Vol. XXI, No. 161 [ Business World Online ]
Monday, March 17, 2008 | MANILA, PHILIPPINES
THE MONETARY BOARD on Friday approved a $90-million loan for the controversial Northrail project, as well as $330 million for reforms in government financing.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo told reporters that the $90-million loan, from London-based Barclays Bank Plc., would be for Phase 1, Sections 1 and 2, of the Northrail Project.
The project, which would connect Metro Manila to the rest of Luzon by extending the existing Philippine National Railways (PNR) line, has been dragged into an ongoing corruption controversy.
Legislators claim that over $100 million, out of some $500 million in funding from China, has already been disbursed without any progress in the project itself.
Chinese funds have come under scrutiny following allegations that government officials solicited bribes for the scuppered National Broadband Network deal, which had been awarded to Chinese firm ZTE Corp.
Mr. Guinigundo told reporters that the Barclays loan has a maturity of 10 years. Payment will be divided in 13 equal semiannual installments, he said.
The central bank, meanwhile, also approved a $329.9-million loan from the Asian Development Bank, which will support Finance department efforts to help local governments improve their capacities to plan, budget and deliver better services to their constituents.
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