DOTC Secretary Leandro Mendoza said the National Economic and Development Authority (NEDA) and the Cabinet-level Investment Coordinating Council (ICC) have approved the allocation of $50 million for the project.
"The project is part of the railway rehabilitation plan of President Arroyo, a vital component of her eight-point agenda for economic development. It is PNR’s contribution to decongesting Metro Manila’s streets through a rail-based mass transport system," he said.
The NEDA-ICC, jointly headed by Finance Secretary Jose Isidro Camacho and NEDA director general Romulo Neri, approved the project at its regular meeting this week.
Phase 1 of the South Manila Commuter Rail Project will start at Samson Road in Caloocan City and end at the Philippine National Railway (PNR) station in Alabang, Mendoza said.
The railway system is one of the oldest and cheapest means of transportation in the country. Over the years, PNR’s facilities have deteriorated, prompting it to cease operations in provinces north of Manila nearly a decade ago and limiting operations in the south.
Mendoza said the government plans to modernize the PNR to ease traffic and provide the public with an alternative means of transport.
Under the project, the government will acquire brand-new diesel-fueled multiple trains, rehabilitate station facilities and strengthen the tracks and bridges of the PNR. It will be funded by the Korean Import-Export Bank.
"To ensure that the new railway system does not endanger vehicles and people alike, the project will include the construction of iron-grill fencing on both sides of the tracks," Mendoza said.
He added that the "biggest problem" in implementing the project is the presence of squatters along the PNR tracks. Under the law, no squatter can be evicted without providing them an area for relocation.
At present, there are thousands of squatter families who have made their homes on either side of the railway tracks.
These squatters, according to Mendoza, have been resisting government efforts to relocate them to other areas, saying that they were being transferred to towns which are distant from their sources of income.
Under the project approved by NEDA-ICC, the Housing and Urban Development Coordinating Council chaired by former Rep. Michael Defensor was tasked to ensure a 3.5-meter easement clearance on both sides of the tracks.
The National Housing Authority has prepared a master plan for the relocation of the squatters, to be implemented in February before the project starts construction. The DOTC will coordinate with local government units to facilitate the relocation.
The South Manila Commuter Rail Project is expected to be fully operational by the first quarter of 2004.