Northrail project to push through — Palace adviser

The Arroyo administration will proceed with the stalled Northrail project, according to Presidential Adviser for Northern Luzon Renato Diaz.

However, Diaz said the government would re-bid the Northrail project and is currently drawing up the new terms of reference (TOR) for a new bidding in the next 30 to 60 days.

The ambitious Northrail project is envisioned to link Metro Manila to Clark, Subic and other northern provinces.

The first phase of the railway system would involve the stretch from Metro Manila to Clark Field, the former US airbase in Pampanga. Clark is being developed to become the country’s alternative international airport.

Diaz acknowledged that the railway project would cost more now but he said government remains undaunted as there remains a much international interest in the project.

The previous cost estimate for the Northrail project was about $600 million.

Although he refused to identify exactly who are still interested in the project, he revealed that these are Japanese companies.

An earlier consortium was supposed to undertake the project. It was composed of the Bases Conversion Development Authority (BCDA), the Philippine National Railways, DMCI Holdings, Inc., Fort Bonifacio Development Corp. and a Spanish railway group.

Several Japanese companies had also joined the previous consortium, including Mitsui and Co. Ltd., Nishimatsu Construction Co. Ltd. and Fil-Estate Management, Inc.

According to Diaz, the government, would still be able to secure financing for the project under the Japanese Obuchi Fund.