Polish firm to upgrade RP railways

A private Polish company has agreed to rehabilitate and upgrade the country’s railway system based on an agreement signed during the visit of Polish Prime Minister Marek Belka yesterday.

Belka and President Arroyo witnessed the signing of the agreement between Roman Baczynski, president of BUMAR Group Co. Ltd. and Jose Ma. Sarasola II, general manager of the Philippine National Railways (PNR).

Based on the accord, BUMAR will rehabilitate the Calamba-to-Legaspi line of the PNR and build a spur line to the Port of Pantao in Albay and its extension to Matnog, also known as the Sorsogon Railroad Extension Project.

BUMAR will prepare a feasibility study on the project and endeavor to provide project financing.

"The project will enhance the socioeconomic development of the Bicol region and benefit inter-regional commuters and traders. This is in line with the President’s priority agenda to build the infrastructure needed to connect the entire country," Malacañang said in a statement.

Board of Investments (BOI) records show there have been no Polish investments in the Philippines since 1986 while the Philippines, through International Container Terminal Services Inc. (ICTSI) has a total of $100-million investments in Poland.

ICTSI has won the bid to develop, operate and manage the Baltic container port in Gydnia, Poland.

The two governments also signed a memorandum of understanding on consultations and cooperation between the foreign affairs departments of the two countries.

The political consultations will be held every two years to review bilateral relations, identify ways to develop closer cooperation and to exchange views on regional and international issues.

Belka and President Arroyo held bilateral talks in Malacañang and explored ways that would open opportunities to improve and expand relations between the Philippines and Poland.