Feasibility study for Subic-Clark Cargo Railway now up for NEDA board approval » Manila Bulletin Business

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Feasibility study for Subic-Clark Cargo Railway now up for NEDA board approval


By Madelaine B. Miraflor

The feasibility study for the P57.2-billion Subic-Clark Cargo Railway project is now up for National Economic and Development Authority (NEDA) for approval, which, if obtained, could already pave the way for state-run Bases Conversion and Development Authority (BCDA) to start the project before the year ends.

Subic-Clark Cargo Railway Project is a 77-kilometer rail connection linking Subic Port with Clark International Airport mainly to reduce the number of trucks travelling in Metro Manila and lower the prices of goods.

The project also aims to increase Subic Port Utilization and compliment airport operation in Clark.

“NEDA is now on the process of reviewing the feasibility study. This would most likely be an ODA (Official Development Assistance) project,” BCDA President and Chief Executive Officer Vivencio Dizon said during the 6th Business Forum of The Manila Times.

Both Chinese and Japanese governments have already looked at the project for potential funding.

BCDA is targeting to start the project this year so it could complete it by 2022. Start date of projects will include pre-work and pre-planning stages such as conceptualization or feasibility studies.

Aside from this new terminal, BCDA is also implementing other infrastructure projects within the Clark area with the Department of Transportation (DOTr). These are the P105-billion Manila-Clark Railway (Phase 1), the multibillion-dollar New Clark City, and the P15.34-billion Clark International Airport New Terminal Building.

Right now, BCDA is on the process of getting Engineering, Procurement, Construction (EPC) contractor for the project, which happens to be the first to fall under the hybrid public-private partnership (PPP) scheme of the government.

Dizon said BCDA had so far attracted 10 prospective, mostly foreign, for the construction of the new passenger terminal.

Among the companies that are vying for the contract are two of the country’s major infrastructure players, Megawide Construction Corp. and Metro Pacific Investments Corp. (MPIC), as well as POSCO, a multinational infrastructure company that built South Korea’s Incheon International Airport, which is one of the best airports in the world.

Dizon noted that the auction for EPC contract will be done separately with the bidding for the terminal’s operation and maintenance (O&M) contract.

The O&M of the existing and proposed new terminal building of Clark airport will also be bid out to the private sector through PPP. Once the new terminal is constructed, the O&M will be operated by the winning private partner.

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