PASSENGERS rush on and off an LRT-1 train at PITX station in Parañaque City on Wednesday, the bustle reflecting the daily grind of commuters navigating Metro Manila’s hectic transit system.
PHOTOGRAPH BY John Carlo Magallon FOR THE DAILY TRIBUNE
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The government has secured a P3.6-billion financing facility from Land Bank of the Philippines (LANDBANK) to partially settle unpaid contractual obligations to Light Rail Manila Corp. (LRMC), the private operator of the Light Rail Transit Line 1 (LRT-1).
The Department of Transportation (DOTr) said Tuesday that it signed the credit line agreement with the state-run lender along with the Light Rail Transit Authority (LRTA) to sustain the line’s operations and support service improvements.
Under the agreement, LANDBANK will provide financing to help cover LRTA’s obligations to LRMC under the concession agreement for the operation and maintenance of LRT-1.
The loan will fund most of LRTA’s roughly P4 billion payables to the Pangilinan-led LRMC, including reimbursements and fare deficit payments. About P900 million has already been settled.
The outstanding amount covers reimbursements for structural rehabilitation works, operating shortfalls, and right-of-way expenses advanced by LRMC, with fare deficits comprising a significant portion of the obligation.
Transportation Acting Secretary Giovanni Lopez said the financing deal would allow the government to meet its commitments to LRMC and pave the way for further improvements in the rail system.
“We hope that as we settle our obligation with the private concessionaire, we will see more improvements on their services, including structural upgrades, digitalization, and reliability of the rail line,” Lopez said.
Meanwhile, LANDBANK President and Chief Executive Officer Lynette Ortiz said the agreement aligns the commitment to maintaining strong partnerships with private sector development partners.
“This loan facility represents a deliberate action by the National Government, through the LRTA and the DOTr, to fulfill its commitments and maintain strong and credible partnerships with its development partners,” Ortiz said.
This year, LRMC said it will target an average daily ridership of 450,000 passengers for LRT-1, surpassing its pre-pandemic level of approximately 440,000.
The operator said that volumes have already returned to pre-COVID levels and expects further growth as infrastructure upgrades and the Cavite Extension enhance capacity and reliability.
