Tuesday, October 24, 2017

Leni warns the administration that PH might fall into "debt trap" on Bicol Express loan with China

Manila, Philippines - Vice President Leni Robredo warns President Rodrigo Duterte that Philippines may fall into a debt trap because of the loan agreement with China for the reconstruction of Philippine National Railways’ Bicol Express.

In her radio program ‘BISErbisyong Leni’ she expressed her concern and worry that the county might be buried in debt because of the railway project.

Robredo, a Bicolano, worries that it might not earn yet in the first years of operation.

“Alam mo sa first years of operation baka hindi pa naman ito kikita ng malaki kasi mag-uumpisa pa lang (In the first years of operation, it might not earn enough),” she said.

Robredo commented on this after Department of Transportation (DOTr) Undersecretary Cesar Chavez announced that an amount of P175 billion needed for new railways will be borrowed from China.

Last Friday, both Robredo and Chavez attended the Bicol Express Modernization Forum held in Naga City.

Also, National Economic and Development Authority (NEDA)Assistant Secretary Mercedita Sombillo and other Bicolano officials were present in the Forum.

The DOTr is set to reconstruct the Manila-to-Bicol train system through the loan deal between China and Philippines which will be payable in 20 years with only two percent interest per annum.

Meanwhile, many of the netizens were also ecstatic upon hearing the news and were supportive to this project of the Duterte administration.
Here are some of the reactions from a news article;
Basilio Bacuyag I really appreciate these initiatives of this administration i just hope and pray that the lord will shower the president good health inorder that he manage the goverment properly.As of now I dont trust anybody who could fit into the shoes of the president.I remember marcos nagkalukoluko ang gobierno ng magkasakit na ang presidente.
Zoraida Reid Parang nung panahon ni Marcos maraming infrastructure. After 30 odd some years at last pupunta sa MGA projects Ang Pera Hindi sa bulsa ng mga corrupt officials.

Source: Manila Bulletin