New Makati City Mayor Nancy Binay has moved to withdraw from the ?8.96 billion subway settlement agreement, creating a political rift with her sister, former Mayor Abigail “Abby” Binay-Campos. The controversy stems from a deal approved just days before the June 30 transition, which obligates the city to pay a substantial settlement to the private contractor of the Makati Subway Project.
The agreement, approved by the outgoing city council on June 20 and signed on June 23, mandates Makati to pay Philippine Infradev Holdings Inc. $160 million (?8.96 billion) within 90 days after a consent award is issued by the Singapore International Arbitration Centre (SIAC). Mayor Nancy’s administration claims the deal was rushed, lacked proper consultation, and did not appear in the city’s 2025 budget.
RELATED: [Makati Launches PH’s First 24/7 E-Health System]
Mayor Nancy Questions Timing and Transparency
City Legal Officer Atty. Ava Mari R. Ramel confirmed that Makati has already reached out to SIAC and the contractor’s legal team to delay implementation of the consent award while the settlement is under review.
“This settlement was never disclosed to the transition team. It was only upon the assumption of Mayor Nancy Binay on June 30, 2025, that the document was turned over to the new administration,” Ramel stated.
Adding to concerns, the agreement was not included in the 2025 city budget, raising questions about fiscal accountability. The legal office emphasized that the current administration was not briefed on the matter before the change of leadership.
Abby Defends the Agreement’s Legitimacy
Senator Abby Binay-Campos, who finalized the deal in her last days as mayor, has defended the settlement as a strategic move to avoid costly legal battles and regain full control of Makati City Subway Inc.
“The compromise was not plucked out of thin air. It took into account actual data and fair valuation principles as confirmed by PwC, an internationally-known audit firm,” she explained in a statement.
She also noted that the city’s available funds stood at around ?30 billion prior to the turnover, enough to fulfill the ?8.96 billion obligation without jeopardizing government services.
RELATED: [Makati Opens PH’s First LGU-Run Modern Animal Care Facility]
Political Fallout and Infrastructure Uncertainty
The disagreement between the Binay sisters reflects not only personal and political tensions but also broader concerns about governance, transparency, and infrastructure development. With the subway project already delayed due to jurisdictional disputes following the Supreme Court ruling in favor of Taguig, this internal clash adds another layer of uncertainty to the timeline and future of Makati’s flagship urban mobility initiative.
