NEWSFLASH

FUNDING FOUND FOR MANILA-CLARK RAPID RAILWAY

Manila, March 19, 2000 - The 102-kilometer Rapid Railway System between Metro Manila and the Clark Special Economic Zone (CSEZ) in Pampanga is getting closer to realization, with the Estrada administration seeking means to finally implement the project.

A concessional loan from Japan’s Special Yen Loan Package or the Obuchi Fund is now being eyed by the government to jumpstart the $2.5 billion project after President Joseph "Erap" Ejercito Estrada recently signed a memorandum that will adopt its financing mode, which was recommended by Secretary Roberto Aventajado of the Presidential Committee on Flagship Programs and Projects.

The project is part of the massive infrastructure buildup that the Estrada government has been undertaking to modernize the countryside.

Fort Bonifacio Development Corp. (FBDC) chief Ricardo Pascua said tapping the Obuchi Fund would make the North Rail project a feasible one.

The FBDC is among the original members of the North Luzon Railway Corp., the consortium that was to implement the project.

"My understanding is that the Philippine government has issued a note verbale through the Department of Foreign Affairs to the Japanese government, requesting it to consider the North Rail project as one of the projects that can be funded through the Obuchi financing program," Pascua said.

The National Economic and Development Authority (NEDA) approved the project last year. All government agencies involved in this projectthe Bases Conversion and Development Authority (BCDA), the Department of Transportation and Communications (DOTC), the Presidential Flagship Programs and Projects Committee and NEDAhave agreed to tap the Obuchi fund for the project.

The Obuchi financing is very concessional 70-year maturity period with a 10-year grace period and an interest rate of only one percent per annum.

Earlier, the Japanese government approved assistance for a P4 billion dike project that will protect the Camanava (Caloocan, Malabon, Navotas and Valenzuela) area, in Metro Manila from floods.