Makati to fully own stalled subway project for $160M

Makati City is set to gain full ownership of the stalled $1.6 billion subway project's corporate entity, Makati City Subway Inc. (MCSI), through arbitration proceedings at the Singapore International Arbitration Centre (SIAC).

The city will pay $160 million to its private partner, Philippine InfraDev Holdings Inc., to settle disputes and acquire MCSI, its land assets, and free it of liabilities.

Former Mayor Abby Binay stated this resolution is a win for Makati, expected to end years of legal uncertainty and allow the city to independently advance the subway project on its own terms.

The Makati Subway System, initially planned as a 10-kilometer line from EDSA-Ayala to Ospital ng Makati, broke ground in 2018 and was awarded as a public-private partnership (PPP) deal to Philippine Infradev Holdings Inc. and its Chinese partners in 2019.

Construction halted in 2022 after a Supreme Court ruling transferred jurisdiction of several areas, including barangays now part of Taguig City, to the latter.

Former Mayor Abby Binay-Campos emphasized that the city has sufficient funds to cover the $160 million settlement without impacting residents' benefits.

She clarified that the compromise amount, which considered Infradev's verified investments, was a strategic move to protect the city from a larger $1.7-billion arbitration claim.