Government awaits shortlist of Chinese contractors for Subic-Clark rail

MANILA, Philippines — The government expects China to complete the shortlist of contractors within the month for the development of a cargo train connecting Subic to Clark as it hopes to commence construction of the railway project within the first half of next year.

Transportation Secretary Arthur Tugade said that while the Chinese Embassy has previously submitted to the government a list of three Chinese companies, one has been blacklisted, resulting in its disqualification for the project.

“So there has been a technicality because they said there needs to be three. So they need to give us one more to replace the one which has been disqualified,” Tugade said.

Tugade said the agency is hoping China could complete the shortlist within this month so that the project can move forward.

Once the shortlist is complete, the DOTr will then select among the three Chinese companies through a bidding.

Tugade wants the procurement process to be completed before the year ends so that construction of the railway project could commence by next year.

“We are expected to commence the process wherein we will be able to connect the cargo operation between Clark and Subic by rail. We should be able to start construction of the Subic-Clark rail by the first quarter next year at the earliest, or the latest second quarter,” Tugade said.

The Subic-Clark railway project is among the infrastructure projects under the government’s Build Build Build program that will be receiving official development assistance from China.

Tugade earlier explained that there is a certain process being followed for China-funded projects.

Based on previous plans, the Subic-Clark railway is expected to cost P50.03-billion.

The 71.13-km Subic-Clark railway project is a component of the PNR Luzon System Development Framework, providing initial freight service between the Subic Bay Freeport Zone and the Clark Freeport and Special Economic Zone.

It is expected to create an integrated logistics hub for the development of Central Luzon as a new growth center to decongest Metro Manila.