Abby Binay Addresses Financial Concerns Over P8.9-B Makati Settlement

Former Makati City Mayor Abby Binay firmly defended the P8.96 billion settlement agreement with Philippine InfraDev Holdings Inc. regarding the canceled Makati Subway project during a press briefing on July 10, 2025. Binay asserted that this settlement would not have adverse financial implications for the city, despite concerns raised by her successor, Mayor Nancy Binay.

The settlement was signed on June 23, 2025, just days before Abby Binay's tenure ended. It aimed to resolve an arbitration case filed by InfraDev with the Singapore International Arbitration Centre (SIAC) after the Supreme Court’s ruling that placed ten barangays in Makati under the jurisdiction of Taguig, effectively cancelling the subway project’s alignment.

In her remarks, Abby Binay stated, "It is not true that the city will go bankrupt because of the settlement." She emphasized the city’s robust financial standing, citing nearly P30 billion in cash reserves and total assets exceeding P243 billion. This financial data is drawn from Makati's official financial records, which Abby claims demonstrate the city's capability to meet its obligations despite critics’ assertions of impending financial crisis.

Conversely, incoming Mayor Nancy Binay expressed differing views, indicating plans to withdraw from the settlement agreement due to its potential financial burdens. On July 1, she warned that the city government would need to pay the settlement amount within 90 days, in addition to a $30 million penalty plus interest for delayed payments. She stated, "The financial standing of our city will be in crisis once the SIAC orders the settlement agreement."

The context of this situation is crucial for understanding the broader implications for Makati City. According to a report by the Philippine Institute for Development Studies (PIDS), infrastructure projects like the Makati Subway are vital for urban development and economic growth. The cancellation and subsequent settlement could hinder future investments in the region, affecting not only local employment but also the city's reputation as a business hub.

Dr. Luis Villanueva, an urban planning expert at the University of the Philippines, commented on the situation, stating that the cancellation of the subway project reflects deeper issues in urban governance and planning. He noted, "Infrastructure projects require stability and continuity, which seem compromised in this case. The financial implications of such a settlement could deter future partnerships with private entities."

From an economic perspective, the settlement's immediate financial burden juxtaposed with the city’s reported assets raises questions about fiscal management and governance. According to the National Economic and Development Authority (NEDA), local governments carry the responsibility of maintaining fiscal health while ensuring urban development. The outcome of this case could set a precedent for future public-private partnerships in the Philippines.

Experts suggest that the city must develop a transparent plan for managing its finances and addressing public concerns regarding fiscal responsibility. Transparency, particularly in the context of such large settlements, is critical to maintaining public trust and ensuring stakeholder engagement in future projects.

In conclusion, while Abby Binay maintains that the P8.96 billion settlement will not jeopardize Makati’s finances, the contrasting views of her successor signal a contentious political landscape ahead. The resolution of this issue will likely shape the city’s infrastructure policy and governance strategies for years to come, as stakeholders weigh the delicate balance between fiscal prudence and urban development aspirations.