Makati subway builder inks deal for lot acquisition, financing for project’s main station

Listed Philippine Infradev Holdings Inc., the builder of the Makati City Subway, has secured a deal for the financing and land acquisition for the main station of the underground train system project.

In a statement on Friday, Infradev said its wholly-owned subsidiary Makati City Subway Inc. (MCSI) signed a joint venture agreement with Richer Today Inc. (RTI).

The company said MCSI formed an unincorporated joint venture with RTI for the “financing, design, construction, development, marketing, and sale of some 5.5 hectares of lots in and around Station 5 of the Makati City Subway Project.”

Located near Makati City Hall, Station 5 is the main construction site where tunnel boring machines will be assembled and lowered, Infradev said.

Makati City Subway Inc. is the corporate vehicle undertaking the subway project.

RTI, meanwhile, is a holding firm primarily engaged in property acquisitions, fund transfers, remittance services, foreign exchange transactions, and other allied activities. It has investments and interests in property development, leasing of office and commercial spaces, food and beverages, and other related businesses.

With the joint venture deal, Infradev said lot acquisitions for the main station of Makati’s underground train system are now in full swing.

Under the Term Sheet of the deal, RTI committed to release at least P775 million within 120 days from signing, with at least P234-million to be released within 10 business days from execution of the agreement.

The firm will also be primarily and exclusively responsible for the marketing and sale of the gross sellable areas of the project, subject to the applicable laws and requirements.

For its part, MCSI has already paid P780 million for land acquisition in preparation for the arrival of the tunnel boring machines, which are currently being assembled in China, according to Infradev.

“Engineers from China State Engineering, the engineering, procurement and construction contractor engaged by MCSI, are already in the Philippines to finalize the construction plan for Station 5,” it said.

In September 2020, Infradev’s MCSI awarded the engineering, procurement and construction (EPC) contract to China Construction Second Engineering Bureau Co. Ltd. for the project.

The EPC contract covers civil works, and MEP or mechanical, electrical, plumbing works of the subway project.

The construction price under the EPC contract is $1,212,760,000.00 broken down as $978,600,000.00 for civil works and $234,160,000.00 for MEP works.

In July 2019, the Makati City government and the consortium of Infradev and its partners executed a joint venture agreement for the construction, operation, and management of a subway system within Makati City.

In October 2018, the city government awarded the public-private partnership project to the consortium of Philippine Infradev (formerly IRC Properties), to be implemented via a joint venture agreement.

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 broke ground for the Makati subway project.

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

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

The Makati subway system is seen to significantly ease traffic congestion in the city by providing an alternative transport service for up to 700,000 commuters, and to reduce by 270,000 the number of vehicles plying its streets.—AOL, GMA News