Group bags 17-km railway project
The consortium of Megawide Construction Corp. (Megawide) and Korean firms Hyundai Engineering & Construction Co. Ltd. and Dong-ah Geological Engineering Co. Ltd. bagged a 17-kilometer segment of a crucial North Luzon railway line that will link the suburb of Malolos to Clark Freeport.
Megawide has an economic interest of 35 percent in this phase one segment of the Malolos-Clark Railway Project (MCRP), which has an estimated project value of P28 billion. Hyundai and Dong-ah hold the remaining 65 percent interest in the project.
The project is seen to boost Megawide’s construction segment revenue in the next three to four years during the development phase.
MCRP is part of the larger North-South Commuter Railway (NSCR) project of the Department of Transportation (DOTr).
The Asian Development Bank earlier approved the financing of up to $2.75 billion for the construction of 53.1 kilometers of a passenger railway connecting Malolos to Clark economic zone and Clark International Airport in Central Luzon. This is part of the Philippine government’s North–South Commuter Railway (NSCR) project, a 163-kilometer suburban railway network stretching from New Clark City in Tarlac province in the north to Calamba in Laguna province south of Manila.
Considering that precast materials and construction ancillary services will be major components for this kind of development, the project is also seen to benefit Megawide’s business units and support expansion plans in this area.
The notification of award for MCRP package 1 was issued to the consortium on Sept. 18, Megawide said in a press statement on Monday.
The Megawide consortium will undertake building and provision of civil engineering works for around 17 kilometers of viaduct structure, including elevated station buildings in Calumpit in Bulacan and Apalit, Pampanga.
“Megawide, together with our world-renowned consortium partners in the field of engineering, Hyundai E&C and Dong-ah, is committed to deliver the highest standards of construction and engineering excellence for the MCRP. This will be another first-world infrastructure in the making,” said Edgar Saavedra, chair and CEO of Megawide.
The project’s estimated cost of P28 billion is equivalent to more than half of Megawide’s current order book of P48 billion.
“We are honored to be working with the Philippine government on the MCRP. Not only will this project, once totally completed, spur growth in Central Luzon, it will also increase connectivity and unlock exciting commercial opportunities between Metro Manila and Clark. This is also a strong testament to how public and private sector cooperation—foreign and local alike—can effectively propel the country toward a first-world Philippines,” Saavedra added.
Shares of Megawide rose by 4.17 percent to close on Monday at P7.50 each, giving it a market capitalization of P14.5 billion. INQ
