(Eagle News)–The Philippines and China have signed a $219-million loan agreement for the Philippine National Railways project, the Department of Finance said on Friday, Aug. 30.
The exchange of the loan agreement that will fund the Project Management Consultancy for the PNR South Long Haul Project was done between Finance Secretary Carlos Dominguez III and Export-Import Bank of China Vice President Xie Ping on the second day of President Rodrigo Duterte’s visit to China.
Duterte and China President Xi Jinping witnessed the exchange.
According to the DOF, the infrastructure project under the administration’s “Build, Build, Build” program will link Metro Manila to Legazpi, Albay; Legaspi to Matnog in Sorsogon; and Calamba, Laguna to Batangas City.
The Project Management Consultancy, it said, will render services covering 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 construction supervision.
According to the DOF, the project management consultant will also provide tender assistance, which includes, among others, the market study, administration of the Limited Competitive Bidding, and Tender award to the contractors and suppliers.
The dollar-denominated loan has an interest rate of 2 percent per annum with a maturity period of 20 years, inclusive of a 7-year grace period, the DOF said.
The agreement is one of six signed during President Duterte’s trip to China so far.
His visit will end on Sept. 2.
