Department of Transportation (DOTr) Secretary Giovanni Lopez said the government’s current budget allocation for the North-South Commuter Railway (NSCR) and the Metro Manila Subway Project (MMSP) is insufficient to fully cover project requirements for this year.

Lopez said the total released budget for the NSCR and MMSP under the 2026 General Appropriations Act (GAA) amounts to P44.17 billion, which, he noted, is not enough to sustain the projects’ requirements for the entire year.

The transportation chief added that the government is exploring additional funding sources, including loan proceeds and possible excess state revenues, to augment payments for ongoing infrastructure contracts.

The issue stemmed from complaints raised by Italian-Thai Development Public Company Limited (ITD), the main contractor for the NSCR project, which said delays in government payments have significantly affected project implementation.

An ITD official said the delays in implementation were caused by delayed government payments, adding that the government has unpaid obligations amounting to around P1.2 billion for nearly eight months.

The railway package being handled by the contractor covers the 12-kilometer NSCR segment from Sindalan in San Fernando to Clark in Mabalacat City. The project, funded through a P25-billion loan from the Asian Development Bank, includes one major station and four substations.

The project was originally scheduled for completion within 48 months, with provisions allowing an extension of up to 35 months. However, according to reports presented during the inspection, the segment is currently only around 30 percent complete.

Lopez also said unresolved right-of-way (ROW) issues remain a major cause of delays in the NSCR project, adding that land acquisition should have been completed before civil works began.

He added that delays in securing right-of-way not only slow down construction but also increase project costs through prolongation expenses and contract adjustments.

However, the transportation secretary noted that ROW acquisition in some portions of the NSCR has improved from only seven percent in February 2025 to around 90 percent at present through coordination with local government officials in Pampanga and Bulacan.

Despite the current funding and implementation setbacks, Lopez said the Angeles City portion of the NSCR remains on track for completion by 2028.