MAKATI CITY – The Makati City government and Philippine Infradev Holdings Inc. have signed a joint venture agreement for the construction of the Makati City Subway.
Makati City Mayor Abigail Binay and Philippine Infradev chair Ren Jinhua on Tuesday signed the accord for the $3.5-billion underground railway project.
Philippine Infradev (formerly IRC Properties Inc.) received the green light to commence the subway project after the 60-day competitive Swiss challenge and secured approval from the city council.
The listed firm said it submitted to the local government a $350-million performance bond for the project, one of the prerequisites for the signing of the deal with the city.
Philippine Infradev President and Chief Executive Officer Antonio Tiu earlier announced the completion of a six-month soil testing along the proposed alignment of the 10-kilometer intracity subway system and recorded no adverse findings for the Makati subway that was touted as the largest public-private partnership (PPP) project for a local government unit.
Binay welcomed the project, saying it would benefit residents and non-residents alike since it would link key points and shorten travel time within the city.
The city government will not invest in the project but provided the land asset necessary for the subway project, which would connect key points in the city including the Central Business District at the corner of Ayala and Sen Gil Puyat Avenues, Circuit City, Makati City Hall, University of Makati, Ospital ng Makati, and other new areas.
It will have up to 10 air-conditioned, underground island stations that can accommodate up to six car trains and room for more than 200 persons per car.
Once completed, more than 700,000 passengers will benefit from the planned mass transport system. It is expected to complement the government’s mass transport projects since it would be linked to the proposed Metro Manila Mega Subway project, MRT Stations, and the Pasig River ferry.