PHILIPPINE Infradev Holdings, Inc. is planning to partner with property firms to undertake projects that would complement the operations of the $3.7-billion Makati subway that it is developing.

“We are going to build about 6.4 million square meters (sq.m.) of property over the next 15 years,” Philippine Infradev President and Chief Executive Officer Antonio L. Tiu told reporters last week, adding that each subway station will have between 5,000 sq.m. to a hectare of leasable area.

Mr. Tiu said he expects the development of the properties to augment the subway’s operations since the fares alone will not yield profits for the company.

“Our fare revenue will only cover the opex (operating expenditures). But interest and depreciation will come from the non-fare revenue. Based on our financial model, the non-fare revenue is significantly higher than the fare,” he explained.

The businessman noted that the fare for the 10-station subway will be about P50, much lower than the actual cost of P200 should the firm expect to recover investments from fares alone.

Mr. Tiu said they have already finalized the placement of the eight stations for the project, with the other two still undergoing negotiations. The company holds expropriation rights should it fail to strike a deal with existing land owners.

Aside from property developments, Mr. Tiu also expects his other firm, Greenergy Holdings, Inc., to benefit from the subway station as it can provide solar construction materials to their partners.

“There will be a strong demand for energy, so we are offering solar construction material dun sa mga station natin and existing buildings who want to adopt solar energy para sa daytime consumption,” Mr. Tiu explained.

The company partnered with Chinese renewable energy firm Hanergy to supply the materials.

Greenergy will start offering the solar construction materials in Makati, with the goal of further expanding its reach all over Metro Manila.

Philippine Infradev broke ground for the subway project in December last year. It has since conducted the soil test for the project, which Mr. Tiu said can be completed within the next 30 to 45 days.

After the soil test, Mr. Tiu said it will take six to eight months to order the first tunnel boring machine. Actual construction could then start by the end of the year, at the earliest.

Mr. Tiu said they can finish the eight stations by 2024, ahead of the 2025 deadline set by the local government of Makati.

Philippine Infradev is developing the subway with Chinese partners Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd., Holdings Ltd. and China Harbour Engineering Company Ltd.

It will also tap a Chinese contractor for the engineering, procurement, and construction contract. — Arra B. Francia

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