DOTC confident on renegotiation of North Rail contract

MANILA, Philippines - Transportation and Communications Secretary Jose de Jesus expressed confidence yesterday that the government could renegotiate the expensive US$503-million contract for the construction of the Northrail with a Chinese firm.

In an interview on Manila-based radio dzRH yesterday morning, De Jesus said that contractor China National Machinery and Equipment Corp. Group (CNMEG) has been very cooperative in previous discussions with them on the contract it forged with the previous administration.

“They have been very cooperative and we think we can renegotiate,” De Jesus said.

He said that the department was set to finish their review of the contract this month as scheduled.

The DOTC had been tasked by President Aquino to conduct a review of the Northrail contract last July after ordering the department to assume jurisdiction over the project.

It can be recalled that former president and now Pampanga Rep. Gloria Macapagal-Arroyo had ordered the Northrail to be put under the supervision of the Bases Conversion and Development Authority (BCDA).

Sen. Franklin Drilon exposed the alleged overpricing in the project, making it the most expensive railway in the world at $25 million per kilometer.