Philippine Infradev Holdings Inc., a listed company led by businessman Antonio Tiu, is raising $332 million from two Chinese companies to mobilize the development of the $3.7-billion Makati intra-city rail transport system.
Philippine Infradev said in a disclosure to the stock exchange Makati City Subway Inc., the corporate vehicle that will undertake the construction, operation and management of the Makati City Subway System, signed investment and subscription agreements with Chinese firms Hui Gao Investments Development Ltd. and Shanghai Mintu Investments Ltd.
Hui Gao will subscribe to shares representing 34-percent stake in MCSI’s adjusted shares capital for $102 million. It will also provide a $200-million credit facility to MCSI and committed to finance 51-percent of the total funding needed for the completion of the project.
Meanwhile, Shanghai Mintu Investments Ltd. subscribed to 15 million common shares of MCSI for $30 million.
“Finally, the company, Shanghai Mintu and Hui Gao Investments Development Limited issued letters of guarantee wherein they guaranteed to advance or fund the cost required for the completion of the Makati Subway System based on the final cost of EPC works determined by the contractor engaged by MCSI,” Philippine Infradev said.
The Makati subway project is an11-kilometer intra-city mass transport system with up to 10 stations that will connect key points in Makati’s two districts with no cash out from the city government.
Once completed, it is expected to accommodate up to 700,000 passengers per day aboard six car trains.
The proposed is aligned with the national government’s aggressive infrastructure program and Makati’s goal to be a digital city.
It will be interconnected to the MRT 3, the proposed Metro Manila Mega Subway and the Pasig River ferry.
Philippine Infradev, formerly IRC Properties Inc., earlier tapped China Civil Engineering Construction Corp. for the subway construction.
CCECC is a 100-percent owned subsidiary of China Railway Construction Corp. Ltd.
