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Metro Manila (CNN Philippines, September 21) – Infrastructure conglomerate Megawide is taking on another costly project as it won the contract to build part of the Malolos-Clark railway with two Korean companies.
In a disclosure to the Philippine Stock Exchange on Monday, Megawide said it had been awarded the contract for Package 1 of the Malolos-Clark Railway Project (MCRP) with partners Hyundai Engineering & Construction Co., Ltd. (Hyundai E&C) and Dong-ah. Geological Engineering Company Ltd. (Dong-ah).
The award notice was issued to the consortium on September 18, Megawide added.
Megawide, Hyundai E&C and Dong-ah will provide construction and engineering works for some 17 kilometers of viaduct structure for the MCRP, at a cost of about ₱ 28 billion, or more than half of the current order book of ₱ 48 billion from the conglomerate.
Megawide said the project is expected to increase the company’s construction revenue over the next three to four years.
“We are honored to be working with the Government of the Philippines on the MCRP,” said Megawide President and CEO Edgar Saavedra. “This project, once fully completed, will not only stimulate growth in Central Luzon, but will also increase connectivity and unlock exciting business opportunities between Metro Manila and Clark.”
In July last year, the Asian Development Bank signed a $ 2.75 billion loan with the Philippines to help finance the construction of the 53-kilometer Malolos-Clark railway. The section is part of the 163 km North-South Cercanías Railroad (NSCR), a project of the Department of Transportation.
Meanwhile, the NSCR is co-financed by the ADB with the Japan International Cooperation Agency, which had pledged $ 2 billion in funding.
MCRP Package 1 is Megawide’s second flagship infrastructure project this year, coming a few months after the conglomerate obtained original proponent status for the rehabilitation of Ninoy Aquino International Airport with Indian company GMA Infrastructure Limited.
The tandem is also known for having developed Clark and Mactan-Cebu international airports.
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