Philippine Infradev, the company picked to develop a subway in Metropolitan Manila on a public-private partnership basis, has signed an agreement with China Civil Engineering Construction Corporation (CCECC) to build it.
Makati in relation to Metropolitan Manila (Mike Gonzalez /CC BY-SA 3.0)
The $3.7bn project is to be sited in the City of Makati, the financial centre of the Philippines. In a disclosure to the country’s stock exchange last week, Infradev, which was formerly known as IRC Properties, said it had signed a binding memorandum of understanding with CCECC, which is a subsidiary of state-owned China Railway Construction Corporation.
Under the terms, CRCC will invest between $300m to $350m and undertake the engineering, procurement and construction works.
The plan is to construct an 11km system with eight to 10 stations, at no cost to the city government. This will ease traffic congestion in Makati, which has a daytime population of around 4.5 million.
The parties aim to finalise the agreement by the beginning of June this year, and to complete the scheme by 2023.
A number of other Chinese companies are involved in the consortium, including property firm Greenland Holdings, Jiangsu Provincial Construction Group and China Harbour Engineering Company, a subsidiary of China Communications Construction.
Image: The Ayala Triangle. Makati experiences traffic congestion during rush hours (ChilledSunshine/CC BY-SA 3.0)