Makati's political circus is scaring off investors

EYES WIDE OPEN

- IRIS GONZALES

It's unfortunate that the once-promising Makati Subway project has hit a major snag; and even more unfortunate is that it's caught in a tug-of-war between the Binay sisters — Nancy, the former senator and now newly elected city mayor, and Abby, the ex-mayor.

But first, let me refresh your memory about the Makati Subway project. As a reporter covering listed firms, I've followed this story since it was first proposed by its private sector proponent, the publicly listed Philippine Infradev Holdings Inc., as part of a public-private partnership with Makati City.

The $3.5-billion MkTr project was a 10-kilometer underground railway designed to link key areas of Makati — including Ayala Avenue, City Hall, Poblacion Heritage Site, University of Makati, Ospital ng Makati and emerging business districts — through up to 10 air-conditioned island stations.

It really seemed promising, not just as transportation infrastructure but in terms of a real estate play, making condominiums attractive as transport-oriented buildings, for instance.

Unfortunately, the subway project was abandoned by its private sector proponent because of major problems such as a 2023 Supreme Court decision that transferred control of 10 EMBO barangays — which are key locations for several planned stations and the depot — from Makati to Taguig. Philippine Infradev eventually withdrew from the project because of these snags.

The company filed an arbitration case after the Supreme Court's move. The ruling affected the alignment of the project, leading to its cancellation, it said.