The Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) have signed a credit line agreement with the Land Bank of the Philippines (LandBank) to finance the partial settlement of approximately PHP3.6 billion in contractual obligations to Light Rail Manila Corporation (LRMC), the private operator and concessionaire of Light Rail Transit Line 1 (LRT-1). The agreement is intended to address outstanding payments under the existing concession arrangement and support continued rail operations.
The financing facility will be used to cover government obligations arising from the LRT-1 concession agreement, including payments associated with delayed fare adjustments and other contractual commitments. The LRT-1 concession agreement, signed in 2014, granted LRMC a 32-year contract to rehabilitate, operate, maintain and expand the railway network, including the implementation of the Cavite Extension Project. The public-private partnership involved approximately PHP35 billion in private sector investment and an upfront concession payment of around PHP11 billion to the government.
Government officials stated that settling outstanding obligations is expected to support improvements in rail services, including infrastructure upgrades, digitalisation initiatives and reliability enhancements. The financing arrangement also reflects broader efforts to sustain long-term public-private partnerships and maintain confidence in transport infrastructure investment programmes in the Philippines.