The Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) have secured a P3.6-billion credit facility from the Land Bank of the Philippines (LANDBANK) to partially settle the government’s contractual obligations to Light Rail Manila Corporation (LRMC), the private operator of LRT Line 1.
Officials said the agreement aims to help sustain reliable rail operations and support continued improvements in one of Metro Manila’s busiest commuter lines.
Transportation Secretary Giovanni Lopez said the credit line agreement would allow the government to meet its financial commitments to LRMC while ensuring uninterrupted service for passengers.
“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.
The agreement follows President Ferdinand Marcos Jr.’s directive for the transport sector to fulfill obligations with private concessionaires and improve commuter services nationwide.
Under the arrangement, LANDBANK will provide financing to cover part of the amount owed by the government to LRMC.
Lynette Ortiz, president and chief executive officer of LANDBANK, said the financing deal reflects the government’s commitment to maintaining strong partnerships with private infrastructure operators.
“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.
Lopez also thanked Finance Secretary Frederick Go and LANDBANK officials for extending financial support to the transport agency.
He emphasized that the agreement ultimately seeks to benefit the thousands of commuters who rely on the LRT-1 system daily.
“This agreement is for commuters. Thousands of commuters ride the rail line every day. So we owe it to our commuters to provide them with quality and efficient service and ensure their safety,” Lopez said.