LRT-1 concession changes receive $1 million in advisory support
The advisory work will assess proposed amendments and assist Philippine transport authorities in negotiations with Light Rail Manila Corp.
The Philippines’ Project Development and Monitoring Facility (PDMF) Committee has authorised $1 million to fund advisory work on restructuring the LRT-1 extension operations and management concession, the Public-Private Partnership (PPP) Center said.
Advisers will examine proposed changes to the agreement and assist negotiations involving the Department of Transportation, Light Rail Transit Authority and private proponent Light Rail Manila Corp. (LRMC). The centre said the aim is a revised contract that is financially sustainable, legally sound and compliant with the law.
The assistance is to be paid for under a 50-50 arrangement between LRMC and the implementing agencies, conditional on final engagement terms and a Trust Agreement being signed with the PPP Center. Support will be provided through the PDMF, which the centre manages as a revolving fund for PPP development and implementation.
The concession includes running the railway and financing, designing and building its South Extension. In July, the Economy and Development Council, chaired by President Marcos, authorised changes to include construction of a common station linking Metro Manila’s railways.
Average daily ridership on LRT-1 was above 440,000 passengers as of February. The completed South Extension is expected to accommodate another 300,000 passengers daily and help reduce congestion in Parañaque, Las Piñas and Bacoor.
