The Light Rail Transit Authority (LRTA) is seeking approval for a PHP3 billion loan from the Land Bank of the Philippines to settle its remaining obligations to Light Rail Manila Corp. (LRMC), the private operator of Light Rail Transit Line 1 (LRT-1). The loan application, filed in 2025, will cover outstanding claims related to fare deficits and infrastructure spending under the concession agreement.
LRMC is claiming around PHP4 billion, including compensation for fare adjustments that were not approved and reimbursements for infrastructure investments. In 2025, LRTA paid PHP406.03 million from its savings and later received nearly PHP500 million in government support to settle another tranche. To date, more than PHP900 million has been paid, with the remaining PHP3 billion to be financed through the proposed borrowing.
The final obligation mainly relates to fare deficits resulting from denied fare hike petitions since 2016. Under the 2015 concession agreement, LRMC committed to invest up to PHP64.9 billion in the operation and maintenance of LRT-1, including the Cavite Extension Project, which will extend the line to Bacoor and reduce travel time between Pasay City and Cavite to about 25 minutes. The first phase of the extension, adding five stations, was completed in 2024, while completion of the remaining sections depends on right-of-way acquisition by LRTA.