MANILA - Philippine Infradev Holdings Inc. on Tuesday said it signed a joint venture agreement with the local government of Makati for the construction of the Makati Subway.

Makati Mayor Abby Binay and listed Infradev chairman Ren Jinhua led the signing ceremony for the $3.5-billion subway project.

Makati Mayor Abby Binay shows alignment of Makati Subway; Binay says the local govt will help with right of way issues but will leave the operations & management to private proponent Philippine Infradev Holdings, Inc. pic.twitter.com/CW7Zmrk25D

— Jacque Manabat (@jacquemanabat) July 30, 2019

"Philippine Infradev Holdings Inc. and the Makati City Government signed the Joint Venture Agreement in connection with the Makati Subway Project," the company said in a disclosure to the stock exchange.

Infradev also disclosed to the stock exchange that it submitted to the Makati city government a $350-million performance bond for the project, which was a pre-condition for the signing of the joint venture agreement with the city.

Last year Philippine Infradev, formerly IRC Properties, hurdled a 60-day Swiss challenge and got the approval from the Makati City Council to proceed with the subway.

The project broke ground last December 2018. Infradev said it has completed a 6-month soil testing along the proposed alignment of the 10-kilometer intracity subway system with no adverse findings.

Proposed Subway will connect key points like the current Central Business District at the corner of Ayala and Sen Gil Piyat Avenues, Circuit City, Makati City Hall, University of Makati, Ospitak ng Makati. First station will be Ayala Ave corner Buendia Avenue. pic.twitter.com/xDobFXiow3

— Jacque Manabat (@jacquemanabat) July 30, 2019

When finished, the Makati Subway will have 10 stations located in key points around the business district.

The Makati City Hall said the subway would be able to service "up to 54,000 passengers per hour in both directions and is expected to increase profitability among businesses and productivity among workers."

Binay has said the project would not require any funds from the city government. She said Makati would only contribute land it currently owns for use in the subway system.

The Makati Subway will also be connected to the proposed Metro Manila Subway project, MRT stations, and the Pasig River ferry.

- With a report from Jacque Manabat, ABS-CBN News