By Estrella Torres and Mia Gonzalez

THE Chinese Embassy in the Philippines has maintained on Wednesday that the $400-million project for the North Luzon Railways project is pushing through.

Chinese Embassy Spokesman Peng Xiubin said the report that the Chinese contractor for the North Luzon Railways project has backed out “is not true.”

Meanwhile, Malacañang on Wednesday denied reports that President Arroyo has scrapped her vaunted North Railway project.

“The President never ordered the pullout....It’s still a go,” Executive Secretary Eduardo Ermita said in an ambush interview after his weekly news briefing, reacting to reports in other newspapers that the Chief Executive had ordered the cancellation of the government’s Northrail contracts.

Edgardo Pamintuan, the newly appointed chairman and chief executive officer of the North Luzon Railways Corp. (Northrail), was quoted as saying that the contractor, Chinese National Machinery and Equipment Corp., has backed out of the project that seeks to build railroad tracks from Caloocan City to Clark Free port in Pampanga.

“Its not true…we’re still here,” said Peng in a telephone interview on Wednesday.

He said, “Such reports regarding the Northrail project do not tally with the facts. The Chinese government, the Export-Import Bank of China and the Chinese Embassy in the Philippines have consistently supported the Northrail project and will continue to push forward the project as always.”

Ermita said Pamintuan was apparently misquoted by reporters who wrote the story.

“The President has not made an announcement about pulling out or discontinuing the Northrail project. Secretary Pamintuan said he may have been taken out of context, but definitely it’s not true that the President has made the announcement,” Ermita said.

He said that the President has always stressed the importance of the Northrail project, which will be undertaken through a loan from the Chinese government.

“That is an important project, that is why the President wants to pursue it. She said the Chinese government had made a commitment to her [to fund the project],” Ermita said.

He explained that the confusion over the status of the project apparently arose from an erroneous distinction between the position of the private Chinese contractor, which is reportedly leaving the project, and the Chinese government, which remains committed to supporting the Northrail.

“I think we should distinguish [between the two],” Ermita said.

The Chinese and Philippine governments signed a $400-million loan agreement on February 26, 2004, for the construction of the North Luzon Railways project that aims to promote effective transport system in Central and Northern Luzon.

Victims’ kin asked to sign ‘blank’ SPAs

JUSTICE Secretary Raul Gonzalez on Monday ordered an investigation into reports that relatives of the victims of the MV Princess of the Stars are being lured into signing a “blank” special power of attorney (SPA) which could be used for quit-claim purposes.

Arroyo meets relatives of ‘Princess’ fatalities in Cebu

PRESIDENT Arroyo visited some 500 relatives of the victims of MV Princess of the Stars at the Cebu City Sports Center on Wednesday.

AMID mounting calls for the total ban on endosulfan, a militant legislator called on the Department of Agriculture and the Fertilizers and Pesticides Authority (FPA) to conduct an immediate inspection and recall of the highly toxic pesticide.

Interpol forensic experts start identifying bodies

FOREIGN forensic experts assisting local authorities in identifying the remains of those who died in the MV Princess of the Stars disaster have set up a victim-identification management information center (Vimic) at the Cebu Port Authority compound in Cebu City.

Deportation of Pinoys looms

THE Department of Foreign Affairs (DFA) has alerted embassies and consulates in the 27 member-states of the European Union (EU) of the possible mass deportation of close to 100,000 undocumented Filipino workers in those countries after the EU Parliament adopted the draft on implementing tougher moves to ease out foreign illegal migrants in the union.

Not all is lost for Pinay in Okinawa rape

AN official of the Department of Foreign Affairs (DFA) said the US military has agreed to conduct court-martial proceedings against an American soldier accused of raping a Filipino woman in Okinawa, Japan.

China still backing Northrail

THE Chinese Embassy in the Philippines has maintained on Wednesday that the $400-million project for the North Luzon Railways project is pushing through.

First night-capable attack choppers to be delivered in ’09

Benito Ebuen Air Base, Cebu—The Air Force will acquire not only six night-capable attack helicopters but 14, as President Arroyo increased the Air Force’s original budget of P1.2 billion to more than P3.1 billion for the purchase of such air assets.