San Miguel Corp. is now ready to start the construction of a mass rail transit system extending to Bulacan province, after completing the funding package of the project, seven years after the original proposal was presented.
Universal LRT Corp. BVI Ltd., the MRT-7 concessionaire controlled by San Miguel, said it fully complied with the financial closure requirements of the P62.7-billion project that would involve the construction of a 22.8-kilometer rail system from North Ave. at the corner of Edsa in Quezon City to San Jose del Monte City in Bulacan.
Financial closure refers to the process of completing all financial transactions related to the project.
ULC said it was now preparing to break ground for the vital infrastructure project that would serve some 2 million commuters in the northern parts of Quezon and Caloocan cities and the towns of Bulacan province.
“We have already submitted required documents to the Department of Transportation and Communications last week, certifying commitment from us and our banks to provide financing facilities for the project,” ULC chairman Ramon Ang said.
The deadline for the submission of financial closure was on Feb. 19.
The MRT-7 concessionaire achieved financial closure under the terms of the project’s concession agreement following the submission of the documents.
Having achieved financial closure, the contract for the construction of MRT-7 is now deemed “contract effective” under the terms of the MRT-7 concession agreement.
ULC asked the Transportation Department to determine the date for the project’s groundbreaking.
San Miguel said the MRT-7 construction timeline submitted by contractor Hyundai Rotem-EEI consortium was approved by the department. The construction timeline calls for the start of the MRT-7 construction and construction-related activities on Feb. 18, 2016 and completion on Aug. 17, 2019.
Construction of MRT 7 was delayed for about seven years, because of the proponent’s failure to secure a performance undertaking from the Finance Department.
A performance undertaking represents a 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.
MRT 7 involves the construction of a 22.8-kilometer rail system from North Ave. in Quezon City, passing through Commonwealth Ave., Regalado Ave. and Quirino Highway up to the proposed intermodal transportation terminal in San Jose del Monte. 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.
ULC also plans to develop 900,000 square meters of commercial space in San Jose del Monte throughout the concession period.