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Makati to settle with subway proponent

EYES WIDE OPEN -Iris Gonzales - The Philippine Star

February 17, 2026 | 12:00am

We all know that the much touted and widely trumpeted Makati Subway project, proposed by Infradev Holdings Inc., will no longer push through, although the project itself may happen with another proponent.

For Infradev, however, the good news is that the city government of Makati, led by Mayor Nancy Binay, has now decided to settle with the company, after all the disagreements and the noise.

Thus, the controversy over the scuttled project, which was signed during the time of former Makati mayor Abby Binay, appears to have ended – peacefully. The new administration was earlier hesitant to settle, saying the city government would go bankrupt.

But as I said, after all is said and done, the city government has decided to settle, sending a positive signal to the business sector.

I know this because of City Resolution 2026-008, which is posted on the Makati City government’s official website. Approved on Jan.15, 2026, the resolution authorizes Mayor Nancy or her duly authorized representative “to negotiate, enter into and sign” a settlement agreement with Infradev.

The resolution states that the settlement is for the purpose of “fully, finally and definitely settling, resolving and terminating all claims, disputes and controversies arising from, relating to or in connection with the joint venture agreement dated July 30, 2019, subject to existing laws, rules and regulations.”

Meanwhile, another resolution, 2026-011, ratified the settlement agreement dated Jan. 20, 2026 between the Makati City government and Infradev represented by Youmin Ren.

“The Sangguniang Panlungsod, after due review and evaluation of the Settlement Agreement, which was duly presented and sufficiently explained to it, finds the same to be lawful, valid and beneficial to the City Government of Makati and its constituents, and in accordance with Section 8(a)(6) of Republic Act 7854, otherwise known as the Charter of the City of Makati and Section 455(b)(1)(vi), in relation to Section 22(c), of Republic Act 7160, otherwise known as the Local Government Code of 1991, as well as all other applicable laws, rules and regulations,” the second resolution stated.

Details matter

The devil is in the details, however, and I noticed that the resolutions did not include details on the terms of the settlement.

How much is the final amount involved? What is the timetable? Is Makati acquiring full control of the project and net assets worth $1.6 billion which, if I remember correctly, ex-mayor Abby’s administration was able to secure with its own proposed settlement? How advantageous is the approved agreement to the LGU and its constituents?

Infradev, as of this writing, also has not disclosed the details of the settlement agreement.

Personally, I was excited about the prospect of Makati finally having a subway. I know that some parts of Makati would greatly benefit from more connectivity.

A casualty of the SC decision

It was in 2023 when Infradev raised doubts on the feasibility of the project following the Supreme Court’s landmark ruling that some areas in Makati are under the jurisdiction of neighboring Taguig City.

Infradev argued that the proposed alignment of the subway was no longer feasible following the High Court’s ruling.

Under the original plan, the project would connect the current Central Business District along Ayala Avenue, the Makati City Hall, the Poblacion Heritage Site, the University of Makati, Ospital ng Makati and the other new business districts within the city.

Then mayor Abby Binay had to enter into a settlement agreement with Infradev, which in July last year, the Nancy Binay-led administration did not agree to due to financial reasons.

I wonder why the current administration changed its mind. Perhaps they realized that this was the better option for Makati to avoid a costly and prolonged arbitration process. This settlement also means the city has the funds to pay after all.

The subway project was among the casualties of the controversial Supreme Court ruling, another decision that affects the business community.

This, however, provides a lesson for LGUs. They must act decisively, especially when it comes to the business sector, because businesses want consistency, predictability and transparency.

Statements from City Hall are taken seriously by the business community and can impact future investments. They either encourage more investments or discourage them.

Sun, Gold and Silver Star for Jimmy Bautista

Speaking of strengthening business relations, the Japanese government conferred on former Transportation Secretary Jaime “JJB” Bautista the Order of the Rising Sun, Gold and Silver Star as part of the 2025 Autumn Conferment of Decorations on Foreign Nationals.

Japan Ambassador Endo Kazuya hosted a reception at his residence on Feb. 9 to congratulate JJB.

Sec. JJB served as secretary of Transportation from 2022 to 2025, strengthening relations between Japan and the Philippines in the transportation sector, particularly aviation and railways. Notably, his efforts contributed to the privatization of the Ninoy Aquino International Airport’s operation and management, which is expected to advance developments in the Philippine aviation sector.

During the reception, Ambassador Endo delivered his congratulatory remarks, commending Sec. JJB’s contributions to further deepening Japan-Philippines relations.

“Secretary Bautista’s contributions to Japan-Philippines relations – across railways, maritime safety and aviation – have profoundly advanced the friendship, development and mutual trust between our two nations. His work has improved the lives of our peoples while contributing to regional peace and stability, making him truly deserving of the Order of the Rising Sun, Gold and Silver Star,” Ambassador Endo said.

Congratulations Sec. JJB!

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Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.