MANILA, Philippines — Nueva Ecija 2nd District Rep. Joseph Gilbert F. Violago said Thursday that Congress will act soon on the creation of a railway system in Central Luzon in a bid to boost economic growth in the region.

Violago filed House Bill No. 5062, “An Act Creating the Central Luzon Railways Corporation,” seeking the construction of a two-phase railway network system encompassing Region 3 within a 10-year period.

He said that under the proposed measure, Phase 1 will cover San Jose City, Science City of Muñoz, Guimba town, Victoria town and Tarlac City, while Phase 2 will pass through Tarlac City to Capas to its last station at the Clark Freeport Zone in Pampanga.

“The corporation will own and operate the railway system, tramlines and other forms of land transportation, vessels and pipelines for transporting passengers, mails and other properties from San Jose City to Tarlac up to Clark,” Violago said.

He explained, that the firm will have an authorized capital stock of P1 billion divided into P10-million shares at par value of P100 which will be fully subscribed by the national government.

Some 40 percent of the P1 billion or P400 million will be initially paid-up and the balance will be paid from a continuing annual appropriation of not less than P200 million.

The proposed railways network system also stated that the allocation of five percent of the proceeds from the value-added tax for 10 years for its future expansion covering the provinces of Bataan, Bulacan and Zambales which will be administered by the Department of Transportation and Communications (DoTC).

The Philippine National Railroad (PNR) previously used to operate a 479-kilometer railway system from La Union up to the Bicol Region with its North Main Line serving the provinces of Bulacan, Pampanga, Tarlac, Nueva Ecija, Pangasinan and La Union and Batangas on the South Main Line.

However, due to neglect and mismanagement, this was drastically reduced and buses became the most favored mode of mass transport.