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Infradev submits performance bond for Makati Intra-City Subway, Philippines [free access]

July 31, 2019

Philippines-based Infradev Holdings (Infradev; formerly known as IRC Properties Incorporated) has submitted a performance bond worth USD350 million to the city government of Makati to develop the Makati Intra-City Subway, the first underground rail project and the largest public–private partnership (PPP) project in the city. The performance bond is a guarantee issued by a party to a contract against the failure of the other party to meet the obligations specified in the contract. This bond forms the pre-condition of an agreement signed between the company and the city government of Makati for the implementation of the project in July 2019.

 

The subway system will span 10 km (fully underground) and cover 10 stations. The project has been undertaken by a consortium of Infradev, Greenland Holdings Group, Jiangsu Provincial Construction Group Company Limited, Shanghai MinTu Investment Holdings, China Harbour Engineering Company Limited, and China Civil Engineering Construction Corporation (CCECC) at an investment of USD3.50 billion. The consortium will also operate and maintain the system as well as repair the rolling stock for 30 years. Construction commenced in late2018. Passenger services are expected to commence by 2025.