Philippine Infradev Holdings Inc. has signed a binding term sheet with Richer Today Inc. (RTI) for the incorporation of a joint venture that will acquire land for its proposed $3.7-billion subway project in Makati City.
The agreement was signed between RTI and Philippine Infradev unit Makati City Subway Inc. (MCSI).
“Under the term sheet, MCSI and RTI shall form an unincorporated joint venture for, among others, the financing and acquisition of lots in and around Station 5 of the Makati City Subway Project. Station 5 has been identified as the main construction site where the tunnel boring machines will be assembled and lowered,” the company said.
Philippine Infradev said the first batch of engineers from China State Engineering Second Bureau Ltd., the engineering, procurement and construction contractor tapped by MCSI, recently arrived from China and are currently finalizing the construction plan for Station 5.
It added that to ensure the timely availability of the required lands, RTI has obligated itself under the term sheet “to release at least P775.88 million within 120 days from signing of the term sheet, with at least P234.73 million to be released within 10 business days starting Tuesday.”
In 2019, the Makati City signed the agreement with Philippine Infradev for the 10-kilometer subway project that will traverse Makati’s business district.
The project, designed to have 10 stations, is eyed to service up to 54,000 passengers per hour in both directions. It will also be connected to the proposed Metro Manila subway project, Metro Rail Transit station and the Pasig River ferry.
Makati City contributed land for the subway.