The Department of Transportation (DOTr) and Light Rail Transit Authority (LRTA) signed an agreement with Land Bank of the Philippines (LANDBANK) to settle DOTr-LRTA’s P3.6 billion contractual obligations to Light Rail Manila Corporation (LRMC), the private operator of LRT-1.
The three government agencies said the settlement, signed on May 14, 2026, will benefit commuters from LRT-1 line’s better and improved service. President Ferdinand Marcos Jr. has ordered the DOTr to settle its duties to private concessionaires for the benefit of the passengers and ensure reliable, safe and commuter-centric service.
Under the DOTr-LRTA and LANDBANK agreement, the state-run bank will extend financing to cover the amount needed by the transport agency to partially settle its contractual obligations with LRMC.
Transportation Secretary Banoy Lopez said the credit line agreement (CLA) with LANDBANK will enable the transport agency to honor its financial obligations to LRMC to guarantee continued services for commuters.
“We hope that as we settle our obligation with the private concessionaire, we will see more improvements on their services, including structural upgrades, digitalization, and reliability of the rail line,” Secretary Lopez said.
LANDBANK President and CEO Lynette Ortiz noted that the agreement underscores the National Government’s commitment to honoring its obligations and strengthening public-private partnerships in the transport sector.
“This loan facility represents a deliberate action by the National Government, through the LRTA and the DOTr, to fulfill its commitments and maintain strong and credible partnerships with its development partners” President and CEO Ortiz said.
Secretary Lopez expressed his gratitude to Finance Secretary and LANDBANK Chairman Frederick Go and to President Ortiz for providing the DOTr the needed financial resources, which he said will foster good relationship with the LRMC.
“Itong kasunduang ito ay para sa commuters. Thousands of commuters ride the rail line everyday. So we owe it to our commuters to provide them with quality and efficient service at masiguro ang kanilang kaligtasan,” Secretary Lopez said.
