Office of the Vice President : Press Release

Refer to: Ms. Marge Jorillo
8114198

VP De Castro answers Northrail charges
26 September 2005

VICE President Noli “Kabayan” De Castro today clarified that the budget for the relocation of informal settlers along the right-of-way of the Northrail is not funded from the contract for the Northrail Project (Phase I Section I). De Castro added “HUDCC has nothing to do with the project or the loan. We have never been involved in the negotiations for the said loan.”

De Castro stressed “as I have repeatedly said, the Northrail relocation is not covered in the loan contracted by the Philippine government from the Chinese government for the project.”

He explained that the budget for relocation of families covered in phase I, section I (from Caloocan to Malolos) is solely funded by the national government through the National Housing Authority (NHA).

In fact, the funds will be “bridge financed” from a loan with the National Development Company with payment to be guaranteed from the annual releases to the NHA from the national government.

De Castro informed that the relocation of affected families is on track. The NHA has already relocated a total of 7,297 families from the Metro Manila alignment and 1,401 from the Bulacan alignment. Based on the Northrail Project timetable, “we will have to clear Bulacan (up to Malolos) of some 11,477 families before the end of October 2005.”

As part of ensuring that the relocation sites are habitable and adequate, De Castro said, “I personally visit the resettlement sites almost every week to monitor the progress and to make sure that the well-being of the families are being looked after.”

The government shelter sector is implementing incremental development in the sites. “We are happy to report that various private sector organizations have been helping us through their donation of various facilities.”