MANILA, Philippines - Universal LRT Corp. (ULC), the proponent of the Metro Rail Transit Phase 7 (MRT-7) project, has tapped Morgan Stanley as its financial advisor to raise equity for the construction of the $1.3-billion elevated railway project.
ULC vice-chairman Roberto de Ocampo also revealed that Morgan Stanley had earlier asked conglomerate San Miguel Corp. (SMC) to be part of the project, although they are also in talks with other interested parties.
MRT-7 is a build-“gradual transfer”-operate, maintain and manage project for a 22-kilometer light rail transit route that extends from the MRT Line 3’s North EDSA terminal to San Jose del Monte, Bulacan.
The MRT-7 project is 100 percent owned by ULC, a consortium 63 percent controlled by businessman Salvador “Buddy” Zamora III, who acquired majority control in 2008 from its original proponent, Israeli businessman Eli Levin.
De Ocampo pointed out that contrary to reports, ULC has not sold its shares to SMC. “Rest assured that ULC remains steadfast in its commitment to start the project the soonest possible time,” he said.
Earlier, SMC said it has been offered a majority interest in MRT-7 and that it is negotiating with the members of the consortium.
Aside from Zamora, another major stakeholder in ULC is the SM Group of Companies, which plans to put up a mall in San Jose del Monte, Bulacan that will have access to the MRT-7 line.
SMC added it has already started due diligence audit of MRT-7.
SMC has been expanding from its core food and beverage business into heavy industry such as power, infrastructure and telecommunications to fuel faster future growth.
The MRT-7 project involves the construction of an elevated light rail transit system capable of transporting at least half a million passengers a day.
The project also includes an intermodal transport terminal—a transportation hub for buses and other forms of public conveyances—in San Jose del Monte, as well as a 22-km, six-lane feeder highway from the northern end of the line to Bocaue, Bulacan. This highway will link the intermodal terminal to the North Luzon Expressway.
As envisioned by the proponents, the rail component of MRT 7 project will initially operate 108 rail cars in a three-car train configuration. Initial capacity is projected at 448,000 passengers a day, but will eventually be expanded to accommodate as many as 850,000 passengers daily.
The rail line will have 14 stations, namely: North EDSA, Quezon Memorial Circle, University Avenue, Tandang Sora, Don Antonio, Batasan, Manggahan, Doña Carmen, Regalado, Mindanao Avenue, Quirino, Sacred Heart, Tala and Araneta San Jose Del Monte.
The intermodal terminal, on the other hand, will be able to accommodate 60 buses and will also feature passenger facilities and amenities.
The entire project is expected to be fully completed in 42 months, although parts of it may be made operational in phases.