The Light Rail Transit Authority (LRTA) is seeking a P3 billion loan from the Land Bank of the Philippines (LandBank) to settle most of its remaining financial obligations, estimated at about P4 billion, to Light Rail Manila Corp., the private concessionaire of LRT-1.
LRTA Administrator Hernando Cabrera said the government’s outstanding balance covers structural rehabilitation costs and accumulated fare deficits under the LRT-1 concession agreement.
The agency has so far paid roughly P900 million, including P499 million for structural works, P409 million for fare shortfall, and P22 million for right-of-way (RoW) clearing.
“The remaining balance is still around P4 billion, of which about P3 billion is fare deficit. We are applying for a P3-billion loan from LandBank to settle these and cover other outstanding debts,” Cabrera said in Filipino.
LRMC has operated LRT-1 since 2015 under a 32-year concession that allows fare adjustments every two years. In April, the Department of Transportation approved LRMC’s request for fare adjustments, though at rates lower than what the operator had proposed.
Cabrera said the LRTA is also prioritizing RoW acquisition for the remaining segments of the LRT-1 Cavite Extension, noting that construction cannot advance until all affected properties are cleared and formally turned over to the concessionaire.
See full story here —> https://tinyurl.com/muxfup4x
Other links:
—> https://www.bworldonline.com/corporate/2026/02/23/732063/lrta-seeks-p3-billion-loan-to-settle-lrmc-obligations/
—> https://www.manilatimes.net/2026/02/23/business/top-business/lrta-to-borrow-p3b-to-settle-debt-to-lrmc/2282563
—> https://www.philstar.com/business/2026/02/23/2509714/lrta-borrowing-p3-billion-pay-lrt-1-obligations