MANILA – The Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) have signed an agreement with the Land Bank of the Philippines (LANDBANK) to settle P3.6 billion in contractual obligations to the Light Rail Manila Corporation (LRMC), the private operator of the Light Rail Transit Line 1 (LRT-1).

In a statement, the DOTr said the agreement signed on May 14, 2026 aims to help improve services along the LRT-1 line for commuters.

The agency said President Ferdinand Marcos Jr. directed the DOTr to fulfill its obligations to private concessionaires to ensure safe, reliable, and commuter-centered transportation services.

Transportation Secretary Banoy Lopez said the credit line agreement with LANDBANK would allow the transport agency to meet its financial obligations to LRMC and support uninterrupted rail operations.

“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.

LANDBANK President and Chief Executive Officer Lynette Ortiz said the agreement reflects the government’s commitment to honoring its obligations and strengthening partnerships with the private sector in the transport industry.

“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 provide financing that will enable the DOTr and LRTA to partially settle their contractual obligations with LRMC.

Lopez also thanked Finance Secretary and LANDBANK Chairman Frederick Go, as well as Ortiz, for extending financial support to the transport agency.

“Itong kasunduang ito ay para sa commuters. Thousands of commuters ride the rail line everyday. So we owe it to our commuters to provide them with quality and efficient service at masiguro ang kanilang kaligtasan,” Lopez said.