Gov’t secures P3.6B LandBank loan to settle LRT-1 arrears

Gov’t secures P3.6B LandBank loan to settle LRT-1 arrears

BILYONARYO.COM

32 minutes ago

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Land Bank of the Philippines has extended a bridge loan to help settle P3.6 billion in unpaid government liabilities to the private operator of Light Rail Transit Line 1 (LRT-1).

The Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) signed the credit agreement with Landbank on May 14 to cover long standing arrears owed to Light Rail Manila Corp (LRMC), which is jointly owned by Metro Pacific Light Rail Corp., AC Infrastructure Holdings, Sumitomo Corp. and Macquarie Investments Holdings.

The funding support follows a directive from President Ferdinand Marcos Jr. to clear overdue government commitments to private contractors in a bid to strengthen investor confidence in the country’s public-private partnership (PPP) program.

“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.

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With the liabilities being settled, the government said it expects immediate service improvements and operational upgrades from the concessionaire, which operates one of Metro Manila’s busiest commuter rail lines.

“We hope that as we settle our obligation with the concessionaire, we will see more improvements in services, including structural upgrades, digitalization, and reliability of the rail line,” Transportation Secretary Vince Dizon said.

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“Itong kasunduang ito ay para sa commuters. Thousands of commuters ride the rail line every day. So we owe it to our commuters to provide them with quality and efficient service at masiguro ang kanilang kaligtasan,” Dizon added, crediting Finance Secretary and Landbank chairman Frederick Go for helping unlock the funding.

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