The Makati city government, headed by Mayor Nancy Binay, announced that the city government will withdraw its consent over the settlement agreement entered into by former Mayor Abby Binay-Campos regarding the ownership and operation of the Makati Subway Project on Tuesday, July 8.

In a media forum, city legal officer Atty. Ava Mari Ramel said the city government will file a motion to vacate the settlement to rescind the previous administration's prior action of agreeing.

She added that the motion will be filed before the Singapore International Arbitration Center (SIAC) on July 11.

On July 6, Mayor Nancy slammed what she called the city's previous administration's “midnight deal” with the contractor of the Makati subway project worth P8.96 billion, giving full ownership of the project to the city government just days before her term ended.

Binay said the agreement, which was approved and signed by the Makati City Council on June 23, requires the city government to pay P8.96 billion to Philippine InfraDev Holdings Inc. (InfraDev) within 90 days from the issuance of the consent award by SIAC.

“Malalagay po sa bingit ng alanganin ang pampinansyal na kalusugan ng ating Lungsod kung sakali mang ibaba ng SIAC ang nasabing settlement agreement. Sa katunayan, dahil sa nakanselang Makati Subway Project, hindi po kayang magbayad ng Lungsod ng humigit-kumulang P9 bilyon sa Philippine InfraDev Holdings (The financial health of Makati will be at risk once SIAC orders the settlement agreement. In fact, because of the cancelled Makati Subway Project, the city cannot pay the P9 billion to Philippine InfraDev Holdings),” she explained, adding that this may also affect the city's current projects.

There was also no existing appropriation in Makati's 2025 budget to cover the over P8 billion amount based on a certification letter issued by the City Budget Department on July 3.

Binay said she has ordered Makati's legal department to prepare the necessary documents to explain the city's position on the agreement to the SIAC.

She added she will issue an executive order for the formation of a fact-finding committee to investigate and look into all Public-Private Partnership projects entered into by the city government.

However, Binay-Campos belied claims that the city government is not capable of paying for the $160-million award SIAC may give in favor of InfraDev, saying that she has left the city with enough funds for it.

The former mayor slammed allegations that the deal was rushed or a “midnight agreement,” reiterating that it was a calculated move to not only prevent larger losses, but also to substantially raise the city’s assets and provide long-term financial stability.

“The compromise was not plucked out of thin air. It took into account actual data and fair valuation principles as confirmed by Pricewaterhouse Coopers (PwC), an internationally known audit firm,” Binay-Campos said.

“I left Makati with nearly P30 billion in cash, consistent revenue increases, and eight straight unmodified COA opinions. There’s no appropriation yet because it’s not in the 2025 budget—but it doesn’t mean the city has no money. Just pass a supplemental budget. Walang mababawas na serbisyo (There will be no shortage of services),” she stressed.