The Makati City's $3.7 billion subway project, the first underground railway to be built by a local government unit, is facing another headwind after its alignment was adversely affected by the tug-of-war between the cities of Makati and Taguig over territory.

In a stock report on Wednesday, private proponent Philippine Infradev Holdings Inc. disclosed that the project alignment is no longer viable as the depot and a few stations, which were supposed to traverse properties belonging to Makati City, were found to be within the jurisdiction of Taguig City as ruled by the Supreme Court.

"Under the joint venture agreement executed between the Makati City government and the company, the depot and a few stations of the Makati City subway system will be in the affected areas. Also, the alignment of the subway will no longer be feasible," the company informed the stock exchange.

The Supreme Court, which recently ruled with finality that Taguig has jurisdiction over Fort Bonifacio and the 10 Embo barangays, affected the Makati City subway project's depot in Cembo as well as the planned stations at the University of Makati in West Rembo and the Ospital ng Makati in Pembo.

Infradev said it has reached out to the Makati City government, through a Notice of Intent, to discuss its next course of action following the SC order.

The 10 barangays are Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo, Pitogo, Rizal, Northside and Southside.
The SC, however, said that before Taguig City's courts assume pending litigations over the said areas, which used to be part of Makati, it first needs to secure a writ of execution.

A writ of execution is a legal order issued by a court that qualifies the enforcement of a judgment or court decision.

Last June, the SC rejected the Makati City government's motion asking the high court to allow it to file a second motion for reconsideration over its territorial dispute with Taguig City.

The Makati City subway project broke ground, signaling the start of its construction, in 2018.

In 2019, the Makati City government signed the joint venture agreement with Infradev and its partner after the company hurdled the competitive Swiss Challenge and obtained approval from the Makati City Council for the construction, operation, and management of the intra-city subway.

Infradev tapped Chinese partners Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd. Holdings Ltd., and China Harbour Engineering Company Ltd. for the project.

Under the joint venture, Makati would only contribute the land it currently owns and at no expense to the government.

The subway aims to connect key points in Makati like the Central Business District, Circuit City, Makati City Hall, University of Makati, Ospital ng Makati, and other new growth areas within the city.

The subway is planned to have up to 10 air-conditioned, underground island stations whose entrances will be linked to destinations across the city.

The project will accommodate up to six-car trains, with room for over 200 persons per car, with more than 700,000 passengers per day.