Transportation Secretary Jaime Bautista Lopez said the government will pay an initial ₱1 billion in undisputed obligations to Light Rail Manila Corp. (LRMC) by year-end, following reports that the LRT-1 operator’s major shareholder, Metro Pacific Investments Corp. (MPIC), is reassessing its stake.
Lopez assured commuters that LRT-1 operations will continue despite the potential shake-up in ownership. LRMC is currently composed of MPIC, AC Infrastructure Holdings, Sumitomo Corp. of Japan, and Macquarie Investments.
He emphasized that any sale of MPIC’s interest would require prior written approval from the Department of Transportation (DOTr) under the concession agreement. A new partner would also undergo a DOTr review to ensure financial capability and rail operations expertise.
Lopez acknowledged that MPIC chairman Manuel V. Pangilinan’s move is a “management prerogative,” but noted that changes in consortium ownership could lead to the need for a new contract.
On government payments, Lopez said more than ₱400 million has already been released, with the full ₱1 billion target set before the year ends.
He also pointed out that LRMC was not granted fare hikes between 2016 and 2020, which were only implemented in 2022 and 2024 under the current administration.
Lopez stressed that both the DOTr and LRMC must ensure safe, efficient, and comfortable service, adding that private operators enter such public-interest agreements with a clear understanding of these responsibilities.
Talks between the DOTr and LRMC on payment issues are ongoing, and Lopez remains hopeful both sides will reach a deal that benefits commuters.
