Manila’s LRTA services becoming bigger and better-

The Light Rail Transit Authority (LRTA) is responsible for the construction, operation, maintenance, and/or lease of the light rail transit (LRT) systems in the Philippines. The LRTA is controlled by the Philippines Department of Transportation and Communications (DOTC). Since it started operations in 1984, the LRTA has proven to be a pioneer in providing efficient transport services in Manila. It runs one of the least expensive rapid transit systems in Southeast Asia. On average, over 670,000 passengers use the LRT every day.

Current network

At present, the network consists of two lines, which together span 34.7 km and cover 31 stations. LRT Line 1 spans 20.7 km and covers 20 stations. The line recorded an annual ridership of 171.8 million passengers in 2013, translating into an average daily ridership of over 500,000 passengers. Constructed in 1981, it was the first LRT in the Philippines and in Southeast Asia.

Line 2 spans 14 km and runs across Metro Manila from Recto station in Manila to Santolan station in Pasig City, covering 11 stations. The line has been operational since October 2004, since when it has been the safest and fastest means of public transportation in the eastern part of Metro Manila.

Rolling stock

The current fleet comprises 139 rail cars in combinations of two-, three- and four-car units. Of these, 63 first-generation trains have been supplied by BN, a division of Bombardier Eurorail, 28 second-generation trains have been supplied by Hyundai Rotem and ADtranz, and 48 third-generation trains have been supplied by Nippon Sharyo.

The key LRT projects that are currently under way are the following.

Line 1 North Extension Project: The PhP 6.32 billion project involves the development of a common station for LRT 1, Metro Rail Transit Line 3 (MRT-3), the upcoming Metro Rail Transit Line 7 (MRT-7), a road-based transportation system near Trinoma Mall in Quezon City; and the construction of an elevated 5.71 km line from Monumento station to North Avenue. In March 2014, the Department of Budget and Management gave DOTC a multi-year obligation authority for the common-station project.

Line 1 Cavite Extension Project: The project involves the development of an 11.7 km extension with eight stations including three intermodal facilities at Dr Santos, Zapote and Niyog and one satellite depot at Zapote. It includes the option to construct two stations at Manuyo Uno and Talaba in the future. On completion, the extension will offer services in the cities of Parañaque and Las Piñas, and the province of Cavite. It will increase the line’s average daily ridership to around 700,000 passengers.

DOTC has awarded a contract to Light Rail Manila to build and operate the extension on a public–private partnership (PPP) basis. The consortium is a joint venture (JV) of Philippines-based companies Ayala Corporation and Metro Pacific Investments Corporation. In September 2014, the Light Rail Manila consortium signed a construction contract with France-based companies Bouygues Travaux Publics and Alstom as well as an operation and maintenance (O&M) contract with France-based Régie Autonome des Transports Parisiens Développement for the construction of the line.

However, DOTC’s first tender for the project failed when only one bidder, the Light Rail Manila Consortium, led by Metro Pacific Investments Corporation (MPIC), submitted a non-compliant bid. Three other pre-qualified bidders and MPIC’s partner in the consortium withdrew from the bidding process. One of the biggest concerns of the developers was the financial risk associated with the O&M of the existing LRT Line 1, which opened in 1984 and faces several technical issues. The earlier concession agreement imposed significant penalties on the private player for technical problems, shutdowns, and accidents. The other key concerns included the requirement to pay a real estate tax by the private player (which would amount to PhP 64 billion over the concession period), requirement of low fares, etc.

Line 2 East Extension Project: The proposed alignment will traverse the central island of Marcos Highway from its connection with the tall-end viaduct of the existing LRT Line 2 in Santolan (Pasig City) to its terminus. The extension will cover two stations and is expected to cost PhP 9.51 billion. In October 2013, the Monetary Board of the Bangko Sentralng Pilipinas (BSP, the country’s central bank) approved a PhP17.93 billion loan from the Japan International Cooperation Agency  for the project.

Line 2 Masinag Extension Project: The project involves the extension of the existing line by 4.14 km to the east from Santolan station along the Marcos Highway in Pasig City to the Sumulong Highway in Masinag, Cainta. Two additional stations will be constructed along the elevated viaduct. The extension is expected to be opened for passenger service in 2016.

Lines 1 and 2 Rehabilitation Project: The project involves major repair/rehabilitation of existing Lines 1 and 2 rolling stocks, systems, structures, and facilities such as the repair of the viaduct of the carriageway, rail replacement, replacement of parapet walls in between stations, replacement of gantry anchor bolts at LRT revenue lines, rehabilitation/repair of light rail vehicles, etc. In October 2011, the Philippines government allocated PhP 1.33 billion for the upgradation of Line 1, which includes body repair of all 63 trains and improvement of 18 stations (excluding the terminal stations). A sum of PhP 539.6 million has been allocated for Line 2 for the renewal of all 152 air-conditioning units for the 18 trains.

Upcoming project

Ninoy Aquino International Airport (NAIA) rail link: The project will involve the construction of a 6.2 km spur line from  Baclaran station of Line 1 to Terminal 3 of NAIA, with four additional stations. The projected capacity of the line is 2,800 passengers per hour per direction or 40,000 passengers per day. The project is currently at the conceptual design/pre-feasibility study stage.

Conclusion

Although the Philippines offers the best environment for PPPs among Southeast Asian countries, the country does not have any significant prior experience in undertaking large PPP projects. It, therefore, is a crucial time for the LRTA to monetise upcoming investments in the country and improve its overall financial performance.