The National Economic and Development Authority (NEDA) is set to re-evaluate the proposed MRT-7 project. The implementing rules and guidelines of the Build-Operate-and-Transfer (BOT) Law call for a re-evaluation because the NEDA approval has lapsed, and if there have been cost changes to the project. The BOT rules only allow for an 18-month validity for NEDA approvals.
The NEDA approval is required for big budget projects which have an impact on the economy and would require a very large government financing. In the case of the MRT-7, the $1.2 billion cost requires a performance undertaking from the Department of Finance (DOF), which is required for projects which require official development assistance (ODA). In the MRT-7, the government has not secured a financial guarantee, which is usually a foreign loan component.
The proposed line is from San Jose del Monte City, Bulacan to SM City North EDSA. It will start at Tala, Caloocan City passing through Lagro via Quirino Highway, and Fairview, Novaliches where it then merges with Commonwealth Avenue going to Philcoa and Quezon City Circle and ending at EDSA corner North Avenue.
The project also includes a 17km six-lane access road from Marilao, Bulacan to Tala. The rail depot will be located at Tala,Interaksyon.com reported.
