Construction works for P142-B PNR Bicol package 1 to start in Q1 —PNR exec

Construction works for the P142-billion first package of the Philippine National Railways South Long Haul project (PNR Bicol) will be set in motion within the first quarter of 2022, a top PNR official said Thursday.

“Ang construction works mag-uumpisa first quarter 2022 [Construction works will begin in the first quarter of 2022],” PNR general manager Junn Magno said at a virtual press briefing on Thursday.

Early this week, the Department of Transportation (DOTr) and the joint venture of China Railway Group Ltd., China Railway No. 3 Engineering Group Co. Ltd., and China Railway Engineering Consulting Group Co. Ltd. (CREC JV) inked on January 17 a P142-billion Design-Build contract for the design, construction, and electromechanical works for the PNR Bicol project's first 380 kilometers from Banlic, Calamba to Daraga, Albay.

The Transportation department is now in the process of securing the loan financing for the contract as it is proceeding to request the Department of Finance (DOF) to apply for a loan with China to finance the contract. 

The PNR Bicol project will be funded through an official development assistance (ODA) loan from China.

Transportation Undersecretary for Railways Timothy John Batan said China may finance up to 85% of the contract amount, with the balance to be funded by the local budget counterpart.

“The final terms of the loan, including the percentage that will be financed by China, will be subject to loan negotiations by DOF,” Batan said.

Batan noted that for China  ODA-funded projects, the contract comes before the loan unlike with the Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) where it's loan first then contracts.

While the loan process is still ongoing, Magno said the DOTr and PNR will begin this month pre-construction activities such as clearing of the construction site and building of casting yard and staging areas.

The PNR executive added that right-of-way acquisition for the project began two years ago and that relocation of affected settlers has already begun.

The first 380 kilometers of PNR Bicol from Banlic, Calamba to Daraga, Albay will span 39 cities and municipalities, four provinces, and two regions, according to the DOTr.

The contract will involve the construction of 23 stations, 230 bridges, 10 passenger tunnels, and a 70-hectare depot in San Pablo, Laguna, it added.

Package 1 of the PNR Bicol project is targeted to be completed by 2024 and is eyed to be operational by the third quarter of 2025.

The PNR Bicol project is one of the flagship projects of the Duterte administration under the “Build, Build, Build” program. The entire project will consist of a 565-kilometer railway connecting Metro Manila to the southern Luzon provinces of Sorsogon and Batangas.

The entire project is targeted to be completed by 2026 and operational by 2027.

Once fully operational, it will cut travel time between Metro Manila and Bicol from the current 12 hours by road to as short as four hours, according to the DOTr.

The passenger trains will run at a speed of up to 160 kilometers per hour, while freight trains will run at a speed of up to 100 kilometers per hour.

During construction, the project is expected to generate more than 5,000 direct jobs per year, according to the DOTr.

Magno said the package two of the project, connecting Albay all the way to Sorsogon, will be bided out this year.

The PNR executive said the fare for PNR even after the completion of the project will remain at a flat rate of P1.7 per kilometer.  —KBK, GMA News