3 days ago
Abby Binay says Makati has enough funds to settle subway project
The Makati City government has sufficient funds to pay the $160 million award the Singapore International Arbitration Centre (SIAC) may give in favor of Philippine Infradev Holdings Inc. without cutting benefits for residents, according to former Mayor Abby Binay-Campos on Monday.
Binay-Campos said the $160 million compromise — which took into account Infradev's actual investments as confirmed by Pricewaterhouse Coopers (PwC) — was a strategic way to shield the city from the firm's $1.7-billion arbitration claim filed before SIAC.
'Claims that there will be no more funds for services and operations are baseless,' Binay-Campos said in a press release.
Earlier, the former mayor said the city would be given full ownership of the corporate entity established to develop and operate the stalled underground train system in the city as part of proceedings with the SIAC.
Her sister, newly elected Mayor Nancy Binay, has flagged a supposed 'midnight settlement' that the previous administration entered seven days before the end of their term, obligating the city to pay P8.96 billion to the private partner Philippine InfraDev Holdings Inc.
Binay-Campos denounced allegations that the deal was rushed or a 'midnight agreement,' reiterating that it was a calculated move to not only prevent larger losses, but also to substantially raise the city's assets and provide long-term financial stability.
'The compromise was not plucked out of thin air. It took into account actual data and fair valuation principles as confirmed by PwC, an internationally-known audit firm,'' she said.
She also said her successor and sister could review or revoke the settlement, but warned: 'Go ahead. But show Makatizens your brand of service, Ate.'
To recall, the Makati Subway System, then envisioned to be a 10-kilometer subway from EDSA-Ayala to Ospital ng Makati, broke ground in 2018.
InfraDev and its Chinese partners Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd. Holdings Ltd., and China Harbour Engineering Company Ltd. were awarded the public-private partnership deal to undertake the Makati City Subway project by the Makati City government in 2019.
Construction activities, however, were halted in 2022 due to the Supreme Court ruling that placed the jurisdiction of several areas to Taguig City.
Following the ruling, Philippine Infradev Holdings Inc. said the Makati Subway System was rendered unviable, with the depot originally set to be located in Barangay Cembo. It also had a planned station in the University of Makati in West Rembo, and another one in Ospital ng Makati in Pembo. — BAP, GMA Integrated News
