Diversified conglomerate San Miguel Corp. formed SMC Mass Rail Transit 7 Inc., a P10-billion company that will hold its controlling interest in the P63-billion Mass Railway Transit Line 7 project.
The incorporation papers with the Securities and Exchange Commission showed SMC Mass Rail, formed by San Miguel Holdings Corp., would have an authorized capital stock of P10 billion, divided into 10 billion shares with a par value of P1 per share.
San Miguel said of the P10 billion, at least 25 percent or P2.5 billion was subscribed by SMHC and at least 25 percent of the total subscription or P625 million was paid in cash.
The primary purpose of the the newly formed unit is “to engage in and carry on a development and contracting business involving railways and railroads; intermodal transport terminals; tollways, its facilities, interchanges, roads, highways, bridges, tunnels, waterworks, water utilities and systems.”
It will also be engaged in infrastructure works and other related public works; all iron steel work, mechanical and electrical, and earth construction and excavation and related works, including operation and maintenance thereof; and the acquisition, lease, occupation, use of development of real property, and other related activities.
San Miguel said in February it was now ready to start the construction of MRT 7 after completing the funding package for the project, seven years after the original proposal was presented.
Universal LRT Corp. BVI Ltd., the MRT-7 concessionaire controlled by San Miguel, said it had fully complied with the financial closure requirements of the P62.7-billion project that would involve the construction of a 22.8-kilometer rail system from North Ave. at the corner of Edsa in Quezon City to San Jose del Monte City in Bulacan.
Financial closure refers to the process of completing all financial transactions related to the project.
San Miguel president and chief operating office Ramon Ang earlier said the groundbreaking for the vital infrastructure project that would serve some two million commuters in the northern parts of Quezon and Caloocan cities and the towns of Bulacan province, was expected to happen this month.
Based on the construction timeline submitted by contractor Hyundai Rotem-EEI consortium to the Transportation Department, MRT-7 would be completed by August 2019.
Construction of MRT 7 was delayed for about seven years, because of the proponent’s failure to secure a performance undertaking from the Finance Department.
A performance undertaking represents a recognition of the obligation of the Philippine government through the Transportation Department under the concession agreement, particularly the remittance of semi-annual amortization payment in favor of ULC.
MRT 7 will cover 14 stations from North Ave. in Quezon City, passing through Commonwealth Ave., Regalado Ave. and Quirino Highway up to the proposed intermodal transportation terminal in San Jose del Monte.
The project also includes the construction of a 22-kilometer road that will connect to North Luzon Expressway near the Bocaue exit.
ULC also plans to develop 900,000 square meters of commercial space in San Jose del Monte throughout the concession period.