Makati subway builder awards construction contract to Chinese firm

Philippine Infradev Holdings Inc., the builder of the Makati City Subway, has chosen a Chinese construction firm to undertake its multi-million dollar infrastructure project.

In a regulatory filing, Infradev said its wholly-owned subsidiary, Makati City Subway Inc., awarded the engineering, procurement and construction (EPC) contract to China Construction Second Engineering Bureau Co. Ltd. for the project.

Makati City Subway Inc. is the corporate vehicle to undertake the subway project.

The EPC contract covers civil works, and MEP or mechanical, electrical, plumbing works of the subway project.

The construction price under the EPC contract is $1,212,760,000.00 broken down as $978,600,000.00 for civil works and $234,160,000.00 for MEP works.

“The terms of the EPC Contract are made taking into consideration the provisions of the Joint Venture Agreement dated 30 July 2019 between the Company (and the Consortium it represents) and Makati City,” Infradev said.

In July last year, the Makati City government and the consortium of Infradev and its partners executed a joint venture agreement for the construction, operation, and management of a subway system within Makati City. 

In October 2018, the city government awarded the public-private partnership project to the consortium of Philippine Infradev (formerly IRC Properties), to be implemented via a joint venture agreement.

The consortium counts as members Philippine Infradev and its Chinese partners Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd. Holdings Ltd., and China Harbour Engineering Company Ltd.

In December 2018, Philippine Infradev broke ground for the Makati subway project.

The proposed transport system will have 10 underground stations located at key destinations such as Ayala Triangle, Makati City Hall, and University of Makati.

There are also plans to integrate the Makati subway with the MRT 3, the Pasig River Ferry System, and the proposed Metro Manila Mega Subway. The project is expected to be completed in 2025.

The Makati subway system is seen to significantly ease traffic congestion in the city by providing an alternative transport service for up to 700,000 commuters, and to reduce by 270,000 the number of vehicles plying its streets.—LDF, GMA News