Mayor Nancy Binay plans to file a motion with the Singapore International Arbitration Center (SIAC) to review and possibly rescind the settlement agreement concerning the controversial Makati Subway project contractor.
This agreement, worth P8.96 billion, was entered into by the previous administration.
Binay’s lawyers, Ava Mari Ramel and Christian Robert Lim, announced on Tuesday that the motion will be submitted by July 11.
Lim noted that on June 20, 2025, the Makati City Council passed a resolution authorizing the former administration to enter into a settlement agreement with Philippine InfraDev Holdings Inc. (PhilDev).
The City Council authorized the previous administration to sign the Settlement Agreement with PhilDev in response to arbitration proceedings initiated by PhilDev before the tribunal.
This agreement was approved and signed on June 23, just seven days before the end of the term for all elected officials.
The lawyers raised concerns that the city’s Budget Department has certified there is no existing appropriation in the 2025 budget to cover the settlement amount, which the current administration has referred to as a “midnight settlement.”
“We have the assets, but we don’t have the funds to pay for this settlement. We can’t sell our assets, such as the city hall, hospitals, and other properties owned by the city government,” Lim said.
Mayor Nancy has instructed the city’s law department to prepare the necessary documentation to formalize the official position of the Makati City Government with the SIAC.
She expressed her concerns, saying, “we can hardly accept a settlement of this magnitude without transparency, due diligence, and legal safeguards. In situations like this, the public often suffers.”
Binay assured the constituents of Makati that all legal options will be explored to mitigate potential damages and hold the responsible parties accountable.
Additionally, Ramel mentioned that the current administration will establish a special team to investigate all Public-Private Partnership (PPP) projects entered into by the city government, ensuring that the best interests of the people of Makati are protected.
“There will be a written order from the mayor to form a fact-finding committee. We are still determining the team composition and the individuals covered by the investigation,” she said.
Previously, former mayor Abigail Binay said Makati City is expected to gain full ownership of the corporate entity created to develop and operate the stalled underground train system as part of the proceedings with SIAC.
The younger Binay said the arbitration proceedings are anticipated to grant Makati City full ownership of the Makati City Subway Inc. (MCSI) with a net value of $1.6 billion, free of liabilities and including land assets, following a payment of $160 million to its public-private partner.
“It’s a win for Makati. It will bring an end to years of legal uncertainty and allow Makati to advance the subway project on its own terms,” former mayor Abby said in a statement.
She also said the expected acquisition of the subway company is projected to enhance Makati’s already considerable assets.
According to the 2023 Annual Financial Report on Local Governments by the Commission on Audit (COA), Makati had total assets of P243.444 billion, which represents an increase from P239.478 billion in 2022.
In July 2019, the local government signed the joint venture agreement between Makati City and PhilDev for the subway project.
It will link the central business district, city hall and other key areas in the city, and is expected to increase work productivity by cutting down the daily commute or travel time of workers.
It will also have connections to other mass transport systems of the national government like the Metro Railway Transit – 3 and the Pasig River ferry system.
