Palace confirms North Rail contract renegotiations

MANILA, Philippines – The renegotiation of the contract for North Rail Project will depend on the result of the ongoing review by the Department of Transportation and Communications (DOTC), Malacañang said yesterday.

Presidential spokesman Edwin Lacierda said the status of the unfinished $503-million North Rail project was being reviewed by DOTC Secretary Jose de Jesus to find out if there was a need to renegotiate the existing contract.

“The results of the review are forthcoming,” Lacierda said in a press briefing.

Lacierda said the DOTC reassumed jurisdiction over the project from the Bases Conversion and Development Authority.

He recalled that Sen. Franklin Drilon recently exposed the alleged overpricing of the project, making it the most expensive railway in the world at $25 million per kilometer.

Lacierda said there were also allegations that $299 million was added as a “cost overrun” to the $503-million original contract price given to contractor China National Machinery and Equipment Corp. Group. 

The 32.2-kilometer North Rail project runs from Caloocan City in Metro Manila to Malolos City in Bulacan province.

Lacierda said any other actions related to the project would only be done after the review.