Local and Foreign investors exicited in the Duterte’s Mindanao railway project

[robert k]

South Korea and Japan might find a reason to walk away. Duterte did say China, Russia and now the Philippines, 3 against the world? Against the world, not three buddies just a little closer than the average? I wouldn't build anything for people who are against me.

[JJReyes]

7 hours ago, chris49 said:

However. All these projects are contracted internationally. So far Korea and Japan have been the major partners. Maybe China under the current regime.

Large infrastructure projects are oftentimes financed through bonds with usually an ultimate guarantor. The example of a guarantor is the Asia Development Bank (ADB). This limits the exposure by banks and financial institutions in the event of a default. Of course, large construction companies are excited because they will make money using other people's money. They really don't care if the project is viable or not. That's not their business.

In the case of Korea and Japan, they would bid on projects with ADB backing. China recently started an international funding agency competitive to ADB and the World Bank. China's construction companies may get more contracts in the future.