By Joyce Pangco Pa?ares

THE state-run North Luzon Railways Corp. wants an extra $300 million to pay the Chinese contractor building the 32.2-kilometer, Caloocan-to-Malolos first stage of the North Rail project and end the 10-month stoppage in its operations.

Virgilio Vitug, senior manager for corporate affairs, said the fresh funding would also cover inflation, foreign exchange differences, and variations in the original scope of work for stage 1 of the project, which eventually will connect to Clark in Pampanga.

?We have already submitted our request to the [National Economic Development Authority] Board for their scrutiny and approval,? he said.

?We hope it will be approved so we can move this project forward.?

Vitug said the amount his company was asking for was almost the same as the $299 million being demanded by the contractor, China National Machinery and Equipment Corp. Group.

?But we would like to make it clear that we are seeking this additional $300 million because of the due diligence we did on the cost adjustments,? Vitug said.

?You have to remember the contract price of $503 million was approved in 2004. By now, there will be inflationary costs and foreign exchange losses.

?Also, the amount will cover changes in the scope of work, such as the need to build viaducts instead of embankments in several areas.?

China Machinery suspended work on the project in February last year and demanded an extra $299 million on the price of the contract.

Of the amount, almost two-thirds or $211 million was to cover foreign exchange losses, inflation and construction delays.

The rest would pay for the variations in the original scope of work.

China Machinery had previously blamed the government for the construction delays, citing the slow relocation of illegal settlers whose houses are to be demolished to make way for the project.

Northrail president Edgardo Pamintuan said at least 18,000 families were still living along the Caloocan-Malolos-Clark route, and were yet to be relocated.

He said a team of Filipino engineers met with their counterparts from China Machinery last month to discuss the squatter problem and resolve differences over the project?s engineering and design.

?They [China Machinery] agreed to do segmental or even simultaneous work as we relocate the families,? Pamintuan said.