The Department of Transportation (DOTr) provided firm assurance to the public that operations of the Light Rail Transit Line 1 (LRT-1) will remain uninterrupted, following reports of Metro Pacific Investments Corp. (MPIC) reassessing its stake in the Light Rail Manila Corporation (LRMC), the private concessionaire of the rail line.
In a statement, Transportation Secretary Giovanni Lopez acknowledged MPIC’s decision as a “management prerogative” but emphasized that the government has strong regulatory safeguards in place to ensure the continuity and quality of service.
Secretary Lopez stressed that the Concession Agreement mandates that any transfer of MPIC’s interest to a third party requires the “written prior consent of the Department or the government.”
“Kasi magbabago ang mga parties, and this is a contract imbued with public interest,” the Secretary said. “Should there be a new participant in the consortium, that company will be subject to a rigorous prior review by the DOTr to determine if it has the necessary financial capacity and operational expertise to manage this vital transport system.”
Secretary Lopez also highlighted the DOTr’s active effort to uphold its end of the contractual agreement, particularly concerning financial obligations.
“We have begun to pay the undisputed payments that the government owes, having already remitted over P400 million. Hopefully, before the end of this year, we can complete the payment of P1 billion,” Secretary Lopez stated.
He further noted that the automatic biennial fare hikes stipulated in the concession agreement—which were not granted to LRMC from 2016 to 2020—have since been approved in 2022 and 2024, demonstrating the government’s move toward honoring the contract terms.
The Transportation Chief reiterated that the core mission of both the DOTr and the LRMC is the provision of efficient, comfortable, and safe railway service to commuters.
“These kinds of contracts are imbued with public interest. This means that the quality of service to the people must be upheld, if not placed on equal footing with profitability. We are confident that LRMC is aware of these fundamental principles,” he added.
The DOTr and LRMC are currently engaged in active discussions to resolve all payment matters. Secretary Lopez remains optimistic that both parties will reach an agreement that ultimately benefits the daily commuters of LRT-1.
