A significant shift in the future of Manila’s Light Rail Transit Line 1 (LRT-1) has occurred, as Metro Pacific Investments Corp. (MPIC) has decided to maintain its substantial stake in Light Rail Manila Corp. (LRMC). This decision comes after the government began addressing billions of pesos in outstanding obligations to the LRT-1’s private operator, alleviating concerns about escalating financial losses.
The change of heart comes from MPIC Chairman Manuel V. Pangilinan, who had previously considered divesting due to persistent losses and a slow recovery in passenger numbers following the pandemic. However, recent government action, specifically a P3-billion loan secured by the Light Rail Transit Authority (LRTA) from Land Bank, has demonstrably shifted his perspective.
LRMC President and CEO Enrico R. Benipayo confirmed Pangilinan’s decision, stating he is “happy with the actions of the government.” The loan is intended to partially cover approximately P4 billion in obligations to LRMC, with a significant portion – around P3 billion – representing overdue fare deficit payments.
The LRTA has already disbursed P926 million to LRMC, signaling a commitment to resolving the financial imbalances. This is a crucial step, as a previously approved fare increase in April 2025 was implemented at a rate lower than LRMC requested, creating a deficit of roughly P2.17 billion.
Positive momentum is building on the rail line itself. The recent opening of the Cavite Extension Phase 1, adding five new stations, coupled with ongoing system upgrades, is attracting riders back to the LRT-1. Daily ridership has climbed to approximately 440,000 passengers.
This figure is remarkably close to pre-pandemic levels of around 450,000 daily riders in 2019. LRMC anticipates reaching that previous benchmark by the end of the year, a significant improvement from the 350,000 to 370,000 passengers recorded in 2023 and the 323,000 in November 2024 before the extension opened.
LRMC assumed operational and maintenance responsibilities for LRT-1 in September 2015, operating under a 32-year concession agreement valued at P65 billion with the LRTA and the Department of Transportation. The agreement allows for fare adjustment petitions every two years, a key component of the financial viability of the operation.
MPIC holds a 35.8% stake in LRMC through Metro Pacific Light Rail Corp., alongside partners Sumitomo Corp. and Macquarie Investments Holdings (Philippines) Pte. Ltd. This joint venture represents a collaborative effort to modernize and expand Manila’s vital public transportation infrastructure.
MPIC is a cornerstone of First Pacific Co. Ltd.’s Philippine operations, alongside Philex Mining Corp. and PLDT Inc. This decision to remain invested in LRMC underscores a long-term commitment to the Philippines’ infrastructure development and the improvement of urban mobility.
