 | |
| Overview | |
|---|---|
| Franchise | LRT Line 1 |
| Stations operated | 25 |
| Locale | Metro Manila |
| Dates of operation | September 12, 2015 (2015-09-12)–present |
| Other | |
| Company | |
| Company type | Private |
| Founded | July 22, 2014; 11 years ago (2014-07-22) |
| Headquarters | Engineering Building, LRTA Compound,Andrews Avenue,Pasay,Metro Manila,Philippines |
Key people |
|
| Website | lrmc |
Light Rail Manila Corporation (LRMC) is a rail service company based inPasay,Metro Manila, Philippines. It is a consortium of companies engaged in the operation and maintenance of theManila Light Rail Transit System Line 1 (Line 1) since September 2015. The consortium is composed ofMetro Pacific Investments Corporation,Sumitomo Corporation's Metro Pacific Light Rail Corp. (MPLRC); AC Infrastructure Holdings Corp. (a subsidiary ofAyala Corporation) through an intermediate entity Light Rail Manila Holdings, Inc.;[2] andMacquarie Infrastructure Holdings (Philippines) Pte. Ltd.[3][4]
The privatization of the entire maintenance and operation of the Manila Light Rail Transit Line 1 was the first infrastructure project under the Public-Private Partnership (PPP) program of theBenigno Aquino III administration announced by theDepartment of Transportation in May 2011. The project's objectives were to attract billions of pesos of investments from the private sector in order to improve the system's severely deteriorated condition, as well as to relieve the government of its obligation to spend more than₱7 billion in annual subsidies just to keep the fares within reach of commuters.[5]
In 2012, an extension of the LRT Line 1 to Cavite was announced. The project also includes an operations and maintenance contract.[6] The project was approved by former PresidentBenigno Aquino III in March 2012.[7] Meanwhile, the bidding for the project started on June 4, 2012.[8]
On April 24, 2012,Metro Pacific Investments Corporation (MPIC) andAyala Corporation launched a partnership after both companies signed a memorandum of understanding.[9]
In November 2012, the consortium was cleared to proceed with the bidding process along with three other companies.[10] However, in 2013, the three other companies withdrew from the bidding. In August 2013, Ayala Corporation also dropped out of the consortium, leaving Metro Pacific as the lone bidder.[11] MPIC's bid was later declared as non-compliant, causing the bidding process to fail.[12]
The consortium once again submitted a bid on May 28, 2014.[13] Despite public opposition that the privatization may result in an increase in fares for the LRT Line 1,[14] on September 12, 2014, theDepartment of Transportation and Communications and theLight Rail Transit Authority awarded the project to the consortium.[15] The concession agreement was signed on October 2,[16] and the consortium took over the Line 1 operations on September 12, 2015.[4][3][17] Under the₱65 billion 32-year concession agreement with the Department of Transportation and Light Rail Transit Authority, the company is mandated to carry out the rehabilitation of Line 1 as well as to provide120 new train coaches to the system.[4] The concession also includes the₱35 billion South Extension Project or Cavite Extension Project of the Line 1 toNiog station inCavite which officially begun construction on May 7, 2019, after several years of delay due to right-of-way issues, as well as the north extension to theNorth Avenue Grand Central station inQuezon City whose exact location was settled in 2016 and which broke ground in September 2017.[3][18][19]
Light Rail Manila Corporation's parent companies Metro Pacific Investments Corporation and Ayala Corporation have earlier been awarded the tap-and-go fare payment system project for all three rail transit lines in Metro Manila, theBeep smart card rolled out in July 2015 through another joint venture in AF Payments Inc. (another Ayala company[2]), as well as theautomated fare collection system project which was rolled out in December 2015.[4] The parent companies also proposed a bid for the operations and maintenance of theLRT Line 2, and the₱171 billion North–South Railway Project of thePhilippine National Railways which included the rehabilitation and operation of the 478-kilometer (297 mi) railway.[4] The Line 2 privatization would later be shelved, while the North–South Railway Project would later be funded by foreign loans as two separate projects: theNorth–South Commuter Railway and thePNR South Long Haul.
On May 29, 2020,Sumitomo Corporation acquired a 34.9% stake in the subsidiary of Metro Pacific Investments Corporation that holds an effective 55 percent stake in Light Rail Manila Corporation (LRMC).[20]
On April 21, 2021, the company signed amemorandum of understanding with the Metals Industry Research and Development Center of theDepartment of Science and Technology for the repair of the LRT Line 1 trains, and the re-engineering, fabrication, and repair of train parts that are obsolete and/or no longer available in the market.[21]
On April 25, 2024, theJapan International Cooperation Agency (JICA) andHankyu entered into an agreement with Sumitomo to collaborate on the operation and maintenance of the LRT Line 1. As part of the agreement, a part of shares indirectly held by Sumitomo in LRMC was transferred to JICA and Hankyu.[22][23] The agreement is Hankyu and JICA’s first investment in railway operation and maintenance business outside of Japan.
Before the entry of Sumitomo,Metro Pacific Investments had a 55% ownership in the company whileAyala Corporation had a 35% interest. The remaining 10% of the company is owned byMacquarie Infrastructure Holdings (Philippines).[24] After the entry of Sumitomo Corporation, which bought 34.9% of Metro Pacific's interest, Metro Pacific sold its economic interest of 19.2% in its concession,[25] reducing MPIC's stake to 35.8%. MPIC plans to increase its economic interest in the company after the2022 Philippine presidential election.[26] A part of Sumitomo's shares was acquired by theJapan International Cooperation Agency (JICA) andHankyu in April 2024.[23]