DOTr-LRTA to settle P3.6B contract obligations to LRT-1 private operator

The Department of Transportation-Light Rail Transit Authority (DOTr-LRTA) will be settling its contractual obligations amounting to P3.6 billion to LRT-1 private operator Light Rail Manila Corp. (LRMC) through Land Bank of the Philippines’ credit facility.

In a news release on Tuesday, the DOTr-LRTA said it signed the credit line agreement (CLA) with Landbank on May 14, 2026.

“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,” said Transportation Secretary Giovanni Lopez.

Under the CLA, the state-run bank will extend financing to DOTr-LRTA to settle its contractual obligations with LRMC.

The credit facility deal with Landbank was in line with President Ferdinand Marcos Jr.’s order for the Transportation Department to settle its duties to private concessionaires for the benefit of the passengers and ensure reliable, safe and commuter-centric service.

“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,” said Landbank president and CEO Lynette Ortiz. — BAP, GMA News