'No longer achieving its objective, purpose': Palace abolishes Northrail

Job Manahan, ABS-CBN News 

<p>MANILA — Malacañang has ordered the abolition of the North Luzon Railways Corporation (Northrail) since it &quot;is no longer achieving the objectives and purposes for which it was designed and created,&quot; a document showed. </p><p>Northrail is mandated to develop, construct, operate, and manage a railroad system to the capital region, Central Luzon, and Northern Luzon, government-run e-FOI website showed.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/07/11/philippines-revives-chinese-backed-north-rail-project">Philippines revives Chinese-backed North Rail project</a></li></ul><p>In May 2019, the Governance Commission for GOCCs ordered Northrail deactivated. </p><p>Memorandum Order No. 17, signed by Executive Secretary Lucas Bersamin on Oct. 19, 2023, stated that Northrail was no longer &quot;cost efficient, and does not generate the level of social, physical and economic return vis-a-vis the resource inputs.&quot; </p><p>&quot;Northrail is not producing the desired outcomes,&quot; said Bersamin. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/nation/07/17/08/govt-deadlock-chinese-contractor-stalls-northrail-project">Govt deadlock with Chinese contractor stalls Northrail project</a></li></ul><p>The Bases Conversion and Development Authority (BCDA) will carry out the abolition, and serve as the administrator and liquidator of Northrail, based on the memorandum order. Northrail is a pre-operating subsidiary of the BCDA. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/nation/regions/08/05/10/northrail-increase-flooding-bocaue-barangay">Northrail to increase flooding in Bocaue barangay?</a></li></ul><p>BCDA must help settle Northrail&#x27;s liabilities, including the payment of separation pay to its officials and personnel affected by the abolition. It must also create a change management plan. </p><p>The Palace also directed BCDA to conduct an inventory of Northrail&#x27;s current programs and projects &quot;which are to be terminated or transferred to concerned government agencies, subject to existing laws, rules, and regulations.&quot; </p><p>It also ordered BCDA to list Northrail&#x27;s pending cases and from there create actions to resolve the cases. </p><p>This includes the &quot;total amount of contingent liabilities arising therefrom, if any.&quot; </p><p>The separation pay for the affected personnel will be as follows: </p><div><strong>First 20 years </strong></div><ul>	<li> 20 years and 1 day to 30 years - 1.25 x MBS* x No. of years </li>	<li> 30 years and 1 day and above - 1.50 x MBS* x No. of years </li></ul><p>&quot;The separation pay authorized herein shall be charged against the available corporate funds of the Northrail, subject to existing budgeting, accounting and auditing laws, rules and regulations,&quot; the order read. </p><p>Memorandum Order No. 17 will be effective immediately upon publication on the Official Gazette. </p><div class="media-content"><div class="slider-for"><div><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/news/10/21/north-luzon-railways-01.jpg"/></div><div><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/news/10/21/north-luzon-railways-02.jpg"/></div><div><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/news/10/21/north-luzon-railways-03.jpg"/></div></div></div>

'Northrail is not producing the desired outcomes,' said Executive Secretary Lucas Bersamin.

'No longer achieving its objective, purpose': Palace abolishes Northrail | ABS-CBN

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'No longer achieving its objective, purpose': Palace abolishes Northrail

'No longer achieving its objective, purpose': Palace abolishes Northrail

Job Manahan,

ABS-CBN News

Published Oct 21, 2023 02:29 PM PHT

|

Updated Oct 21, 2023 03:09 PM PHT

Read More:

North Luzon Railways Corporation

Northrail

Northrail abolished

Memorandum Order No. 17

Lucas Bersamin

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