Non-Subscriber Extract
Manila Rail Strike puts pressure on Government and Operators alike
- Article Tools
| 18 September 2000 |
After months of lobbying, two Italian companies have reached first base in their unsolicited proposal to build the Philippines’ first subway system. The proposal was outlined in a memorandum of understanding (MoU) signed between the Department of Transportation
and Communications (DOTC) and Grandi Labon Fincosi and Societe Ese Patrione Lacosi Idraulici.
Based on the MoU, the underground railway will start from Mandaluyong city and will complement the operations of the Light Rail Transit 1 and the Metro Rail Transit in Manila.
It did not specify the project’s estimated costs, but DOTC sources said the two Italian firms promise to bring in $700m to finance the project. They also said the project passed the necessary hurdles because it will help meet the expected surge in transport demand over the next 10 to 20 years, and is in line with the long-term transport strategy for Manila.
The two Italian companies are now scouting for prospective Filipino partners. Once firmed up, they are expected to push for the signing of a memorandum of agreement with DOTC.