Author Topic: Flashback: Northrail  (Read 631 times)


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Flashback: Northrail
« on: October 19, 2019, 12:13:49 AM »
PH gov't ends dispute with China's Sinomach over Northrail project
This resolves an international arbitration case and spares the Philippines from P5 billion in potential fees, says the government

Chrisee Dela Paz
Published 10:05 PM, November 06, 2017
Updated 11:29 PM, November 06, 2017

MANILA, Philippines The Philippine government finally resolved a 5-year row with a Chinese machinery conglomerate over a dropped rail deal, putting an end to international arbitration and sparing the country from a P5-billion obligation.

The Department of Transportation (DOTr) and the Bases Conversion and Development Authority (BCDA) said in a joint statement on Monday, November 6, that they, along with North Luzon Railways Corporation (Northrail), concluded an out-of-court settlement agreement with China National Machinery Industry Corporation (Sinomach).

Sinomach is the former contractor of the planned 80-kilometer rail line, which was to be implemented by Northrail, an agency under state-run BCDA.

The Northrail project was supposed to link the northern part of Metro Manila to the Clark International Airport in Pampanga.

But the rail deal was suspended in March 2010 pending review of the contract with Sinomach. In 2012, the contract was dropped after China called off the overseas development assistance fund for the project.

In the same year, Sinomach initiated arbitration proceedings in Hong Kong, after it was notified by Northrail that it could no longer proceed with the implementation of the project due to serious legal issues in the contracts.

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The PNR Manila-Clark Railway project was conceptualized as early as 1995 when Northrail was incorporated.

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