PHILIPPINE Infradev Holdings, Inc. said it is forming a wholly owned subsidiary to be based in Jiangsu, China that will primarily be in charge of the company’s procurement processes.
In a disclosure to the stock exchange Tuesday, the Antonio L. Tiu-led firm said its board of directors has approved the creation of a $10-million subsidiary that will be called “Infra China Ltd.” or a similar name.
It added the China-based firm will be in the business of “procurement, financing, financial leasing, commercial trading and guarantee, among others.“
Earlier this year, the company also tapped China’s Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd., Holdings Ltd. and China Harbour Engineering Company Ltd. for its $3.7-billion Makati City Subway Project.
In the same Tuesday disclosure, Infradev said its board gave the go signal to start negotiations with Aggregate Business Group Holdings, Inc. (ABG) to participate in the Pasig River project with the Pasig River Rehabilitation Commission (PRRC).
ABG is a domestic holding company with a 75.10% stake in Philippine Infradev.
The company earlier said it plans to connect the Makati City Subway, which it is building as an intra-city system within the central business district, to eventually connect to the Pasig River ferry and the Metro Manila Subway Project.
The Makati City Subway Project is currently ongoing soil testing, which Mr. Tiu had said is scheduled to finish in the next 30 to 45 days. The actual construction of the project is expected to begin by the end of the year at the earliest.
The subway is seen completed by 2024, ahead of the 2025 deadline set by the city government of Makati. — Denise A. Valdez
