Megawide-led group bags Malolos-Clark railway project contract

MEGAWIDE Construction Corp. and its Korean partners Hyundai Engineering & Construction Co., Ltd. and Dong-ah Geological Engineering Company Ltd. have bagged the Malolos-Clark Railway Project package 1 contract, which covers the construction of a 17-kilometer viaduct structure and elevated station buildings in Calumpit, Bulacan and Apalit, Pampanga.

“The Notification of Award was issued on 18 September 2020,” Megawide said in a disclosure to the stock exchange on Monday.

Megawide said the project has an estimated cost of P28 billion, or equivalent to more than half of its current order book of P48 billion.

The company expects the project to boost its construction segment revenue in the “next three to four years.”

It said further that the project will benefit the company’s business units and support its expansion plans in the area.

The flagship Malolos-Clark railway project is part of the 163-kilometer North South Commuter Railway  project.

“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 towards a First-World Philippines,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.

Megawide noted the project is critical in jumpstarting the Philippine economy.

“Infrastructure spending is believed to have a very high multiplier effect on the economy, and the government’s direction to push this segment is very much welcome,” it added.

The listed company previously said it suffered its first loss in the first semester, shedding P349 million, as its construction and airport businesses posted lower profits due to the coronavirus pandemic.

It reported a 21% slump in its total revenues to P6.44 billion, while overall earnings before interest, taxes, depreciation, and amortization stood at P1.45 billion. — Arjay L. Balinbin

https://www.bworldonline.com/megawide-led-group-bags-malolos-clark-railway-project-contract/

Megawide-Korean group bags rail deal

The joint venture of Megawide Construction Corp. and Korean firms Hyundai Engineering & Construction Co. Ltd. and Dong-ah Geological Engineering Co. Ltd. bagged the P28-billion civil works contract for the Malolos-Clark Railway Project (MCRP) package 1.

The consortium received the notice of award last September 18.

Under the contract, the consortium will build and do the civil engineering works for approximately 17 kilometers of viaduct structure, including the elevated station buildings in Calumpit, Bulacan and Apalit, Pampanga.

Edgar Saavedra, Megawide chairman and chief executive officer, said the project’s estimated cost is equivalent to more than half of the company’s current order book of P48 billion.

Saavedra said this will boost the company’s construction segment revenue in the next three to four years during the development phase.

In addition, considering that precast materials and construction ancillary services will be major components for these kinds of development, Megawide said the project will also benefit its technologically advanced business units and support expansion plans in this area.

Artist’s perspective of a train station on the Malolos-Clark Railway Project.

“This project, once totally completed, will spur growth in Central Luzon…it will also increase connectivity and unlock exciting commercial opportunities between Metro Manila and Clark,” Saavedra said.

MCRP is part of the larger North-South Commuter Railway (NSCR) project of the Department of Transportation.

NSCR is composed of three railway projects: Philippine National Railway (PNR) Clark phase 1, a 38-km. rail line that will connect Tutuban, Manila to Malolos, Bulacan; PNR Clark phase 2; and PNR Calamba, a 56-km. railway from Solis, Manila to Calamba, Laguna.

PNR Clark phase 2 is a 53-km. rail line segment which will connect Malolos to Clark International Airport and will feature the country’s first airport rail express. It is expected to start partial operation by 2022, cutting travel time to just 30 to 35 minutes, from the original 1 hour and 30 minutes.

Megawide has been a private partner of the government for flagship infrastructure projects such as the development of the Mactan-Cebu International Airport, the Parañaque Integrated Terminal Exchange and for the construction of Clark airport’s new passenger terminal building.

https://malaya.com.ph/index.php/news_business/megawide-korean-group-bags-rail-deal/