected to outline his infrastructure plans during his first state of the nation address on July 25.