The Department of Transportation (DOTr) and the Villar Group are scheduled to sign a Memorandum of Agreement (MOA) on September 10, 2026, resolving a critical right-of-way issue blocking the construction of the LRT-1 Cavite Extension Project’s Las Piñas station.
Light Rail Transit Authority (LRTA) Administrator Hernando Cabrera confirmed that the upcoming agreement will grant the government essential access to a mortgaged site owned by the Villar Group, which has been encumbered with China Bank and preventing construction teams from entering the property.
Cabrera said the Villar Group committed as early as August to release the mortgaged property by submitting replacement properties to China Bank. During an August 27 meeting, bank officials indicated that the replacement real estate was acceptable, though formal documentation and bank processing are expected to take roughly 30 days.
“While the processing is ongoing, the Villar Group agreed to move forward with signing the MOA,” Cabrera said.
Under the terms of the proposed agreement, a specific provision will allow the DOTr to issue a Permit to Enter (PTE) exactly 30 days after the signing. This timeline accommodates China Bank’s legal and documentation review while ensuring the project avoids further delays. Cabrera noted that the DOTr previously could not issue a permit without this arrangement, as entering prematurely would breach existing bank agreements.
Both parties have finalized the language of the MOA and agreed to the September 10 target signing date. Once executed, the 30-day countdown will begin, paving the way for construction crews to break ground on the station site provided all bank conditions are met.
While the agreement resolves a major bottleneck, Cabrera pointed out that right-of-way challenges persist along the route. The Villar site is just one of several affected encumbrances, with 16 other properties, including private residences, still undergoing acquisition and clearance procedures for the LRT-1 extension.