COLOOCAN-TO-CLARK
    Northrail operational in 2012

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    CLARK FREEPORT  – The long-delayed, 83-kilometer modern railways system from Caloocan City to this freeport will finally be finished and fully running in 2012.

    This was the fearless assurance made yesterday by officials of the state-owned Luzon North Railways Corp. (Northrail) as they toured mediamen to segments of the project in Malolos, Bulacan where full blast work on the railway foundation is in progress.

    “We have gained the momentum in building the modern railway system from Caloocan to Clark. Based on our 2009 performance and lessons learned, we are now certain of having the trains running on the 82-kilometer track in 2012,” said Northrail president and chief executive officer Zoilo Andin Jr.

    Andin made the statement in the first ever press conference held by Northrail since the project was first conceived in 1995 during the term of former Pres. Ramos.

    He also disclosed that the project’s cost has risen from the initial $1 billion to about $1.3 billion due to rise in cost of materials, among other factors. Some $1 billion would come from a loan from the China Export-Import Bank which also designated the China National Machinery and Equipment Corp. (CNMEC) as project contractor. CNMEC is now known as Sino Machineries or Sinomech.

    The cost of the first segment from Caloocan to Malolos has risen from the intial estimate of $421 million to $602 million, while the second segment from Malolos to Clark has gone up from $597 million to $699 million, he said, citing the rise in prices of construction materials, particularly steel, as the major factor in the price difference.

    But Andin stressed that no renegotiation on the $1 billion Chinese loan was resorted to as the added cost will be shouldered by the Northrail.

    Andin noted that while the project was proposed in 1995, actual work on it started only in February, 2007.

    “Work is now in full blast on Section 1 of the project from Caloocan to Malolos,” said Andin, as he cited estimates that in 2009 alone, about 17 percent of the first segment was finished.

    He said that the foundations for the railway from Caloocan to Malolos could be finished before Pres. Arroyo’s term ends on June 30. The entire segment with diesel-run trains could be operational by the end of the year, he added.

    Andin said that at the rate of work progress on the project, all civil works from Caloocan to Clark could be finished by the middle of 2011. Full operation is expected the following year, he added.

    So far, a total of 25,191 families living along the old railways to be used for the new railways project have already been relocated in areas covered by the first segment.

    Andin said that significant progress on the railways project was triggered last year after the Chinese contractor agreed to construct simultaneously segments of the project where right-of-way problems have already been resolved. The contractor also had agreed to hire local sub-contractors.

    He also noted that Northrail was able to hire Filipino engineers to work on the project after they were displaced by the global economics crisis in their jobs abroad.


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