The recent Supreme Court ruling on the territorial dispute between the local government units of Makati and Taguig could jeopardize the construction of the proposed $3.7-billion Makati Intra-City Subway project, its proponent said Wednesday.
Philippine Infradev Holdings Inc. said in a disclosure to the stock exchange the big-ticket project “may no longer be feasible” because of alignment issues as some areas previously within the jurisdiction of Makati City were ruled to be within Taguig City.
Philippine Infradev, led by businessman Antonio Tiu, earlier formed a joint venture with the Makati LGU for the Makati subway project.
“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. Also, the alignment of the subway will no longer be feasible,” the company said.
Philippine Infradev said given this development, it sent a notice of intent to the Makati City government to propose the commencement of discussions in light of the Supreme Court decision.
The SC earlier ruled with finality that Taguig has jurisdiction over Fort Bonifacio and the 10 barangays of Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo, Pitogo, Rizal, Northside and Southside.
Philippine Infradev in 2018 was awarded the contract to construct and operate the Makati Subway. It also posted a $350-million performance bond.
The company through its subsidiary Makati City Subway Inc. earlier teamed up with Chinese firms to help finance and construct the project.
The project also obtained fiscal incentives from the government, including four-years of income tax holiday, which will be followed by five-years of enhanced deductions and duty exemption.
The subway project, which is expected to be completed within five years, can accommodate 700,000 passengers daily and will have 10 stations.
The stations will be built on Ayala Ave.-EDSA, Paseo de Roxas, Buendia Ave., Makati Fire station, JP Rizal Ave and Sacramento St., Makati City Hall, Rockwell, Guadalupe Bridge MRT 3, Makati University, East Rembo and Ospital ng Makati.
The subway will also have connections to the Metro Rail Transit Line 3, Pasig River Ferry Service and the planned Metro Manila Subway.