The stalled Makati Intra-city Subway project has taken a major turn. Following a crucial settlement finalized in February, the Makati City Government has officially assumed full ownership and control of the discontinued underground rail line, opening the door for a potential revival.

The Roadblocks: A Shift in Borders

The ambitious $3.5-billion project—originally envisioned as the country's very first subway system—hit a massive roadblock following a landmark 2023 Supreme Court ruling. The court decision transferred territorial jurisdiction of 10 "Embo" barangays (including Cembo, Comembo, Pembo, and West Rembo) from Makati to Taguig City.

Because key infrastructure, including the depot and critical stations like those near the University of Makati and Ospital ng Makati, suddenly fell inside Taguig's new borders, the original joint venture was terminated in March 2025. The private builders deemed the project no longer economically or operationally feasible under the city's reduced land area.

Securing the Settlement

Determined not to let the infrastructure go to waste, Makati officials moved quickly. In January 2026, Vice Mayor Kid Peña led a special council session authorized by Mayor Nancy Binay to pursue a settlement. By late January, Mayor Binay formalized the agreement, which was promptly ratified by the city council.

Under the deal, Makati acquires full ownership of the subway project and all its related assets. While the exact settlement cost remains officially undisclosed due to ongoing, confidential arbitration proceedings at the Singapore International Arbitration Centre, previous reports suggested the payout could hover around ₱9 billion ($160 million), plus an additional $30 million (₱1.7 billion) penalty for delayed payments and accrued interest.

What Lies Ahead?

Now that Makati completely owns the railway enterprise, the city has a blank canvas. The settlement grants local leadership the freedom to hunt for new investors or establish a fresh public-private partnership to breathe life back into the tracks.

However, the path forward won't be seamless. Any future version of the subway will have to navigate the complex legal and structural hurdles left behind by the redrawn city lines. The ultimate fate of the project now rests on Makati's ability to secure a new partner and potentially realign the subway route to fit its current borders.

Reference:

https://www.philippine-resources.com/articles/2026/6/makati-gains-control-of-subway-project-following-infradev-settlement