China accedes to Noy's request to 'reconfigure' NorthRail project

MANILA, Philippines - China’s acceding to the Aquino administration’s request to have the corruption-tainted NorthRail project “reconfigured” is a step in the right direction, a Palace official said yesterday.

“Moving forward, I think there’s been an agreement to do that (reconfiguring),” said Secretary Ricky Carandang of the Presidential Communications Strategic Planning and Development Office.

He said the reconfiguring proffered by Transportation Secretary Manuel Roxas II “means that this time it (project) will be brought in at the right costs.” 

Roxas earlier said the Chinese have agreed to “reconfigure” the NorthRail project, but that he would have to discuss first the terms with his Chinese counterpart. The China National Machinery and Equipment Corp. was the project contractor.

“So, they (Chinese government) have agreed, moving forward, that we will do it right this time – right specs, right costs. What’s remarkable is that both sides have agreed to do the project right this time,” Carandang said. He said the country badly needs a reliable railway system.

Considered as the largest Chinese project in Southeast Asia, the NorthRail project sought to initially connect Caloocan City and Malolos in Bulacan. It was also designed to extend to the Diosdado Macapagal International Airport in Clark freeport, Pampanga. The line will ultimately pass through Pampanga, Tarlac, and Pangasinan and San Fernando, La Union.

Carandang also said the government also needs a national broadband network (NBN) but not as costly as the one that the previous Arroyo administration had been forced to cancel.

He said the Department of Science and Technology is studying the feasibility of putting in place a reliable but cost-effective NBN project.

“It was brought up that there might be a need for a government network which would help save communication costs,” Carandang said.

“That was discussed in broad strokes, and there has been no discussion lately on that,” he told Palace reporters.

Already, Science Secretary Mario Montejo said around P800 million might be needed for the project. “We are finishing our current studies before submitting it to President Aquino. Maybe in one month, we will give him the study,” he said.

The Senate was in the middle of its investigation into alleged irregularities in the previous $329-million NBN deal with ZTE Corp. of China when then President and now Pampanga Rep. Gloria Macapagal-Arroyo ordered it cancelled.

Carandang said discussions were held to find out if there was really a need for such a network.

Montejo said existing government assets such as fiber optic cables may be used for the project. He added the project may first interconnect government offices in Metro Manila before going nationwide.

The DOST chief said interconnecting all government offices would enhance the delivery of services. He acknowledged that while a broadband project “has a bad image, the need to improve government services is more imperative, more important.”

Montejo said he is not sure if ZTE should still be allowed to handle a new NBN project, but stressed he is open to any sound proposal.

“If there is another way of doing it with the same function, it’s okay. Local telcos may offer that kind of service but we have to set a benchmark that if anything is better than this, then it’s acceptable,” he said.