Vol. XXI, No. 239 [ BusinessWorld Online ]
Monday, July 7, 2008 | MANILA, PHILIPPINES
THE GOVERNMENT will push through with the $503-million North Luzon Railways (Northrail) project as President Gloria Macapagal-Arroyo has ordered the inclusion of North Luzon Railways Corp. officials in the Subic-Clark Alliance for Development Council (SCAD).
The directive was embodied in Executive Order 733 signed by Executive Secretary Eduardo R. Ermita on June 16.
In the order, the President even noted the project’s importance, but which the opposition claimed has onerous conditions.
"Northrail is an essential component of the vision to make the Subic-Clark corridor the best service and logistics center in the region," the order read.
The directive stated that both the chairman and the president of Northrail will serve as members of SCAD. Both will be appointed by the President.
Last week, Mr. Ermita announced the appointment of SCAD Chairman Edgardo Pamintuan as chairman and chief executive officer of North Luzon Railways Corp.
All heads of local government units within the coverage of the Subic-Clark corridor, as well as departments, bureaus, offices and agencies, were tasked to help the SCAD implement its programs and projects.
SCAD was formed through Executive Order 504 issued on April 10, 2008.
The council was tasked to harmonize strategies to develop the Subic Bay free port in Zambales and Clark Field in Pampanga as a service and logistics hubs for Southeast Asia.
The council is headed by a chairman and consists of the Trade and Industry secretary, who serves as vice-chairman, chairmen of the Bases Conversion and Development Authority (BCDA), Subic Bay Metropolitan Authority (SBMA), Clark Development Corp. (CDC), Clark International Airport Corp. (CIAC), and presidents of BCDA, SBMA, CDC and CIAC as members.
The Northrail project will link Metro Manila to the Clark Economic Zone in Pampanga.
In 2003, the Department of Finance and the Export-Import Bank of China inked a $400-million financing agreement for the construction of the first phase of Northrail, which spans 32 kilometers from Caloocan City to Malolos City, Bulacan.
Beijing and Manila signed the loan agreement in February 2004.
But opposition senators claimed the price tag was "unbelievable."
Minority Leader Aquilino Q. Pimentel, Jr. called for a congressional inquiry on the project to determine if it has onerous terms.
Last week, reports claimed Mrs. Arroyo has scrapped Northrail, but Mr. Ermita said the project remains "very important" to the government.
The Chinese embassy said the reports "do not tally with the facts" and assured that the Chinese government will continually support the project. — Alexis Douglas B. Romero
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