MANILA, Philippines — The Makati subway was awarded an additional $322 million funding for its construction from Chinese investors, the Makati local government said.
In an investment agreement signing on Monday, Chinese investment firms Hui Gao Investments Development Ltd. and Shanghai Mintu Investments Ltd. committed to give funding for the 10-kilometer underground railway system.
The two Chinese firms are partners of the Philippine Infradev Holdings, Inc., the lead private sector proponent of the Makati subway.
Hui Gao Investments Development Ltd. will provide $102 million which will serve as equity investment, and $200 million in the credit facility.
Meanwhile, Shanghai Mintu Investments Ltd. pledged a $30 million direct equity investment in Makati City Subway Inc., the company that will construct and operate the underground railway.
With this, the initial funding for the subway is now about $500 million, Makati Mayor Abby Binay said.
“The Makati subway project is definitely gaining momentum, and we’re confident that our lead partner Philippine Infradev Holdings will be able to sustain the pace and finish the project on schedule,” the mayor said in a statement.
She also thanked the Chinese firms for their trust “in the viability of the subway project” through their investments.
The Makati subway project, Binay said, will provide 10,000 jobs in the construction and the operation of the railway.
The Makati subway is set to operate by 2025.