MANILA, Philippines – The Antonio Tiu-led Philippine Infradev Holdings Inc. has submitted to Makati City the US$350 million performance bond for a 10-kilometer intra-city subway project under the public-private partnership framework, paving the way for the signing of a joint venture agreement on Tuesday.
The Infradev board approved a resolution on the joint venture with the Makati City government in connection with this project.
Also referred to as a contract bond, a performance bond is issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract.
The Makati subway system, which is targeted to be completed by 2024 or 2025, is projected to cost US$3.7 billion, including the cost of expropriation, demolition and relocation of structures to be affected by the project.
Each station is expected to cost US$100 million to build. /gsg
