The Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) signed a financing agreement with Land Bank of the Philippines (LANDBANK) to settle P3.6 billion in government obligations to Light Rail Manila Corporation (LRMC), the private operator of LRT-1.
Transportation Secretary Giovanni Lopez said the loan agreement will allow the government to fulfill its contractual commitments and help ensure uninterrupted, safe, and reliable rail services for commuters.
President Ferdinand Marcos Jr. earlier directed the DOTr to settle obligations with private concessionaires to improve public transport services and strengthen partnerships with the private sector.
Lopez said the payment is expected to support further improvements in LRT-1 operations, including structural upgrades, digitalization, and better system reliability.
LANDBANK president and CEO Lynette Ortiz said the agreement reflects the government’s commitment to honoring its financial obligations and maintaining credible public-private partnerships in the transport sector.
Under the agreement, LANDBANK will provide financing to partially cover the amount owed by the DOTr and LRTA to LRMC.
The move is seen as significant for thousands of daily LRT-1 passengers, as it aims to support more efficient, commuter-focused, and safer rail services while strengthening cooperation between the government and private operators.
