In a bid to improve public transportation services and enhance commuter convenience, the Philippine government is set to implement a public-private partnership (PPP) scheme for the rehabilitation and modernization of two major rail systems: Light Rail Transit (LRT) Line 2 and Metro Rail Transit (MRT) Line 3.
Department of Transportation (DOTr) Secretary Vince Dizon announced during a Palace press briefing that preparations for the PPP tender process for LRT-2 are underway, with bidding expected to begin within the year. The initiative is being developed with technical and advisory support from the International Finance Corporation (IFC) of the World Bank.
“We plan to launch the PPP process for LRT-2 by next year, and with IFC’s guidance, we hope to start bidding activities within 2025,” said Secretary Dizon.
A separate PPP initiative is also in progress for MRT-3, with the Asian Development Bank (ADB) serving as the government’s partner and adviser. While no specific timeline was provided, Dizon emphasized that both rail systems are prioritized for modernization under the PPP framework.
President Ferdinand R. Marcos Jr. has given full approval for the inclusion of both LRT-2 and MRT-3 in the PPP program, highlighting the administration’s commitment to leveraging private sector expertise to deliver better services to the Filipino people.
“President Marcos strongly supports the use of PPPs, especially in infrastructure operations and maintenance. We believe this approach will bring more efficient and reliable services to our commuters,” Dizon added.
The aging infrastructure of the rail lines has led to recurring service issues. Secretary Dizon noted that partnering with private operators will allow faster repairs, better maintenance, and long-term improvements that are difficult to achieve under current government budget and procurement constraints.
“The recent disruption on LRT-2 is a reminder of the urgent need for a sustainable solution. With private sector involvement, we can avoid such interruptions and ensure consistent, high-quality service,” he said.
Dizon also reassured the public that existing government-subsidized programs such as the Pamilya Pass 1+3 and the 50% discount for students will remain in effect even after the transition to PPP operations. Any fare adjustments under the new arrangements will remain subject to government regulation.
LRT Line 2 runs from Masinag in Antipolo to Recto in Manila, while MRT Line 3 stretches from North Avenue in Quezon City to Taft Avenue in Pasay City. LRT Line 1, which currently operates under a PPP scheme, runs from Dr. A. Santos Avenue in Parañaque to Fernando Poe Jr. station in Quezon City.
The government aims to replicate the success of the LRT-1 PPP model in modernizing and expanding the country’s mass transit network.
