The Department of Transportation (DOTr) has obtained presidential approval for its plan to bid out the operations and maintenance of Light Rail Transit Line 2 (LRT-2) through a Public-Private Partnership (PPP) deal by 2026.
DOTr Secretary Vince Dizon said this undertaking will be supported by the International Finance Corporation (IFC), the World Bank’s financing arm.
In a press briefing at Malacañang, Dizon said President Ferdinand Marcos Jr. has approved the PPP model for both LRT-2 and Metro Rail Transit Line 3 (MRT-3), aiming to modernize services and reduce disruptions following recent technical issues.
“Yes, it has already been approved. PPP is one of the president’s most important programs under his infrastructure agenda. He believes—and we also believe—it will lead to improved public service,” said Dizon.
The LRT-2 initiative is part of the administration’s broader infrastructure drive to boost public transport efficiency.
A similar PPP approach is being developed for MRT-3 with assistance from the Asian Development Bank (ADB).
PPP as a privatization model requires a joint undertaking by government and private sector, subject to certain terms and conditions.
Dizon assured commuters that fares will remain affordable, emphasizing that government will maintain regulatory oversight even with private sector involvement.
To ease passenger inconvenience from a June 25 service interruption caused by a rectifier substation issue, DOTr offered two days of free LRT-2 rides.
In coordination with the Philippine Ports Authority, Philippine Coast Guard, and MMDA, free bus services were also deployed between Antipolo and Cubao.
As the 25-year Build-Lease-Transfer (BLT) agreement with MRT-3’s operator, Metro Rail Transit Corp. (MRTC), expires in July 2025, the DOTr is working with ADB and IFC to finalize terms of reference for the upcoming PPP bid that will cover MRT-3’s future operations and maintenance.
