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PH signs $220M rail loan from China

Image by analogicus from Pixabay

The Philippines and China signed on August 29 an agreement for a US$219.78-million credit facility to fund the project management consultancy (PMC) for the Philippine National Railways (PNR) South Long Haul Project.

The preferential buyer’s credit facility was signed by Finance Secretary Carlos Dominguez III and Export-Import Bank of China vice president Xie Ping during President Rodrigo Duterte’s state visit to China.

The dollar-denominated loan has an interest rate of 2% per annum with a maturity period of 20 years, inclusive of a 7-year grace period.

Services to be rendered by the PMC cover the detailed engineering and design; preparation of the terms of reference and bidding documents for a design and build procurement for the civil works, rolling stock, and electromechanical system; and the construction supervision.

According to the Department of Finance, the project management consultant will also provide tender assistance, which includes market study, administration of the limited competitive bidding, and tender award to the contractors and suppliers.

The PNR South Long Haul Project will link Metro Manila to Legazpi, Albay; Legazpi to Matnog in Sorsogon; and Calamba, Laguna to Batangas City. Upon completion, it will reduce travel time from Manila to Legazpi City from 13 hours to under 6 hours.


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