Marubeni-DMCI bags MRT-7 deal

MANILA, Philippines - The joint venture between Marubeni Corp. of Japan and DM Consunji Inc. (DMCI) has entered into a contract with Universal LRT Corp. Limited for construction of the $1.23 billion MRT-7 railway project.

In a disclosure to the Philippine Stock Exchange yesterday, DMCI Holdings said the Marubeni-DMCI consortium signed with Universal LRT an engineering, procurement, construction contract for the Metro Rail Transit System (MRTS) and Intermodal Transportation Terminal of the MRT-7 Project.

The MRT-7 project involves the construction of a 22-kilometer train line with 14 stations which will extend from San Jose del Monte in Bulacan to the corner of North Avenue and Epifanio de los Santos Avenue (EDSA) in Quezon City.

The 14 stations are North EDSA, Quezon Memorial Circle, University Avenue near the University of the Philippines, Tandang Sora, Don Antonio, Batasan, Manggahan, Dona Carmen, Regalado, Mindanao Avenue, Quirino, Sacred Heart, Tala and San Jose del Monte.

The project also includes a 22-kilometer, six-lane highway to Bulacan.

The MRT-7 will be connected to the MRT-3 train line and the Light Rail Transit (LRT) line 1 through a common station in North Avenue.

Universal LRT is a railway firm controlled by diversifying conglomerate San Miguel Corp.

In October 2010, SMC acquired a 51% equity interest in Universal LRT, which holds the concession for the MRT-7. It will have 25 years to operate the train line.

Universal LRT which was owned by a group headed by Salvador Zamora II, was awarded a concession for the MRT 7 project in 2008.

The construction for the project was supposed to take three-and-a-half years but it was delayed due to issues raised by local government units affected by the project.

Other investors in Universal LRT are Hong Kong-based El International Holding owned by businessman Eli Levin from Israel; Redford Assets Ltd. owned by Henry Sy; La Costa Development Corp., and Tranzen which is bound by Zamora; China Railway 18 Group and Merlin Pacific Capital for Canada.