In a press conference at the Bigaa station of the old PNR tracks here after inspecting the project sites in the Caloocan, Malabon, Navotas, Valenzuela (CAMANAVA) area, Li said that Chinese technicians from their contractors are set to arrive in the country on Sunday to start evaluating the project sites.
He said construction would start as soon as 16 kilometers of the project site from Caloocan to Balagtas have been cleared of structures and settlers.
According to the Chinese envoy, this is the first condition set by their government for the construction of the first 32 kilometers of the train facility.
The second condition is that both parties — the Chinese and Philippine governments — should agree on the design of the project. Much of the design has been done in China and this will be discussed with North Rail Corp.
North Luzon Railways Corp. (NLRC) officials announced yesterday that the actual construction of the Caloocan-to-Malolos line should start by mid-December.
NLRC president Jose Cortes said the Chinese envoys’ visit to the actual site showed the Chinese government’s resolve to assist the country in acquiring an inexpensive yet efficient mass transportation system for the country.
North Rail is an ambitious $421-million project acquired through a preferential loan from China, which means that its interest rates are lower than a commercial loan. It also has longer repayment terms and the Chinese government would subsidize the difference while the loan is being paid.
President Arroyo had requested from Chinese President Hu Jintao a more convenient loan term, allowing the Philippine government to repay the loan over 20 years instead of the usual 12, with three-percent interest instead of four and 95-percent cover instead of 85, which are the usual loan terms of the Chinese government.
Despite these assurances, the contract was the subject of an inquiry by the House of Representatives, which investigated several anomalies in the deal. The alleged anomalies were cited in a University of the Philippines study of the contract.
Li described the North Rail deal as a "friendly arrangement" between the two governments and the deal was described by Cortes as more beneficial to North Rail than to China.
The Chinese government has also assured the Philippine government of its willingness to extend the railway line to Clark in Pampanga and eventually to San Fernando, La Union.
Cortes said that once completed, even the first phase of the North Rail project could help spur development of Central and Northern Luzon.
Aside from providing easy and cheaper access to new economic growth areas, the project will also improve the interconnection of major transportation facilities in the Manila-Clark-Subic triangle.
The speed railway system is also seen as part of the solution to Metro Manila’s traffic congestion.
"We expect a shift from road-based transport to a rail-based one, thus decongesting the road networks in busy Metro Manila," Cortes added.
National Housing Authority (NHA) general manager Federico Laxa said that as of yesterday, a little over 16 kilometers of the project site — from Caloocan to this town — have been cleared of structures.
He gave assurances that in the next three days, they would be able to complete the relocation of the families residing in areas covered by the first phase of the North Rail project, from Caloocan to Malolos City.
Some 18,000 families will be transferred to various in-town resettlement sites, which Laxa described as the fastest and the biggest relocation in Philippine history.
However, some settlers in the old PNR tracks in Barangay Borol 1st in this town have complained that they were not awarded a piece of land in the relocation site in Barangay Santol, also in this town.
Romeo Cruz, a resident, told reporters that some of his siblings failed to avail of lots and are now worried over their fate when clearing operations start. — With Jerry Botial