Philippine Infradev Holdings, Inc. (PIH) has announced that it has executed a binding Memorandum of Agreement (MoA) with China Civil Engineering Construction Corporation (CCECC), a 100% owned subsidiary of China Railway Construction Corporation Ltd. (CRCC), in connection with the Makati City Subway PPP project.

Under the MoA, CCECC has proposed to invest US$300 to US$350 million into PIH or its subsidiary; undertake the Engineering Procurement and Construction (EPC) works for the Makati Subway project; and provide a performance guarantee for the completion of the project. These proposals are subject to the completion of a financial, legal and technical due diligence.

The parties are aiming to complete the entire due diligence by 31 May 2019, prior to formalization of the structure of CCECC’s investment and execution of the formal investment agreement.

The subway will run 11km through Makati, a city within the Metro Manila region of the Philippines.