The government has tapped Japanese corporation Sumitomo Mitsui to build the northern segment of the North-South Commuter Railway, a P150-billion deal that will connect Tutuban, Manila, to Malolos, Bulacan.

Transportation Secretary Arthur P. Tugade said the official development assistance (ODA)-funded project is scheduled for groundbreaking for Friday.

“This is one project that has long been pending. We will put it to life this Friday,” he said.

Envisioned to be a railway facility that will connect Tutuban and Malolos in roughly 35 minutes, the Philippine National Railways (PNR) North is a 38-kilometer mass transport system that will serve over 300,000 passenger per day.

It is expected to be completed in 2021.

“We have solved the problem with North Rail, who said they will not move forward with their case,” Tugade said, referring to the company that built segments of the botched railway project during the term of former President Gloria Macapagal-Arroyo.

The PNR North will be integrated to PNR South, which will be a 72-kilometer mass transportation railway from Manila to Los Baños, Laguna. It will also be extended all the way to Clark to connect Manila to the Clark International Airport.

In a related development, Tugade said his group will be breaking ground for the Metro Manila Subway System within the month.

“I will be flying to Tokyo to inspect the boring machine on Tuesday, then fly out to Osaka for a high-level meeting. Once done, I will do that by February 26,” Tugade said.

The subway system involves the construction of 25 kilometers of rail that will connect Quezon City in the northern part of Metro Manila to Parañaque in the southern part. The underground mass transportation system will connect major business districts and government centers.