IRC: Makati okays talks for rail project
LISTED IRC Properties, Inc. has obtained “original proponent status” for its proposed $3.7-billion (P196.1 billion) Makati Subway project, the company told the stock exchange on Wednesday.
“The unsolicited proposal for a joint venture to establish and operate the Makati Mass Transport System … has been accepted by the Makati City government for purposes of detailed negotiations on the technical and financial aspects,” it said in a disclosure.
”Pursuant to Makati City Ordinance No. 2014-051, as amended by Makati City Ordinance No. 2017-007, the company has been conferred original proponent status on the unsolicited proposal as it proceeds to the next phase of the Public-Private Partnership (PPP) process,” it added.
IRC earlier this month announced that its board had authorized the submission of a unsolicited proposal to the Makati City government.
It plans to construct an 11-kilometer (km) subway system with eight to 10 stations that will link key points of Makati’s two districts at no cost to the city government. The railway will also connect with the MRT-3, the proposed Metro Manila Subway and the Pasig River ferry system.
“IRC’s proposal is aligned with the national government’s aggressive infrastructure program as well as Makati’s goal to be a digital city. Not only will it move people quicker, it will allow people to be more productive and spend more time with their families,” IRC executive vice-president Georgina Monsod said in a statement.
“The project will also create thousands of jobs and reduce the carbon footprint due to lesser cars on the streets,” she added.
The company said it would partner with international firms such as Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd., Holdings Ltd., and China Harbour Engineering Company Ltd. to undertake the construction.
In April, IRC applied to increase its capital base to P10.5 billion from P1.5 billion to finance expansion plans and other projects in the pipeline.
The company wants to issue P9.5 billion worth of common shares with a par value of P1.00 per share. Of this amount, 25 percent will be facilitated via the issuance of shares through private placement at prices ranging from P1.10 to P1.40 apiece.
The company also plans to issue P1 billion worth of non-voting preferred shares with a par value of P10.00 per share. The said stocks will be entitled to a 1.5 percent per annum dividend and are convertible to common shares.
IRC Properties shares rose by 20.35 percent or 23 centavos to close at P1.36 per on Wednesday.
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