Philippine Infradev Holdings Inc. said Tuesday it signed new deals for the financing and purchase of lots that will be used in the $3.7-billion Makati City Subway Project.
Philippine Infradev said in a disclosure to the stock exchange subsidiary Makati City Subway Inc. signed a term sheet agreement with Richer Today Inc. to form an joint venture company that would fund and acquire the lots in and around Station 5.
The company said RTI committed to release at least P775.885 million within 120 days from the signing of the term sheet with at least P234.73 million be released 10 days from the signing.
“Station 5 has been identified as the main construction site where the tunnel boring machines will be assembled and lowered,” Philippine Infradev said.
The first batch of engineers from its Chinese contractor arrived and were finalizing construction plans, it said.
The 10-station train system spans 10 kilometers with stops in key points around Makati.
Meanwhile, the company said it agreed to the mutual termination of MSCI’s share purchase agreement with Hong Kong Binjiang Industrial Limited.
“It has been almost 1 year since the transactions contemplated in the agreement were submitted to the Philippine Competition Commission for approval, and to date, the same are still pending review,” the company said.
“The effectivity of the transactions contemplated in the agreement, specifically the release of funds earmarked by HK Binjiang, were conditioned on the PCC’s approval of the transactions,” it said.
MSCI signed an investment agreement HK Binjiang in February 2020. Under the agreement, HK Binjiang will acquire a 35-percent direct investment in MCSI by purchasing 15 million common shares for $30 million, payable within 10 business days from effectivity of the agreement.
HK Binjiang will subscribe to 36 million primary common shares of MCSI for price of $72 million.
The proposed 10-kilometer subway project would connect key points in Makati such as the central business district along Ayala Ave., the Makati City Hall, the Poblacion Heritage Site, the University of Makati, Ospital ng Makati and the other new districts in the city.
The project was supposed to be completed by 2024 or 2025.