By James A. Loyola
Greenergy Holdings, Inc., a listed company led by businessman Antonio Tiu, has submitted an unsolicited proposal to the local government of Manila for the development and operation of a tramway in the City.
In a disclosure to the Philippine Stock Exchange, Greenergy said the proposal covers the financing, development, implementation and operation of a modern tramway system within the city.
Intended to provide an additional mode of transport for Manila's population of roughly 1.7 million, the proposed tramway would be connected to the proposed Makati City Subway that will be developed by Philippine Infradev Holdings which is also controlled by Tiu.
Last month, Philippine Infradev signed a subscription agreement with the Makati City government in relation to the $3.5-billion Makati City Subway project.
Under the agreement, the Makati City government would subscribe to 722.32 million preferred shares of Philippine Infradev with a total par value of ₱7.2 billion to be paid with real estate properties owned by the City Government and to be contributed to the subway project.
The Makati Subway is envisioned to complement the mass transport projects of the national government as it would be connected to the MRT stations, the proposed Metro Manila Mega Subway and the Pasig River ferry.
It would also connect key points of the city and would effectively ease traffic in the country's financial district.
Philippine Infradev also disclosed that it has signed an investment agreement with Hui Gao Investments Development Ltd. which will acquire a 34 percent stake in the company for $102 million.
Under the Investment Agreement, Hui Gao also agreed to provide a $200-million credit facility to Makati City Subway, Inc. (MCSI) and provide 51 percent of the funding required for the completion of the project.