The Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) signed a credit line agreement with Land Bank of the Philippines to settle ₱3.6 billion in contractual obligations to Light Rail Manila Corporation (LRMC), the private operator of the LRT-1 line.
President Ferdinand Marcos Jr. directed the transport agency to resolve its dues to private concessionaires to ensure reliable and commuter-focused service.
Transportation Secretary Vince Dizon said the agreement would allow the DOTr to meet its financial commitments to LRMC, jointly owned by Metro Pacific Light Rail Corp., AC Infrastructure Holdings, Sumitomo Corp., and Macquarie Investments Holdings.
“We hope that as we settle our obligation with the concessionaire, we will see improvements in services, including structural upgrades, digitalization, and the reliability of the rail line,” Dizon said.
LandBank president and CEO Lynette Ortiz said the 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.”
Under the agreement, LandBank will extend financing to cover the amount needed by the transport agency to partially settle its obligations with LRMC.
“Itong kasunduang ito ay para sa 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 at masiguro ang kanilang kaligtasan,” Dizon said.
