LRT-2 O&M Auction Slated for Next Year, DoTr Says

The Department of Transportation (DoTr) said it is hoping to launch the auction for the operations and maintenance (O&M) contract of the Light Rail Transit Line 2 (LRT-2) next year. "Our priority is the North-South Commuter Railway (NSCR) first, after that the Philippine Automated Fare Collection System, then eventually LRT-2 PPP by next year. We will continuously have our PPP projects," Transportation Undersecretary for Railways Timothy John R. Batan told reporters on the sidelines of an event last week. The DoTr is currently conducting market sounding activities to test potential private-sector interest in taking on O&M contracts for LRT-2. In June, the DoTr said several foreign firms have expressed interest in investing in rail projects as the Philippines gains momentum in bringing longstanding plans to fruition. The DoTr has said that it is working with the International Finance Corp. for the planned privatization of LRT-2, which is currently operated and managed by the Light Rail Transit Authority (LRTA). The plan to privatize LRT-2 via public-private partnership aims to increase its ridership and extend its rail line. In the first six months, LRTA said revenue fell 24.84% to P481.90 million, reflecting the impact of fare discounts imposed by the government during the energy emergency. In the six months to June, LRTA carried 31.75 million riders, up 15.29% from a year earlier. The DoTr had ordered a 50% discount on all LRT-2 and Metro Rail Transit fares in the wake of the emergency declaration following the outbreak of fighting in the Persian Gulf. For 2026, the LRTA is projecting fare collections of P1.1 billion on ridership of 60.62 million. The LRTA said daily riders will average about 165,624 passengers. If the LRTA target for the year is realized, the total will exceed the 56.98 million logged in the last full pre-pandemic year of 2019.