China, PH ink $940M contract for Subic-Clark freight railway

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Construction of the freight railway will take 42 months to complete. Image from Facebook page of Chinese ambassador to the Philippines Huang Xilian.
  • $940M contract for freight railway linking Subic and Clark signed by the Chinese and Philippine governments
  • Construction of the 71-km single-track railway will take 42 months
  • Project is the biggest funded project by China under the administration’s Build Build Build infrastructure program

China and the Philippines signed a contract for the $940-million Subic-Clark railway project, Chinese ambassador to the Philippines Huang Xilian said on his Facebook page, on Jan 16.

“This is so far the highest funded G2G (government-to-government) project between the two countries valued at approx. $940 million and is the flagship project under the administration’s “Build, Build, Build” program,” he said.

The ambassador noted that the 71-km single-track railway will be located in south-central Luzon, connecting Subic Bay Freeport Zone and Clark International Airport and will link the North Railway Project.

US military bases used to be housed in Subic and Clark.

Construction of the railway will take 42 months, the ambassador said.

He added, the freight railway, once complete, “will build resilient linkages between the commercial zones along the Subic-Clark corridor.”

Huang’s announcement came during Chinese Foreign Minister Wang Yi’s visit to the Philippines, the last leg of a Southeast Asian tour that also included Myanmar, Indonesia and Brunei.

“Glad to see the improvement in logistic efficiency and other economic activities in the region,” the ambassador said.

A statement from President Duterte’s office said Wang had “announced the finalization” of the Subic-Clark Railway Project agreement “this week.”