Philippines looks to diversify project funding beyond China amid maritime row

On July 26, the Philippine transport department said funding for a feasibility study on the Subic-Clark-Manila-Batangas railway was in the works. The railway project is a joint initiative by the Philippines, Japan, the United States, Sweden and the Asian Development Bank.

Once completed, the project will run along and connect four cities on Luzon island, linking three main ports and two international airports.

The Subic-Clark-Manila-Batangas railway project is an updated initiative of the original Subic-Clark railway project that was initially backed by Chinese investments.

Nikkei Asia reported on Monday that officials from the Philippines’ Bases Conversion and Development Authority, the agency overseeing redevelopment projects in former US military bases such as Subic and Clark, were in Tokyo earlier in July to seek funds for the latest railway project, as well as other developments in the former bases.

China had initially pledged nearly US$5 billion of funding to build three railway lines in the country including the Subic-Clark railway project, the South Long Haul railway project in Luzon and the Mindanao railway project in southern Philippines.

The first phase of the Mindanao railway project, which costs 83 billion Philippine pesos (US$1.4 billion), was supposed to be set for construction in January 2019. Last year, the Philippines’ finance department wrote to the Chinese embassy and said Manila was “no longer inclined to pursue the Chinese ODA [official development assistance] financing for the Mindanao railway project.”

This followed comments from a senior Chinese economic official, who cited “geopolitical factors” for hindering funding of the Philippine projects.

Chester Cabalza, president of the International