Chinese Government pledges to finance the Subic-Clark Railway Project (linked to project #64749)

On November 16, 2017, the Chinese Ministry of Commerce and the Philippines Ministry of Finance signed a Memorandum of Understanding (MoU) pledging Chinese financial support for a second batch of infrastructure projects, including the Subic-Clark Railway Project. According to the NEDA government source, as of December 28, 2018, the estimated project cost is $1.084 billion USD. Umbrella project #64749 records the financing cooperation pledged in a 2018 MOU to fund these infrastructure projects. The Subic-Clark Railway project was expected to be financed through a Chinese loan; however, no loan agreement had been signed. The Subic-Clark Railway Project is a 70-km cargo rail running parallel to the Subic-Clark-Tarlac Expressway (SCTEx) and the Subic Freeport Expressway (SFEx). It is a component of the PNR Luzon System Development Framework providing initial freight service between the Subic Bay Freeport Zone and the Clark Freeport and Special Economic Zone, linking Subic Port with Clark International Airport and other major economic hubs in Central Luzon, especially New Clark City, and forming an integrated logistics hub for the development of Central Luzon as a new growth center to decongest Metro Manila. On October 26, 2016, China Harbour Engineering Company Ltd. signed an MoU to conduct the pre-feasibility and feasibility study. However, on March 1st, 2017, they withdrew from the agreement in order to be eligible to participate in bidding for the project. On January 28, 2018, the Philippine economy management team has approved the Subic-Clark railway project. The railway was originally scheduled to be completed by 2022. On April 25, 2018, the National Economic and Development Authority (NEDA) Board approved the project. As of December 28, 2018, the project is in its pre-procurement stage, DOTr and the Bases Conversion and Development Authority (BCDA) are currently preparing the contract and bidding documents. According to "China-funded Subic-Clark railway to start next year", in August 2019, the Chinese Embassy had submitted a list of three Chinese contractors. However, the bidding for the railway was delayed when one of the three Chinese companies which the Chinese government had shortlisted to bid as contractors were disqualified while Philippine bidding laws require three bidders and the DOTr is still negotiating with the Chinese counterpart. According to "Subic-Clark Railway Project," the project is 29% completed and expected to be completed on October 31, 2022. According to "Gov’t seeks bidders for ₱45-B Subic-Clark rail project," the bidding deadline is February 10, 2020, and the project is expected to be completed within 42 months of the commencement date of the contract.

Number of official sources

12

Number of total sources

19