MRT-7 proponent posts $10-M bid bond

Universal LRT Corp., the private proponent of the Metro Rail Transit 7 (MRT-7), posted last Friday a $10-million bid bond to ensure that it will sign a contract for the construction of a $1.23-billion railway system. Universal LRT managing director Eli Levin said the the signing of the contract may happen in the first quarter of 2007 and actual construction may start in the last quarter. "The bid bond is required by law to ensure that if we are awarded the contract we will sign it," said Levin. When completed, MRT-7 would run along Commonwealth Avenue in Quezon City up to Tala in Caloocan City, and the adjoining municipality of San Jose del Monte in Bulacan. MRT-7 would likewise involve the construction of a bus-rail transfer hub to be located at the Tala Caloocan-North, connecting the line to the North Luzon Expressway by a private highway. It would also connect to Light Railway Transit Line 1 and 2 through the MRT-7's elevated railway transit system. Universal LRT is a consortium led by EL International Holdings, a member of the EL Group of Companies of Hong Kong. Other members include Yuchencgo-owned EEI Corp., TCGI Engineers, Tyco-subsidiary Eart Tech, Alstom Phils, Merlin Capital of the Tong family, Siemens and China Railway 18. The SM Group also owns 60 percent of MRT-7's real estate venture and 25 percent of the railway project. Levin said project financing include $300-million equity investment and $900-million debt. Of the $900 million, Levin said $200 million will be in a form of untied loan to finance the civil works portion of the project. A number of foreign banks have already expressed interest to facilitate the loan. The remaining $700 million will be sourced from Export Credit Agencies. "There will be an equity investment coming from people who have interest in the project," said Levin. The $300-million equity will be equally put in by contractors, lending institutions such as the Asian Development Bank and World Bank, and real estate developer. - GMANews.TV