Philippine Infradev Holdings Inc. has halted its multibillion-peso Makati City Subway Project, citing economic and operational infeasibility triggered by a Philippine Supreme Court ruling that handed key areas of the line to neighboring Taguig City.
In a decisive move, the company’s board resolved to withdraw from the flagship public-private partnership with the Makati City Government, effectively halting what was envisioned to be the country’s first intracity subway system.
“Continuing with the Makati City Subway Project under the Joint Venture Agreement (JVA) with the Makati City Government was rendered no longer economically and operationally feasible,” the firm said in a disclosure.
The key blow came from a Supreme Court (SC) decision that declared several subway stations and the planned depot site to fall under the jurisdiction of Taguig City—not Makati.
For context, SC ordered the transfer of 10 barangays, collectively known as the “embo” (enlisted men’s barrios), from Makati to Taguig, based on historical records, documents, and witness accounts.
These barangays include Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo, Pitogo, Rizal, Post Proper Northside, and Post Proper Southside.
The decision directly impacts the planned route of the 11-kilometer Makati Subway Project, which was projected to accommodate around 700,000 daily commuters.
Infradev has since launched arbitration proceedings with the Singapore International Arbitration Centre (SIAC) “to enable an impartial resolution of the JVA with the Makati City.”
The Makati Subway Project was envisioned as a 10-kilometer underground rail loop with up to 10 stations, aimed at easing traffic congestion and improving mobility in the country’s premier financial district. Construction was supposed to start in phases, with partial operations initially eyed in the mid-2020s.
Infradev did not specify the financial impact of its exit or the terms being contested in arbitration. (TCSP)
