China firm investing in Makati subway

BEIJING – Publicly-listed Philippine Infradev Holdings Inc. has entered into an agreement for the proposed $3.7-billion intracity subway in Makati City.

IRC president and chief executive officer Antonio Tiu said the company has executed a binding memorandum of agreement (MOA) with China Civil Engineering Construction Corp. (CCECC).

In a disclosure to the Philippine Stock Exchange (PSE), IRC said the 100 percent owned subsidiary of China Railway Construction Corp. Ltd. (CRCC) has committed to invest between $300 million and $350 million into the company or its subsidiary in connection with the Makati City Subway public private partnership project.

The company said the parties intend to complete the entire due diligence process prior to the formalization of the structure of CCECC’s investment and execution of the formal investment agreement by May 31.

Furthermore, CCECC also agreed to undertake the engineering procurement and construction (EPC) works for the Makati Subway Project.

The company would also provide completion performance guarantee for the completion of the Makati Subway Project depending on the completion of a financial, legal and technical due diligence.

IRC, the listed infrastructure company chaired by Ren Jinhua, officially commenced soil testing for the proposed 10.1-kilometer intracity subway in Makati last month.

The company, formerly named IRC Properties Inc., would implement a six-month geo-testing that involves drilling small holes and getting soil and rock samples for analysis from at least 200 points along the proposed subway alignment.

The move is part of preliminary works prior to official groundbreaking of the $3.7 billion infrastructure project.

The ceremonial drilling in front of the old Makati City Hall was witnessed by top IRC executives along with Makati Mayor Abby Binay, Vice Mayor Monique Lagdameo, former vice president Jejomar Binay and other city officials.

Last October, Makati’s PPP Selection Committee gave the green light to IRC to proceed with the $3.7 billion subway project after the firm hurdled a 30-day competitive Swiss challenge.

The system can accommodate up to six car trains, with a room for over 200 persons per car, with over 700,000 passengers per day to be accommodated and served by the proposed mass transport system.

Tiu said it would take four to five years to complete the subway from the arrival of the tunnel boring machine.

He added the subway would connect key points in Makati such as the current Central Business District along Ayala Ave. Makati City Hall, the Poblacion Heritage Site, the University of Makati, Ospital ng Makati and the other new business districts within the city.

The proposed dual track subway system would have up to 10 air-conditioned, underground island stations.

According to Tiu, the tunnel boring machine is scheduled to be delivered to the Philippines within six months and the system would be completed as early as 2023 to 2024.