Government OKs $1 million funding for LRT-1 O&M PPP advisory

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November 2, 2026 | 12:00am

MANILA, Philippines — The Project Development and Monitoring Facility (PDMF) Committee has approved $1 million in advisory support for the restructuring of the Light Rail Transit Line 1 (LRT-1) extension operations and management (O&M) project concession agreement.

In a statement, the Public-Private Partnership (PPP) Center said that the transaction advisory services support for the Department of Transportation (DOTr)’s LRT-1 extension O&M project will come from the PDMF.

Managed by the PPP Center, the PDMF is a revolving fund available to implementing agencies for the preparation of business cases, pre-feasibility and feasibility studies, tender documents, transaction advisory services and other PPP project development and implementation activities.

Applications for PDMF support are approved by the committee chaired by the Department of Economy, Planning and Development and composed of the Department of Finance, Department of Budget and Management and the PPP Center.

The PDMF support will be used for transaction advisory services to implement the approved project restructuring of the LRT-1 extension O&M project concession agreement.

The advisory services will cover an evaluation of the proposed amendments to the concession agreement and assistance in the DOTr and Light Rail Transit Authority’s negotiations with private proponent, Light Rail Manila Corp. (LRMC).

Through the advisory services, the goal is to ensure the revised contract is financially sustainable, legally sound and consistent with laws.

A 50-50 cost-sharing arrangement for the payment of assistance will be handled by the LRMC and implementing agencies, subject to the final terms of the engagement and signing of a Trust Agreement with the PPP Center.

The LRT-1 extension O&M project covers the operations of the rail system, as well as the financing, design and construction of the South Extension.

Last July, the Economy and Development Council chaired by President Marcos approved changes in the LRT-1 South Extension project to include construction of the common station that will link Metro Manila’s railways.

Earlier, the DOTr terminated the contract with the joint venture of BF Corp. and Foresight Development and Surveying Co. for the common station due to delays.

LRMC, which manages the LRT-1, is a joint venture of Metro Pacific Investments Corp.’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., Sumitomo Corp. and the Philippine Investment Alliance for Infrastructure’s Macquarie Investments Holdings (Philippines) PTE Ltd.

As of February this year, the LRT-1 recorded an average daily ridership of over 440,000 passengers.

Once the South Extension is completed, the LRT-1 is expected to serve an additional 300,000 passengers daily, and help ease congestion in Parañaque and Las Piñas in Metro Manila and Bacoor in Cavite.