North Rail project launched:
RP, China start building rail project from Manila to Ilocos

By EDMER F. PANESA & WILLIE CATAPAT
Sept 25, 2006

The Philippine and Chinese governments broke ground and launched the first phase of the most awaited North Rail Manila-to-Ilocos project aimed at reviving and modernizing rail transport north of Manila that has been abandoned for a quarter of a century.


China’s new ambassador to the Philippines, Wu Hongbo, reaffirmed Beijing’s commitment of a new 20-year concessionary financing for the rail project. House Speaker Jose de Venecia Jr. envisioned the project as a major boost to the economy.

De Venecia said the project begins the opening phase of a well-planned effort to rebuild the country’s railway system in North and South Luzon and on Panay Island in the Visayas and build the first rail system in Mindanao in a hundred years.

"This will be a lasting legacy of President Gloria Macapagal Arroyo to the Filipino nation. The railways will open up communities to greater trade and economic opportunities — and will unite our people," De Venecia said.

In his speech, De Venecia, on behalf of the Philippine government, expressed gratitude to Chinese President Hu Jintao, his predecessor Jiang Zemin and China’s new head of parliament Wu Bangguo and the leader he succeeded, Li Peng, for their relentless effort to the Philippine railway modernization project.

The first phase of the modernized South Rail to Sorsogon will be launched with the Manila-to-Calamba (Laguna) line, which will be financed by the South Korean government.

According to Philippine National Railways (PNR) general manager Jose Ma. Sarasola II, China is providing $400-million in concessionary financing for the Caloocan City to Malolos (Bulacan) line, which will eventually extend to the Diosdado Macapagal International Airport (formerly Clark Air base) in Angeles City, Pampanga.

Sarasola said the Phase II of the project is the line branching out to the Subic Freeport Zone in Zambales.

He added that Phase III covers the line from Caloocan to the Fort Bonifacio Global City in Taguig, while Phase IV extends the line all the way to north to San Fernando, La Union passing through Pampanga, Tarlac, and Pangasinan.

Minister Mao Qian of the Chinese Embassy called the project as the "largest Chinese project in Southeast Asia," and the first 20-year concessionary loan even extended by China to any government in three percent interest and includes a five-year grace period.

Sarasola said 23 Chinese engineers are already in the country for final technical deliberations on the project, a double track system that will use narrow gauge tracks compatible with PNR lines.

The system will use diesel multiple units with a design that can be upgraded to electrified system that China successfully developed.

When completed, the 32-kilometer line is estimated to ferry 350,000 commuters daily, including those from the LRT and MRT lines with which North Rail will be interconnected.

The PNR, Bases Conversion Development Authority (BCDA), and its subsidiary, the North Luzon Railways Corp., Department of Transportation and Communications, and the Chinese government-owned National Machinery and Equipment Corp., are jointly undertaking the North Rail project.

Meanwhile, the DOTC and PNR are now working on the clearing and relocation of some 35,000 squatter families that built shanties dangerously close to the rail tracks.

The two agencies are now coordinating with Housing Secretary Michael Defensor.

The Chinese government is also partly financing the squatter relocation to new sites with a new housing.

The project is the initial phase of an ambitious national railway modernization program proposed by De Venecia and to which China and South Korea have already pledged substantial financing.

Last week, an international consortium backed by the governments of Germany, Austria, France, Thailand and India jointly pledged over R500 million to complete the feasibility studies for the Mindanaowide rail system, which President Arroyo and De Venecia have envisioned to open the island’s economy and unify its Christian, Muslim and Lumad communities.


Groundbreaking


The formal groundbreaking and launching of the Caloocan-Malolos phase of the North Rail project was held yesterday at the Caloocan City terminal of the Philippine National Railways (PNR) attended by top Philippine and Chinese government officials.

Speaker Jose de Venecia, one of the proponents of the project, said the launching of the first phase will signal the revival and modernization of the rail transport north of Manila that has been abandoned for almost a quarter of century.

Also on hand during the occasion were Caloocan City government officials, led by Mayor Rey Malonzo, China’s ambassador to the Philippines Wu Hongbo, Department of the Transportation and Communications (DoTC) officials and other representatives from government agencies involved in the project.

De Venecia thanked the government the President Gloria Macapagal Arroyo, Chinese President Hu Jintao, and his predecessor Jiang Zemin for their relentless support to the Philippine rail modernization project.

China is providing $400 million in concessionary financing for the Caloocan City to Malolos line, which will extend to the Diosdado Macapagal International Airport in Clark, according to PNR general manager Jose Ma. Sarasola II.

He said Phase II of the project is in the line branching out to the Subic Freeport Zone in Zambales. Phase II covers the line from Caloocan to the Fort Bonifacio Global City while Phase IV extends the line all the way to San Fernando in La Union passing through Pampanga, Tarlac, and Pampanga.

Sarasola said 23 Chinese engineers are already in the country for the final technical deliberation on the double-track system that will use narrow gauge tracks compatible to PNR lines.