AMID COST ISSUES
    Plans to run North railway by electricity uncertain

    429
    0
    SHARE
    ANGELES CITY – There is yet no certainty that the 80-kilometer Caloocan-to-Clark railway project will be run by electricity instead of diesel.

    However, its Chinese contractors are expected to be on full blast work on the rail tracks by the end of this month or early February.

     “The $503 million initial budget for the railway accommodates only a diesel powered system,” North Luzon Railways Corp. (Northrail) senior manager for corporate and public affairs Vet Vitug told the Star yesterday.

    Punto contacted Northrail president Edgardo Pamintuan but he referred all queries to Vitug.
    Vitug could not immediately say how much the cost of an electricity run railways differ from one run by diesel, but noted that the difference could be significant.

    He said the China National Machinery and Equipment Corp. (CNMEC) has already fielded workers for ambankment preparations in Malolos.

    “It’s expected that full blast work on the railways will start by the end of January or early February,” he said.

    While Pamintuan said earlier that some $300 million more would be needed for the initial  $503-million cost of the railway project’s 32.5-kilometer Phase 1 from Caloocan City to Malolos, Vitug said there is yet nothing final on the exact cost of the project arising from design changes and rise in the cost of construction materials.

    Some $400 million of the $503 million was from a loan from the China Export-Import Bank, the rest being the Philippine counterpart used mostly for right-of-way concerns.

    Vitug noted  that one of the issues raised by CNMEC last year was its demand for some $290 million additional cost for the project, but he could not say immediately  whether this could cover some changes in the project’s design.

    While the China Export-Import Bank had already approved the loan for Phase 1, negotiations still have to be finalized on another loan for the 50-kilometer Phase 2 from Malolos to Clark.

    After months-long delays due to cost and design issues, the construction of the $503-million NorthRail project is expected to resume this month after the Filipino and Chinese parties to the venture finally resolved their differences, officials said.

    Vitug said CNMEC is working on a “standard gauge” railway which was among the changes agreed upon during the series of meetings between Philippine and Chinese officials late last year. The plan initially involved only a “narrow” railway.

    The meetings, held in Beijing and Manila, came after CNMEC abandoned the project site amid various demands, including the $300-million additional cost and the total clearing of the entire path of the railway before any construction could be started.

    Vitug said that the proposal for changes in project cost has remained pending before the National Economic Development Authority (NEDA).


    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here