The ambitious Makati Subway Project, once hailed as a game-changer for urban transport, has been officially declared unviable by developer Philippine Infradev Holdings Inc. This comes after a Supreme Court ruling shifted jurisdiction of several key project sites from Makati City to Taguig City.
In a disclosure to the Philippine Stock Exchange, Infradev revealed that its Board of Directors decided to halt the subway development due to the significant operational and financial impact of the SC decision. The ruling affected areas designated for major infrastructure components like stations and the main depot.
To address the fallout, Infradev has initiated arbitration with the Singapore International Arbitration Centre, seeking a neutral resolution of its Joint Venture Agreement (JVA) with Makati City.
Originally launched in 2018 under a public-private partnership, the $3.5-billion Makati Subway was envisioned to feature 10 underground stations at high-traffic sites such as Ayala Triangle, Makati City Hall, and the University of Makati. The system aimed to serve up to 700,000 commuters and reduce vehicle congestion by around 270,000 daily.
However, the Supreme Court’s 2021 ruling designated ten barangays—including Pembo, Cembo, and West Rembo—as part of Taguig, undermining the feasibility of the subway which had key components planned in those locations.
Despite early warnings in 2023 about the project’s viability, the final blow came with the SC’s rejection of Makati’s plea to reconsider the territorial dispute.
Infradev’s consortium partners included major Chinese firms like Greenland Holdings, Jiangsu Provincial Construction Group, and China Harbour Engineering Company. Integration with the MRT-3, Pasig River Ferry, and the proposed Metro Manila Mega Subway had also been planned.