DOTr-LRTA, LandBank to settle unpaid obligations to private concessionaire

THE Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) signed a credit line agreement with the Land Bank of the Philippines (LANDBANK) last May 14  to settle P3.6 billion in contractual obligations to Light Rail Manila Corporation (LRMC), the private operator of LRT-1.

This initiative follows a directive from President Ferdinand Marcos Jr. for the DOTr to fulfill its duties to private concessionaires, ensuring reliable, safe, and commuter-centric transit services. 

Under the agreement, the state-run bank will extend the necessary financing to cover the transport agency’s obligations and guarantee uninterrupted train operations for thousands of daily passengers.

Transportation Secretary Banoy Lopez expressed optimism that settling this debt will lead to substantial service enhancements by LRMC, including vital structural upgrades, digitalization, and increased rail reliability. LandBank President and CEO Lynette Ortiz emphasized that the loan facility reflects the National Government’s strict commitment to honoring its public-private partnerships. 

Secretary Lopez ultimately thanked Finance Secretary and LANDBANK Chairman Frederick Go, along with CEO Ortiz, noting that the agreement ensures the riding public receives the quality, efficient, and safe transport service they deserve.