MRTC to finance MRT extension

The Metro Rail Transit Corp. (MRTC) assailed yesterday reports regarding claims that the MRT consortium "wants out" or is selling out on the MRT-3 project.

In a press conference yesterday, Paul Daza, MRTC spokesman, emphasized that the company will continue to be the proponent and owners of the MRT-3 project for the next 25 years. As a sign of its continuing commitment to the project, MRTC is now in deep discussions with the Department of Transportation and Communications and the National Economic Development Authority for the approval of the 5-km. extension of the system known as Phase 2.

Daza confirmed that securitization is one of the funding options available to the consortium members and that the proceeds will be channeled to the funding requirements of Phase 2.

It is not true that less than 10 percent of funds to be raised will be used for phase 2, as this requires at least $50 million in project financing, Daza said. Such equity requirement will be infused by 2002 and the rest by 2003 as the target completion of Phase 2 is envisioned by year 2004. All members of the consortium securitizing their proceeds, except Ramcar Inc., have confirmed their participation in Phase 2.

The completion of Phase 2 will likely double the passenger ridership to at least 600,000 passengers per day and will serve additional riders from the Caloocan and Malabon areas.