China International Development Cooperation Agency (CIDCA) to assist in Mindanao Railway

By BONG S SARMIENTO MINDANAO, OCTOBER 10, 2018 4:56 PM (UTC+8)
http://www.atimes.com/article/china-leaves-dutertes-dream-train-at-the-station//

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In March 2017, Chinese Vice Premier Wang Yang visited Davao City, Duterte’s hometown where he previously served as governor, to show Beijing’s commitment to constructing the southern railway. The railway was estimated at the time to cost 218 billion pesos (US$4 billion), according to news reports.

Wang was the guest of honor at an official presentation on the Mindanao railway’s economic boosting prospects. Wang suggested at the time that China could help finance the project through either soft loans or investment in the government’s public-private partnership scheme.

The National Economic and Development Authority, a Philippine state agency, approved last year the first Tagum-Davao-Digos phase of the railway at a cost of 37.3 billion pesos (US$726 million). The line is expected to reduce travel time along the route from 3.5 hours by road to 1.3 hours by rail.

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The Mindanao railway’s construction was earlier targeted to start in the third quarter of this year, with the Department of Transportation pushing for China to fund all of the project’s phases through official development assistance (ODA).

The Philippine side has not given up hope. In late August, a top-level Philippine economic delegation traveled to Beijing to resubmit an indicative list of 12 big-ticket infrastructure projects for possible Chinese grant financing, including the Mindanao railway project.

The delegation included Finance Secretary Carlos Dominguez III, Public Works Secretary Mark Villar, Socioeconomic Planning Secretary Ernesto Pernia, Budget Secretary Benjamin Diokno and other senior government officials.

They submitted the proposed projects to the newly created China International Development Cooperation Agency (CIDCA), a leading agency responsible for administering foreign aid and overseas development assistance.

CIDCA chairman Wang Xiaotao vaguely assured the delegation of China’s intention to provide assistance to Manila “in the direction determined by the leaders of both our countries.”

“This truly shows that China gives great importance to the promotion of its bilateral relations with the Philippines,” Wang said in a statement, according to a Philippine Finance Department release on the meeting.

The delegation also met with the Export-Import Bank of China, the Asian Infrastructure Investment Bank and top-ranking Chinese officials to discuss infrastructure project implementation and financing.

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