Image credits: www.pia.gov.ph
Philippine Infradev Holdings Inc. on Tuesday said its unit, Makati City Subway Inc., has executed a legally binding term sheet with Richer Today Inc. to fund the acquisition of properties in its main construction site in Makati.
In its disclosure, the 2 companies will form an unincorporated joint venture for the financing and acquisition of lots in and around Station 5 of the Makati City Subway Project.
Richer Today obligated itself under the term sheet to release at least P775.88 million within 120 days from signing of the deal, the company said in its disclosure to the Philippine Stock Exchange.
At least P234.73 million of the said fund must be released within 10 business days from Tuesday’s signing.
Station 5 has been identified as the main construction site where the tunnel boring machines will be assembled and lowered, the company said.
The first batch of engineers from China State Engineering Second Bureau Ltd., the engineering, procurement, and construction contractor engaged by Makati City Subway, recently arrived from China and are currently finalizing the construction plan for Station 5.
Philippine Infradev, the firm led by businessman Antonio L. Tiu, also disclosed that it has terminated its investment deal with Hong Kong Binjiang Industrial Ltd. and also its transport oriented development agreement.
The said agreement was terminated by the two parties on February 18, the company said in its disclosure.
“It has been almost one year since the transactions contemplated in the agreement were submitted to the Philippine Competition Commission [PCC] for approval, and to date, the same are still pending review,” the company said.
“The effectivity of the transactions contemplated in the agreement, specifically the release of funds earmarked by HK Binjiang, was conditioned on the PCC’s approval of the transactions. The termination of the agreement likewise results in the termination of the shareholders’ agreement and transit oriented development agreement executed with HK Binjiang on even date.”
The proposed subway would connect key points in Makati like the current Central Business District at the corner of Ayala and Sen. Gil Puyat Avenues, Circuit City, Makati City Hall, University of Makati, Ospital ng Makati and other new growth areas within the city.
According to its initial plans, the $3.5 billion, 10-kilometer Makati subway will have up to 10 air-conditioned, underground island stations. It can accommodate up to 6 car trains, with room for over 200 persons per car and more than 700,000 passengers per day can be accommodated.
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