DOTR eyes DOF loan facilitation for P142-B Bicol railway project
AFter signing a p142-billion contract package for the Philippine National Railways (Pnr)bicol project this week, the department of Transportation (DOTR) is now coordinating with the Department of Finance (DOF) for the facilitation of the official development assistance (ODA) package to fund the said deal.
The agency tapped the joint venture of China Railway Group Ltd., China Railway No. 3 Engineering Group Co., Ltd., and China Railway Engineering Consulting Group Co., Ltd. (CREC JV), for the design, construction, and electromechanical works for the project.
Transportation Undersecretary for Railways Timothy Batan explained that Chinese ODA packages require a signed contract first before the request for a loan, unlike packages from the Asian Development Bank and the Japan International Cooperation Agency.
“Since for China ODA projects, the contract comes before the loan, the contract that we signed does not become effective until the loan agreement with China becomes effective,” he said.
The deal involves the construction of the first 380 kilometers of the PNR Bicol from Banlic, Calamba to Daraga, Albay, crossing 39 cities and municipalities, four provinces, and two regions.
“Generally, China may finance up to 85 percent of the contract amount, with the balance to be funded by local counterpart budget. The final terms of the loan, including the percentage that will be financed by China, will be subject to loan negotiations by DOF,” Batan said.
The contract also involves the construction of 23 stations, 230 bridges, 10 passenger tunnels, and a 70-hectare depot in San Pablo, Laguna.
“For our kababayans in the South who have dreamt of this project for so long, we are finally seeing the light of day. This milestone is a huge leap towards realizing this long-awaited project—the PNR Bicol or the South Long Haul Project. We are grateful to our development partners from China for supporting us in this endeavor and believing that the Filipino people deserve an improved quality of life,” transportation Secretary arthur tugade said.
For his part, PNR General Manager Junn Magno said the group will put prime focus in starting the project, which, he said, will provide greater convenience to commuters.
“We welcome this development full of enthusiasm as we will be working with rail experts known for their efficiency and speed in building long haul railways. This, along with our earnest goal to provide comfort and convenience to our commuters, will make this dream project a reality,” he said.
The PNR Bicol Project consists of several contracts, involving the construction of a total of 565-kilometer railway that runs from Metro Manila to Sorsogon and Batangas.