Northrail project goes full-blast next month

CLARK FIELD, Pampanga — Chinese Ambassador Li Jin Jun assured officials of the Clark Development Corp. (CDC) that the $503-million North Railway (Northrail) project will go full-blast by the end of February.

CDC officials said Li was here over the weekend and briefed them, as well as officials of the Clark International Airport Corp. (CIAC) and Malacañang representatives, led by Presidential Adviser for North Luzon Renato Diaz, on developments in the railway project largely funded from a loan from the Export-Import Bank of China.

Li said the old railway of the Philippine National Railways from Kalookan City to Malolos, Bulacan is expected to be fully cleared of informal settlers by February.

This, according to Li, would pave the way for the start of the first phase of the modern railway that would link Metro Manila to the Clark special economic zone, specifically the Diosdado Macapagal International Airport (DMIA).

Meanwhile, Danilo Francia, CIAC president and chief executive officer, said a joint committee is expected to finish this year a detailed study on a world-class passenger terminal at the DMIA, which is expected to be fully operational by 2015.

Li said the Northrail’s Phase 1 would cover some 80 kilometers from Kalookan City to the DMIA — the first section from Kalookan to the southern part of Malolos, Bulacan, and the second section from northern Malolos to the DMIA.

According to CDC officials, Clark establishments to be affected by the Northrail construction have been given notices to move out.

Among them is the Omni aviation school where First Gentleman Mike Arroyo was said to have trained how to fly aircraft.

"The Northrail project will provide efficient transport service for passengers and goods between Metro Manila and Central and Northern Luzon, particularly between Clark, Fort Bonifacio, Subic Naval Base and Poro Point," said CDC information manager Sonny Lopez.

"The railway system is expected to enhance the development and growth potentials of these areas," he added.

Of the total $503-million cost of the Northrail project, Lopez said $421 million was loaned from the Chinese government through the Export-Import Bank of China "under very concessional terms."

The Bases Conversion Development Authority (BCDA) secured the remaining $82 million from local loans, largely for the relocation of thousands of families living along the old PNR railway.

"The loan terms provide for a 20-year repayment period, inclusive of a five-year grace period, at three percent interest," Lopez said.