Former Makati mayor Abby Binay on Thursday finally responded to her sister and successor, Mayor Nancy Binay, about brushing up on financial literacy amid rumors that she plans to withdraw from the Makati subway agreement.
The former mayor clarified accusations on July 10 at the Seda Hotel that the city would become bankrupt under the terms of the settlement with Philippine Infradev Holdings Inc., the developer of the stunted Makati Subway project.
“It is not true that the city will go bankrupt because of the settlement. The truth is that the city will become more financially stable,” she said.
The settlement deal, signed shortly before Abby stepped down, mandates Makati to pay approximately $160 million (around ₱9 billion) within three months after a consent award is issued by the Singapore International Arbitration Centre (SIAC). This settlement gives the city full ownership of Makati City Subway Inc.; Abby called it “a good deal” for Makati’s finances and long-term infrastructure development.
Abby claimed that just last week, Mayor Nancy Binay objected to the settlement, alleging a lack of transparency and consultation with key stakeholders. She also pointed to a certification from the city’s budget department that stated no funds had been appropriated for the payment, warning that it could strain city finances.
Abby, however, countered, saying her sister misunderstood how city funds work.
“She should know that just because it’s not in the 2025 budget doesn’t mean Makati has no money for the settlement,” said Abby.
According to Abby, upon leaving office, Makati had ₱30 billion in cash in the bank as against around ₱243 billion in total city asset values, as per the latest Commission on Audit (COA) report. She maintained that the ₱9 billion settlement is well worth it since, according to her, the subway company is valued at around $1.6 billion, which is ten times what Makati is about to pay.
In answer to Nancy’s claim that no funds had been appropriated for the settlement, Abby explained that it was premature to make an appropriation because the SIAC had yet to issue its final award. An appropriation could happen only after a clearance by the COA as well as the Makati City Council.
“Mahaba pa ang proseso ng arbitration kahit may settlement agreement… Kaya nga wala pang appropriation dahil wala pang award. Hindi pa tapos sa arbitration court,” she said.
The settlement was achieved after a 2022 Supreme Court ruling transferred jurisdiction over several Makati barangays—including parts of the proposed subway route—to neighboring Taguig City. The ruling cast doubt on the feasibility of this project and exposed the city to a potential $1.7 billion arbitration claim from Infradev.
“The agreement to settle for $160 million would allow Makati to escape a far larger liability and keep control of the project,” Abby said.
She warned that if this settlement were breached, the city could lose the arbitration case, thereby exposing it to a liability of paying $1.7 billion in full.
Still, she accepted that the current administration may choose an alternative route: either proceed with the subway project, find a new partner, or search for other transport alternatives.
