BCDA president and chief executive officer Rufo Colayco said the project has been downgraded from its original concept of a high-speed railway system connecting the Diosdado Macapagal Airport in Clark to Metro Manila, to a slower commuter transit system serving the Central Luzon area.
It is well-known that while a commuter system offers more social benefits, it requires continuing government subsidy as it not always profitable and is capital-intensive, Colayco explained.
From the start, Colayco clarified that the National Government and BCDA already had an understanding that BCDA would set up the project but that it would eventually be turned over to a more appropriate entity such as the Department of Transportation and Communication (DOTC), the Philippine National Railways (PNR) or to a totally new railway corporation.
In fact, the borrower for the loan extended by the Chinese government for the revised North Rail project is the Department of Finance and not the BCDA, Colayco pointed out.
The estimated cost for the new railway system is P32 billion, of which P6 billion would be allocated for the squatter relocation and P26 billion for the railway system.
The Chinese loan would cover 80 percent of the project cost, while the remaining 20 percent would be sourced from a consortium of lenders.
To date, Colayco reported that BCDA has contributed P720 million for the project.
It is now waiting for government’s decision as to which entity would take over the railway project.
The PNR, while the logical choice is largely inoperative and still has many financial problems of its own to resolve, Colayco said.
The planned North Rail Transit System would start from Caloocan City, to Malolos, Bulacan.