Manila: The Department of Transportation (DOTr) has signed an agreement with the Land Bank of the Philippines (LandBank) to help settle a PHP3.6-billion contractual obligation to Light Rail Manila Corporation (LRMC), the private operator of the Light Rail Transit Line 1 (LRT-1).

According to Philippines News Agency, DOTr acting Secretary Giovanni 'Banoy' Lopez announced that the agreement aims to address the contractual obligations of the DOTr-Light Railway Transit Authority (LRTA) to LRMC. This move aligns with President Ferdinand R. Marcos Jr.'s directive to settle outstanding duties with private concessionaires. The agreement with LandBank includes a credit line that will facilitate partial payments to the LRT-1's private operator.

Lopez expressed hope that fulfilling this obligation would lead to improvements in LRMC's services, encompassing structural upgrades, digitalization, and enhanced reliability of the rail line. He extended gratitude to Finance Secretary and LandBank Chair Frederick Go for providing the financial resources necessary to strengthen the relationship with LRMC. Lopez emphasized the agreement's significance for commuters, noting that thousands rely on the rail line daily for quality and efficient service.

The agreement was formalized by DOTr and LandBank executives on May 14. During the signing ceremony, LandBank president and chief executive officer Lynette Ortiz underscored the national government's commitment to honoring obligations and fortifying public-private partnerships within the transportation sector. Ortiz highlighted that the loan facility represents a concerted effort by the national government, through the LRTA and DOTr, to fulfill commitments and maintain robust partnerships with development partners.