Another Chinese firm to invest $100 M for Makati subway

BEIJING – A Chinese holdings company is investing $100 million for the planned $3.7 billion subway project in Makati, the first ever subway project in the Philippines.

Ni Xiaohong, chairman of the board of Shanghai Mintu Investment Holding Co. Ltd., said the Ministry of Commerce has given the company the green light to invest in the ambitious project being undertaken by publicly-listed Philippine Infradev Holdings Inc. (formerly IRC Properties Inc.).

He said the company, with an asset base of about five billion Chinese yuan, is the first privately-owned company to be given the green light by the Ministry of Commerce to invest overseas.

“The Makati City subway project is the first investment of Shanghai Mintu in the Philippines. The company intends to focus on it to make the project successful,” Ni said.

Speaking through an interpreter, Ni said the Chinese company is interested in major infrastructure projects in the Philippines, having started the firm engaged in infrastructure in 1993.

He said the company built the Jiangyin Yangtze river bridge, the longest bridge in China and the third longest in the world by the time it was completed and opened in 1999.

In 2001, Ni said the company ventured into shipbuilding and was listed at the Singapore Stock Exchange in 2003. It is also into mining and financials.

Last Wednesday, IRC executed a binding memorandum of agreement with China Civil Engineering Construction Corp. (CCECC).

The wholly-owned subsidiary of China Railway Construction Corp. Ltd. (CRCC) has committed to invest between $300 million and $350 million into the company or its subsidiary in connection with the Makati City Subway public private partnership project.

Last October, Makati’s PPP Selection Committee gave the green light to IRC, chaired by Ren Jinhua, to proceed with the $3.7 billion subway project after the firm hurdled a 30-day competitive Swiss challenge.

The 10.1-kilometer system can accommodate over 700,000 passengers per day. It would connect key points in Makati such as the current Central Business District along Ayala Ave., Makati City Hall, the Poblacion Heritage Site, the University of Makati, Ospital ng Makati and the other new business districts within the city via 10 air-conditioned, underground island stations.

Aside from CCECC and Shanghai Mintu, Philippine Infradev president and chief executive officer Antonio Tiu said the city government of Makati is likely to take a minority stake in the joint venture company that would undertake the subway project.