Makati subway proponent gets additional $332 million funding

MANILA, Philippines — Philippine Infradev Holdings Inc., formerly IRC Properties Inc., will get an additional $332 million funding for the 10-ki-lometer Makati subway project.

Last Monday, the Chinese partners of the project signed the investment agreement with Philippine Infradev and the city government of Makati.

Hui Gao Investments Development Ltd. will provide $102 million as equity investment and $200 million in credit facility to be used for the Philippines’ first intra-city subway system.

Shanghai Mintu Investments Ltd. also signed a subscription agreement for $30 million direct equity investment in Makati City Subway Inc., the corporate entity that will construct and operate the subway system, Makati Mayor Abby Binay said.

Hui Gao Investments Development Ltd. is an affiliate of Redco Properties Group, a Hong Kong publicly listed integrated property developer focusing on mid-to-high-end residential and commercial property development in the People’s Republic of China.

Shanghai Mintu Investment Holdings, on the other hand, is an investment holding group focusing on infrastructure, mass transportation, and financial services. The company  built the Jiangyin Yangtze river bridge, the longest bridge in China and the third longest in the world when it was completed.

The city of Makati will contribute the land.

Together with the land contribution of the local government and initial investments poured in by the city’s private sector partners, the Makati City subway project now has an initial funding of about $500 million, Binay said.

“The Makati subway project is definitely gaining momentum, and we’re confident that our lead partner Philippine Infradev Holdings will be able to sustain the pace and finish the project on schedule,” she said.

Philippine Infradev Holdings president and CEO Antonio Tiu welcomed the additional funding for the subway project.

“The fresh cash infusion from our Chinese partners is proof of their strong commitment to proceed with the subway project and finish it on schedule,” he said.

Around 10,000 jobs will be made available to Makati residents in the construction and operation of the subway.

The Makati Subway is seen to ease traffic in the city and connect other nearby cities such as Taguig and Mandaluyong among others.

It is also seen complementing the mass transport projects of the national government as it will be connected to the MRT stations, the proposed Metro Manila Mega Subway and the Pasig River ferry.