THE regulatory body for government-owned and -controlled corporations (GOCCs) will be deactivating the North Luzon Railways Corp. (Northrail), according to the Budget chief.
“The Northrail, we are recommending for its deactivation,” said Budget Secretary Benjamin E. Diokno, an ex-officio member of the Governance Commission on GOCCs (GCG).
Sought for clarification, GCG Director Johann Carlos S. Barcena said that the recommendation came as the agency has been “overtaken by events.”
Northrail was created to operate the Tutuban-Malolos, and Malolos-Clark lines, and eventually develop the link from Metro Manila to the northern Luzon area.
However, the National Economic and Development Authority Board decided in July that these railway lines’ development would be financed through Japan Official Development Assistance, and will have private concessionaires for its operations and maintenance.
“So in that sense, (we’ve) been looking at whether or not it’s still needed by government in a certain sense to implement any other projects of the government. if not, then it will be closed down,” said Mr. Barcena in an interview.
“Deactivating Northrail would save the government expenses in keeping it a going concern,” he added.
Deactivation — different from abolition — means that the agency’s budget would be stripped away. An abolition requires Congressional action, according to Mr, Diokno.
“We call it deactivation. Deactivation means you don’t have budget, you cannot operate. (Not) abolished,” he said. — Elijah Joseph C. Tubayan
