North-South commuter rail project now to cost 76% more at P777.5B

The National Economic and Development Authority (NEDA) Investment Coordination Committee-Cabinet Committee (ICC-CabCom) has approved an increase in the cost of constructing the North-South Commuter Railway (NSCR) system under the government’s “Build, Build, Build” initiative.

The adjustment was approved by the committee on November 6, NEDA said in a statement on Friday.

The cost of the NSCR system—a project of the Department of Transportation—was raised to P777.551 billion from the previous estimate of P440.881 billion, a 76.36% increase.

NEDA attributed the increase to three factors as determined by the detailed engineering design:

• shift to elevated viaducts instead of at-grade structures to improve operational efficiencies and safety

• adoption of standard gauge system, instead of narrow-gauge, to meet government standards in seamless operations for all sections

• increase in number of trains and change from single to double-tracks for the Malolos-Clark Railway (MCRP) segment

“The cost will also cover resettlement activities, meeting ADB (Asian Development Bank) and JICA (Japan International Cooperation Agency) social and environmental safeguards, to ensure proper housing and welfare support for the estimated 12,901 informal settler families that will be affected,” NEDA said in a statement.

The project will be funded by official development assistance loan support from JICA and ADB.

The NSCR system will bring together the North-South Commuter Railway Phase 1, or the Malolos-Tutuban segment, and the Malolos-Clark Railway Project (MCRP) to create a 147-kilometer elevated, double-track, and seamless connection from Clark International Airport to Calamba in Laguna with 36 stations.

The NSCR system will also link with the LRT1, LRT2, and MRT3, as well as the upcoming Metro Manila Subway.

The rail system is expected to be partially operational by 2022 with a daily ridership of 340,000 passengers.

It is targeted to be fully operational by 2023 with a daily ridership of 550,000 passengers.

“The government will subsidize an average of P5 billion per year to cover capital, operating, and renewal costs of the project—an investment that is expected to generate substantial economic activity, create more jobs, increase incomes, and deliver a more comfortable commuting experience,” NEDA said.

“The DOTr was instructed by the committee to implement measures that would allow the national government to maximize non-farebox revenues, such as incremental taxes from increased property value through revenue-sharing arrangements with concerned LGUs (local government units) and through the development of national government properties in the project area,” it said. —VDS, GMA News