In a crucial turn of events in February, the Makati City Government has settled its dispute with Philippine Infradev Holdings Inc. This, in turn, now gives Makati City control and ownership of the discontinued underground rail line.
Philippine Infradev Holdings Inc. is a private proponent of the $3.5-billion Makati Intra-city Subway project (MkTr). The company partnered with Chinese firms for constructions; however, the project was terminated on March 11, 2025 following a Supreme Court ruling in 2023 that granted territorial jurisdiction to Taguig City and transferred 10 Makati City barangays to Taguig City.
These barangays are referred to “Embo” barangays due to the suffix of their names, with the exception of Pitogo, Rizal and others. The 10 barangays are Cembo, Comembo, East Rembo, Pembo, Pitogo, Post Proper Northside, Post Proper Southside, Rizal, South Cembo, and West Rembo.
Looking back at details of the case, on December 1, 2021, the Supreme Court of the Philippines mandated the transfer of 10 “Embo” barangays from Makati City to Taguig City. The ruling became final in 2023 after the Court denied with finality Makati City's motions for reconsideration. The transfer of control was implemented later that year.
The transfer eventually resulted in the suspension of the Makati Intra-city Subway Project, because stations and the depot were located specifically in Barangay West Rembo (University of Makati) and Barangay Pembo (Ospital ng Makati), along with the depot in Barangay Cembo.
The project was originally envisioned as the first subway system of the Philippines. However, after Infradev’s termination of its joint venture with Makati City on March 11, 2025, the company declared that the project is “no longer economically and operationally feasible” due to changes in the city’s territorial boundaries. They saw the project as unsustainable due to the reduction of Makati's land area.
On January 15, 2026, Makati Vice Mayor Kid Peña led a special council session that was authorized by Mayor Nancy Binay to enter into a settlement agreement with Infradev.
By January 20, 2026, Mayor Binay formalized the settlement with Infradev who was represented by Ren Youmin. The Makati City council ratified the agreement on January 26, 2026.
Makati City now assumes full ownership of the subway project and all its related assets, effectively taking control of the railway enterprise.
Additionally, the recent settlement and agreement entails that Makati City will pay Infradev in exchange of full ownership of the subway project and all its related assets. Although the settlement cost was not officially disclosed, according to Rappler’s report, Mayor Binay, previously said the settlement would amount to P9 billion ($160 million), on top of a $30 million (P1.7 billion) penalty for delayed payments and accrued interest.[1]
On February 18, 2026, Infradev released a statement in response to Rappler’s report about the settlement deal. Infradev mentioned that the case is still pending before the Singapore International Arbitration Centre and “all proceedings, including evidence, submissions, and settlement negotiations, are strictly confidential.” [1]
The company said that “it will submit the required disclosure once the arbitration proceedings are finally concluded and the parties are freed from their obligation to observe confidentiality.” [1]
Moving forward, the settlement grants Makati City the opportunity to find a new investor or to embark on a new public-private partnership that will revive the project.
Although the city’s successful settlement with Infradev opens doors for movement, the subway’s viability had been further complicated by planning decisions that placed some proposed stations within Embo areas that are now part of Taguig City. The 2023 final ruling in the territorial case between Makati City and Taguig City altered Makati City’s boundaries and thus affecting the project’s alignment.
The future of the Makati Intra-city Subway project now depends on the city government’s capacity to secure a new partner while resolving the complex legal and structural impediments that previously halted its progress.
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Reference:
[1] https://www.rappler.com/business/makati-city-subway-infradev-settlement-agreement-2026/
[2] University of Makati Student Multimedia Organization - https://www.facebook.com/photo.php?fbid=1396883032452485&set=a.471829868291144&id=100063924043220
