Makati City is set to take full control of the Makati Subway Project, a move anticipated to increase the city’s assets and ensure long-term financial stability, a former local executive said.

In a statement, former Makati Mayor Abby Binay-Campos stated that they anticipate arbitration at the Singapore International Arbitration Centre (SIAC) will soon conclude, likely awarding Makati full ownership of Makati City Subway Inc. (MCSI), the company developing and managing the underground train system.

“It’s a win for Makati,” Binay-Campos said on Sunday, July 6. “It will end years of legal uncertainty and position Makati to drive the Subway Project forward on its own terms,” she added.

With the expected resolution of the arbitration, Makati is poised to acquire MCSI, valued at a net worth of $1.6 billion, free of liabilities and including its land assets. In exchange, Makati will compensate its Public-Private Partnership (PPP) partner with $160 million, an amount approximating the actual investment in the Subway Project as determined by independent auditing firm Pricewaterhouse Coopers (PwC). Other terms will be detailed in the Award issued by the SIAC Tribunal and will be declared to the appropriate regulatory bodies upon receipt.

The acquisition of the subway company is projected to bolster Makati’s assets. Based on the Commission on Audit (COA)’s 2023 Annual Financial Report on Local Governments, Makati reported total assets of ₱243.444 billion, an increase from ₱239.478 billion in 2022.

Binay-Campos noted that the conclusion of the arbitration proceedings will not impact existing city projects and programs, as these are already funded in the current budget. The transfer of 10 EMBO barangays to Taguig has also resulted in savings for the city, given the ₱7.9 billion in subsidies previously allotted to these barangays.

With full control, Makati is now free to pursue the Subway Project through government-led procurement or by forming new public-private partnerships, Binay-Campos said.

She added, however, that while the new administration could opt to proceed with arbitration, it would be a risky and costly move, potentially exposing them to a liability of $1.7 billion. Philippine InfraDev Holdings, Inc. (InfraDev) had initiated arbitration at SIAC in April 2025, seeking approximately $1.7 billion in claims.

The Makati subway project, originally a Joint Venture Agreement (JVA) between the city government and InfraDev, was launched in 2019. The project faced delays due to Covid-19 and a 2021 Supreme Court decision transferring jurisdiction of key Makati areas, including the planned subway depot and four stations, to Taguig City.

InfraDev argued that the Supreme Court ruling constituted a “Change of Law” and claimed Makati had defaulted on its JVA obligations. Makati rejected the default accusation, asserting the ruling fell under “force majeure” as defined in the JVA.