Makati subway project to break ground by yearend

Makati City Mayor Abby Binay yesterday said the proposed intracity subway in the country’s premier financial and business district could break ground by yearend once the competitive Swiss Challenge process for the US$3.7-billion railway project is completed next month.

Binay said the unsolicited PPP (Public Private Partnership) Proposal and draft Joint Venture Agreement submitted by a consortium of large foreign and local companies led by listed IRC Properties, Inc. (IRC) has been granted Original Proponent Status and is currently up for price competition until September 24, 2018.

Following the Swiss Challenge process, Makati City invited other prospective bidders to make offers, but the original proponent has the right to match the best offer.

Once operational, the 10-kilometer, dual track, urban rail system will connect key points in Makati, from the current Central Business District along Ayala Avenue, Makati City Hall, Poblacion Heritage Site, University of Makati, Ospital ng Makati and other new business districts within the city.

More than 700,000 passengers can be accommodated and served daily in 10 air-conditioned, underground island stations.

Links to other mass transport systems like the MRT, Pasig River ferry, and the JICA-funded Metro Manila Subway are being worked out.

Mayor Binay said total project cost is approximately US$3.7 billion, with no cash out from the city government.

Makati will only contribute land it currently owns and which will be used in the subway system.

“This mass transport system is Makati’s most ambitious PPP project to date. It’s part of my vision to make Makati the country’s first digital city – a city that is future-proof, connected and innovative without losing its cultural heritage and identity,” Binay said.

To save cash for much-needed public services, she said Makati City is aggressively promoting private-sector led initiatives.

“That’s why I’ve invited private firms to be active partners not just in investments but also in governance and administration,” she stressed.