DOTr won’t meddle in Makati Subway; says rail project LGU-private venture

The Department of Transportation is keeping its hands off on the impending modifications to the P125-billion Makati Subway project following the decision of the Supreme Court to transfer the 10 EMBO barangays to the jurisdiction of Taguig City.

Philippine Infradev Holdings Inc., the private proponent of the intra-city railway project, said it will discuss changes to the subway design with the City of Makati, its joint venture partner, since the court ruling affects the site of the depot and two proposed stations.

The Passenger Forum, a transport advocacy group, said that for the sake of  the tens of thousands of commuters that may be affected by the changes, the DOTr should step in and intervene.

Cesar Chavez, DOTr undersecretary in charge of railway projects, told Context.ph that unless called in by the joint venture partners in the subway project, the agency cannot meddle in their private negotiations even if  the transport development is imbued with public interest.

“We don’t have a role in this project,” Chavez said. “The Makati Subway project is purely an LGU-initiated project. DOTr is not involved in it,” he added.

Makati Subway was planned to be a 10-station underground railway system connection various areas of the country’s various financial districts as well as link to major mass transport lines such as MRT 3, the Pasig River Ferry, and Manila Manila Subway that is now under construction. It was expected to start operation in 2025 and ferry around 700,000 passengers daily.

But because the EMBO barangays have been transferred to the jurisdiction of Taguig, Philippine Infradev said the sites of the proposed depot and the planned stations at the Ospital ng Makati and University of Makati will all be affected. The joint venture agreement deal calls for Makati City to provide the sites for facilities of the subway system.

“Also, the alignment of the subway will no longer be feasible,” Philippine Infradev told the Philippine Stock Exchange.

The impending changes to the joint venture deal could result in a redesign of Makati Subway that would inevitably delay the railway project and would inevitably increase development for Philippine Infradev, an investment holding company whose main business interests are infrastructure and real estate development.

Shares of the company, which trades under the symbol INFRA, lost nearly 12 percent of its value at the close of trade Wednesday due to potential adverse impact of the Makati-Taguig territorial row on the subway project, potential increase in project cost and effect on future income.