MANILA, Philippines – President Aquino is expected to discuss the controversial $1.3-billion (P55.1 billion) North Luzon rail project with his counterpart during his China trip.
“This is one of the issues the President will take up with Chinese officials. We are seeking better terms for the project,” Transportation and Communications Secretary Mar Roxas told the House appropriations committee.
Roxas is among several Cabinet officials accompanying the President in his China visit.
“China and the Philippines have mutually agreed to suspend the NorthRail project pending resolution of many problematic matters. We are seeking amendments to the contract so that these problems can be addressed satisfactorily,” he said.
He said he did not want to detail the problems and the proposed amendments so as not to preempt the President’s meeting with Chinese officials.
“As a general statement, we want to have an operational rail link to the north,” Roxas, a former Capiz congressman before he became a senator, stressed.
NorthRail, which will start in Caloocan City and end in Clark in Angeles City, Pampanga is said to be the most expensive rail system in the world. It will cost roughly $130 million (P5.5 billion) per kilometer, if the distance from end to end is 100 kilometers. However, Caloocan to Clark is only about 80 kilometers.
The Chinese government is funding NorthRail through a loan. The contractor is a Chinese corporation. NorthRail is one of several fraud- and corruption-tainted contracts entered into by the Arroyo administration.
Aside from the cost issue, the Chinese rail technology to be used is reportedly obsolete. In fact, China is already using newer technology.
Muntinlupa Rep. Rodolfo Biazon, a partymate of Roxas in the Liberal Party, said the project initially cost $503 million when the rail link was just up to Malolos City in Bulacan, a distance of 30-35 kilometers.
The cost shot up to $1.3 billion when the link was extended to the Clark special economic zone, he said.
NorthRail is one of at least three big-ticket Arroyo administration projects put on hold or scrapped by President Aquino for being fraud-tainted, overpriced or unnecessary.
The other two are the P12-billion Belgian-funded dredging of Laguna Lake and the French-financed roll on, roll off (ro-ro) portable ports.
A fourth Arroyo project, the $330-million national broadband network, also funded by China, was aborted a few months after the contract was awarded to Chinese firm ZTE Corp. in April 2007.
Roxas said President Aquino has scrapped 70 ro-ro ports for being overpriced and not needed in areas where they would be built.
“These modular steel structures are not the ports that we need. We will just be wasting people’s money if we did not stop the projects. There are more appropriate technologies available at cheaper prices,” he said.
He said the government has already informed France and the French contractor of its decision to scrap the ports.
He added that in 45 of the 70 project locations, there are existing ports that could be improved at a much lower cost.
Parañaque Rep. Roilo Golez, another partymate of Roxas, said a recent survey on the state of transportation showed that the Philippines was No. 6 or 7 among the ten ASEAN (Association of Southeast Asian Nations) members, with Singapore having the best in all areas.
“In rail transportation, for instance, we are No. 6, ahead only of Cambodia and behind Vietnam, and No. 97 among 139 countries,” he said.
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By: Jess Diaz
Source: The Philippine Star, Aug. 31, 2011
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