THE Department of Transportation and Communications (DOTC) will reconfigure the terms and conditions of the Northern Luzon Railway (NorthRail) project under the Aquino administration, Transportation and Communications Secretary Manuel Roxas II said on Monday.
In the DOTC flag ceremony, Roxas told the department’s employees about the significant agreements and potential joint infrastructure and services projects the government discussed with China. First on the list is the NorthRail project, which Roxas said had been discussed with China’s top leaders.
“The NorthRail project is highly desirable but the present contract is problematic. This is the reason a reconfiguration of the project is being discussed. We are opening talks to prevent the project from being stalled,” Roxas said.
“We are looking forward to the success of the talks so that the project can be reconfigured such that it satisfies Philippine procurement laws, proper [contract] bidding is undertaken and correct payment scheme is agreed with suppliers. This will take a lot of time but at least the condition has been set now,” he said.
Another project that received favorable respond from Chinese officials, according to Roxas, is the China-Philippine Nautical Highway project where roll-on, roll-off (Roro) facilities will be established between China’s Guangdong province and either Subic or Batangas port.
Guangdong is the manufacturing base of China where leading technology companies the world over, including Intel Corp. and IBM Corp. have set up factories. But over the years, labor costs in China have gone up such that multinational companies are starting to look elsewhere to base their manufacturing operations.
“The [labor] situation in China had tremendously changed over the last two decades. Their labor cost is now relatively expensive as such that they now face labor supply problems,” Roxas said. “This presents a good opportunity for us particularly to claim the position of being the manufacturing base in the region.”
Under the Roro cooperation, local raw materials and semi-finished industrial goods will be loaded on containers and transported via the Roro between Guangdong and two local ports.
Another project highlighted by Roxas is the Central Spine Nautical Highway, which involves the construction and operation of an integrated transportation system combining Roro ferry port network and services with connecting toll roads linking Manila, Panay, Negros, Cebu, Bohol and Northern Mindanao.
He said the Chinese leadership expressed openness in further extending the available credit lines to the country.
“If we can determine the cost of this project, funding companies like the Japan International Cooperation Agency, World Bank and China will have an idea how much they can finance the project,” Roxas said.
