LRTA seeks P3-billion loan to settle LRMC obligations
THE Light Rail Transit Authority (LRTA) is seeking a P3-billion loan from the Land Bank of the Philippines (LANDBANK) to settle the government’s P4-billion obligations to the Light Rail Manila Corp. (LRMC), the concessionaire operating Light Rail Transit Line 1 (LRT-1).
“We are processing a loan. We applied for a P3-billion loan from LANDBANK. This will be used to pay our obligation with them (LRMC),” LRTA Administrator Hernando T. Cabrera told reporters on the sidelines of LRMC’s 10th anniversary last week.
The government, through the LRTA, has already paid P926 million to LRMC, Mr. Cabrera said, adding that it plans to settle the remaining obligations through the loan.
LRTA filed for the loan from LANDBANK last year, Mr. Cabrera said, noting that the application is still awaiting approval.
“We will comply with our contractual obligations. Precisely, using some savings of the LRTA and some support from the National Government, we have already paid some of the government’s obligation. The government has already paid P926 million,” he said.
Of the more than P900 million already paid, about P499 million went to structural rehabilitation, P409 million to light rail vehicle (LRV) shortfall payments, and about P22 million for right-of-way acquisition settlements.
Metro Pacific Investments Corp. (MPIC) earlier said it was planning to divest its stake in LRMC due to mounting losses, which are mainly attributed to the government’s delayed payments.
The Department of Transportation (DoTr) has said it is exploring ways to settle the government’s obligations to LRMC.
Of LRMC’s P4-billion claims, about P3 billion represents fare deficits, Mr. Cabrera said.
LRMC assumed operations and maintenance of LRT-1 in September 2015 under a P65-billion, 32-year concession agreement with the LRTA and DoTr.
Under the agreement, the operator may seek a fare adjustment once every two years. In April 2025, the Transportation department approved LRMC’s petition for fare adjustments, though the new fare matrix remains below the company’s requested rates, resulting in a fare deficit of P2.17 billion.
MPIC holds a 35.8% stake in LRMC through its unit, Metro Pacific Light Rail Corp., while Sumitomo Corp. owns 19.2% and Macquarie Investments Holdings (Philippines) Pte. Ltd. holds 10%. LRMC is a joint venture company of MPIC, AC Infrastructure Holdings Corp. (a unit of Ayala Corp.), Sumitomo, and Macquarie Investments Holdings.
Last week, LRMC said it is confident it will surpass pre-pandemic ridership levels by the end of the year, driven by new stations and ongoing improvements.
Incorporated on July 22, 2014, LRMC develops, constructs, operates, maintains, and invests in railways and other public transport systems.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of MediaQuest Holdings under the PLDT Beneficial Trust Fund, has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
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