Philippines - March 2019
The Securities and Exchange Commission (SEC) has approved the application of infrastructure and real estate company Philippine Infradev Holdings Inc to incorporate Makati City Subway, Inc., which will take charge of its underground railway project in Makati City. The subway is targeted to open in 2025, and expected to accommodate 700,000 passengers daily.
Philippine Infradev is the proponent of the USD 3.7-billion Makati City Subway Project, which aims to build an 11-kilometer intracity railway system in the business district. It will also link the Metro Rail Transit, the proposed Manila Mega Subway which is schedule to be completed in 2025 and the Pasig Ferry.
Philippine Infradev is joined by Chinese firms Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd., Holdings Ltd. and China Harbour Engineering Company Ltd., which signed a memorandum of understanding with the Makati City government in 2018. The 30-year concession agreement for the project is expected to be signed in 2019. In December 2018, the group started preparatory works for the project such as soil testing.
Furthermore, Philippine Infradev has also singed an agreement with China Civil Engineering Construction Corp (CCECC), under which CCECC will support the subway’s construction by investing USD 300 to USD 350 million into the company or its subsidiary, undertake engineering procurement and construction work for the project. Both Philippine Infradev and CCECC will have until 19 May 2019 to complete the entire due diligence process, prior to formalization of the CCECC’s investment and execution of the formal investment agreement.
(Sources: The Manila Times; BusinessWorld)