Makati City is set to take full ownership of the halted Makati Subway Project’s corporate entity, Makati City Subway Inc. (MCSI), following arbitration proceedings with the Singapore International Arbitration Centre (SIAC), former Mayor Abby Binay announced over the weekend.
Abby Binay said the arbitration ruling will transfer MCSI’s $1.6 billion worth of assets—free of liabilities and including land holdings—to the city after it pays $160 million to its private partner, Philippine InfraDev Holdings Inc. She described the outcome as a win that would end years of legal uncertainty and allow Makati to relaunch the subway project independently.
However, newly-elected Mayor Nancy Binay raised concerns over the timing of the agreement, which was finalized just days before the previous administration ended its term. Nancy criticized the “midnight settlement,” warning that it binds the city to a hefty ₱8.96 billion payment within 90 days of SIAC’s final ruling—plus an additional $30 million (approx. ₱1.7 billion) penalty if the city fails to pay on time.
“This puts the city’s financial health in jeopardy,” Nancy said, adding that the previous council acted without due diligence or public transparency.
In response, she ordered the city’s legal team to prepare Makati’s official position to SIAC and vowed to launch a fact-finding committee to review all previous PPP agreements.
The Makati Subway, first launched in 2018, aimed to connect major city points via a 10-kilometer underground system. But construction halted in 2022 after the Supreme Court transferred 10 barangays—including key project areas like Cembo and West Rembo—to Taguig. Philippine InfraDev later deemed the project no longer viable and filed for arbitration.
Despite these setbacks, Abby Binay previously revealed ongoing talks with a new domestic partner interested in reviving the project through an unsolicited proposal.
The subway project, originally designed to serve 700,000 commuters and reduce vehicle volume by 270,000, remains a critical component of Makati’s urban transport vision