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News Top Stories Govt set to sign contract for MRT-7 in April
News Top Stories Govt set to sign contract for MRT-7 in April
| Govt set to sign contract for MRT-7 in April |
| Thursday, 17 January 2008 22:41 | ||||||
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Universal LRT is a consortium led by EL International Holdings, a member of Hong Kong's EL Group of Companies under businessman Eli Levin. Guiling Mamondiong, DOTC undersecretary for railways transportation, said that they are just finalizing the terms of the Build-Gradual Transfer-Operate and Maintenance contract to be signed with Universal LRT. The scheme used for the MRT-7 is a variation on the Build-Operate-Transfer deal. Once the BOT contract is signed, Universal LRT will have 18 months for financial close, meaning that they must have their funding ready by then. The project costs $1.235 billion, but only about $49 million will be spent for the rail system proper. The rest of the amount will be spent on the real estate component of the project, including a 22-kilometer, 6-lane highway from San Jose del Monte to Bocaue, Bulacan. Of the total project cost, $926 million will be raised through borrowings while the rest through equity. But Mamondiong stressed that the MRT-7, unlike the MRT-3, will not carry a sovereign guarantee and that Universal LRT is on its own in sourcing funds for the project. The MRT-7 will run from SM City North EDSA along North Avenue, passing through Philcoa, University of the Philippines-Diliman, Tandang Sora, Don Antonio, Batasan, Regalado Avenue (Fairview area), all the way to San Jose del Monte. Mamondiong said an estimated 600,000 commuters a day will benefit from the MRT-7. The average fare will be from P27.00-P40.00, which is less than half of what commuters pay for the route. The DOTC expects groundbreaking to start later this year or early next year. The commercial operation of the MRT-7 is unlikely to happen until 2012.
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