In the hopes of decongesting traffic in Makati with a subway system, the Php 200 billion project is deemed to be “no longer economically and operationally feasible” due to territorial disputes between Makati and Taguig.

The problem arose when Philippine Infradev Holdings said in a disclosure that some subway stations and a depot had been declared under the jurisdiction of Taguig following a Supreme Court decision. The areas in question are the 10 “embo” barangays in Makati, which will be transferred to Taguig citing historical, documentary, and testimonial evidence.

The barangays include Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo, Pitogo, Rizal, Post Proper Northside, and Post Proper Southside. The ruling greatly affects the 11-kilometer Makati subway project, which is projected to serve 700,000 riders a day, ad half of the 10 proposed stations are under Taguig’s jurisdiction. Because of the ruling, Philippine Infradev Holdings reported a Php 44 billion impairment loss in 2023, which consists of Php 5 billion for the unfinished work and Php 39 billion for intangible assets.

“Arbitration proceedings have thus been commenced with the Singapore International Artbitration Center to enable an impartial resolution of the joint venture agreement with the Makati City Government,” Philippine Infradev Holdings said.