Sen. Grace Poe —Senate PRIB
MANILA, Philippines — After backing out from loan negotiations with China, the country should explore official development assistance (ODA) agreements with other countries, according to Senator Grace Poe.
“It’s time to explore ODAs from other countries and seek available funding options from multilateral institutions and international assistance agencies that can deliver the goods,” Poe said in a statement on Thursday.
“A strategic move would also be to tap the private sector which holds the potential of accelerating infrastructure development and bringing innovative and efficient services,” she added.
Transportation Secretary Jaime Bautista said that the government is looking at new financing options for the Mindanao railway project after it backed out from ODA with China.
READ: PH quits seeking Chinese loan for Mindanao rail
Poe backed this move, noting that the loans could even hurt the government in the long term.
“In the past years, Chinese banks have also kept us in suspended animation with delays in our loan applications putting in limbo a number of government projects,” Poe said.
“While appearing attractive, the loans are not exactly that benevolent as they come with hefty interest rates and other strings that could be detrimental to the country in the long term,” she added.
However, the senator said the withdrawal of ODA from China for the railway project “should not derail the implementation of our infrastructure programs.”
READ: ADB overtakes Japan as top ODA source