DOTC, AMA Group ink Cebu MRT deal

The Department of Transportation and Communications (DOTC) has signed a memorandum of agreement with project development firm AMA Group Holdings Corp. (AMA Group) for the implementation of a mass rail transit system project in Cebu City.

Transportation and Communications Secretary Leandro R. Mendoza said in an interview that Metro Cebu and the urbanization occurring at the north-south environs is a potential line for a rail-based mass transit system.

"The rapid growth of Cebu City as the second international business and industrial center requires an efficient and effective transportation infrastructure in order to maximize its economic benefits," he said.

AMA Group, together with its foreign and local partners, is now conducting a study at no cost to the government to determine the viability of the project.

AMA Group vice president and chief operating officer Juanito G. Ramos Jr. stressed that upon confirmation by DOTC of the study, it shall be endorsed to the NEDA-ICC to finally determine its technical, financial, economic and environmental aspects of the project. AMA Group shall also develop a business plan for its implementation.

The business model or implementation framework may either be on turnkey contracts, through joint venture mode, under a build-operate-transfer scheme or its variants, or by any other arrangements.

Ramos revealed that the proposed railway line shall have an approximate total length of 71 kilometers to be implemented in three phases.

Phase 1 of the project will be along the Cebu South-North Road corridor from Talisay to Consolacion. This main line segment has a length of 21 kilometers passing through the highly populated areas of Metro Cebu.

Phase 2 will extend the main line 31 kilometers from Talisay down to Carcar segment while Phase 3 will be from Consolacion up to Danao with an approximate length of 19 kilometers.

The government sees the Cebu MRT as a vital link of commerce. It will tremendously decongest the traffic conditions in Metro Cebu and create opportunities by opening up avenues for trade, tourism and investment.

The fact that investors are willing to finance the study and put up the entire project cost attests to the soundness of the project and the viability of Cebu as an investment haven, Ramos said.

With the implementation of the project, Cebu’s traffic decongestion program will get a big boost, productivity will be heightened, which will eventually translate to more investments.