The government wants the proponent of Metro Rail Transit Line 7 (MRT 7) to complete financial closure in less than a year to expedite the project.
National Economic and Development Authority (NEDA) Director-General Arsenio Balisacan today told reporters that the NEDA Board, which President Aquino chairs, approved the MRT 7 project, but with an additional requirement.
"We want it done faster. Our preference is that they could get financial closure six months after we issue the performance undertaking. Sinabi dun na one-year looking for the financing. Ang sabi namin is to start earlier," Balisacan said.
The Department of Finance (DOF) will issue the performance undertaking - - a requirement for financial closure of a project that would be funded by official development assistance (ODA).
A performance undertaking represents a financial guarantee on the part of the government. ODA refers to foreign aid in the form of grants or loans that carry below-market interest rates and longer repayment terms.
The MRT 7 project has been delayed for five years because of the proponent's failure to secure a performance undertaking from the DOF.
The Department of Transportation and Communications (DOTC) and proponent Universal LRT Corporation (ULC) signed the contract to build the railway in 2008. San Miguel Corporation, through unit San Miguel Holdings Corporation (SMHC), is part owner of ULC.
Ramon S. Ang, San Miguel president, had said funding was "ready" for MRT 7 as the Japan International Cooperation Agency agreed to provide partial financing for the project.
The P62.7 billion MRT 7 Project involves the construction of a 22.8-kilomenter rail system from the Annex at SM City North EDSA in North Avenue corner EDSA in Quezon City, passing through Commonwealth Avenue, Regalado Avenue and Quirino Highway up to the proposed Intermodal Transportation Terminal in San Jose del Monte, Bulacan. This project will cover 14 stations.
The railway will serve an estimated two million commuters in the northern parts of Quezon and Caloocan cities. Apart from the elevated transport system, ULC will also build at no cost to the government a 17-kilometer, six-lane asphalt access road in Marilao, Bulacan that will lead to its depot in Tala.
Besides the railway project, ULC plans to develop 900,000 square meters of commercial space throughout the concession period.
National Economic and Development Authority (NEDA) Director-General Arsenio Balisacan today told reporters that the NEDA Board, which President Aquino chairs, approved the MRT 7 project, but with an additional requirement.
"We want it done faster. Our preference is that they could get financial closure six months after we issue the performance undertaking. Sinabi dun na one-year looking for the financing. Ang sabi namin is to start earlier," Balisacan said.
The Department of Finance (DOF) will issue the performance undertaking - - a requirement for financial closure of a project that would be funded by official development assistance (ODA).
A performance undertaking represents a financial guarantee on the part of the government. ODA refers to foreign aid in the form of grants or loans that carry below-market interest rates and longer repayment terms.
The MRT 7 project has been delayed for five years because of the proponent's failure to secure a performance undertaking from the DOF.
The Department of Transportation and Communications (DOTC) and proponent Universal LRT Corporation (ULC) signed the contract to build the railway in 2008. San Miguel Corporation, through unit San Miguel Holdings Corporation (SMHC), is part owner of ULC.
Ramon S. Ang, San Miguel president, had said funding was "ready" for MRT 7 as the Japan International Cooperation Agency agreed to provide partial financing for the project.
The P62.7 billion MRT 7 Project involves the construction of a 22.8-kilomenter rail system from the Annex at SM City North EDSA in North Avenue corner EDSA in Quezon City, passing through Commonwealth Avenue, Regalado Avenue and Quirino Highway up to the proposed Intermodal Transportation Terminal in San Jose del Monte, Bulacan. This project will cover 14 stations.
The railway will serve an estimated two million commuters in the northern parts of Quezon and Caloocan cities. Apart from the elevated transport system, ULC will also build at no cost to the government a 17-kilometer, six-lane asphalt access road in Marilao, Bulacan that will lead to its depot in Tala.
Besides the railway project, ULC plans to develop 900,000 square meters of commercial space throughout the concession period.
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