Banks line peso funding for subway

A consortium of local banks has committed to provide peso funding for the $3.7 billion Makati Intra-City Subway project seen breaking ground in December, the listed firm IRC Properties Inc. said.

Its chairman, Antonio Tiu, also said the project has already attracted four state-owned companies from China to build the massive network.

“Four state-owned companies are interested to do the EPC (engineering, procurement, construction),” said businessman Antonio Tiu, chairman of listed IRC Properties Inc., the project proponent.

The unsolicited proposal is now ready to be subjected to a Swiss Challenge after IRC received the go-signal from the local government.

Tiu said of the four interested parties, IRC may choose two to construct the proposed 11-kilometer intra-city mass transport system which will have up to 10 stations that will connect key points in Makati’s districts.

The unsolicited proposal, which was submitted to the local government executives last May, will connect key points such as the current Central Business District along Ayala Avenue, the Makati City Hall, the Poblacion Heritage Site, the University of Makati, Ospital ng Makati and the other new business districts within the city.

Tiu said they are now in talks with different developers such as the Ayala Group for seamless connection to their areas.

The proposed subway system will have up to 10 air-conditioned, underground island stations that can accommodate up to six car trains, with a room for over 200 persons per car, Tiu said.

It is expected that over 700,000 passengers per day will be accommodated and served by the mass transport system.

It will have potential interchanges or links to other mass transport systems such as the MRT, the Pasig River ferry and the JICA-funded Metro Manila Subway, Tiu also said.

Tiu said they are now in talks with different developers such as the Ayala Group for seamless connection to their areas.

Funding for the $3.7 billion project can come from a syndicate of loans overseas.

At the same time, Tiu said local banks have offered to provide peso-denominated long-term loans.

The unsolicited proposal is now ready to be subjected to a Swiss Challenge after IRC received the go-signal from the local government.