Northrail project phase 1 gets green light

The Investment Coordination Committee-Cabinet Committee (ICC-CC) recently approved the $503.04-million Northrail project Phase I — Section 1 that is expected to give passengers a faster and more efficient mode of transportation and at the same time spur economic development in both Central and Northern Luzon.

Phase I — Section I of the project, or the Caloocan to Malolos line, will cover 32.138 km. of rail track utilizing the long-abandoned Philippine National Railways (PNR) line, which is parallel to the North Luzon Expressway. It will establish six stations, namely: Caloocan, Valenzuela, Marilao, Bocaue, Guiguinto, and Malolos.

The project will involve the reconstruction and conversion of the existing PNR track into a double track, construction of the six stations, land acquisition for the areas where the existing PNR track is too narrow, utilities diversion, procurement of 30 four-car train sets, and provision of train control and signaling system.

According to director Jonathan Uy of the NEDA’s Public Investment Staff, a total of $395.244-million, or 79 percent, of the $503.04-million total budget for the project has been proposed by the ICC to be sourced from official development assistance (ODA) financing in the form of supplier’s credit.

He also said that Northrail will shoulder a total of $107.819-million (21 percent) through commercial loans, $20.801-million of which will be used as local counterpart to ODA-supplier’s credit financing, while the remaining $87.018-million will be used for other costs, such as project management, taxes and others.

The Bases Conversion Development Authority (BCDA) will spearhead the implementation of the project in cooperation with the PNR. Construction period is projected to start in the last quarter of 2003 and completed in the first quarter of 2006.

The Northrail project will be implemented in four phases. Phase I is divided into two sections, namely: Section I, which will cover the line between Caloocan to Malolos; and Section II, which will cover the line between Malolos and Clark Special Economic Zone. Phase II of the project will cover the branch line to Subic Economic Freeport Zone; Phase III will cover the extension to Fort Bonifacio Global City; and Phase IV will cover the extension to San Fernando, La Union.

Once completed, the entire Northrail project is expected to encourage the dispersal of the Metro Manila population towards Central Luzon, and potentially, Northern Luzon. The project is also expected to accelerate development in Central Luzon and Northern Luzon by providing easy access to these new economic growth areas.

In approving the project, the ICC noted the clear need for the National Government, the Northrail and the BDCA to work hand-in-hand in providing fiscal and management cooperation for its success.

As identified in the Medium-Term Philippine Development Plan (MTPDP), 2001-2004, the project is in line with the Arroyo administration’s policy to accelerate infrastructure development in order to help achieve a Strong Republic.