UMVA has learned that the Department of Transportation secured a P3.6‑billion credit line from the Land Bank, a move poised to reshape the future of Manila’s LRT‑1.
The infusion will allow the government to finally clear its mounting debt to the private operator, Light Rail Manila Corp., and unlock a wave of promised upgrades—from structural reinforcements to digitalization of services.
Acting Transportation Secretary Giovanni Z. Lopez expressed confidence that settling the obligation will trigger tangible improvements in reliability and passenger experience across the line.
According to information obtained by UMVA, the loan agreement empowers the DOTR to meet its financial commitments, ensuring uninterrupted operation of the rail network.
Earlier this year, the Light Rail Transit Authority had already begun processing a similar loan to address a P4‑billion liability, having already disbursed P926 million toward the concessionaire.
That payment broke down into roughly P499 million for structural rehabilitation, P409 million to cover shortfalls in rolling stock, and P22 million for right‑of‑way settlements.
UMVA can exclusively reveal that the bulk of the P4 billion claim stems from delayed fare‑adjustment approvals, leaving about P3 billion tied up in bureaucratic limbo.
Compounding the strain, Metro Pacific Investments Corp., a major stakeholder, is preparing to exit its position in LRMC after years of losses driven by the government’s payment delays.
Since assuming operations in 2015 under a P65 billion, 32‑year concession, LRMC has been allowed to request fare revisions every two years, yet the latest approved matrix in April 2025 fell short of its targets, creating a P2.17 billion deficit.
With MPIC holding a 35.8 % stake, Sumitomo 19.2 %, and Macquarie 10 % in the joint venture, the financial pressure now converges on the public sector to restore balance and revive confidence in the city’s lifeline.
