IN a stunning collapse of what was once billed as a transformative transit initiative, the Makati City Subway project has been officially canceled — leaving the country's premier financial district without a direct link to the Metro Manila Subway.

Philippine Infradev Holdings Inc. (PIHI), the private proponent of the P200 billion underground railway, confirmed Friday that it had formally exited its joint venture agreement (JVA) with the Makati City Government after determining the project was "no longer economically and operationally feasible."

The announcement was made via a disclosure to the Philippine Stock Exchange.

"After a comprehensive review of the project's viability in light of recent legal developments, we have reached the difficult but necessary conclusion to terminate our participation in the Makati City Subway," PIHI said. "We have initiated arbitration proceedings with the Singapore International Arbitration Centre to enable an impartial resolution of our joint venture agreement."

The company squarely pointed to the 2022 Supreme Court decision that awarded jurisdiction over Bonifacio Global City (BGC) and several of Makati's so-called "EMBO" barangay (villages) to Taguig. These areas had been central to the proposed subway alignment, hosting several key stations and the vital depot site.

The Supreme Court decision was made final in 2023, when it denied Makati's last-ditch attempt to file a second motion for reconsideration.

"Continuing with the Makati City Subway Project under the JVA with the Makati City Government was rendered no longer economically and operationally feasible due primarily to the Philippine SC's decision declaring some subway stations and the depot to be under the jurisdiction of Taguig City instead of the Makati City," the company said.

First unveiled in 2018 with great fanfare, the Makati City Subway was envisioned as the country's first intra-city underground rail system — a sleek, modern line with 10 air-conditioned island stations running across an 11-kilometer route.

The system was designed to connect key Makati destinations such as Ayala Avenue, Sen. Gil Puyat Avenue, Circuit Makati, the University of Makati, Makati City Hall, and Ospital ng Makati.

Projected to carry more than 700,000 commuters daily, the subway was intended to ease traffic congestion, complement the existing MRT-3, and reinforce Makati's standing as the country's economic heart.

The project's engineering allowed for six-car trains, with each car able to carry over 200 passengers.

But the project was plagued by delays, political infighting, and shifting jurisdictional boundaries.

Despite breaking ground in 2018 and securing Makati City Council approval for a JVA with PIHI in 2019, the project faced mounting uncertainty after Taguig's territorial victory over the 10 EMBO barangay areas where a substantial part of the subway infrastructure was to be built.

Before the legal issues were resolved, PIHI had already committed significant resources to the project, partnering with major Chinese firms like Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd., and China Harbour Engineering Co. Ltd.

The Makati LGU contributed land it already owned; no city funds were directly used for construction.

"Infrastructure projects of this scale require stability and legal clarity," a PIHI official said, speaking on condition of anonymity. "Once it became clear that a large portion of our planned route, including the depot, was no longer under Makati's jurisdiction, we had no operational basis to continue. It would be financially irresponsible to move forward under such conditions."

The collapse of the Makati subway casts a long shadow over the broader Metro Manila Subway, a national government project currently under construction.

Designed to cut across the National Capital Region with stops from Valenzuela to Parañaque, the Metro Manila Subway includes six stations in Taguig — but not one in Makati.

This exclusion is particularly striking, as Makati remains the country's foremost business district, home to corporate headquarters, foreign embassies and financial institutions.

Originally, the two subway systems were meant to be interconnected — providing seamless integration between city- and national-level infrastructure.

Despite the magnitude of the setback, Makati's local government has remained tight-lipped.

As of this writing, the city has not issued any public statement regarding the subway's cancellation, the legal battle with PIHI, or alternative plans for mass transit within its jurisdiction.

Affected investors, landowners and residents have been left in the dark.