San Miguel Corp. said Thursday it is ready to start by the first quarter of 2016 the construction of the Metro Rail Transit Line 7 that will link Quezon City and San Jose del Monte City in Bulacan.
San Miguel president Ramon Ang said unit Universal LRT Corp. already hired a contractor and suppliers and would submit the financial closing for the project to the government next month.
“I think we are ready to submit the financial closing of MRT 7 to DoTC [Department of Transportation and Communications] by December. It’s all set. We already have contractor and suppliers,” Ang said.
San Miguel, through unit San Miguel Holdings Corp., is a majority-owner of Universal LRT Corp., the proponent of the $1.55-billion MRT 7 project. San Miguel finalized a deal to acquire 51 percent of Universal LRT in October 2010.
Construction of MRT 7 has been delayed for more than six years, because of the proponent’s failure to secure a performance undertaking from the Finance Department.
A performance undertaking is a requirement for financial closure of a project that would be financed by official development assistance.
The performance undertaking represents a financial guarantee and recognition of the obligation of the Philippine government through the Transportation Department under the concession agreement, particularly the remittance of semi-annual amortization payment in favor of ULC.
ULC received the performance undertaking for the MRT7 project from the government in October 2014.
The issuance of the performance undertaking triggered the obligation of ULC to achieve financial closing within 18 months from the date of receipt of the PU. Ang said the financial closure was expected in December 2015, which would pave the way for the start of the project’s construction.
MRT 7 involves the construction of a 22.8-kilometer rail system from North Avenue at the corner of Edsa in Quezon City, passing through Commonwealth Avenue, Regalado Avenue and Quirino Highway up to the proposed intermodal transportation terminal in San Jose del Monte City, Bulacan. The project will cover 14 stations.
It also includes the construction of a 22-kilometer road that will connect to North Luzon Expressway near the Bocaue exit.
The railway is expected to serve some 2 million commuters in the northern parts of Quezon and Caloocan cities and the towns of Bulacan province.
ULC also plans to develop 900,000 square meters of commercial space in San Jose del Monte throughout the concession period.