Makati Subway project seen to be derailed due to SC ruling in favor of Taguig

The multi-billion dollar Makati Subway System is set to be derailed as the project’s proposed alignment is found to be “no longer feasible” following the Supreme Court’s decision transferring several areas to Taguig City’s jurisdiction, the company building the underground intra-city railway project said Wednesday.

In a disclosure to the Philippine Stock Exchange, Philippine Infradev Holdings said it “wrote the Makati City Government an Intent Notice to propose the commencement of discussions in light of the change in law the Supreme Court decision brings.”

This, as the company said that “alignment of the subway will no longer be feasible.”

The $3.5-billion Makati Subway System project is seen to have 10 underground stations located at key destinations such as Ayala Triangle, Makati City Hall, and University of Makati.

“Under the Joint Venture Agreement executed between the Makati City Government and the company, the depot and a few stations of the Makati City subway system will be in the affected areas,” Infradev said.

In particular, the subway project has a planned depot in Barangay Cembo, a planned station in University of Makati in West Rembo, and another one in Ospital ng Makati in Pembo.

In 2021, the SC declared that the Fort Bonifacio Military Reservation, consisting of parcels 3 and 4, psu-2031, and the 10 affected barangays are part of the territory of Taguig City.

The 10 barangays are Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo, Pitogo, Rizal, Northside, and Southside.

In June, the SC rejected the Makati City government's motion asking the high court to allow it to file a second motion for reconsideration over its territorial dispute with Taguig City.

Infradev said it will be informing the Philippine Stock Exchange and the Securities and Exchange Commission for any further material developments on the matter.

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.

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

Infradev and its Chinese partners Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd. Holdings Ltd., and China Harbour Engineering Company Ltd. were awarded the public-private partnership deal to undertake the Makati City Subway project by the Makati City government in 2019. —KG, GMA Integrated News