Infradev to make money from Makati subway 5-6 years after 2025

Philippine Infradev Holdings Inc. said Tuesday it expects to actually make money from the $3.5-billion Makati City Subway project only after the first five or six years of commercial operations.

“We should start generating positive cash flow in year five or year six,” Philippine Infradev president and CEO Antonio Tiu told reporters on the sidelines of a signing agreement for the subway project in Makati City.

The company expects the railway system to start operations in 2025.

“We expect to recover investment in 10 years after operations,” Tiu said.

The company has yet to determine the fare system for the subway rail system but it will be on a par with the rates of Metro Rail Transit Line 3 (MRT-3).

A huge chunk of the revenue will come from non-fare sources such as retail space lease and ads.

In October 2018, the city government awarded the public-private partnership project to the consortium of Philippine Infradev (formerly IRC Properties).

The consortium counts as members Philippine Infradev and its Chinese partners Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd. Holdings Ltd., and China Harbour Engineering Company Ltd.

In December 2018, Philippine Infradev Holdings broke ground for the MaKati Subway project.

Makati Mayor Abby Binay said the tunnel boring machines will arrive by December this year to kick start the project’s actual construction works.

Tiu said the groundbreaking done in December last year was related to soil testing and the project’s 10-kilometer alignment.

The transport system will have 10 underground stations located at key destinations in such as the Ayala Triangle, Makati City Hall, and University of Makati.

There are also plans to integrate the Makati subway to MRT-3, Pasig River Ferry System, and the proposed Metro Manila Mega Subway. The project is expected to be completed in 2025.

The project is expected ease traffic congestion in Makati by providing up to 700,000 commuters with alternative transport and reducing by 270,000 the number of vehicles plying roads of Makati. —VDS, GMA News