The Makati City Government led by Makati Mayor Abby Binay and listed Philippine Infradev Holdings Inc. chaired by businessman Ren Jinhua signed the historic Joint Venture Agreement for the $3.5 billion subway project in a ceremony held Tuesday.
Philippine Infradev, formerly IRC Properties Inc., earlier received the green light to proceed with the subway project after the firm hurdled a 60-day competitive Swiss Challenge and obtained the approval from City Council.
In a disclosure to the Philippine Stock Exchange, Philippine Infradev also said it submitted to the Makati Government a $350 million performance bond for the project, which was a pre-condition for the signing of the joint venture agreement with the city.
The $3.5 billion Makati City Subway, to be known as MkTr, is touted as the biggest PPP project for a local government unit.
A few weeks ago, Philippine Infradev President and CEO Antonio Tiu announced the completion of a six-month soil testing along the proposed alignment of the 10-kilometer intracity subway system with no adverse findings.
Mayor Binay welcomed the project, saying it would benefit Makatizens and even non-Makati residents since it will connect key points and cut travel time within the city. She stressed there would be no cash out from the city government.
Thus, Makati would only contribute land it currently owns and which will be used in the subway system.
The proposed subway would connect key points in Makati like the current 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 growth areas within the city.
The subway will have up to 10 air-conditioned, underground island stations. It can accommodate up to six car trains, with room for over 200 persons per car, with more than 700,000 passengers per day to be accommodated and served by the proposed mass transport system.
Makati’s intra-city subway is seen complementing the National Government’s mass transport projects as it would be connected to the proposed Metro Manila Mega Subway project, MRT stations, and the Pasig River ferry. MAKATI CITY GOVERNMENT