The Department of Transportation and Light Rail Transit Authority signed a credit line agreement with Land Bank of the Philippines on May 14, 2026 to settle P3.6 billion in contractual obligations owed to Light Rail Manila Corporation, the private operator of LRT-1.

The agreement is expected to pave the way for improved services along the LRT-1 line, benefiting thousands of daily commuters through enhanced reliability, safety, and operational efficiency.

Transportation Secretary Banoy Lopez said the financing agreement with LANDBANK will allow the transport agency to fulfill its financial commitments to LRMC and help ensure uninterrupted rail operations.

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

Lynette Ortiz said the agreement reflects the National Government’s commitment to honoring its obligations and strengthening public-private partnerships in the transport sector.

“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,” Ortiz said.

Under the agreement, LANDBANK will extend financing to partially cover the amount needed by the DOTr and LRTA to settle their contractual obligations with LRMC.

Lopez also thanked Finance Secretary and LANDBANK Chairman Frederick Go and Ortiz for providing the financial support needed to sustain cooperation with LRMC.

The transport chief emphasized that the agreement ultimately aims to improve commuter experience and ensure safer, more efficient public transportation services.

The initiative follows the directive of President Ferdinand Marcos Jr. for the DOTr to fulfill its obligations to private concessionaires and strengthen commuter-centered transport systems nationwide.