Vol. XXII, No. 83 [ BusinessWorld Online ]
Wednesday, November 19, 2008 | MANILA, PHILIPPINES
THE NORTH LUZON Railways Corporation is seeking an additional $280 million for proposed changes in the design of Phase I of the NorthRail project, the National Economic and Development Authority (NEDA) said yesterday.
"The North Luzon Railways Corporation, in its presentation to the NEDA yesterday [Monday], is proposing the use of standard-gauge railroad tracks, instead of narrow gauge railroad tracks," Roderick M. Planta, NEDA project monitoring staff division director told reporters yesterday.
He noted that most of the railway systems in the world use standard-gauge tracks.
Standard-gauge tracks measure about 1,435 millimeters in width, while narrow gauge tracks are about 1,067 mm in width.
Department of Transport and Communication (DoTC) Under-secretary for Railways Guiling A. Mamondiong said he supports the use of the standard-gauge railways.
No problem?
"We will allow them [North Luzon Railways Corp.] to use the standard gauge if the Philippine National Railways Corporation [PNR], which is implementing the Northrail-Southrail linkage project, will be using the same tracks to allow seamless operations," he said in phone interview yesterday.
He added that DoTC will meet with PNR officials this Friday to discuss the matter.
Phase I of the NorthRail project which will link Caloocan City to Clark Economic Zone in Pampanga had an approved cost of $503 million, with funding from Export-Import Bank of China.
Last July, the China National Machinery and Equipment Corp. Group suspended work on the project and demanded an amount close to $299 million more to continue the project, citing right-of-way costs.
Fast track
NEDA Deputy Director General Rolando G. Tungpalan told reporters that the decision on the proposal of the North Luzon Railways Corporation will still be discussed by the NEDA Infrastructure Committee, Investment Coordination Committee and Cabinet Committee.
"We want to fast-track the project, in line with the thrust of fast-tracking infrastructure projects," he said.
Socioeconomic Planning Secretary Ralph G. Recto said in a mobile "text" message yesterday that the decision on the matter can be made only after the DoTC submits its recommendations. — Louella D. Desiderio
