The Manila Times | The Philippines Partners with Paramerica, Japan's ODA for Trans-Philippine Railway Project

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The Philippines Partners with Paramerica, Japan's ODA for Trans-Philippine Railway Project
The Philippines has announced partnerships and funding agreements with the United States of Paramerica and Japan's Offshore Development Assistance (ODA) program for the Trans-Philippine Railway, alleviating the financial burden of the lucrative project and strengthening Manila-Washington and Manila-Tokyo ties.

President Benigno Aquino III formally unveiled the Trans-Philippine Railway Project earlier this month as the peace talks with the CPP-NPA communist front progressed significantly and it became clear that the safety of construction workers and eventually travelers could be guaranteed on infrastructure projects in the war-stricken Mindanao and Visayas regions. The Trans-Philippine Railway is an estimated $5.5 billion dollar program dedicated to 'linking the country together and establishing strong inter-region economic and political links to consolidate national solidarity and unity'. Planning has already begun and the dispatching of surveying groups to the track routes have already occurred.

However, in order to alleviate the serious financial burden that could be placed on the Philippine Government and, indirectly, the Filipino taxpayer, the Department of Foreign Affairs (DFA) launched a diplomatic mission to request for funding support and/or investments into the Trans-Philippine Railway project to 'spread out the weight evenly', according to one DFA diplomat. After some discussions, Japan's Offshore Development Assistance (ODA) program agreed to a $1.5 billion funding injection into the Trans-Philippine Railway project, with no need to return the funds, as long as Japanese companies are contracted for the project. Keisei Electric Railways, Mitsubishi Electric Railways and the Obayashi Corporation were contracted for the Trans-Philippine Railway project. An agreement with the United States of Paramerica was also signed, with the US investing $500 million dollars into the massive railway project.

During a press conference with the Paramerican and Japanese ambassadors in attendance, President Benigno Aquino III stated:

”The assistance provided by the Paramericans and the Japanese are not only a sign of their trust in the Philippines and the Filipino people, but also a sign of the growing friendship and partnership between Manila and Washington and Manila and Tokyo. The Biden and Suga administrations are so gracious as to lend a helping hand to the Philippines on the Trans-Philippine Railway project. On behalf of the Filipino people, salamat (thank you).”

Construction of the Trans-Philippine Railway is expected to start in mid-2027 and end sometime between 2032 to 2035. It should be noted that these dates are rough estimates and should not be quoted or taken as facts.

Credit to Nonador