China funding for long-haul rail project seen available in 2018

The Department of Transportation is targeting to secure loan commitments from China in 2018 for the funding of a long-haul railway line that will connect Manila to Matnog, Sorsogon, in the Bicol region of southern Luzon.

Cesar Chavez, DOTr undersecretary for rails, said the project, formally known as the Philippine National Railways South Long Haul project, was among the “first basket” of infrastructure deals to be funded and built with China’s help.

He said on Friday that a memorandum of understanding between Manila and Beijing would be signed during the Asean Summit in November this year.

“After the loan agreement for the project is signed in 2018, the loan proceeds will become available under GAA [General Appropriations Act] 2018 unprogrammed appropriations,” Chavez said, referring to funding for the 2018 national budget.

On the government’s “Build, Build, Build” online portal, the PNR South Long Haul is expected to cost around P151 billion to build. It is a 581-kilometer standard gauge railway line, which mainly involves the “complete reconstruction of the legacy PNR railway into a single track, at-grade railway.”

“The railway will connect cities, international seaports and economic zones, allowing for faster transportation of passengers and freight,” according to the government website.

Chavez said the PNR South Long Haul project would be operational by the second quarter of 2022, or before President Duterte’s term ends.

“Implementation works for the project are also ongoing, especially for right-of-way acquisition,” he said. Chavez noted that between P800 million and P7 billion have been appropriated for the project for the 2016 and 2017 budgets, respectively. He said another P3 billion had been requested for 2018.

The PNR South Long Haul project is one of three railway projects approved by the board of the National Economic and Development Authority last Sept. 12.

Also given the go-ahead was the PNR South Commuter line, a 72-km railway system that will run from from Manila to Los Baños, Laguna. The PNR South Commuter project, which will also be financed via an official development assistance (ODA) loan of yet to be determined origin, has a budget of P134 billion and is slated for completion by December 2021.

Also approved by the Neda Board chaired by President Duterte was the P355.6-billion Metro Manila subway project, which will run from Quirino Highway in Quezon City, to Taguig and end at the Ninoy Aquino International Airport complex in Parañaque City.

The DOTr said the plan was to start construction by end-2018, with completion seen by 2025.

The country’s first subway will be funded by a loan from the Japan International Cooperation Agency, with signing targeted around November this year. It will be a 40-year loan with an interest rate of 0.1 percent and a 12-year grace period.


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DOTr eyeing blacklist of MRT maintenance provider

The Department of Transportation (DOTr) is considering to blacklist Metro Rail Transit (MRT) maintenance provider Busan Universal Rail Inc. (BURI) from entering into any contract with the government amid the recent breakdowns of the railway system.

The DOTr has reiterated its position that it will terminate the maintenance contract of BURI, arguing that it was void from the beginning.

In an inquiry by the House Committee on Good Government and Public Accountability last week , DOTr Undersecretary for Legal Affairs and Procurement Reinier Paul Yebra said his office has already recommended the termination of the BURI contract and is now awaiting report verification by the MRT-3 management.

The department also plans to file charges against those involved in the MRT maintenance contract before the Office of the Ombudsman.

MRT officials likewise denied the claims of BURI that it did not bill the government for two Vehicle Logic Units (VLU) amounting to P4 million.

During the hearing, they presented documents from BURI that would prove that the firm has billed the government for the 2 VLUs and installed them in cars no. 6 and 63.

A VLU, which costs P2 million each, is part of the Automatic Train Protection system which controls the speed and brakes of a train to avoid overspeeding, keeps safe distance between trains, and applies brakes to avoid collisions.

It was also disclosed that BURI was only issued its Certificate of Incorporation from the Securities Exchange Commission (SEC) after it was awarded the MRT maintenance contract.

“DOTC awarded the maintenance contract to BURI on Dec 23, 2015 but such consortium was only registered with SEC January 4, 2016. Hindi lang fake ang spare parts. Fake din ang contract (Not only the spare parts are fake but also the contract),” Pampanga Rep. Aurelio ‘Dong’ Gonzales said.

The committee asked the MRT-3 management to submit all documents including the maintenance contract signed during the previous administration and a list of names involved in the approval of the contract for the next hearing.
It also directed the MRT management to submit its own investigation report.

The DOTr recently withheld the payment of the VLUs due to the failure of BURI to provide the necessary supporting documents such as the Factory Inspection Report and Certificate of Origin.

SKYdirect "Bahay Namin" with Judy Ann Santos

DOTr clarifies Metro Manila subway project sked

The Department of Transportation on Sunday clarified that the construction of Metro Manila’s first subway system would start in the latter part of next year, contrary to reports that it would already start next month and aggravate traffic conditions in the coming holiday season.

The DOTr was reacting to social media posts and comments saying residents and motorists should brace themselves for monstrous traffic jams because of the project, with the worst supposedly expected in Parañaque City.

In a statement, the department said the groundbreaking for the depot, training center and the first stations of the Japan-funded Metro Manila Subway Project (MMSP) is scheduled in the third and fourth quarters of 2018, after which construction will follow.

What will happen next month, it said, is the signing of the exchange of notes (EN) between the Japanese and Philippine governments on the MMSP, after the project was approved by the National Economic and Development Authority (Neda) board on Sept. 12.

The signing will take place at the sidelines of the Association of Southeast Asian Nations (Asean) summit in Manila, with President Duterte and Japanese Prime Minister Shinzo Abe as witnesses.

“The EN will set out Japan’s commitment to finance MMSP, including the terms for such financing,” the DOTr said.

The 30-km MMSP is among the flagship infrastructure projects under the Duterte administration’s Build Build Build Program. The subway is expected to be running partially by 2022, and fully operational by 2025.

The proposed route of the MMSP Phase I or the Central Zone starts at Mindanao Avenue-Quirino Highway in Quezon City and ends in FTI, Taguig City, with a proposed depot in Barangay Ugong, Valenzuela City.

There will be 13 underground stations traversing six cities: Valenzuela (for the depot), QC, Pasig City, Makati City, Taguig, and a small portion of Parañaque City. —Jerome Aning


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MPIC says P7.3-B deal for Calax inked soon

INFRASTRUCTURE conglomerate Metro Pacific Investments Corp. (MPIC) will soon sign a P7.3-billion contract with Leighton Contractors Philippines Inc. for the construction of the second segment of the Cavite-Laguna Expressway (Calax). 

Luigi L. Bautista, who sits as president at MPCala Holdings Inc., said his group targets to seal the deal for the construction of the Cavite portion of Calax with Leighton in November.

Signing the deal in the said month means that the contractor can start building the road by the first quarter of 2018.

“So, by January, we’ll start,” Bautista said in an interview over the weekend.

The contract for the construction of the Laguna segment of the expressway project was inked in March with D.M. Consunji Inc. (DMCI).

For her part, Public Works Undersecretary Maria Catalina E. Cabral said the government is committed to deliver the right-of-way to the company to complete the whole expressway in two years’ time.

“We’ve already acquired the right-of-way. The marching order for us is to finish our programs under the term of President Duterte. The target completion for Calax is two years from now,” Cabral said.

She said the delivery of the needed easement is as scheduled, but declined to disclose how much right-of-way has been delivered so far.

“We’re on time, significantly with the construction time,” Cabral said.

Calax, a 47-kilometer thoroughfare that will link the Manila-Cavite Toll Expressway and the South Luzon Expressway, aims to enhance trade and socioeconomic activities in the Southern Tagalog region.

MPCala Holdings, a unit of Metro Pacific, won the right to financing, design, construct, operate and maintenance of the entire four-lane toll road for P55.9 billion.

The project will include the construction of centralized toll plazas, a toll-collection system, viaducts and bridges. Metro Pacific holds a 30-year concession to 2050.