Thursday 18th August, 2011(Source: Sun Star Daily)
PRESIDENT Benigno Aquino III will discuss the shelved North Luzon Railways (Northrail) project, among others, during his state visit to China scheduled August 30, his defeated vice-presidential candidate and now Department of Transportation and Communication (DOTC) Secretary Manuel Roxas II said Thursday.
"We are seeking for amendments to the existing agreement such that problems can be addressed satisfactorily...We want to have an operational working rail that would link to the north rail, for instance, Clark," Roxas said.
The contract for the 80-kilometer railroad project, which intends to connect Caloocan to Angeles City, was earlier suspended due to slow progress and alleged overpricing. The contract was entered into by the government with Sinomach (formerly China National Machinery and Equipment Corporation).
The government acquired a loan from the Chinese government for the North rail project during the administration of former President Gloria Macagapal-Arroyo.
During the budget hearing of the House Committee on Appropriations, Muntinlupa Representative Rodolfo Biazon said the shelved project is costing the government P66,000 every day for paying interest rates alone.
The loan, which had an original price of $300 million, has ballooned to $1.3 billion.
Upon the invitation of President Hu Jintao, Aquino will pay a state visit to the People's Republic of China from 30 August to Septeber 3.
"Among the highlights of the visit would be the focus on enhancing the Joint Action Plan on Strategic Cooperation signed on 29 October 2009 and the signing of the Philippines-China Five-Year Development Program for Trade and Economic Cooperation," the Department of Foreign Affairs said in a press statement.
A large Philippine business delegation will accompany the President to look into enhancing reciprocal investment, trade and tourism opportunities. Roxas will join the delegation.