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Friday, March 29, 2024

San Miguel to start building MRT 7 in 2016

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Conglomerate San Miguel Corp. expects to start the construction of the Metro Rail Transit Line 7, linking Quezon City and San Jose del Monte City in Bulacan, by the middle of 2016.

San Miguel said in a disclosure to the stock exchange the construction of the $1.54-billion MRT 7, which was approved by the National Economic and Development Authority as early as November 2013, “is targeted to begin by middle of 2016.”

San Miguel, through unit San Miguel Holdings Corp., is a part owner of Universal LRT Corp., the proponent of MRT7 project.

ULC received the performance undertaking for the MRT7 project from the government in October 2014.  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.

The issuance of the PU triggers the obligation of ULC to achieve financial close within 18 months from the date of receipt of the PU.

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The construction of MRT 7 project has not yet started.

San Miguel earlier awarded the engineering procurement contract for MRT7 to the joint venture of Marubeni Corp. and DMCI, but president Ramon Ang later said the new contractor would no longer be the Marubeni-DMCI joint venture.

The MRT7 project involves the construction of a 22.8-kilomenter 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 NLEX at the Bocaue exit.

The railway is expected to serve an estimated 2 million commuters in the northern parts of Quezon and Caloocan cities.

ULC also plans to develop 900,000 square meters of commercial space throughout the concession period.

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