THE FINANCE department has endorsed performance undertaking for the P62.7-billion Metro Rail Transit Line 7 (MRT-7) Project to Malacañang, a cabinet official said.
Financial closure entails having all requirements and necessary approvals, including performance undertaking, in place. Performance undertaking refers to a guarantee from the government that it will finance the project should the proponent be incapable of funding it.
San Miguel President and Chief Operating Officer Ramon S. Ang has said that the funding for the project is ready and that the firm is trying to fast-track the financial closure of the project, which he expects within the first half.
The original proponent of the project, Universal LRT Corp., failed to secure performance undertaking, thus failing to secure financial closure for the MRT-7 expansion.
The project entails the construction of 14 train stations starting from San Jose del Monte, Bulacan, to North Avenue, Quezon City. It will be connected to the existing MRT-3 and Light Rail Transit Line 1 via a common station on Epifanio de los Santos Ave.
‘HAVE PITY’
Meanwhile, Mr. Purisima appealed to Metro Rail Transit Holdings II, Inc. (MRTH-II), the parent company of MRT-3 asset holder Metro Rail Transit Corp. (MRTC), to consider the plight of commuters who use the railway.
“We really appeal to the private sector that is trying to slow down or stop this. Just look at the lines, have pity on these people and allow us to be able to expand the lines,” he said.
A temporary order of protection was set against the Transportation department, stopping the agency from procuring 48 train coaches from Chinese firm CNR Dalian Locomotive & Rolling Stock Co., which won the auction to do so early this year.
The government has been losing P9.9 million daily under the 20-day stay order, MRT-3 General Manager Al S. Vitangcol III said.
The government’s losses would reach roughly P198 million.
The train cars from Dalian were to beef up the existing 73-train fleet of the MRT-3 — the most crowded of Metro Manila’s mass railways — so that more cars could operate at more intervals during peak hours.
“We hope that the order preventing us from adding brand new LRVs (light rail vehicles) will be lifted immediately, for the public’s sake. The [Transportation department] will be able to increase MRT-3’s capacity within two to three years starting from the time that the court allows us to proceed. Since more passengers will be able to take the train, EDSA traffic should be mitigated considerably,” Transportation Spokesperson Michael Arthur C. Sagcal said in a statement.
18 February 2014
By Lorenz Christoffer S. Marasigan
