SM Prime Holdings Inc. on Friday confirmed a Manila Times report that the mall developer is in talks with the government to finance an additional station of a rail system from Caloocan City to North Avenue in Quezon City.

In a disclosure to the Philippine Stock Exchange, Jeffrey C. Lim, SM Prime executive vice-president, said the company is in discussions with state-run Light Rail Transit Authority (LRTA) for the construction of an additional station for the Light Rail Transit Line 1 North Extension project.

“The company will make an appropriate disclosure to the Exchange as soon as an agreement is finalized and signed,�? Lim said, without providing additional details.

SM Prime operates 28 malls across the country. Earlier, Federico J. Canar, LRTA project manager said the SM group offered to fund the additional station to be constructed between the proposed Roosevelt and North Avenue stations adjacent to the company’s property with an estimated value of P100 million.

“The work on this additional station would be totally independent of our construction work.  LRTA and Shoe Mart are going to enter into a MOA [memorandum of agreement] for this additional construction work,�? Canar said.

Costing about P5.98 billion, the project involves the construction and detailed design of a 5.71-kilometer elevated line from Monumento station of LRT Line 1 to North Avenue of Metro Rail Transit 3, two new intermediate stations (Balin-tawak and Roosevelt) and a terminal station (Line 1 North Avenue station). 

The Balintawak station will provide modal interchange with bus and jeepney services entering Metro Manila from the north via the North Luzon Expressway.

Of the total cost, civil and architectural works would amount to P3.3 billion; electromechanical works, P1.9 billion; consultancy services, P317.4 million; and contingency, P318 million.

The project will be implemented for a period of two years, with construction to begin in 2008 and completion by April 2010. The LRT North Project is expected to serve around 800,000 to 1 million passengers once it is fully operational.