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Wednesday, July 16, 2008

 

NorthRail project to push thru

 
Executive Secretary Eduardo Ermita on Monday said the NorthRail project will continue after the Chinese government expressed its commitment to support the Arroyo administration in completing the project.

“The Chinese government is committed to support President [Gloria] Arroyo in this effort. And if there are problems its because Chinese contractor had to ask for consideration as far as contract worth is concerned, because it’s overtaken by sudden increase in the prices of materials,” Ermita said.

But Trade Secretary Peter Favila said the Chinese contractor wasn’t asking for additional payment and he can’t recall any request made during his previous meetings with its officials.

“I’ve been assigned to work on China-related ODA’s [Official Development Assistance] and the message of the Chinese government is to see that the Arroyo administration complete this project,” he said.

Government critics have been asking for the withdrawal of the overpriced $500-million North­Rail project on allegations that it is overpriced and disadvantageous to the Filipino people.

Critics suspect that the Chinese contractor is asking for more money because the $150 million that was prepaid for the project might have gone to corruption.

They said they will file criminal charges against government officials if newly appointed North Luzon Railways Corp. president Edgar Pamintuan gives in to the demands of China National Machinery and Equipment Corp. Group to continue the project.

Gabriela women’s party-list Rep. Liza Maza on Tuesday called for the immediate termination of the contract.

She said her recommendation is based on the issues now being raised by the China National Machinery, as well as price adjustments amounting to over $299 million that corroborate allegations of bribes and anomalies hounding the project.

“The termination of the NorthRail contract and the prosecution of those involved are long overdue. The Arroyo government has already wasted millions in taxpayers’ money and should not be given the opportunity to waste even more,” Maza said.
-- Angelo S. Samonte with Sammy Martin

   

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