THE Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) have signed a credit line agreement with state-run LandBank to pay the government’s P3.6 billion contractual obligations to Light Rail Manila Corp. (LRMC), the private operator of LRT-1.
This followed President Ferdinand Marcos Jr.’s order for the DOTr to settle its debts with the private concessionaire.
Transportation Secretary Giovanni Lopez said the credit line agreement with LandBank will enable the 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,” Lopez said.
“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,” LandBank President and CEO Lynette Ortiz said.
Under the agreement, Landbank will provide financing to cover the amount the DOTr needs to partially settle its contractual obligations with LRMC.
Lopez expressed his gratitude to Finance Secretary and LandBank chairman Frederick Go and to Ortiz for facilitating the DOTr with the needed financial resources.
“This agreement is for commuters. Thousands of commuters ride the rail line every day. We owe it to them to provide quality and efficient service and ensure their safety,” Lopez said. TMT
