Japan mulls P500-M grant for railway rehab

The Japanese government is considering extending a P300- to P500-million grant for the rehabilitation of the 39-kilometer railway alignment between Manila and Calamba.

According to Philippine National Railways general manager Jose Ma. Sarasola II, the rehabilitation of the alignment, in particular the second track between Blumentritt and España, is a prelude to privatization.

He said that the grant-in-aid is a separate facility that will be made available by Japan and is not part of the Obuchi yen loan package.

The amount will be used not only for the repair of the tracks, but also the stations along the way and the dedicated rail bridge over the Pasig River.

"We have decided to first focus on this since it is the most easy to get into being operational, and it has a critical mass of commuters," Sarasola said.

The PNR chief also said he is asking housing czar Mike Defensor to relocate the squatters living near the railways. The 39-kilometer alignment is actually the beginning of the South rail which will extend all the way to Bicol.

Sarasola reported that they are still awaiting the revised proposal from the Ayala Group on the Manila Calabarzon Exchange. "We are giving priority to the Ayala Group since it is the first to express interest in the MCX but we will also accept proposal for build-operate-transfer," he said.

The MCX will support the Ayala Group’s real estate development along Calabarzon region. "Actually, we advised them that if they are going to invest millions of dollars for this project, then we in government should help improve the cash flows first," he said.

Meanwhile, Transportation and Communications Secretary Pantaleon Alvarez said in line with President Arroyo’s directive during her recent state-of-the-nation address on the implementation of mass transport particularly the extension of the MRT and the LRT, the construction of the MRT 3 North Avenue to Monumento line will be completed in 2004.

He also reported that the LRT extension line 2 from Recto-Aurora Blvd. going to Santolan, Pasig will be finished in three year’s time. Also under construction is the LRT 4 España-Quezon Blvd. to Batasan line as well as the LRT 1 extension Baclaran to Parañaque to Bacoor, Cavite route.

On the LRT 1 extension, Light Rail Transit Authority (LRTA) administrator Teddy Cruz said that the implementation agreement between the LRTA and Lavalin is now being reviewed by the NEDA Investment Coordinating technical working group. "We expect the Baclaran to Parañaque line to be finished by the first part of 2004," Cruz said.

Also yesterday, Philippine Ports Authority (PPA) administrator Al Cusi said that the terms of reference for the privatization of the North Harbor is currently being prepared. The PPA plans to go into the build-operate-transfer scheme. "Without the dredging cost, it will probably cost around P2.5 billion," he said.

In another development, it was learned that the Ninoy Aquino International Airport 3 is already 50-percent complete and is targeted to be finished by December of next year. The project cost around $500 million.

Telecommunications and Communications Undersecretary Winnie Trinidad, likewise, reported that Davao International Airport is undergoing construction. "We expect the civil works to be completed April next year," he said.